Press Release: Deere Reports Second Quarter Net Income of $1.804 Billion

Dow Jones
15 May

Deere Reports Second Quarter Net Income of $1.804 Billion

PR Newswire

MOLINE, Ill., May 15, 2025

   -- Disciplined execution drives strong quarterly performance across all 
      segments. 
 
   -- Employees and dealers showcase resilience in supporting customers amidst 
      heightened uncertainty. 
 
   -- Full-year net income range broadened in response to dynamic environment. 

MOLINE, Ill., May 15, 2025 /PRNewswire/ -- Deere & Company reported net income of $1.804 billion for the second quarter ended April 27, 2025, or $6.64 per share, compared with net income of $2.370 billion, or $8.53 per share, for the quarter ended April 28, 2024. For the first six months of the year, net income attributable to Deere & Company was $2.673 billion, or $9.82 per share, compared with $4.121 billion, or $14.74 per share, for the same period last year.

Worldwide net sales and revenues decreased 16 percent, to $12.763 billion, for the second quarter of 2025 and decreased 22 percent, to $21.272 billion, for six months. Net sales were $11.171 billion for the quarter and $17.980 billion for six months, compared with $13.610 billion and $24.097 billion last year, respectively.

"As we navigate the current environment, our customers remain our top priority," said John May, chairman and CEO of John Deere. "I'm incredibly proud of our team's execution this quarter, delivering exceptional performance despite challenging market dynamics. Their dedication and hard work have been instrumental in ensuring our customers continue to receive the high-quality service and products they expect from John Deere."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.50 billion.

"Despite the near-term market challenges, we remain confident in the future," said May. "Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions, and manufacturing capabilities. Over the next decade, we will continue to make significant investments in our core U.S. market, underscoring our dedication to innovation and growth while focusing on remaining cost-competitive in a global market."

 
Deere & 
Company            Second Quarter               Year to Date 
             --------------------------  -------------------------- 
$ in 
millions, 
except per 
share 
amounts       2025     2024    % Change   2025     2024    % Change 
----------   -------  -------  --------  -------  -------  -------- 
Net sales 
 and 
 revenues    $12,763  $15,235     -16 %  $21,272  $27,420     -22 % 
Net income   $ 1,804  $ 2,370     -24 %  $ 2,673  $ 4,121     -35 % 
Fully 
 diluted 
 EPS         $  6.64  $  8.53            $  9.82  $ 14.74 
 

Current period results were affected by special items. See Note 1 of the financial statements for further details. The cost of additional tariffs for each segment is included in the production costs and other items below, partially offsetting year-over-year cost reduction in these categories.

 
Production & Precision Agriculture          Second Quarter 
                                      -------------------------- 
$ in millions                          2025     2024    % Change 
-----------------------------------   -------  -------  -------- 
Net sales                             $ 5,230  $ 6,581     -21 % 
Operating profit                      $ 1,148  $ 1,650     -30 % 
Operating margin                       22.0 %   25.1 % 
 

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes. Operating profit decreased due to lower shipment volumes / sales mix and the unfavorable effects of foreign currency exchange, partially offset by lower production costs and price realization.

 
Small Agriculture & Turf          Second Quarter 
                            -------------------------- 
$ in millions                2025     2024    % Change 
-------------------------   -------  -------  -------- 
Net sales                   $ 2,994  $ 3,185      -6 % 
Operating profit            $   574  $   571       1 % 
Operating margin             19.2 %   17.9 % 
 

Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit held steady as favorable factors including lower production costs, lower warranty expenses, and price realization were offset by lower shipment volumes / sales mix.

 
Construction & Forestry          Second Quarter 
                           -------------------------- 
$ in millions               2025     2024    % Change 
------------------------   -------  -------  -------- 
Net sales                  $ 2,947  $ 3,844     -23 % 
Operating profit           $   379  $   668     -43 % 
Operating margin            12.9 %   17.4 % 
 

Construction and forestry sales decreased for the quarter due to lower shipment volumes. Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable price realization.

 
Financial Services       Second Quarter 
                      -------------------- 
$ in millions         2025  2024  % Change 
-------------------   ----  ----  -------- 
Net income            $161  $162      -1 % 
 

Financial services net income for the quarter was flat due to less-favorable financing spreads and a higher provision for credit losses, offset by lower SA&G expenses and a reduction in derivative valuation adjustments.

 
Industry Outlook for Fiscal 2025 
-----------------------------------            --------------- 
Agriculture & Turf 
U.S. & Canada: 
 Large Ag                                           Down  30% 
 Small Ag & Turf                                   Down 10-15% 
Europe                                               Down  5% 
South America (Tractors & Combines)                       Flat 
Asia                                                      Flat 
 
Construction & Forestry 
U.S. & Canada: 
 Construction Equipment                             Down  10% 
 Compact Construction Equipment                      Down  5% 
Global Forestry                                Flat to down 5% 
Global Roadbuilding                                       Flat 
 

Deere Segment Outlook for Fiscal 2025

The Deere & Company outlook incorporates the impacts from global import tariffs that are in effect as of May 13, 2025. Due to the uncertain global trade environment, the potential impacts of future tariffs are not included in the outlook.

 
                                               Currency       Price 
$ in millions                 Net Sales       Translation  Realization 
------------------------   ----------------   -----------  ----------- 
Production & Precision 
Ag                         Down 15% to 20%      Down 1.5%      Up 1.0% 
Small Ag & Turf            Down 10% to 15%          Flat      Up 0.5% 
Construction & Forestry    Down 10% to 15%          Flat    Down 1.0% 
 
Financial Services             Net Income           $ 750 
 

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the section entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2025," "Deere Segment Outlook for Fiscal 2025," and "Condensed Notes to Interim Consolidated Financial Statements" relating to future events, expectations, forecasted financial and industry results, future investment and trends constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally while others could more heavily affect a particular line of business.

Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:

   -- government policies and actions with respect to the global trade 
      environment including increased and proposed tariffs announced by the 
      U.S. government, any potential retaliatory trade regulations, tariffs and 
      policies and the uncertainty of the company's ability to sell products 
      domestically or internationally, continue production at certain 
      international facilities, procure raw materials and components, 
      accurately forecast demand and inventory, manage increased costs of 
      production, absorb or pass on increased pricing, accurately predict 
      financial results and industry trends, and remain competitive based on 
      these trade actions, policies and general economic uncertainty; 
 
   -- the agricultural business cycle, which can be unpredictable and is 
      affected by factors such as world grain stocks, harvest yields, available 
      farm acres, acreage planted, soil conditions, prices for commodities and 
      livestock, input costs, availability of transport for crops as well as 
      adverse macroeconomic conditions, including unemployment, inflation, 
      interest rate volatility, changes in consumer practices due to slower 
      economic growth or a recession and regional or global liquidity 
      constraints; 
 
   -- higher interest rates and currency fluctuations which could adversely 
      affect the U.S. dollar, customer confidence, access to capital, and 
      demand for the company's products and solutions; 
 
   -- the company's ability to adapt in highly competitive markets, including 
      understanding and meeting customers' changing expectations for products 
      and solutions, including delivery and utilization of precision 
      technology; 
 
   -- housing starts and supply, real estate and housing prices, levels of 
      public and non-residential construction, and infrastructure investment; 
 
   -- political, economic, and social instability of the geographies in which 
      the company operates, including the ongoing war between Russia and 
      Ukraine, the conflict between India and Pakistan, and the conflicts in 
      the Middle East; 
 
   -- worldwide demand for food and different forms of renewable energy 
      impacting the price of farm commodities and consequently the demand for 
      the company's equipment; 
 
   -- investigations, claims, lawsuits, or other legal proceedings, including 
      the lawsuit filed by the Federal Trade Commission $(FTC.UK)$ and the Attorneys 
      General of the States of Arizona, Illinois, Michigan, Minnesota, and 
      Wisconsin alleging that the company unlawfully withheld self-repair 
      capabilities from farmers and independent repair providers; 
 
   -- delays or disruptions in the company's supply chain; 
 
   -- changes in climate patterns, unfavorable weather events, and natural 
      disasters; 
 
   -- availability and price of raw materials, components, and whole goods; 
 
   -- suppliers' and manufacturers' business practices and compliance with 
      applicable laws such as human rights, safety, environmental, and fair 
      wages; 
 
   -- loss of or challenges to intellectual property rights; 
 
   -- rationalization, restructuring, relocation, expansion and/or 
      reconfiguration of manufacturing and warehouse facilities; 
 
   -- the ability to execute business strategies, including the company's Smart 
      Industrial Operating Model and Leap Ambitions; 
 
   -- accurately forecasting customer demand for products and services and 
      adequately managing inventory; 
 
   -- dealer practices and their ability to manage inventory and distribution 
      of the company's products and to provide support and service for 
      precision technology solutions; 
 
   -- the ability to realize anticipated benefits of acquisitions and joint 
      ventures, including challenges with successfully integrating operations 
      and internal control processes; 
 
   -- negative claims or publicity that damage the company's reputation or 
      brand; 
 
   -- the ability to attract, develop, engage, and retain qualified employees; 
 
   -- the impact of workforce reductions on company culture, employee retention 
      and morale, and institutional knowledge; 
 
   -- labor relations and contracts, including work stoppages and other 
      disruptions; 
 
   -- security breaches, cybersecurity attacks, technology failures, and other 
      disruptions to the company's information technology infrastructure and 
      products; 
 
   -- leveraging artificial intelligence and machine learning within the 
      company's business processes; 
 
   -- changes to governmental communications channels (radio frequency 
      technology); 
 
   -- changes to existing laws and regulations, including the implementation of 
      new, more stringent laws, as well as compliance with a variety of U.S., 
      foreign and international laws, regulations, and policies relating to, 
      but not limited to the following: advertising, anti-bribery and 
      anti-corruption, anti-money laundering, antitrust, consumer finance, 
      cybersecurity, data privacy, encryption, environmental (including climate 
      change and engine emissions), farming, health and safety, foreign 
      exchange controls and cash repatriation restrictions, foreign ownership 
      and investment, human rights, import / export and trade, tariffs, labor 
      and employment, product liability, telematics, and telecommunications; 
 
   -- governmental and other actions designed to address climate change in 
      connection with a transition to a lower-carbon economy; and 
 
   -- warranty claims, post-sales repairs or recalls, product liability 
      litigation, and regulatory investigations as a result of the deficient 
      operation of the company's products. 

Further information concerning the company or its businesses, including factors that could materially affect the company's financial results, is included in the company's filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.

 
DEERE & COMPANY 
 SECOND QUARTER 2025 PRESS RELEASE 
 (In millions of dollars) Unaudited 
 
                    Three Months Ended         Six Months Ended 
                 ------------------------  ------------------------- 
                  April    April            April 
                   27       28       %       27     April 28    % 
                  2025     2024    Change   2025      2024    Change 
                 -------  -------  ------  -------  --------  ------ 
Net sales and 
revenues: 
 Production & 
  precision ag 
  net sales      $ 5,230  $ 6,581     -21  $ 8,297  $ 11,430     -27 
 Small ag & 
  turf net 
  sales            2,994    3,185      -6    4,742     5,610     -15 
 Construction & 
  forestry net 
  sales            2,947    3,844     -23    4,941     7,057     -30 
 Financial 
  services 
  revenues         1,385    1,395      -1    2,856     2,770      +3 
 Other revenues      207      230     -10      436       553     -21 
                  ------   ------           ------   ------- 
 Total net 
  sales and 
  revenues       $12,763  $15,235     -16  $21,272  $ 27,420     -22 
                  ======   ======           ======   ======= 
 
Operating 
profit: * 
 Production & 
  precision ag   $ 1,148  $ 1,650     -30  $ 1,486  $  2,695     -45 
 Small ag & 
  turf               574      571      +1      698       897     -22 
 Construction & 
  forestry           379      668     -43      444     1,234     -64 
 Financial 
  services           207      209      -1      473       466      +2 
                  ------   ------           ------   ------- 
 Total 
  operating 
  profit           2,308    3,098     -26    3,101     5,292     -41 
Reconciling 
 items **             35       23     +52      138        49    +182 
Income taxes       (539)    (751)     -28    $(566.SI)$   (1,220)     -54 
                  ------   ------           ------   ------- 
 Net income 
  attributable 
  to Deere & 
  Company        $ 1,804  $ 2,370     -24  $ 2,673  $  4,121     -35 
                  ======   ======           ======   ======= 
 
 
 
*   Operating profit is income from continuing operations before corporate 
    expenses, certain external interest expenses, certain foreign exchange 
    gains and losses, and income taxes. Operating profit of financial services 
    includes the effect of interest expense and foreign exchange gains and 
    losses. 
 
**  Reconciling items are primarily corporate expenses, certain interest 
    income and expenses, certain foreign exchange gains and losses, pension 
    and postretirement benefit costs excluding the service cost component, and 
    net income attributable to noncontrolling interests. 
 
 
DEERE & COMPANY STATEMENTS OF CONSOLIDATED INCOME For the Three 
and Six Months Ended April 27, 2025 and April 28, 2024 (In 
millions of dollars and shares except per share amounts) 
Unaudited 
 
 
                      Three Months Ended      Six Months Ended 
                        2025        2024       2025       2024 
                    ------------  --------  -----------  ------- 
Net Sales and 
Revenues 
Net sales            $    11,171  $ 13,610   $   17,980  $24,097 
Finance and 
 interest income           1,354     1,387        2,807    2,746 
Other income                 238       238          485      577 
                        --------   -------      -------   ------ 
 Total                    12,763    15,235       21,272   27,420 
                        --------   -------      -------   ------ 
 
Costs and 
Expenses 
Cost of sales              7,609     9,157       12,646   16,357 
Research and 
 development 
 expenses                    549       565        1,075    1,098 
Selling, 
 administrative 
 and general 
 expenses                  1,197     1,265        2,169    2,330 
Interest expense             784       836        1,614    1,638 
Other operating 
 expenses                    287       295          536      664 
                        --------   -------      -------   ------ 
 Total                    10,426    12,118       18,040   22,087 
                        --------   -------      -------   ------ 
 
Income of 
 Consolidated 
 Group before 
 Income Taxes              2,337     3,117        3,232    5,333 
Provision for 
 income taxes                539       751          566    1,220 
                        --------   -------      -------   ------ 
 
Income of 
 Consolidated 
 Group                     1,798     2,366        2,666    4,113 
Equity in income 
 of unconsolidated 
 affiliates                    3         2            1        3 
                        --------   -------      -------   ------ 
 
Net Income                 1,801     2,368        2,667    4,116 
 Less: Net loss 
  attributable to 
  noncontrolling 
  interests                  (3)       (2)          (6)      (5) 
                        --------   -------      -------   ------ 
Net Income 
 Attributable to 
 Deere & Company     $     1,804  $  2,370   $    2,673  $ 4,121 
                        ========   =======      =======   ====== 
 
Per Share Data 
Basic                $      6.65  $   8.56   $     9.85  $ 14.80 
Diluted                     6.64      8.53         9.82    14.74 
Dividends declared          1.62      1.47         3.24     2.94 
Dividends paid              1.62      1.47         3.09     2.82 
 
Average Shares 
Outstanding 
Basic                      271.1     276.8        271.3    278.4 
Diluted                    271.8     277.9        272.1    279.5 
 
 
  See Condensed Notes to Interim Consolidated Financial Statements. 
 
 
DEERE & COMPANY 
 CONDENSED CONSOLIDATED BALANCE SHEETS 
 (In millions of dollars) Unaudited 
 
 
                                    April 27   October 27   April 28 
                                      2025        2024        2024 
                                    --------  ------------  -------- 
Assets 
Cash and cash equivalents           $  7,991   $     7,324  $  5,553 
Marketable securities                  1,272         1,154     1,094 
Trade accounts and notes 
 receivable -- net                     6,748         5,326     8,880 
Financing receivables -- net          43,029        44,309    45,278 
Financing receivables securitized 
 -- net                                7,765         8,723     7,262 
Other receivables                      2,975         2,545     2,535 
Equipment on operating leases -- 
 net                                   7,336         7,451     6,965 
Inventories                            7,870         7,093     8,443 
Property and equipment -- net          7,555         7,580     7,034 
Goodwill                               4,094         3,959     3,936 
Other intangible assets -- net           964           999     1,064 
Retirement benefits                    3,133         2,921     3,056 
Deferred income taxes                  2,088         2,086     1,936 
Other assets                           3,483         2,906     2,592 
Assets held for sale                                 2,944 
                                     -------      --------   ------- 
Total Assets                        $106,303   $   107,320  $105,628 
                                     =======      ========   ======= 
 
Liabilities and Stockholders' 
Equity 
 
Liabilities 
Short-term borrowings               $ 15,948   $    13,533  $ 17,699 
Short-term securitization 
 borrowings                            7,562         8,431     6,976 
Accounts payable and accrued 
 expenses                             13,345        14,543    14,609 
Deferred income taxes                    496           478       491 
Long-term borrowings                  42,811        43,229    40,962 
Retirement benefits and other 
 liabilities                           1,763         2,354     2,105 
Liabilities held for sale                            1,827 
                                     -------      --------   ------- 
 Total liabilities                    81,925        84,395    82,842 
                                     -------      --------   ------- 
 
Redeemable noncontrolling interest        83            82        98 
 
Stockholders' Equity 
Total Deere & Company 
 stockholders' equity                 24,287        22,836    22,684 
Noncontrolling interests                   8             7         4 
                                     -------      --------   ------- 
 Total stockholders' equity           24,295        22,843    22,688 
                                     -------      --------   ------- 
Total Liabilities and 
 Stockholders' Equity               $106,303   $   107,320  $105,628 
                                     =======      ========   ======= 
 
 
  See Condensed Notes to Interim Consolidated Financial Statements. 
 
 
DEERE & COMPANY 
 STATEMENTS OF CONSOLIDATED CASH FLOWS 
 For the Six Months Ended April 27, 2025 and April 28, 2024 
 (In millions of dollars) Unaudited 
 
 
                                                    2025       2024 
                                                  ---------  --------- 
Cash Flows from Operating Activities 
Net income                                        $   2,667  $   4,116 
Adjustments to reconcile net income to net cash 
provided by operating activities: 
 Provision for credit losses                            174        131 
 Provision for depreciation and amortization          1,104      1,045 
 Impairments and other adjustments                     (32) 
 Share-based compensation expense                        54        104 
 Provision (credit) for deferred income taxes            11      (120) 
 Changes in assets and liabilities: 
   Receivables related to sales                     (1,069)    (2,469) 
   Inventories                                        (772)      (409) 
   Accounts payable and accrued expenses              (898)    (1,300) 
   Accrued income taxes payable/receivable            (147)       (29) 
   Retirement benefits                                (794)      (208) 
 Other                                                  270         83 
                                                   --------   -------- 
   Net cash provided by operating activities            568        944 
                                                   --------   -------- 
 
Cash Flows from Investing Activities 
Collections of receivables (excluding 
 receivables related to sales)                       14,348     13,703 
Proceeds from maturities and sales of marketable 
 securities                                             245        200 
Proceeds from sales of equipment on operating 
 leases                                               1,001      1,011 
Cost of receivables acquired (excluding 
 receivables related to sales)                     (12,744)   (14,091) 
Purchases of marketable securities                    (347)      (432) 
Purchases of property and equipment                   (555)      (719) 
Cost of equipment on operating leases acquired      (1,254)    (1,369) 
Collections of receivables from unconsolidated 
 affiliates                                             234 
Collateral on derivatives -- net                         27         96 
Other                                                 (176)       (69) 
                                                   --------   -------- 
   Net cash provided by (used for) investing 
    activities                                          779    (1,670) 
                                                   --------   -------- 
 
Cash Flows from Financing Activities 
Net proceeds in short-term borrowings (original 
 maturities three months or less)                       551         58 
Proceeds from borrowings issued (original 
 maturities greater than three months)                5,156     10,189 
Payments of borrowings (original maturities 
 greater than three months)                         (4,837)    (8,139) 
Repurchases of common stock                           (838)    (2,422) 
Dividends paid                                        (843)      (796) 
Other                                                  (10)       (52) 
                                                   --------   -------- 
   Net cash used for financing activities             (821)    (1,162) 
                                                   --------   -------- 
 
Effect of Exchange Rate Changes on Cash, Cash 
 Equivalents, and Restricted Cash                        20        (5) 
                                                   --------   -------- 
 
Net Increase (Decrease) in Cash, Cash 
 Equivalents, and Restricted Cash                       546    (1,893) 
Cash, Cash Equivalents, and Restricted Cash at 
 Beginning of Period                                  7,633      7,620 
                                                   --------   -------- 
Cash, Cash Equivalents, and Restricted Cash at 
 End of Period                                    $   8,179  $   5,727 
                                                   ========   ======== 
 
 
  See Condensed Notes to Interim Consolidated Financial Statements. 
 

DEERE & COMPANY

Condensed Notes to Interim Consolidated Financial Statements

(In millions of dollars) Unaudited

(1) Special Items

Discrete Tax Items

In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.

Banco John Deere S.A.

In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. $(BJD.SI)$. BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market. The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in "Equity in income of unconsolidated affiliates" within the financial services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in "Other assets" and "Other receivables," respectively.

BJD was reclassified as held for sale in the third quarter of 2024. In the first quarter of 2025, a pretax and after-tax gain (reversal of previous losses) of $32 million was recorded in "Selling, administrative and general expenses" and presented in "Impairments and other adjustments" in the statements of consolidated income and consolidated cash flows, respectively, related to a decrease in valuation allowance. No significant gain or loss was recognized upon completion of the transaction. The equity interest in BJD was valued at $362 million at the deconsolidation date.

(2) The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 3 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without financial services. Equipment operations include the company's production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within financial services. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial statements.

 
DEERE & COMPANY 
 (3) SUPPLEMENTAL CONSOLIDATING DATA 
 STATEMENTS OF INCOME 
 For the Three Months Ended April 27, 2025 and April 28, 2024 
 (In millions of dollars) Unaudited 
 
 
                                EQUIPMENT        FINANCIAL 
                                OPERATIONS        SERVICES      ELIMINATIONS     CONSOLIDATED 
--------------------------   ----------------  --------------  --------------  ---------------- 
                              2025     2024     2025    2024    2025    2024    2025     2024 
                             -------  -------  ------  ------  ------  ------  -------  ------- 
Net Sales and Revenues 
Net sales                    $11,171  $13,610                                  $11,171  $13,610 
Finance and interest income      108      129  $1,380  $1,496  $(134)  $(238)    1,354    1,387        (1) 
Other income                     187      198     121      92    (70)    (52)      238      238  (2, 3, 4) 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 Total                        11,466   13,937   1,501   1,588   (204)   (290)   12,763   15,235 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 
Costs and Expenses 
Cost of sales                  7,617    9,164                     (8)     (7)    7,609    9,157        (4) 
Research and 
 development expenses            549      565                                      549      565 
Selling, administrative and 
 general expenses                961    1,007     238     260     (2)     (2)    1,197    1,265        (4) 
Interest expense                  94      114     721     780    (31)    (58)      784      836        (1) 
Interest compensation to 
 Financial Services              103      180                   (103)   (180)                          (1) 
Other operating expenses          12        1     335     337    (60)    (43)      287      295  (3, 4, 5) 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 Total                         9,336   11,031   1,294   1,377   (204)   (290)   10,426   12,118 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 
Income before Income Taxes     2,130    2,906     207     211                    2,337    3,117 
Provision for income taxes       490      700      49      51                      539      751 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 
Income after Income Taxes      1,640    2,206     158     160                    1,798    2,366 
Equity in income of 
 unconsolidated affiliates                          3       2                        3        2 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 
Net Income                     1,640    2,206     161     162                    1,801    2,368 
 Less: Net loss 
  attributable to 
  noncontrolling interests       (3)      (2)                                      (3)      (2) 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
Net Income Attributable to 
 Deere & Company             $ 1,643  $ 2,208  $  161  $  162                  $ 1,804  $ 2,370 
                              ======   ======   =====   =====   =====   =====   ======   ====== 
 
 
 
(1)  Elimination of intercompany interest income and expense. 
(2)  Elimination of equipment operations' margin from inventory transferred to 
     equipment on operating leases. 
(3)  Elimination of income and expenses between equipment operations and 
     financial services related to intercompany guarantees of investments in 
     certain international markets. 
(4)  Elimination of intercompany service revenues and fees. 
(5)  Elimination of financial services' lease depreciation expense related to 
     inventory transferred to equipment on operating leases. 
 
 
DEERE & COMPANY 
 SUPPLEMENTAL CONSOLIDATING DATA (Continued) 
 STATEMENTS OF INCOME 
 For the Six Months Ended April 27, 2025 and April 28, 2024 
 (In millions of dollars) Unaudited 
 
 
                                EQUIPMENT        FINANCIAL 
                                OPERATIONS        SERVICES      ELIMINATIONS     CONSOLIDATED 
--------------------------   ----------------  --------------  --------------  ---------------- 
                              2025     2024     2025    2024    2025    2024    2025     2024 
                             -------  -------  ------  ------  ------  ------  -------  ------- 
Net Sales and Revenues 
Net sales                    $17,980  $24,097                                  $17,980  $24,097 
Finance and interest income      217      285  $2,835  $2,929  $(245)  $(468)    2,807    2,746        (1) 
Other income                     391      487     239     211   (145)   (121)      485      577  (2, 3, 4) 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 Total                        18,588   24,869   3,074   3,140   (390)   (589)   21,272   27,420 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 
Costs and Expenses 
Cost of sales                 12,662   16,371                    (16)    (14)   12,646   16,357        (4) 
Research and 
 development expenses          1,075    1,098                                    1,075    1,098 
Selling, administrative and 
 general expenses              1,761    1,882     412     453     (4)     (5)    2,169    2,330        (4) 
Interest expense                 178      223   1,487   1,542    (51)   (127)    1,614    1,638        (1) 
Interest compensation to 
 Financial Services              194      341                   (194)   (341)                          (1) 
Other operating expenses        (38)       91     699     675   (125)   (102)      536      664  (3, 4, 5) 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 Total                        15,832   20,006   2,598   2,670   (390)   (589)   18,040   22,087 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 
Income before Income Taxes     2,756    4,863     476     470                    3,232    5,333 
Provision for income taxes       477    1,117      89     103                      566    1,220 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 
Income after Income Taxes      2,279    3,746     387     367                    2,666    4,113 
Equity in income (loss) of 
 unconsolidated affiliates       (3)                4       3                        1        3 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
 
Net Income                     2,276    3,746     391     370                    2,667    4,116 
 Less: Net loss 
  attributable to 
  noncontrolling interests       (6)      (5)                                      (6)      (5) 
                              ------   ------   -----   -----   -----   -----   ------   ------ 
Net Income Attributable to 
 Deere & Company             $ 2,282  $ 3,751  $  391  $  370                  $ 2,673  $ 4,121 
                              ======   ======   =====   =====   =====   =====   ======   ====== 
 
 
 
(1)  Elimination of intercompany interest income and expense. 
(2)  Elimination of equipment operations' margin from inventory transferred to 
     equipment on operating leases. 
(3)  Elimination of income and expenses between equipment operations and 
     financial services related to intercompany guarantees of investments in 
     certain international markets. 
(4)  Elimination of intercompany service revenues and fees. 
(5)  Elimination of financial services' lease depreciation expense related to 
     inventory transferred to equipment on operating leases. 
 
 
DEERE & COMPANY 
 SUPPLEMENTAL CONSOLIDATING DATA (Continued) 
 CONDENSED BALANCE SHEETS 
 (In millions of dollars) Unaudited 
 
 
                                 EQUIPMENT                    FINANCIAL 
                                 OPERATIONS                   SERVICES                   ELIMINATIONS                  CONSOLIDATED 
---------------------   ----------------------------  -------------------------  ----------------------------  ---------------------------- 
                         Apr 27    Oct 27    Apr 28   Apr 27   Oct 27   Apr 28    Apr 27    Oct 27    Apr 28    Apr 27    Oct 27    Apr 28 
                          2025      2024      2024     2025     2024     2024      2025      2024      2024      2025      2024      2024 
                        --------  --------  --------  -------  -------  -------  --------  --------  --------  --------  --------  -------- 
Assets 
Cash and cash 
 equivalents            $  6,331  $  5,615  $  3,800  $ 1,660  $ 1,709  $ 1,753                                $  7,991  $  7,324  $  5,553 
Marketable securities        139       125       148    1,133    1,029      946                                   1,272     1,154     1,094 
Receivables from 
 Financial Services        2,497     3,043     4,480                             $(2,497)  $(3,043)  $(4,480)                                 (6) 
Trade accounts and 
 notes 
 receivable -- net         1,429     1,257     1,320    7,406    6,225   10,263   (2,087)   (2,156)   (2,703)     6,748     5,326     8,880   (7) 
Financing receivables 
 -- net                       82        78        80   42,947   44,231   45,198                                  43,029    44,309    45,278 
Financing receivables 
 securitized -- net            2         2              7,763    8,721    7,262                                   7,765     8,723     7,262 
Other receivables          2,009     2,193     1,822    1,009      427      760      (43)      (75)      (47)     2,975     2,545     2,535   (7) 
Equipment on operating 
 leases -- net                                          7,336    7,451    6,965                                   7,336     7,451     6,965 
Inventories                7,870     7,093     8,443                                                              7,870     7,093     8,443 
Property and equipment 
 -- net                    7,523     7,546     6,999       32       34       35                                   7,555     7,580     7,034 
Goodwill                   4,094     3,959     3,936                                                              4,094     3,959     3,936 
Other intangible 
 assets -- net               964       999     1,064                                                                964       999     1,064 
Retirement benefits        3,046     2,839     2,980       89       83       77       (2)       (1)       (1)     3,133     2,921     3,056   (8) 
Deferred income taxes      2,377     2,262     2,210       42       43       71     (331)     (219)     (345)     2,088     2,086     1,936   (9) 
Other assets               2,349     2,194     2,105    1,152      715      504      (18)       (3)      (17)     3,483     2,906     2,592 
Assets held for sale                                             2,944                                                      2,944 
                         -------   -------   -------   ------   ------   ------   -------   -------   -------   -------   -------   ------- 
Total Assets            $ 40,712  $ 39,205  $ 39,387  $70,569  $73,612  $73,834  $(4,978)  $(5,497)  $(7,593)  $106,303  $107,320  $105,628 
                         =======   =======   =======   ======   ======   ======   =======   =======   =======   =======   =======   ======= 
 
Liabilities and 
Stockholders' Equity 
 
Liabilities 
Short-term borrowings   $    241  $    911  $  1,055  $15,707  $12,622  $16,644                                $ 15,948  $ 13,533  $ 17,699 
Short-term 
 securitization 
 borrowings                    1         2              7,561    8,429    6,976                                   7,562     8,431     6,976 
Payables to Equipment 
 Operations                                             2,497    3,043    4,480  $(2,497)  $(3,043)  $(4,480)                                 (6) 
Accounts payable and 
 accrued expenses         12,180    13,534    13,771    3,313    3,243    3,605   (2,148)   (2,234)   (2,767)    13,345    14,543    14,609   (7) 
Deferred income taxes        405       434       421      422      263      415     (331)     (219)     (345)       496       478       491   (9) 
Long-term borrowings       8,685     6,603     6,575   34,126   36,626   34,387                                  42,811    43,229    40,962 
Retirement benefits 
 and 
 other liabilities         1,695     2,250     1,995       70      105      111       (2)       (1)       (1)     1,763     2,354     2,105   (8) 
Liabilities held for 
 sale                                                            1,827                                                      1,827 
                         -------   -------   -------   ------   ------   ------   -------   -------   -------   -------   -------   ------- 
 Total liabilities        23,207    23,734    23,817   63,696   66,158   66,618   (4,978)   (5,497)   (7,593)    81,925    84,395    82,842 
                         -------   -------   -------   ------   ------   ------   -------   -------   -------   -------   -------   ------- 
 
Redeemable 
 noncontrolling 
 interest                     83        82        98                                                                 83        82        98 
 
Stockholders' Equity 
Total Deere & Company 
 stockholders' equity     24,287    22,836    22,684    6,873    7,454    7,216   (6,873)   (7,454)   (7,216)    24,287    22,836    22,684  (10) 
Noncontrolling 
 interests                     8         7         4                                                                  8         7         4 
Financial Services' 
 equity                  (6,873)   (7,454)   (7,216)                                6,873     7,454     7,216                                (10) 
                         -------   -------   -------   ------   ------   ------   -------   -------   -------   -------   -------   ------- 
 Adjusted total 
  stockholders' 
  equity                  17,422    15,389    15,472    6,873    7,454    7,216                                  24,295    22,843    22,688 
                         -------   -------   -------   ------   ------   ------   -------   -------   -------   -------   -------   ------- 
Total Liabilities and 
 Stockholders' Equity   $ 40,712  $ 39,205  $ 39,387  $70,569  $73,612  $73,834  $(4,978)  $(5,497)  $(7,593)  $106,303  $107,320  $105,628 
                         =======   =======   =======   ======   ======   ======   =======   =======   =======   =======   =======   ======= 
 
 
 
 (6)  Elimination of receivables / payables between equipment operations and 
      financial services. 
 (7)  Primarily reclassification of sales incentive accruals on receivables 
      sold to financial services. 
 (8)  Reclassification of net pension assets / liabilities. 
 (9)  Reclassification of deferred tax assets / liabilities in the same taxing 
      jurisdictions. 
(10)  Elimination of financial services' equity. 
 
 
DEERE & COMPANY 
 SUPPLEMENTAL CONSOLIDATING DATA (Continued) 
 STATEMENTS OF CASH FLOWS 
 For the Six Months Ended April 27, 2025 and April 28, 2024 
 (In millions of dollars) Unaudited 
 
 
                              EQUIPMENT            FINANCIAL 
                              OPERATIONS            SERVICES           ELIMINATIONS         CONSOLIDATED 
-----------------------   ------------------  --------------------  ------------------  -------------------- 
                            2025      2024      2025       2024       2025      2024      2025       2024 
                          --------  --------  ---------  ---------  --------  --------  ---------  --------- 
Cash Flows from 
Operating Activities 
Net income                $  2,276  $  3,746  $     391  $     370                      $   2,667  $   4,116 
Adjustments to 
reconcile net income to 
net cash provided by 
operating activities: 
 Provision for credit 
  losses                        11        10        163        121                            174        131 
 Provision for 
  depreciation and 
  amortization                 643       608        529        509  $   (68)  $   (72)      1,104      1,045          (11) 
 Impairments and other 
  adjustments                                      (32)                                      (32) 
 Share-based 
  compensation expense                                                    54       104         54        104          (12) 
 Distributed earnings of 
  Financial Services           984       247                           (984)     (247)                                (13) 
 Provision (credit) for 
  deferred income taxes      (153)      (74)        164       (46)                             11      (120) 
 Changes in assets and 
 liabilities: 
   Receivables related 
    to sales                 (185)      (58)                           (884)   (2,411)    (1,069)    (2,469)      (14, 16) 
   Inventories               (691)     (300)                            (81)     (109)      (772)      (409)          (15) 
   Accounts payable and 
    accrued expenses       (1,069)   (1,012)        102        147        69     (435)      (898)    (1,300)          (16) 
   Accrued income taxes 
    payable/receivable        (77)      (20)       (70)        (9)                          (147)       (29) 
   Retirement benefits       (753)     (205)       (41)        (3)                          (794)      (208) 
 Other                          59        89        224         65      (13)      (71)        270         83  (11, 12, 15) 
                           -------   -------   --------   --------   -------   -------   --------   -------- 
     Net cash provided 
      by operating 
      activities             1,045     3,031      1,430      1,154   (1,907)   (3,241)        568        944 
                           -------   -------   --------   --------   -------   -------   --------   -------- 
 
Cash Flows from 
Investing Activities 
Collections of 
 receivables (excluding 
 receivables related 
 to sales)                                       14,684     14,175     (336)     (472)     14,348     13,703          (14) 
Proceeds from maturities 
 and sales of marketable 
 securities                     18        58        227        142                            245        200 
Proceeds from sales of 
 equipment on operating 
 leases                                           1,001      1,011                          1,001      1,011 
Cost of receivables 
 acquired (excluding 
 receivables related 
 to sales)                                     (12,875)   (14,238)       131       147   (12,744)   (14,091)          (14) 
Purchases of marketable 
 securities                   (20)     (226)      (327)      (206)                          (347)      (432) 
Purchases of property 
 and equipment               (555)     (718)                   (1)                          (555)      (719) 
Cost of equipment on 
 operating leases 
 acquired                                       (1,363)    (1,516)       109       147    (1,254)    (1,369)          (15) 
Decrease in investment 
 in Financial Services                    10                                      (10)                                (17) 
Increase in trade and 
 wholesale receivables                          (1,019)    (3,171)     1,019     3,171                                (14) 
Collections of 
 receivables from 
 unconsolidated 
 affiliates                    183                   51                                       234 
Collateral on 
 derivatives -- net              3                   24         96                             27         96 
Other                         (72)      (68)      (104)        (2)                   1      (176)       (69) 
                           -------   -------   --------   --------   -------   -------   --------   -------- 
     Net cash provided 
      by (used for) 
      investing 
      activities             (443)     (944)        299    (3,710)       923     2,984        779    (1,670) 
                           -------   -------   --------   --------   -------   -------   --------   -------- 
 
Cash Flows from 
Financing Activities 
Net proceeds (payments) 
 in short-term 
 borrowings (original 
 maturities three months 
 or less)                       65       189        486      (131)                            551         58 
Change in intercompany 
 receivables/payables          428        31      (428)       (31) 
Proceeds from borrowings 
 issued (original 
 maturities greater than 
 three months)               2,043        34      3,113     10,155                          5,156     10,189 
Payments of borrowings 
 (original maturities 
 greater than three 
 months)                     (766)   (1,012)    (4,071)    (7,127)                        (4,837)    (8,139) 
Repurchases of common 
 stock                       (838)   (2,422)                                                (838)    (2,422) 
Capital returned to 
 Equipment Operations                                         (10)                  10                                (17) 
Dividends paid               (843)     (796)      (984)      (247)       984       247      (843)      (796)          (13) 
Other                          (4)      (27)        (6)       (25)                           (10)       (52) 
                           -------   -------   --------   --------   -------   -------   --------   -------- 
     Net cash provided 
      by (used for) 
      financing 
      activities                85   (4,003)    (1,890)      2,584       984       257      (821)    (1,162) 
                           -------   -------   --------   --------   -------   -------   --------   -------- 
 
Effect of Exchange Rate 
 Changes on Cash, Cash 
 Equivalents, and 
 Restricted Cash                22                  (2)        (5)                             20        (5) 
                           -------   -------   --------   --------   -------   -------   --------   -------- 
 
Net Increase (Decrease) 
 in Cash, Cash 
 Equivalents, and 
 Restricted Cash               709   (1,916)      (163)         23                            546    (1,893) 
Cash, Cash Equivalents, 
 and Restricted Cash at 
 Beginning of Period         5,643     5,755      1,990      1,865                          7,633      7,620 
                           -------   -------   --------   --------   -------   -------   --------   -------- 
Cash, Cash Equivalents, 
 and Restricted Cash at 
 End of Period            $  6,352  $  3,839  $   1,827  $   1,888                      $   8,179  $   5,727 
                           =======   =======   ========   ========   =======   =======   ========   ======== 
 
 
 
(11)   Elimination of depreciation on leases related to inventory transferred 
       to equipment on operating leases. 
(12)   Reclassification of share-based compensation expense. 
(13)  Elimination of dividends from financial services to the equipment 
      operations, which are included in the equipment operations operating 
      activities. 
(14)  Primarily reclassification of receivables related to the sale of 
      equipment. 
(15)  Reclassification of direct lease agreements with retail customers. 
(16)  Reclassification of sales incentive accruals on receivables sold to 
      financial services. 
(17)  Elimination of change in investment from equipment operations to 
      financial services. 
 

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SOURCE John Deere Company

 

(END) Dow Jones Newswires

May 15, 2025 06:30 ET (10:30 GMT)

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