Deere, Toro opportunistic with capital during market slowdown

Equipment manufacturers Toro and John Deere are spending money to seize market opportunities as the farm and agriculture industries remain soft. 

For outdoor power equipment manufacturer Toro, the ability to allocate and deploy capital has remained consistent amid strong corporate credit fundamentals, Angela Drake, vice president and chief financial officer, said during the company’s June 5 earnings call. 

“We have a disciplined approach to our capital allocation, and that really remains unchanged,” she said. “We’ll take an opportunistic approach to our share of purchases as well, but first, we will invest in ourselves, continue investing in research and development, innovation and technology, and M&A, where that’s applicable.” 

Toro invested nearly $38 million on growth activities such as investments in new products in 2025, according to the company’s earnings presentation. 

Meanwhile, John Deere continues to work with dealers and manage its equipment and costs to make life easier for them, Luke Kurth, director of machine technology at Park City, Kan.-based Murphy Tractor, told Equipment Finance News. 

“We need to wait and see what we’re going to do to take some of the heat off,” he said. “We’ll absorb some tariffs, whatever it is, some of the costs to help get through things, but they’re just a good company to work with and partner with, and that makes it easier than what is when you’re trying to guess the tea leaves that are going on today.” 

John Deere also recently announced a $20 billion investment in U.S. manufacturing over the next decade in a June 6 release.