Deere mpany : John Deere - 2Q Earnings Call Earnings Call Presentation
DE
Published on 05/15/2025 at 07:35
15 May 2025
3 John Deere | 2Q 2025 Earnings Call | Ma
y 15, 2025
INVESTING IN OUR FUTURE
COMMITMENT TO OUR CUSTOMERS
EXECUTING OUR PLAN
($ millions except where noted)
Net Sales and Revenues
$15,235
$12,763
2Q 2024 2Q 2025
Net Sales
(Equipment Operations)
$13,610
$11,171
2Q 2024 2Q 2025
Net Income
(attributable to Deere & Company)
$2,370
$1,804
2Q 2024 2Q 2025
Diluted EPS
($ per share)
$8.53
$6.64
2Q 2024 2Q 2025
16%
18%
24%
22%
Net Sales 21% Operating Profit Comparison
$6,581
$5,230
$1,650
($610)
$46
($92)
$73
$32
($8) $0
$57
$1,148
2Q 2024
2Q 2025
2Q 2024
Volume/
Price
Currency
Warranty
Production
SA&G/
Special
Other
2Q 2025
Mix
Costs
R&D
Items
Net Sales 6% Operating Profit Comparison
$3,185
$2,994
2Q 2024
Volume/
Price
Currency
Warranty
Production
SA&G/
Special
Other
2Q 2025
Mix
Costs
R&D
Items
2Q 2024 2Q 2025
$571
($97)
$23
$28
$7
$29 $17
$0 ($4)
$574
U.S. and CANADA LARGE AG
~30%
U.S. and CANADA
SMALL AG and TURF
10-15%
EUROPE AG
~5%
SOUTH AMERICA AG
(tractors and combines)
Flat
ASIA AG
Flat
Source: Deere & Company forecast as of 15 May 2025
Net Sales Operating Margin
$20,834
15-20%
15.5-17.0%
21.7%
FY 2024 FY 2025 Fcst FY 2024 FY 2025 Fcst
Source: Deere & Company forecast as of 15 May 2025
Business Segment Outlook $ in millions
Net Sales Operating Margin
$10,969
10-15%
11.5-13.5%
14.8%
FY 2024 FY 2025 Fcst FY 2024 FY 2025 Fcst
Source: Deere & Company forecast as of 15 May 2025
2Q 2025 Results $ in millions
Net Sales 23% Operating Profit Comparison
$3,844
$668
($244)
$2,947
($53)
($14) ($12) ($2) $9
$27
$0
$379
2Q 2024
2Q 2025
2Q 2024
Volume/
Price
Currency
Warranty Production
SA&G/
Special
Other
2Q 2025
Mix
Costs
R&D
Items
Industry Outlook (in units) - FY 2025
U.S. and CANADA CONSTRUCTION EQUIPMENT
~10%
U.S. and CANADA COMPACT CONSTRUCTION EQUIPMENT
~5%
GLOBAL FORESTRY
Flat to down 5%
GLOBAL ROADBUILDING
Flat
Source: Deere & Company forecast as of 15 May 2025
Business Segment Outlook $ in millions
Net Sales Operating Margin
15.5%
$12,956
10-15%
8.5-11.5%
FY 2024 FY 2025 Fcst FY 2024 FY 2025 Fcst
Source: Deere & Company forecast as of 15 May 2025
Net Income - Results and Outlook $ in millions
Quarter Results Fiscal Year Outlook
$162
$161
$696
~ $750
2Q 2024 2Q 2025 FY 2024 FY 2025 Fcst
Source: Deere & Company forecast as of 15 May 2025
FY 2025 FORECAST
Net Income
(attributable to Deere & Co.)
Effective Tax Rate*
Net Operating Cash Flow*
Research and Development Expenses*
Other
Capital Expenditures*
Down slightly
~$1.4B
*Equipment Operations
Source: Deere & Company forecast as of 15 May 2025
Appendix
John Deere | 2Q 2025 Earnings Call | May 15, 2025
U.S. Sourcing by Geography
Japan
RoW
China
India Canada
RoW
India 3% 1%
1% 1% 2%
2%
Mexico 3%
5%
Japan
2%
Europe 9%
Europe 6%
Mexico 10%
United States 79%
United States 76%
Note: Complete Goods shown as a percent of FY25E U.S. net sales.
Note: Direct materials shown as a percent of FY25E U.S. COGS.
John Deere | 2Q 2025 Earnings Call | May 15, 2025
Retail Sales
U.S. and Canada Ag
Industry*
Deere**
2WD Tractors (< 40 PTO hp)
11%
More than the industry
2WD Tractors (40 < 100 PTO hp)
9%
More than the industry
2WD Tractors (100+ PTO hp)
22%
More than the industry
4WD Tractors
17%
More than the industry
Combines
24%
More than the industry
Deere Dealer Inventories***
U.S. and Canada Ag
2025
2024
2WD Tractors (100+ PTO hp)
31%
31%
Combines
17%
15%
* As reported by the Association of Equipment Manufacturers
** As reported to the Association of Equipment Manufacturers
*** In units as a % of trailing 12 months retail sales, as reported to the Association of Equipment Manufacturers
Retail Sales Europe Ag
Deere*
Tractors
Double digits
Combines Double digits
Retail Sales
U.S. and Canada
Deere*
Selected Turf and Utility Equipment
Earthmoving and Forestry
* Based on internal sales reports
CASH FROM OPERATIONS
COMMITTED TO "A" RATING
Manage the balance sheet, including liquidity, to support a rating that provides access to low-cost and readily available short- and long-term funding mechanisms (reflects the strategic nature of our financial services operation)
FUND OPERATING & GROWTH NEEDS
Fund value-creating investments in our businesses
COMMON STOCK DIVIDEND
Consistently and moderately raise dividend targeting a 25-35% payout ratio of mid-cycle earnings
SHARE REPURCHASE
Consider share repurchase as a means to deploy excess cash to shareholders, once above requirements are met
Opportunity | Foundation | Growth
Join us virtually at https://www.investor.deere.com
Deere & Company's 3Q 2025 earnings call is scheduled for 9:00 a.m. Central Time on Thursday, 14 August 2025.
21 John Deere | 2Q 2025 Earnings Call | May 15, 2025
JOHN DEERE
Disclaimer
Deere & Company published this content on May 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 15, 2025 at 11:34 UTC.