Deere & Company has recently released its first-quarter financial results for 2025, offering key insights into the current state and future direction of this leading agricultural and construction equipment manufacturer. The report reveals a significant decrease in net income and sales compared to the same period last year, while the company maintains its full-year guidance. This John Deere News update provides a comprehensive overview of the financial performance, segment breakdowns, and the company’s outlook for the remainder of the fiscal year.
Deere & Company’s Q1 2025 Financial Performance Overview
The latest John Deere news centers on the company’s reported net income of $869 million, or $3.19 per share, for the first quarter of 2025. This figure represents a substantial 50% decrease from the $1.75 billion, or $6.23 per share, reported in the first quarter of 2024. Alongside the drop in net income, net sales and revenues also experienced a 30% decline, falling to $8.51 billion from $12.19 billion in the previous year. This downturn is primarily attributed to reduced shipment volumes across all of Deere’s key business segments, reflecting ongoing market challenges in the agricultural and construction sectors.
John C. May, Chairman and CEO of Deere, addressed these results, stating, “Deere’s performance in the first quarter highlights our continued focus on optimizing inventory levels of both new and used equipment amidst the uncertain market conditions our customers are facing. We’re seeing compelling evidence that our efforts are positioning the company to successfully navigate the current environment.” This statement underscores the company’s proactive approach to managing inventory in response to fluctuating market demands.
Segment Performance Breakdown: John Deere News
A closer examination of John Deere news by segment reveals varied performances across the company’s core divisions:
| Segment | Net Sales (Q1 2025) | % Change | Operating Profit (Q1 2025) | % Change |
|---|---|---|---|---|
| Production & Precision Agriculture | $3.07B | -37% | $338M | -68% |
| Small Agriculture & Turf | $1.75B | -28% | $124M | -62% |
| Construction & Forestry | $1.99B | -38% | $65M | -89% |
| Financial Services | N/A | N/A | $230M | +11% |
Production & Precision Agriculture: This segment, a significant part of John Deere news, saw a 37% decrease in net sales and a 68% plunge in operating profit. The sales decline is directly linked to lower shipment volumes, while the profit reduction was further impacted by a less favorable sales mix, although partially mitigated by reduced production costs.
Small Agriculture & Turf: Reflecting broader trends in John Deere news, this segment experienced a 28% drop in sales and a 62% decrease in operating profit. Weaker demand for smaller agricultural and turf equipment contributed to the sales decline, with shipment reductions largely responsible for the profit decrease.
Construction & Forestry: This sector of John Deere news reported a substantial 38% decrease in sales and an 89% decline in operating profit. Lower shipment volumes were a primary driver, compounded by unfavorable pricing and increased expenses.
Financial Services: In contrast to other segments highlighted in John Deere news, Financial Services showed positive growth, with net income increasing by 11% to $230 million. This was primarily due to a decreased valuation allowance on Banco John Deere S.A. However, excluding special items, net income in this segment would have decreased due to higher provisions for credit losses.
2025 Industry & Segment Outlook: John Deere News
Looking ahead, John Deere news includes forecasts for 2025 across various agricultural and construction sectors.
Agriculture & Turf Market Forecasts:
| Region/Category | 2025 Forecast |
|---|---|
| U.S. & Canada – Large Ag | Down ~30% |
| U.S. & Canada – Small Ag & Turf | Down ~10% |
| Europe | Down ~5% |
| South America (Tractors & Combines) | Flat |
| Asia | Down slightly |
Construction & Forestry Market Forecasts:
| Region/Category | 2025 Forecast |
|---|---|
| U.S. & Canada – Construction Equipment | Down ~10% |
| U.S. & Canada – Compact Construction Equipment | Down ~5% |
| Global Forestry | Flat to down 5% |
| Global Roadbuilding | Flat |
Deere’s 2025 Segment Sales Outlook:
| Segment | 2025 Forecast | Currency Impact | Pricing Impact |
|---|---|---|---|
| Production & Precision Ag | Down 15-20% | -2.5% | +1.0% |
| Small Ag & Turf | Down ~10% | -1.5% | +0.5% |
| Construction & Forestry | Down 10-15% | -1.5% | Flat |
| Financial Services Net Income | ~ $750M | N/A | N/A |
Deere & Company’s Fiscal Year 2025 Outlook: Maintaining Guidance Amidst Challenges
Despite the significant declines reported in Q1 2025, a key piece of John Deere news is that the company is maintaining its full-year net income guidance of $5.0 billion to $5.5 billion. This reflects Deere’s confidence in its strategic initiatives and operational resilience. The company cites several factors supporting this outlook:
- Inventory Management Strategies: Deere is actively managing inventory levels to align with market demand and maintain stability.
- Strategic Investments: Continued investment in strategic initiatives is expected to enhance operational efficiency and drive long-term growth.
- Stable Financial Position: Despite the weaker demand environment, Deere’s financial position remains stable, providing a solid foundation for navigating current market conditions.
CEO May concluded on the company’s outlook, “The stability of our net income guidance not only reflects our resilience in a challenging market but also enables our sustained strategic investments to provide better outcomes for our customers.”
For more detailed information, you can read the complete financial results here. Stay connected with us for the latest John Deere news and updates.
