DE
Deere & Company485.44
-2.57-0.53%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q4 '25)
No earnings call transcript available yet
Last Quarter (Q3 '25)
FY Q4 '25
Q&A clarifies guidance details, decrements
Q&A unpacked 2026 guidance color without contradictions, highlighting ~60% PPA decremental margins from North America large ag weakness dragging mix, tariffs neutral there. Price realization at 1.5% reflects muted Brazil and parts mix versus 3-4% early orders, yet price/cost stays positive amid $1.2B tariff hit via offsets and future hikes. Pool funds continue at 2025 levels for used inventory; production costs slightly unfavorable ex-tariffs. No extra government aid baked in. Decrementals sting. Management stays flexible on lean Q1 production, eyes demand inflection.
Key Stats
Market Cap
131.23BP/E (TTM)
26.24Basic EPS (TTM)
18.50Dividend Yield
0.01%Recent Filings
10-K
FY2025 results
Deere's FY2025 equipment net sales fell 13% y/y to $38.9B amid declining market conditions, with PPA down 17% to $17.3B on 30% U.S./Canada volume drop offset by Brazil gains, SAT off 7% to $10.2B, and CF down 12% to $11.4B; operating margins compressed to 15.4%, 11.8%, and 9.0% respectively from lower volumes, tariffs, and price pressure. Q4 showed sequential softening as backlogs eased—PPA from $5.2B to $4.0B, SAT from $2.1B to $1.9B—yet CF backlog swelled to $3.8B from $2.2B on rising demand. Net income attributable to Deere slid to $5.0B from $7.1B, diluted EPS $18.50 vs. $25.62 on 271.7M shares. Cash from operations held at $7.5B; inventories up on CF weakness, debt steady at $57.3B with $7.9B buyback capacity left. Backlogs signal Q4 momentum fade.
8-K
Deere adds Cargill CEO to board
Deere expanded its board to 11 directors, electing Cargill Chair and CEO Brian Sikes effective December 4, 2025, for his agriculture expertise; he joins Compensation and Corporate Governance committees. Sikes brings decades at Cargill, championing supply chain efficiency and sustainability. Raj Kalathur retires as President, John Deere Financial and CIO effective January 31, 2026. Board stays strong at 10 independents.
8-K
Deere Q4 income falls 14%
Deere posted Q4 net income of $1.065 billion, down 14% from last year amid tough markets, yet total revenues climbed 11% to $12.394 billion on volume gains in construction & forestry. Fiscal 2025 net income hit $5.027 billion, off 29%, with FY26 projected at $4.0-4.75 billion as large ag dips 15-20% but small ag & construction rise ~10%. Tariffs squeeze margins.
8-K
Deere subsidiary prices $500M notes
Deere Funding Canada, wholly owned by Deere & Company, agreed on October 2, 2025, to sell $500,000,000 of 4.150% senior unsecured Notes due October 9, 2030, fully guaranteed by Deere. Interest pays semiannually from April 9, 2026; redeemable early with notice. Underwritten by Goldman Sachs and others. Locks in funding through 2030.
8-K
Deere leadership reshuffle
Deere & Company announced key leadership changes effective November 3, 2025, to advance its Smart Industrial Strategy. Cory Reed shifts to president of Lifecycle Solutions, Supply Management, and Customer Success from Worldwide Ag & Turf Production & Precision Ag; Deanna Kovar takes his prior role; Justin Rose assumes Small Ag & Turf. Leadership realigns for customer value. Changes sharpen aftermarket focus.
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