John Deere releases fiscal year 2025 results.

Deere & Company ended fiscal year 2025 with net income of US$5,027 billion. This result fell 29% compared to the US$7,1 billion obtained in 2024. Global revenue decreased 12% during the year, to US$45,684 billion, compared to US$51,716 billion in the previous fiscal year. Machine sales declined 13%, to US$38,917 billion.

The annual performance of the segments confirmed the pressure on margins. Production and Precision Agriculture recorded a 17% drop in sales, to US$17,311 billion, and a 41% decrease in operating profit. Small Farming and Gardening fell 7% in sales, to US$10,224 billion, and lost 26% in operating profit. Construction and Forestry fell 12% in sales, to US$11,382 billion, and shrank 49% in operating profit. The financial arm, in turn, increased its annual profit by 25%, to US$1,114 billion, driven by better spreads and lower provisions for credit.

CEO John May stated that the company weathered high costs and uncertainties, but maintained resilience thanks to operational adjustments and a diversified market presence. Deere projects that 2026 will represent the low point of the large agricultural machinery cycle. The company estimates profits between US$4 billion and US$4,75 billion next year. The forecast indicates a further decline in the large machinery segment and moderate growth in small-scale agriculture, gardening, and construction.

The company's projections indicate a decline of between 5% and 10% in sales of Production and Precision Agriculture in 2026. Small-scale Agriculture and Gardening is expected to grow by approximately 10%. Construction and Forestry is also expected to advance by about 10%. For the North American market, the expectation indicates a drop of between 15% and 20% in sales of large agricultural machinery. In other markets, the company predicts stability or small variations, with a notable increase of up to 5% in Europe.