Deere & Co. saw its net income decline in the second quarter as agriculture, construction and forestry sales fell in the face of tariffs and market uncertainty.
John Deere reported second-quarter net income of $1.8 billion for the period ending April 27, down 23.9% year over year, according to the company’s earnings release today. For the first half of fiscal 2025, net income totaled $2.7 billion, down 35.1% YoY.
Q2 worldwide net sales and revenues declined 16% to $12.8 billion, while six-month results dropped 22% to $21.3 billion, while net sales were $11.2 billion, down from $13.6 billion in Q2 2024, according to the release. Construction and forestry sales fell 23%, with operating profit down 43% due to weak volume and price realization.
Deere’s production and precision agriculture segment saw a 21% decrease in sales, with operating profit falling 30% due to lower shipment volumes, an unfavorable sales mix and foreign currency headwinds, partially offset by price realization and lower production costs, according to the earnings release. The small agriculture and turf segment posted a 6% sales decline, but operating profit rose 1% as cost reductions and price improvements offset volume pressure.
The financial services division reported net income of $161 million, nearly unchanged from the previous year, according to the release. This stability was supported by lower selling, administrative, and general expenses and reduced derivative valuation adjustments, which offset the impact of tighter financing spreads and higher credit loss provisions.
Looking ahead, Deere broadened its full-year net income outlook to a range of $4.8 billion to $5.5 billion, reflecting caution amid continued global trade and market uncertainty.
The company expects sharp declines in large agriculture equipment sales in the U.S. and Canada — down approximately 30% — along with weaker construction and turf markets, according to the release. Nevertheless, Deere reaffirmed its long-term commitment to innovation, manufacturing investment and cost competitiveness, particularly in its core U.S. market.
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