John Deere Financial revenue rises in Q4 as sales recover

Deere & Co.’s financial services revenue rose in its fourth quarter and fiscal 2025 amid a slight sales recovery during the quarter.  

Deere’s financial services revenue increased year over year on stronger financing spreads, special items and lower credit-loss provisions, Christopher Seibert, manager of investor communications at Deere & Co., said during today’s earnings call. While fiscal 2025 ended on a positive note, financial services net income is projected to fall in the next fiscal year as lower portfolio volumes outweigh continued spread benefits, he said. 

Across the company, Deere experienced declining annual sales and income, although it credited collaboration across verticals and partnerships with dealers for minimizing the impact of uncertainty plaguing the equipment industry, President and Chief Executive John May said during the earnings call. 

“Our sales, life cycle and John Deere financial teams worked hand-in-hand with our dealers to keep our customers up and running throughout the year, while at the same time taking the actions needed to continue driving down used inventory levels,” he said. “Our logistics, supply management and finance teams partnered with the broader organization to assess and mitigate tariff exposures, manage disruptions in global supply chains and maintain sufficient liquidity.” 

By the numbers

John Deere’s financial service revenue rose YoY in Q4 and for the fiscal year ended Nov. 2 as financing conditions improved for the captive lender, according to Deere’s earnings release: 

• Q4 financial services revenues were $1.5 billion, up 1.7% YoY; 

• Full-year financial services revenues were $5.8 billion, up 0.7% YoY; 

• Q4 financial services net income was $293 million, up 69.4% YoY; 

• Full-year financial services net income was $890 million, up 27.9% YoY; 

• Provision for financial services credit losses of $278 million, down 6.1% YoY;  

• Consolidated provision for credit losses of $296 million, down 4.5% YoY; and 

• Projected 2026 financial services net income of about $830 million, down about 6.7% YoY; 

Deere and Co.’s equipment sales grew in Q4 but remained down for fiscal 2025, according to the release: 

• Q4 net sales and revenues totaled $12.4 billion, up 11.2% YoY; 

• Fiscal year net sales and revenues totaled $45.7 billion, down 11.7% YoY; 

• Q4 production and precision ag net sales were $4.7 billion, up 10.1% YoY; 

• Fiscal 2025 production and precision ag net sales were $17.3 billion, down 16.9% YoY;  

• Q4 small ag and turf net sales were $2.5 billion, up 6.5% YoY;  

• Fiscal year small ag and turf net sales were $10.2 billion, down 6.8% YoY;  

• Q4 construction and forestry net sales were $3.4 billion, up 27% YoY; and 

• Fiscal year construction and forestry net sales were $11.4 billion, down 12.2% YoY. 

Noteworthy

Deere expects cost reductions and disciplined production, including the OEM producing 10% less than retail demand in addition to record R&D investment to position the business well for 2026, especially in its earthmoving segment, Director of Investor Relations Josh Beal said during the call. 

“Field inventory levels of North American earthmoving equipment were down around 35% from the end of our fiscal 2024 third quarter, positioning that business to build in line with retail sales in 2026 as that market shows signs of recovery,” he said. “Cost management is the other hallmark of managing cycles, and our efforts to control production costs for the equipment operations remain successful throughout fiscal 2025.” 

The company predicts mixed sales during fiscal 2026 with: 

• Production and Precision Ag, down 5% to 10% YoY;  

• Small Ag and Turf, up about 10% YoY; and 

• Construction and Forestry, up about 10% YoY. 

As Deere continues managing North American prices amid the agriculture slump, the OEM aims to support dealers with the continuation of its pool fund, Deanna Kovar, president of worldwide ag and turf division, production and precision ag and Americas and Australia, said during the earnings call. 

“You will see us continue to provide pool fund opportunities to our dealers at a similar level in ’26 as we did in 2025,” she said. “From an overall pricing standpoint, we remain mindful of where our customers are at in the cycle and maintaining our opportunities for the future.” 

Market reaction

Shares of Deere & Co. [Nasdaq: DE] were trading at $469.87 at market close today, down 5.67% or $28.26 from market open. Deere has a market capitalization of $134.66 billion.  

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