Key Takeaways
- Deere & Company reported second-quarter FY2025 net income of $1.804 billion, down 24% year-over-year.
- Net income for the first six months of FY2025 dropped to $2.673 billion, a 35% decline compared to the prior-year period.
- Global net sales and revenues fell 16% in Q2 and 22% year-to-date, primarily due to lower shipment volumes.
- The company forecasts full-year net income in the range of $4.75 billion to $5.50 billion.
- Segment performance showed resilience in Small Agriculture & Turf, while Precision Ag and Construction & Forestry faced sharper declines.
Quarterly and Year-to-Date Financial Overview
Deere & Company (NYSE: DE) reported a challenging second quarter for FY2025, reflecting broader industry softness and lower equipment demand. The company recorded net income of $1.804 billion, or $6.64 per diluted share, for the quarter ended April 27, 2025, compared to $2.370 billion, or $8.53 per share, in Q2 2024.
For the first half of the fiscal year, net income fell to $2.673 billion from $4.121 billion in the prior-year period. Declining demand, global trade dynamics, and shipment volume reductions were cited as key contributing factors.
| Category | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change |
|---|---|---|---|---|---|---|
| Net Sales & Revenues | $12,763M | $15,235M | -16% | $21,272M | $27,420M | -22% |
| Equipment Net Sales | $11,171M | $13,610M | -18% | $17,980M | $24,097M | -25% |
| Net Income | $1,804M | $2,370M | -24% | $2,673M | $4,121M | -35% |
| Earnings Per Share (EPS) | $6.64 | $8.53 | – | $9.82 | $14.74 | – |
“As we navigate the current environment, our customers remain our top priority,” said John May, Chairman and CEO of Deere & Company. “I’m incredibly proud of our team’s execution this quarter despite challenging market dynamics.”
Segment Performance Highlights – Q2 2025
Deere’s core segments posted mixed results. The Small Agriculture & Turf division maintained profitability, while Production & Precision Agriculture and Construction & Forestry experienced substantial declines in both revenue and margin.
| Segment | Net Sales | % Change | Operating Profit | % Change | Operating Margin |
|---|---|---|---|---|---|
| Production & Precision Ag | $5.23B | -21% | $1.15B | -30% | 22.0% |
| Small Agriculture & Turf | $2.99B | -6% | $574M | +1% | 19.2% |
| Construction & Forestry | $2.95B | -23% | $379M | -43% | 12.9% |
| Financial Services (Net Inc.) | – | – | $161M | -1% | – |
Production & Precision Ag saw lower results driven by reduced shipment volumes and negative currency impacts. Small Ag & Turf remained stable, benefiting from favorable cost structures and price realization. Construction & Forestry was hit hardest, with both volumes and price realization contributing to lower profitability.
Industry and Segment Outlook for FY2025
Deere’s updated guidance reflects subdued expectations across all major markets and business segments. The company expects full-year net income to fall between $4.75 billion and $5.50 billion, with softness projected in North American and European demand for both agricultural and construction equipment.
| Region / Market | Outlook FY2025 |
|---|---|
| U.S. & Canada – Large Ag | ↓ ~30% |
| U.S. & Canada – Small Ag & Turf | ↓ 10–15% |
| Europe | ↓ ~5% |
| South America (Tractors/Combines) | Flat |
| Asia | Flat |
| U.S. Construction Equipment | ↓ ~10% |
| Compact Construction Equipment | ↓ ~5% |
| Global Forestry | Flat to ↓ 5% |
| Global Roadbuilding | Flat |
Deere & Company FY2025 Segment Guidance
Deere also provided revenue guidance by segment, incorporating currency and pricing assumptions as of May 13, 2025.
| Segment | Net Sales Forecast | Currency Impact | Price Realization |
|---|---|---|---|
| Production & Precision Ag | Down 15% to 20% | -1.5% | +1.0% |
| Small Ag & Turf | Down 10% to 15% | ~Flat | +0.5% |
| Construction & Forestry | Down 10% to 15% | ~Flat | -1.0% |
| Financial Services | ~$750M Net Income | – | – |
Strategic Commentary From Deere & Company
Deere emphasized its long-term commitment to innovation and domestic investment. CEO John May noted that despite short-term challenges, the company remains focused on strengthening its U.S. footprint, modernizing product lines, and scaling advanced technologies.
“Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions, and manufacturing capabilities,” said May. “Over the next decade, we will continue to make significant investments in our core U.S. market.”
Read the complete financial results here.
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