Deere & Company reported a second quarter net income of \(1.804 billion for the period ended April 27, 2025, reflecting a 24% decrease compared to the \)2.370 billion net income in Q2 2024. Earnings per share (EPS) stood at \(6.64, down from \)8.53 a year earlier. For the first six months, net income was \(2.673 billion, or \)9.82 per share, marking a significant 35% decline compared to the same period in 2024.
Total worldwide net sales and revenues decreased sharply by 16% to \(12.763 billion in Q2 2025 compared to \)15.235 billion in Q2 2024. For the six-month period, the drop was more pronounced at 22%, from \(27.420 billion to \)21.272 billion. The declines were driven primarily by lower shipment volumes and unfavorable sales mix across all product segments, alongside an adverse impact from foreign currency exchange rates.
Segment-wise performance showed the Production and Precision Agriculture segment suffering a 21% sales decline to \(5.230 billion with operating profit dropping 30% to \)1.148 billion. Operating margin contracted from 25.1% in Q2 2024 to 22.0% in Q2 2025. Small Agriculture and Turf saw a 6% sales decline but managed a slight 1% increase in operating profit to \(574 million due to cost controls and price realization, improving operating margin to 19.2%. Construction and Forestry sales dropped by 23% to \)2.947 billion, with operating profit plunging 43% to $379 million, and operating margin shrinking from 17.4% to 12.9%.
Financial Services reported a nearly flat net income of $161 million, despite a less favorable financing spread and higher credit loss provisions, offset by reduced selling, administrative and general expenses as well as valuation adjustments.
Deere’s management broadened its full-year net income forecast range to \(4.75 billion–\)5.50 billion for FY 2025, reflecting the dynamic and uncertain global environment. CEO John May emphasized the company’s commitment to innovation, ongoing investment in advanced products and manufacturing capabilities, and maintaining cost competitiveness, especially within the core U.S. market.
The company continues to be challenged by global import tariffs, economic uncertainty, and currency fluctuations. Outlooks for agriculture and turf markets indicate declines of 10-30% depending on region and segment, while construction and forestry markets are expected to be flat to slightly down globally.
From a financial perspective, Deere’s operating margin declined from approximately 25.97% in Q2 2024 to around 22.0% in Q2 2025 in its key production segment, reflecting lower shipment and price realization pressures. The company exhibited resilience through disciplined execution and cost management, critical in navigating tariff impacts and economic headwinds.
This Q2 2025 report aligns with themes from Deere’s previous earnings calls highlighting supply chain pressures, tariff costs embedded in production, and strategic focus on precision agriculture and construction innovation amidst market volatility.
For details, see the official filing here: Deere 8-K Q2 2025.
Tags: DeereFinancialPerformance, AgriculturalEquipmentMarket, PrecisionAgricultureInnovation, GlobalTradeImpact, TariffsAndManufacturingCosts