Deere & Company reported a decline in financial performance for the third quarter and first nine months of fiscal 2025, as detailed in its latest 10-Q filing. For the three months ended July 27, 2025, the company recorded net sales and revenues of $12.018 billion, a decrease of 9% from $13.152 billion in the same period last year. Net income attributable to Deere fell by 26% to $1.289 billion, or $4.76 per diluted share, compared to $1.734 billion, or $6.29 per diluted share, in the prior year. For the nine-month period, revenues dropped 18% to $33.290 billion, with net income declining 32% to $3.962 billion.
The decline in revenue and profitability was attributed to lower sales volumes across all major segments, particularly in production and precision agriculture, small agriculture and turf, and construction and forestry. The company faced challenges from elevated interest rates, trade uncertainties, and increased tariffs, which negatively impacted price realization. Operating profit for the production and precision agriculture segment fell by 50% to $580 million, while the construction and forestry segment saw a 47% drop in operating profit to $237 million.
Strategically, Deere made significant organizational changes, including the deconsolidation of Banco John Deere S.A. (BJD) in February 2025, following a transaction with Banco Bradesco S.A. This move resulted in a 50% ownership stake in BJD, which now operates as an unconsolidated affiliate. The company also made acquisitions totaling $89 million to enhance its technology offerings in the production and precision agriculture and construction segments.
Operationally, Deere's customer engagement metrics reflected a challenging environment, with a decrease in average shares outstanding from 274.5 million to 270.7 million year-over-year. The company reported a cash and cash equivalents balance of $8.580 billion as of July 27, 2025, an increase from $7.324 billion at the end of the previous quarter. However, the overall outlook for fiscal 2025 remains cautious, with expectations of continued lower sales volumes in agriculture and turf equipment due to high interest rates and economic uncertainties. The company anticipates that these factors will persist, impacting demand and profitability in the near term.
About DEERE & CO
Deere & Company manufactures agricultural, construction, forestry, and turf equipment, offering advanced technology solutions, precision farming systems, and sustainable product options. Its core markets include global agriculture, construction, and forestry industries, serving farmers, contractors, and land managers. The company emphasizes innovation, automation, and lifecycle support to enhance productivity, efficiency, and environmental sustainability, leveraging a diversified business model with manufacturing, financial services, and global distribution channels.
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