During John Deere’s 2Q 2025 earning’s call on May 15, the company reported its net sales and revenue decreased 16% compared to the year prior, while chairman and CEO John May announced a commitment to invest $20 billion in the United States over the next 10 years.
Financial report
Deere & Company reported its 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.
Deere also reported net income of $1.804 billion for the second quarter ended April 27, 2025, compared with net income of $2.370 billion, for the same period in 2024. For the first six months of the year, net income attributable to Deere & Company was $2.673 billion, compared with $4.121 billion last year.
Small Ag & Turf, Net sales
- 2025, $2,994
- 2024, $3,185
Small agriculture and turf sales decreased 6% 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, Net sales
- 2025, $2,947
- 2024, $3,844
Construction and forestry sales decreased 23% for the quarter due to lower shipment volumes. Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable price realization.
“Despite the near-term market challenges, we remain confident in the future,” said John May, chairman and CEO of John Deere. “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.”
How did the market respond?
OPE+ doesn’t normally report on stock market response to financial reports, that’s not our area. But we were interested to see the market’s response. Deere share prices are up nearly 4% as of this reporting, with analysts and investors seeming to say, “Deere is stabilizing and doing better than earlier expectations.”
The manufacturer also pointed out that it might feel less impact from tariffs. It said much of its sourcing for manufacturing is from the U.S., Europe, and Mexico, which, combined, make up 93% of complete goods and 92% of components for its products. Yes, the company could still face pressure in other markets it sells into, with retaliatory tariffs from those countries. But its more of, “it could have been worse” thinking.
Outlook
- Large Ag & Turf Industry: Down 30%
- Deere’s Production and Precision Ag group: Down 15-20%
- Small Ag & Turf Industry: Down 10-15%
- Deere’s Small Ag & Turf group: Down 10-15%
- Construction Industry: Down 10%
- Deere’s Construction and Forestry group: Down 10-15%
- Deere’s Compact Equipment group: Down 5%
Manufacturing investment
John Deere has helped build America since 1837 through U.S. manufacturing, jobs, and community growth. This announcement reinforces the company’s ongoing commitment to strategic investments both for today and the future.
Major Projects Include:
- A 120,000 sq. ft. expansion of the company’s remanufacturing facility in Missouri
- Construction of a new excavator factory in Kernersville, North Carolina
- Expansion of the Greeneville, Tennessee turf equipment factory
- New assembly lines for the 9RX high-horsepower tractor in Waterloo, Iowa
Creating Jobs and Strengthening U.S. Communities:
- 30,000 U.S.-based John Deere employees
- 50,000 employees at independent John Deere dealerships
- $200 million committed through the John Deere Foundation by 2031
- 450 U.S. military veterans placed into jobs