-- 2025 results highlight resilient performance in the face of difficult
market conditions
-- Outlook for small ag and construction and forestry improves as large ag
remains subdued
-- Full-year 2026 earnings are projected to be between $4.00 billion and
$4.75 billion
MOLINE, Ill., Nov. 26, 2025 /PRNewswire/ -- Deere & Company $(DE)$ reported net income of $1.065 billion for the fourth quarter ended November 2, 2025, or $3.93 per share, compared with net income of $1.245 billion, or $4.55 per share, for the quarter ended October 27, 2024. For fiscal year 2025, net income attributable to Deere & Company was $5.027 billion, or $18.50 per share, compared with $7.100 billion, or $25.62 per share, in fiscal 2024.
Worldwide net sales and revenues increased 11%, to $12.394 billion, for the fourth quarter of 2025 and decreased 12%, to $45.684 billion, for the full year. Net sales were $10.579 billion for the quarter and $38.917 billion for the year, compared with $9.275 billion and $44.759 billion in fiscal 2024, respectively.
"This past year brought its share of challenges and uncertainty, but thanks to the structural improvements we've made and the diverse customer segments and geographies we serve, we were able to achieve our best results yet for this point in the cycle," said John May, chairman and CEO of John Deere. "Our continued commitment to delivering customer value and focusing on operational efficiency enabled us to remain resilient and demonstrate the strength of our business."
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.00 billion to $4.75 billion.
"Looking ahead, we believe 2026 will mark the bottom of the large ag cycle," May stated. "While ongoing margin pressures from tariffs and persistent challenges in the large ag sector remain, our commitment to inventory management and cost control, coupled with expected growth in small agriculture & turf and construction & forestry, positions us to effectively manage the business and seize emerging opportunities as market conditions begin to recover."
Deere &
Company Fourth Quarter Full Year
-------------------------- --------------------------
$ in
millions,
except per
share
amounts 2025 2024 % Change 2025 2024 % Change
---------- ------- ------- -------- ------- ------- --------
Net sales
and
revenues $12,394 $11,143 11 % $45,684 $51,716 -12 %
Net income $ 1,065 $ 1,245 -14 % $ 5,027 $ 7,100 -29 %
Fully
diluted
EPS $ 3.93 $ 4.55 $ 18.50 $ 25.62
Results for the presented periods were affected by special items. See Note 2 of the financial statements for further details. The cost of additional tariffs for each segment is included in the "Production costs" and "Other" categories below.
Production & Precision Agriculture Fourth Quarter
--------------------------
$ in millions 2025 2024 % Change
----------------------------------- ------- ------- --------
Net sales $ 4,740 $ 4,305 10 %
Operating profit $ 604 $ 657 -8 %
Operating margin 12.7 % 15.3 %
Production & Precision Agriculture sales increased for the quarter due to higher shipment volumes and favorable price realization. Operating profit decreased primarily due to higher production costs, higher tariffs, and special items described in Note 2, partially offset by price realization and higher shipment volumes / sales mix.
Small Agriculture & Turf Fourth Quarter
-------------------------
$ in millions 2025 2024 % Change
------------------------- ------ ------- --------
Net sales $2,457 $ 2,306 7 %
Operating profit $ 25 $ 234 -89 %
Operating margin 1.0 % 10.1 %
Small Agriculture & Turf sales increased for the quarter due to higher shipment volumes. Operating profit decreased due to higher tariffs, warranty expenses, and production costs.
Construction & Forestry Fourth Quarter
--------------------------
$ in millions 2025 2024 % Change
------------------------ ------- ------- --------
Net sales $ 3,382 $ 2,664 27 %
Operating profit $ 348 $ 328 6 %
Operating margin 10.3 % 12.3 %
Construction & Forestry sales increased for the quarter due to higher shipment volumes. Operating profit increased primarily due to higher shipment volumes / sales mix, partially offset by increased production costs driven by higher tariffs and special items described in Note 2.
Financial Services Fourth Quarter
--------------------
$ in millions 2025 2024 % Change
------------------- ---- ---- --------
Net income $293 $173 69 %
Financial Services net income for the quarter was higher due to favorable financing spreads, special items described in Note 2, and a lower provision for credit losses.
Industry Outlook for Fiscal 2026 ----------------------------------- -------------- Agriculture & Turf U.S. & Canada: Large Ag Down 15 to 20% Small Ag & Turf Flat to up 5% Europe Flat to up 5% South America (Tractors & Combines) Flat Asia Down 5% Construction & Forestry U.S. & Canada: Construction Equipment Flat to up 5% Compact Construction Equipment Flat to up 5% Global Forestry Flat Global Roadbuilding Flat Deere Segment Outlook for Fiscal 2026 Currency Price $ in millions Net Sales Translation Realization -------------------------- -------------- ----------- ----------- Production & Precision Ag Down 5 to 10% +1.5 % +1.5% Small Ag & Turf Up 10% +1.0 % +2.0% Construction & Forestry Up 10% +1.0 % +3.0% Financial Services Net Income $830
FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in the section entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2026," "Deere Segment Outlook for Fiscal 2026," and "Condensed Notes to Consolidated Financial Statements" relating to future events, expectations, 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:
-- the agricultural business cycle, which can be unpredictable and is
affected by factors such as farm income, international trade, world grain
stocks, crop yields, available farm acres, soil conditions, prices for
commodities and livestock, input costs, governmental farm programs,
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
-- the uncertainty of government policies and actions with respect to the
global trade environment including increased and proposed tariffs
announced by the U.S. government, and retaliatory trade regulations
-- political, economic, and social instability in the geographies in which
the company operates, including the ongoing war between Russia and
Ukraine 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
-- rationalization, restructuring, relocation, expansion and/or
reconfiguration of manufacturing and warehouse facilities
-- accurately forecasting customer demand for products and services and
adequately managing inventory
-- uncertainty of the company's ability to sell products domestically or
internationally, manage increased costs of production, absorb or pass on
increased pricing, and accurately predict financial results and industry
trends
-- availability and price of raw materials, components, and whole goods
-- delays or disruptions in the company's supply chain
-- changes in climate patterns, unfavorable weather events, and natural
disasters
-- suppliers' and manufacturers' business practices and compliance with laws
applicable to topics such as human rights, safety, environmental, and
fair wages
-- 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
-- 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
-- the ability to execute business strategies, including the company's Smart
Industrial Operating Model and Leap Ambitions
-- dealer practices and their ability to manage new and used inventory,
distribute 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 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, foreign exchange controls and cash
repatriation restrictions, foreign ownership and investment, health and
safety, human rights, import / export and trade, labor and employment,
tariffs, product liability, tax, telematics, and telecommunications
-- governmental and other actions designed to address climate change in
connection with a transition to a lower-carbon economy
-- warranty claims, post-sales repairs or recalls, product liability
litigation, and regulatory investigations because of the deficient
operation of the company's products
-- investigations, claims, lawsuits, or other legal proceedings, including
the lawsuit filed by the Federal Trade Commission $(FTC)$ 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
-- loss of or challenges to intellectual property rights
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
FOURTH QUARTER 2025 PRESS RELEASE
(In millions of dollars) Unaudited
---------------------------------------------------------------------------------------
Three Months Ended Years Ended
---------------------------------- ----------------------------------
November 2 October 27 % November 2 October 27 %
2025 2024 Change 2025 2024 Change
------------ ------------ ------ ------------ ------------ ------
Net sales and
revenues:
Production &
Precision Ag
net sales $ 4,740 $ 4,305 +10 $ 17,311 $ 20,834 -17
Small Ag &
Turf net
sales 2,457 2,306 +7 10,224 10,969 -7
Construction &
Forestry net
sales 3,382 2,664 +27 11,382 12,956 -12
Financial
Services
revenues 1,548 1,522 +2 5,821 5,782 +1
Other revenues 267 346 -23 946 1,175 -19
-------- -------- -------- --------
Total net
sales and
revenues $ 12,394 $ 11,143 +11 $ 45,684 $ 51,716 -12
======== ======== ======== ========
Operating
profit: *
Production &
Precision Ag $ 604 $ 657 -8 $ 2,671 $ 4,514 -41
Small Ag &
Turf 25 234 -89 1,207 1,627 -26
Construction &
Forestry 348 328 +6 1,028 2,009 -49
Financial
Services 374 231 +62 1,114 889 +25
-------- -------- -------- --------
Total
operating
profit 1,351 1,450 -7 6,020 9,039 -33
Reconciling
items ** 68 43 +58 266 155 +72
Income taxes (354) (248) +43 (1,259) (2,094) -40
-------- -------- -------- --------
Net income
attributable
to Deere &
Company $ 1,065 $ 1,245 -14 $ 5,027 $ 7,100 -29
======== ======== ======== ========
* 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
Months and Years Ended November 2, 2025 and October 27, 2024 (In
millions of dollars and shares except per share amounts)
Unaudited
Three Months Ended Years Ended
2025 2024 2025 2024
------------ -------- ------- -------
Net Sales and
Revenues
Net sales $ 10,579 $ 9,275 $38,917 $44,759
Finance and interest
income 1,515 1,551 5,748 5,759
Other income 300 317 1,019 1,198
-------- ------- ------ ------
Total 12,394 11,143 45,684 51,716
-------- ------- ------ ------
Costs and Expenses
Cost of sales 7,944 6,571 28,159 30,775
Research and
development expenses 681 626 2,311 2,290
Selling,
administrative and
general expenses 1,276 1,232 4,663 4,840
Interest expense 762 870 3,170 3,348
Other operating
expenses 307 326 1,124 1,257
-------- ------- ------ ------
Total 10,970 9,625 39,427 42,510
-------- ------- ------ ------
Income of Consolidated
Group before Income
Taxes 1,424 1,518 6,257 9,206
Provision for income
taxes 354 248 1,259 2,094
-------- ------- ------ ------
Income of Consolidated
Group 1,070 1,270 4,998 7,112
Equity in loss of
unconsolidated
affiliates (10) (28) (24)
-------- ------- ------ ------
Net Income 1,060 1,242 4,998 7,088
Less: Net loss
attributable to
noncontrolling
interests (5) (3) (29) (12)
-------- ------- ------ ------
Net Income
Attributable to Deere
& Company $ 1,065 $ 1,245 $ 5,027 $ 7,100
======== ======= ====== ======
Per Share Data
Basic $ 3.94 $ 4.57 $ 18.55 $ 25.73
Diluted 3.93 4.55 18.50 25.62
Dividends declared 1.62 1.47 6.48 5.88
Dividends paid 1.62 1.47 6.33 5.76
Average Shares
Outstanding
Basic 270.3 272.6 270.9 276.0
Diluted 271.1 273.6 271.7 277.1
---------------------- -------- ------- ------ ------
See Condensed Notes to Consolidated Financial Statements.
DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
As of November 2, 2025 and October 27, 2024
(In millions of dollars) Unaudited
----------------------------------------------------------------
2025 2024
-------- --------
Assets
Cash and cash equivalents $ 8,276 $ 7,324
Marketable securities 1,411 1,154
Trade accounts and notes receivable -- net 5,317 5,326
Financing receivables -- net 44,575 44,309
Financing receivables securitized -- net 6,831 8,723
Other receivables 2,403 2,545
Equipment on operating leases -- net 7,600 7,451
Inventories 7,406 7,093
Property and equipment -- net 8,079 7,580
Goodwill 4,188 3,959
Other intangible assets -- net 892 999
Retirement benefits 3,273 2,921
Deferred income taxes 2,284 2,086
Other assets 3,461 2,906
Assets held for sale 2,944
------- -------
Total Assets $105,996 $107,320
======= =======
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings $ 13,796 $ 13,533
Short-term securitization borrowings 6,596 8,431
Accounts payable and accrued expenses 13,909 14,543
Deferred income taxes 434 478
Long-term borrowings 43,544 43,229
Retirement benefits and other liabilities 1,710 2,354
Liabilities held for sale 1,827
------- -------
Total liabilities 79,989 84,395
------- -------
Redeemable noncontrolling interest 51 82
Stockholders' Equity
Total Deere & Company stockholders' equity 25,950 22,836
Noncontrolling interests 6 7
------- -------
Total stockholders' equity 25,956 22,843
------- -------
Total Liabilities and Stockholders' Equity $105,996 $107,320
======= =======
See Condensed Notes to Consolidated Financial Statements.
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Years Ended November 2, 2025 and October 27, 2024
(In millions of dollars) Unaudited
2025 2024
--------- ---------
Cash Flows from Operating Activities
Net income $ 4,998 $ 7,088
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for credit losses 296 310
Depreciation and amortization 2,229 2,118
Impairments and other adjustments 41 125
Share-based compensation expense 151 208
Credit for deferred income taxes (288) (294)
Changes in assets and liabilities:
Receivables related to sales 1,084 421
Inventories (275) 788
Accounts payable and accrued expenses (251) (1,040)
Accrued income taxes payable/receivable (136) (123)
Retirement benefits (865) (227)
Other 475 (143)
-------- --------
Net cash provided by operating activities 7,459 9,231
-------- --------
Cash Flows from Investing Activities
Collections of receivables (excluding
receivables related to sales) 26,480 25,162
Proceeds from maturities and sales of marketable
securities 486 832
Proceeds from sales of equipment on operating
leases 1,917 1,929
Cost of receivables acquired (excluding
receivables related to sales) (26,340) (28,816)
Acquisitions of businesses, net of cash acquired (101)
Purchases of marketable securities (703) (1,055)
Purchases of property and equipment (1,360) (1,640)
Cost of equipment on operating leases acquired (2,868) (3,162)
Collections of receivables from unconsolidated
affiliates 507
Loans to unconsolidated affiliates (109)
Collateral on derivatives -- net 182 413
Other (148) (127)
-------- --------
Net cash used for investing activities (2,057) (6,464)
-------- --------
Cash Flows from Financing Activities
Net payments in short-term borrowings (original
maturities three months or less) (2,539) (1,856)
Proceeds from borrowings issued (original
maturities greater than three months) 13,161 18,096
Payments of borrowings (original maturities
greater than three months) (12,264) (13,232)
Repurchases of common stock (1,138) (4,007)
Dividends paid (1,720) (1,605)
Other (79) (113)
-------- --------
Net cash used for financing activities (4,579) (2,717)
-------- --------
Effect of Exchange Rate Changes on Cash, Cash
Equivalents, and Restricted Cash 77 (37)
-------- --------
Net Increase in Cash, Cash Equivalents, and
Restricted Cash 900 13
Cash, Cash Equivalents, and Restricted Cash at
Beginning of Year 7,633 7,620
-------- --------
Cash, Cash Equivalents, and Restricted Cash at
End of Year $ 8,533 $ 7,633
======== ========
See Condensed Notes to Consolidated Financial Statements.
DEERE & COMPANY
Condensed Notes to Consolidated Financial Statements
(In millions of dollars) Unaudited
(1) Acquisitions
In 2025, the company acquired several small-scale businesses to advance the capabilities of the company's existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions aimed at improving profitability, efficiency, and sustainability. In addition, the company acquired the remaining ownership interest of an equity method investment. The combined purchase price consideration for these acquisitions was $115 million, consisting of $101 million cash, net of cash acquired, and $14 million loan forgiven. The businesses were assigned to the Production & Precision Agriculture $(PPA)$, Small Agriculture & Turf $(SAT)$, and Construction & Forestry $(CF)$ segments. Most of the purchase price for these acquisitions was allocated to goodwill and intangible assets.
(2) Special Items
Litigation Accrual
In the fourth quarter of 2025, the company increased the total accrued losses on unresolved legal matters in connection with a consolidated multidistrict class action antitrust lawsuit by $95 million pretax ($75 million after-tax) which was included in "Selling, administrative and general expenses."
Impairment of Intangible Assets
In the third quarter of 2025, the company recorded a non-cash impairment charge of $61 million pretax ($49 million after-tax), primarily related to the trade name and customer relationship assets of external overseas battery operations. Of this amount, $53 million was recorded in "Selling, administrative and general expenses" and $8 million in "Cost of sales." This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets.
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). 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 (loss) 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 2024, resulting in a net loss of $59 million pretax and after-tax due to the establishment of a $97 million valuation allowance on the assets held for sale and a $38 million reversal of allowance for credit losses. In the first quarter of 2025, a gain of $32 million pretax and after-tax was recorded in "Selling, administrative and general expenses" related to a decrease in valuation allowance. The valuation allowance changes are presented in "Impairments and other adjustments" in the statements of consolidated cash flows. 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.
Legal Settlements
The company reached legal settlements concerning patent infringement claims. As a result of these settlements, in the fourth quarter of 2024, the company recognized a total of $57 million pretax gain ($45 million after-tax) in "Other Income," providing a benefit of $17 million to PPA and $40 million to CF. These settlements resolve the disputes without any admission of liability by the parties involved. The company believes that these settlements enhance its ability to protect its intellectual property and reinforce its commitment to innovation and technological advancement.
Impairment of Investment in Unconsolidated Affiliate
In the fourth quarter of 2024, the company recorded a non-cash charge of $28 million pretax and after-tax in "Equity in income (loss) of unconsolidated affiliates" for an other than temporary decline in value of an investment recorded in SAT. This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows.
Employee-Separation Programs
In the third quarter of 2024, the company implemented employee-separation programs for the company's salaried workforce in several geographic areas, including the United States, Europe, Asia, and Latin America. The programs' main purpose was to help meet the company's strategic priorities while reducing overlap and redundancy in roles and responsibilities. The programs were largely involuntary in nature with the expense recorded when management committed to a plan, the plan was communicated to the employees, and the employees were not required to provide service beyond the legal notification period. For the limited voluntary employee-separation programs, the expense was recorded in the period in which the employee irrevocably accepted a separation offer.
The programs' pretax expenses recorded for the periods ended October 27, 2024, by operating segment were as follows in millions of dollars:
Three Months Fiscal Year
--------------------- ---------------------------
PPA SAT CF FS Total PPA SAT CF FS Total
--- --- ------- --- --- --- --- -------
Cost of sales $ 3 $ 2 $ 5 $21 $11 $ 8 $ 40
Research and
development
expenses 3 3 $1 7 22 9 2 33
Selling,
administrative
and general
expenses 9 9 1$1 20 34 23 12 $10 79
--- ---
Total operating
profit
decrease $15 $14 $2$1 32 $77 $43 $22 $10 152
Non-operating
profit
expenses* 1 5
--- ---
Total $ 33 $ 157
=== ===
* Relates primarily to corporate expenses.
Summary of 2025 and 2024 Special Items
The following table summarizes the operating profit impact, in millions of dollars, of the special items recorded for the three months and fiscal years ended November 2, 2025, and October 27, 2024:
Three Months Fiscal Years
--------------------------------- ----------------------------------
PPA SAT CF FS Total PPA SAT CF FS Total
----- ----- ----- ----- ----- ----- ----- ----- ------ -----
2025 Expense
(benefit):
Litigation accrual $ 47 $ 24 $ 24 $ 95 $ 47 $ 24 $ 24 $ 95
Impairment 28 17 16 61
BJD measurement $ (32) (32)
---- ---- ---- ---- ---- ---- ---- ---- ----- ----
Total expense
(benefit) 47 24 24 95 75 41 40 (32) 124
---- ---- ---- ---- ---- ---- ---- ---- ----- ----
2024 Expense
(benefit):
Legal settlements (17) (40) (57) (17) (40) (57)
Impairment 28 28 28 28
Employee-separation
programs 15 14 2 $ 1 32 77 43 22 10 152
BJD measurement 44 44 59 59
---- ---- ---- ---- ---- ---- ---- ---- ----- ----
Total expense
(benefit) (2) 42 (38) 45 47 60 71 (18) 69 182
---- ---- ---- ---- ---- ---- ---- ---- ----- ----
Period over period
change $ 49 $(18) $ 62 $(45) $ 48 $ 15 $(30) $ 58 $(101) $(58)
==== ==== ==== ==== ==== ==== ==== ==== ===== ====
(3) The consolidated financial statements represent the consolidation of all
the company's subsidiaries. The supplemental consolidating data in Note
4 to the financial statements is presented for informational purposes.
Equipment operations represent the enterprise without Financial Services.
Equipment operations include the company's Production & Precision
Agriculture operations, Small Agriculture & Turf operations, Construction
& 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
(4) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended November 2, 2025 and October 27, 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 $10,579 $9,275 $10,579 $ 9,275
Finance and interest income 169 154 $1,500 $1,569 $(154) $(172) 1,515 1,551 (1)
Other income 242 274 171 117 (113) (74) 300 317 (2, 3, 4)
------ ----- ----- ----- ----- ----- ------ ------
Total 10,990 9,703 1,671 1,686 (267) (246) 12,394 11,143
------ ----- ----- ----- ----- ----- ------ ------
Costs and Expenses
Cost of sales 7,950 6,578 (6) (7) 7,944 6,571 (4)
Research and
development expenses 681 626 681 626
Selling, administrative and
general expenses 1,095 946 183 288 (2) (2) 1,276 1,232 (4)
Interest expense 91 83 716 828 (45) (41) 762 870 (1)
Interest compensation to
Financial Services 109 131 (109) (131) (1)
Other operating expenses 16 54 396 337 (105) (65) 307 326 (3, 4, 5)
------ ----- ----- ----- ----- ----- ------ ------
Total 9,942 8,418 1,295 1,453 (267) (246) 10,970 9,625
------ ----- ----- ----- ----- ----- ------ ------
Income before Income Taxes 1,048 1,285 376 233 1,424 1,518
Provision for income taxes 269 187 85 61 354 248
------ ----- ----- ----- ----- ----- ------ ------
Income after Income Taxes 779 1,098 291 172 1,070 1,270
Equity in income (loss)
of unconsolidated affiliates (12) (29) 2 1 (10) (28)
------ ----- ----- ----- ----- ----- ------ ------
Net Income 767 1,069 293 173 1,060 1,242
Less: Net loss attributable to
noncontrolling interests (5) (3) (5) (3)
------ ----- ----- ----- ----- ----- ------ ------
Net Income Attributable to
Deere & Company $ 772 $1,072 $ 293 $ 173 $ 1,065 $ 1,245
====== ===== ===== ===== ===== ===== ====== ======
(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 Years Ended November 2, 2025 and October 27, 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 $38,917 $44,759 $38,917 $44,759
Finance and interest income 521 596 $5,768 $6,035 $(541) $ (872) 5,748 5,759 (1)
Other income 821 1,006 521 458 (323) (266) 1,019 1,198 (2, 3, 4)
------ ------ ----- ----- ----- ------- ------ ------
Total 40,259 46,361 6,289 6,493 (864) (1,138) 45,684 51,716
------ ------ ----- ----- ----- ------- ------ ------
Costs and Expenses
Cost of sales 28,190 30,803 (31) (28) 28,159 30,775 (4)
Research and
development expenses 2,311 2,290 2,311 2,290
Selling, administrative and
general expenses 3,856 3,791 815 1,059 (8) (10) 4,663 4,840 (4)
Interest expense 372 396 2,923 3,182 (125) (230) 3,170 3,348 (1)
Interest compensation to
Financial Services 414 640 (414) (640) (1)
Other operating expenses (29) 133 1,439 1,354 (286) (230) 1,124 1,257 (3, 4, 5)
------ ------ ----- ----- ----- ------- ------ ------
Total 35,114 38,053 5,177 5,595 (864) (1,138) 39,427 42,510
------ ------ ----- ----- ----- ------- ------ ------
Income before Income Taxes 5,145 8,308 1,112 898 6,257 9,206
Provision for income taxes 1,020 1,887 239 207 1,259 2,094
------ ------ ----- ----- ----- ------- ------ ------
Income after Income Taxes 4,125 6,421 873 691 4,998 7,112
Equity in income (loss)
of unconsolidated affiliates (17) (29) 17 5 (24)
------ ------ ----- ----- ----- ------- ------ ------
Net Income 4,108 6,392 890 696 4,998 7,088
Less: Net loss attributable to
noncontrolling interests (29) (12) (29) (12)
------ ------ ----- ----- ----- ------- ------ ------
Net Income Attributable to
Deere & Company $ 4,137 $ 6,404 $ 890 $ 696 $ 5,027 $ 7,100
====== ====== ===== ===== ===== ======= ====== ======
(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
As of November 2, 2025 and October 27, 2024
(In millions of dollars) Unaudited
EQUIPMENT FINANCIAL
OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED
--------------------- ------------------ ---------------- ------------------ ------------------
2025 2024 2025 2024 2025 2024 2025 2024
-------- -------- ------- ------- -------- -------- -------- --------
Assets
Cash and cash
equivalents $ 6,340 $ 5,615 $ 1,936 $ 1,709 $ 8,276 $ 7,324
Marketable securities 217 125 1,194 1,029 1,411 1,154
Receivables from
Financial Services 4,649 3,043 $(4,649) $(3,043) (6)
Trade accounts and
notes
receivable -- net 1,316 1,257 5,900 6,225 (1,899) (2,156) 5,317 5,326 (7)
Financing receivables
-- net 88 78 44,487 44,231 44,575 44,309
Financing receivables
securitized -- net 1 2 6,830 8,721 6,831 8,723
Other receivables 1,809 2,193 658 427 (64) (75) 2,403 2,545 (7)
Equipment on
operating
leases -- net 7,600 7,451 7,600 7,451
Inventories 7,406 7,093 7,406 7,093
Property and
equipment -- net 8,047 7,546 32 34 8,079 7,580
Goodwill 4,188 3,959 4,188 3,959
Other intangible
assets -- net 892 999 892 999
Retirement benefits 3,181 2,839 94 83 (2) (1) 3,273 2,921 (8)
Deferred income taxes 2,507 2,262 46 43 (269) (219) 2,284 2,086 (9)
Other assets 2,218 2,194 1,244 715 (1) (3) 3,461 2,906
Assets held for sale 2,944 2,944
------- ------- ------ ------ ------- ------- ------- -------
Total Assets $ 42,859 $ 39,205 $70,021 $73,612 $(6,884) $(5,497) $105,996 $107,320
======= ======= ====== ====== ======= ======= ======= =======
Liabilities and
Stockholders' Equity
Liabilities
Short-term borrowings $ 414 $ 911 $13,382 $12,622 $ 13,796 $ 13,533
Short-term
securitization
borrowings 1 2 6,595 8,429 6,596 8,431
Payables to Equipment
Operations 4,649 3,043 $(4,649) $(3,043) (6)
Accounts payable and
accrued expenses 12,757 13,534 3,116 3,243 (1,964) (2,234) 13,909 14,543 (7)
Deferred income taxes 347 434 356 263 (269) (219) 434 478 (9)
Long-term borrowings 8,756 6,603 34,788 36,626 43,544 43,229
Retirement benefits
and
other liabilities 1,646 2,250 66 105 (2) (1) 1,710 2,354 (8)
Liabilities held for
sale 1,827 1,827
------- ------- ------ ------ ------- ------- ------- -------
Total liabilities 23,921 23,734 62,952 66,158 (6,884) (5,497) 79,989 84,395
------- ------- ------ ------ ------- ------- ------- -------
Redeemable
noncontrolling
interest 51 82 51 82
Stockholders' Equity
Total Deere & Company
stockholders' equity 25,950 22,836 7,069 7,454 (7,069) (7,454) 25,950 22,836 (10)
Noncontrolling
interests 6 7 6 7
Financial Services'
equity (7,069) (7,454) 7,069 7,454 (10)
------- ------- ------ ------ ------- ------- ------- -------
Adjusted total
stockholders'
equity 18,887 15,389 7,069 7,454 25,956 22,843
------- ------- ------ ------ ------- ------- ------- -------
Total Liabilities and
Stockholders'
Equity $ 42,859 $ 39,205 $70,021 $73,612 $(6,884) $(5,497) $105,996 $107,320
======= ======= ====== ====== ======= ======= ======= =======
(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 Years Ended November 2, 2025 and October 27, 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 $ 4,108 $ 6,392 $ 890 $ 696 $ 4,998 $ 7,088
Adjustments to
reconcile net income to
net cash provided by
operating activities:
Provision for credit
losses 18 14 278 296 296 310
Depreciation and
amortization 1,280 1,220 1,082 1,040 $ (133) $(142) 2,229 2,118 (11)
Impairments and other
adjustments 73 28 (32) 97 41 125
Share-based
compensation expense 151 208 151 208 (12)
Distributed earnings of
Financial Services 1,368 250 (1,368) (250) (13)
Provision (credit) for
deferred income taxes (369) (97) 81 (197) (288) (294)
Changes in assets and
liabilities:
Receivables related
to sales (91) (13) 1,175 434 1,084 421 (14, 16)
Inventories (138) 1,011 (137) (223) (275) 788 (15)
Accounts payable and
accrued expenses (617) (1,429) 109 277 257 112 (251) (1,040) (16)
Accrued income taxes
payable/receivable (112) (218) (24) 95 (136) (123)
Retirement benefits (814) (215) (51) (12) (865) (227)
Other 394 (38) 147 40 (66) (145) 475 (143) (11, 12, 15)
------- ------- -------- -------- ------- ----- -------- --------
Net cash provided
by operating
activities 5,100 6,905 2,480 2,332 (121) (6) 7,459 9,231
------- ------- -------- -------- ------- ----- -------- --------
Cash Flows from
Investing Activities
Collections of
receivables (excluding
receivables related
to sales) 27,037 26,029 (557) (867) 26,480 25,162 (14)
Proceeds from maturities
and sales of marketable
securities 46 99 440 733 486 832
Proceeds from sales of
equipment on operating
leases 1,917 1,929 1,917 1,929
Cost of receivables
acquired (excluding
receivables related
to sales) (26,623) (29,152) 283 336 (26,340) (28,816) (14)
Acquisitions of
businesses, net of cash
acquired (101) (101)
Purchases of marketable
securities (125) (209) (578) (846) (703) (1,055)
Purchases of property
and equipment (1,358) (1,636) (2) (4) (1,360) (1,640)
Cost of equipment on
operating leases
acquired (3,053) (3,464) 185 302 (2,868) (3,162) (15)
Decrease (increase) in
investment in Financial
Services (10) 4 10 (4) (17)
Decrease in trade and
wholesale receivables 1,161 21 (1,161) (21) (14)
Collections of
receivables from
unconsolidated
affiliates 190 317 507
Loans to unconsolidated
affiliates (109) (109)
Collateral on
derivatives -- net (1) 183 413 182 413
Other (90) (125) (61) (8) 3 6 (148) (127)
------- ------- -------- -------- ------- ----- -------- --------
Net cash provided
by (used for)
investing
activities (1,449) (1,867) 629 (4,349) (1,237) (248) (2,057) (6,464)
------- ------- -------- -------- ------- ----- -------- --------
Cash Flows from
Financing Activities
Net proceeds (payments)
in short-term
borrowings (original
maturities three months
or less) 144 28 (2,683) (1,884) (2,539) (1,856)
Change in intercompany
receivables/payables (1,695) 1,459 1,695 (1,459)
Proceeds from borrowings
issued (original
maturities greater than
three months) 2,369 159 10,792 17,937 13,161 18,096
Payments of borrowings
(original maturities
greater than three
months) (923) (1,123) (11,341) (12,109) (12,264) (13,232)
Repurchases of common
stock (1,138) (4,007) (1,138) (4,007)
Capital investment from
(returned to) Equipment
Operations 10 (4) (10) 4 (17)
Dividends paid (1,720) (1,605) (1,368) (250) 1,368 250 (1,720) (1,605) (13)
Other (53) (46) (26) (67) (79) (113)
------- ------- -------- -------- ------- ----- -------- --------
Net cash provided
by (used for)
financing
activities (3,016) (5,135) (2,921) 2,164 1,358 254 (4,579) (2,717)
------- ------- -------- -------- ------- ----- -------- --------
Effect of Exchange Rate
Changes on Cash, Cash
Equivalents, and
Restricted Cash 86 (15) (9) (22) 77 (37)
------- ------- -------- -------- ------- ----- -------- --------
Net Increase (Decrease)
in Cash, Cash
Equivalents, and
Restricted Cash 721 (112) 179 125 900 13
Cash, Cash Equivalents,
and Restricted Cash at
Beginning of Year 5,643 5,755 1,990 1,865 7,633 7,620
------- ------- -------- -------- ------- ----- -------- --------
Cash, Cash Equivalents,
and Restricted Cash at
End of Year $ 6,364 $ 5,643 $ 2,169 $ 1,990 $ 8,533 $ 7,633
======= ======= ======== ======== ======= ===== ======== ========
(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
November 26, 2025 06:28 ET (11:28 GMT)