according to the website - By Tokenist
Deere & Company (NYSE: DE) reported financial results for the third quarter of 2025, reflecting a decline in net income and sales compared to the previous year. Despite challenges in the industry, the company demonstrates strategic management and provides an adjusted forecast for the financial year.
Deere & Company reported a net income of $1.289 billion for the third quarter of 2025, which corresponds to $4.75 per share. This figure is significantly lower than the $1.734 billion, or $6.29 per share, recorded in the same quarter of 2024. The company's net sales and revenue worldwide decreased by 9% to $12.018 billion, with net sales at $10.357 billion. These results fell short of market expectations, which anticipated earnings per share of $4.62 and revenue of $10.25 billion. The decline in sales and revenues can be explained by several factors, including reduced shipment volumes and unfavorable pricing conditions in the 'Production and Precision Agriculture' segment, where net revenue decreased by 16%. The 'Construction and Forestry' segment also saw a decline in net revenue of 5%, primarily due to unfavorable pricing conditions and rising production costs driven by tariffs.
Despite these challenges, John May, Chairman and CEO, emphasized the importance of the company's proactive inventory management and its strategic focus on retail demand. This approach aims to support the market for dealers and customers even in difficult economic conditions. However, the financial services segment showed a positive result, with a 34% increase in net income due to a reduction in the reserve for potential loan losses and the absence of special items from the previous year.
Looking ahead, Deere & Company narrowed its full-year net income forecast to a range of $4.75 billion to $5.25 billion. This adjustment reflects the company's outlook regarding ongoing market uncertainty and the strategic initiatives it has implemented to stimulate future growth. The company is focused on enhancing its technological offerings by providing innovations such as See & Spray and Harvest Settings Automation, aimed at increasing productivity and addressing industry challenges.
Industry growth prospects for the 2025 fiscal year remain cautious, with a downturn expected in key segments. The large agriculture sector in the U.S. and Canada is projected to decline by approximately 30%, while the construction equipment sector is expected to decline by 10%. However, some regions, such as Asia, may experience slight growth, with forecasts indicating potential growth of up to 5%.
The growth prospects for Deere's segments reflect these industry trends: sales in the production and precision agriculture segments are expected to decline by 15–20%. The small agriculture and lawn segment is expected to shrink by about 10%, and the construction and forestry segment by 10–15%. Despite these challenges, Deere remains committed to leveraging its intelligent industrial operating model and Leap strategy to adapt to the current situation and prepare for future success.
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