Deere & Company Q1 Earnings Highlights
Deere & Company (NYSE: DE) reported total revenue of $9.6 billion for the first quarter of 2025, significantly exceeding consensus estimates of $7.6 billion. This growth was primarily driven by a 34% year-over-year revenue increase in its construction and forestry (C&F) segment, spurred by rising demand for data center construction from major tech companies. Meanwhile, the agricultural sector continues to experience a cyclical downturn, with revenue in this segment falling 25% since last year, reflecting broader challenges in the farming industry.
The C&F division’s backlog surged by 50%, contributing to improved performance while agricultural equipment prices have decreased significantly, with high-horsepower tractors dropping over 40% from peak prices. Despite facing approximately $1.2 billion in annual tariff-related costs that reduced operating margins to 5.1%, Deere adjusted its earnings guidance upward to between $4.5 billion and $5 billion for the year, indicating a cautiously optimistic outlook amid ongoing challenges.
