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Jan 26
Deere Q1 2025 Earnings Report
Key Takeaways
Deere & Company reported a significant decline in revenue and net income due to lower shipment volumes across all segments. Despite this, the company remains focused on optimizing inventory and maintaining profitability in a challenging market.
Deere
Deere
Deere Revenue by Segment
Forward Guidance
Deere expects revenue declines across all segments due to lower equipment demand, but cost management efforts should help maintain profitability.
Positive Outlook
- Net income guidance remains stable at $5.0B to $5.5B
- Strategic inventory management supports profitability
- Cost reductions helping offset lower revenue
- Financial services segment remains strong
- Stability in South American tractor and combine market
Challenges Ahead
- Large Ag sector in North America expected to decline ~30%
- Construction equipment sales forecasted to drop ~10%
- Continued pricing pressure on equipment sales
- Uncertainty due to potential trade tariffs
- Higher R&D and SG&A expenses impacting margins
Revenue & Expenses
Visualization of income flow from segment revenue to net income