Deere & Company (DE) reported second-quarter net income of $1.773 billion, or $6.55 per share, on net sales of $11.78 billion, surpassing expectations of $5.81 and $11.44 billion, respectively. The company retained its full-year net income guidance of $4.5 to $5.0 billion amid challenges from a weakened Brazilian market and ongoing tariffs.
Performance varied across segments; while large agriculture sales declined, Small Ag & Turf and Construction & Forestry sectors reported sales growth of 16% and 29%, respectively. A $272 million tariff refund boosted equipment margins by nearly 2.5 points, but direct tariff exposure remains around $1.2 billion for the year. CFO Brent Norwood noted that order books for Construction & Forestry have surged over 60% since November, driven by infrastructure demand.
In terms of inventory, North American new inventories of high-horsepower tractors and combines have dropped more than 50% from peak levels, and the company anticipates a bottoming out in the agricultural cycle by fiscal 2026, with expectations for recovery in 2027.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
