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Apr 27, 2025
Deere Q2 2025 Earnings Report
Deere reported Q2 results with a decline in revenue and net income due to lower shipment volumes across segments.
Key Takeaways
Deere faced a challenging Q2 FY25 with declines in revenue and net income driven by decreased sales across Production & Precision Ag and Construction & Forestry segments. Despite this, Small Ag & Turf maintained stable profitability. The company broadened its full-year net income outlook due to market uncertainty.
Net income for Q2 FY25 was $1.804 billion, down from $2.370 billion last year.
EPS for the quarter was $6.64, compared to $8.53 in Q2 FY24.
Total revenue fell to $12.763 billion, reflecting a 16% year-over-year decrease.
Production & Precision Ag saw a 21% drop in revenue due to lower shipment volumes.
Revenue by Segment
Forward Guidance
Deere forecasts full-year net income in the range of $4.75 to $5.50 billion, adjusting expectations to reflect ongoing global economic and industry uncertainties.
Positive Outlook
- Ongoing investments in U.S. manufacturing and advanced products
- Stable outlook for South America and Asia in agriculture
- Cost competitiveness maintained despite macro headwinds
- Improved pricing partially offsetting volume declines
- Financial Services net income expected around $750 million
Challenges Ahead
- Large Ag market in U.S. & Canada expected to decline ~30%
- Construction equipment sales projected down ~10% in North America
- Global Forestry projected flat to down 5%
- Compact Construction Equipment sales expected down ~5%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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