Deere & Company (DE) Q2 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2025
0mins
Should l Buy DE?
Source: SeekingAlpha
Net Sales and Revenues $12.763 billion, down 16% year-over-year due to lower shipment volumes and global trade uncertainty.
Net Sales for Equipment Operations $11.171 billion, down 18% year-over-year primarily due to lower shipment volumes.
Net Income Attributable to Deere $1.804 billion, or $6.64 per diluted share, reflecting the impact of lower sales.
Production and Precision Ag Net Sales $5.23 billion, down 21% year-over-year due to lower shipment volumes, partially offset by positive price realization.
Production and Precision Ag Operating Profit $1.148 billion, resulting in a 22% operating margin, down due to lower shipment volumes and unfavorable sales mix.
Small Ag and Turf Net Sales $2.994 billion, down 6% year-over-year due to lower shipment volumes, partially offset by positive price realization.
Small Ag and Turf Operating Profit Approximately flat year-over-year at $574 million, resulting in a 19.2% operating margin, impacted by lower shipment volumes.
Construction and Forestry Net Sales $2.947 billion, down 23% year-over-year due to lower shipment volumes and negative price realization.
Construction and Forestry Operating Profit $379 million, resulting in a 12.9% operating margin, down due to lower shipment volumes and unfavorable sales mix.
Worldwide Financial Services Net Income $161 million, flat year-over-year due to less favorable financing spreads and higher provision for credit losses.
Cash Flow from Equipment Operations Projected between $4.5 billion and $5.5 billion, reflecting ongoing operational performance.
Effective Tax Rate Projected between 20% and 22% for fiscal year 2025.
Tariff Impact Estimated pre-tax tariff impact of just over $500 million for fiscal year 2025, affecting various segments differently.
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Analyst Views on DE
Wall Street analysts forecast DE stock price to fall
15 Analyst Rating
8 Buy
7 Hold
0 Sell
Moderate Buy
Current: 580.540
Low
458.00
Averages
514.25
High
560.00
Current: 580.540
Low
458.00
Averages
514.25
High
560.00
About DE
Deere & Company is engaged in the delivery of agricultural, construction and forestry equipment. Its segments include production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (FS). PPA segment defines, develops and delivers global equipment and technology solutions for production-scale growers of large grains, small grains, cotton and sugarcane. SAT segment defines, develops and delivers global equipment and technology solutions for dairy and livestock producers, high-value and small acreage crop producers, and turf and utility customers. CF segment defines, develops and delivers a range of machines and technology solutions organized along the earthmoving, forestry and roadbuilding production systems. FS segment finances sales and leases by John Deere dealers of new and used production and precision agriculture equipment and others. Its products include John Deere Autonomous 8R Tractor and E-Power Backhoe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- HALO Stock Concept: HALO stocks refer to companies with heavy assets and low obsolescence risk, theoretically immune to AI replacement; recent news of Anthropic's new AI tool caused IBM's stock to drop 13% in a single day, highlighting market concerns.
- Energy Company Performance: For instance, ExxonMobil's stock has risen 24% this year, largely driven by the Iran war and soaring oil prices, indicating that energy companies are poised to benefit from the growing demand for AI, despite overall consumer spending trends.
- Consumer Goods Challenges: McDonald's stock has declined about 7% year-to-date, impacted by low consumer sentiment and rising gasoline prices; despite its substantial assets, it faces challenges from weakening consumer demand, illustrating the vulnerabilities of HALO stocks.
- Strong Performance of Equipment Manufacturers: Caterpillar and Deere have shown exceptional performance in 2026, with stock increases of 59% and 26%, respectively, significantly outperforming the S&P 500's 7%, indicating their crucial role in the AI build-out.
See More
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- HALO Stocks Concept Review: HALO stocks refer to companies with heavy assets that are less likely to be replaced by AI; the recent launch of new AI agents by Anthropic has reignited market interest in these stocks, particularly as financial data companies like Thomson Reuters and Moody's saw declines due to concerns.
- Strong Performance of Energy Companies: For instance, ExxonMobil's stock rose 24% in 2026, primarily driven by soaring oil prices due to the Iran war, indicating that energy companies maintain significant market resilience amid growing AI demand.
- Challenges for Consumer Goods Companies: Despite McDonald's substantial physical assets, its stock has dropped about 7% in 2026, reflecting the negative impact of high gasoline prices on consumer spending, particularly among its target demographic.
- Robust Growth in Construction and Agriculture Equipment: Caterpillar and Deere have seen stock increases of 59% and 26% in 2026, respectively, significantly outperforming the broader market, highlighting their essential role in infrastructure development amid the AI revolution.
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- Earnings Season Performance: So far, approximately 78% of S&P 500 companies (394 firms) have reported earnings, with nearly 85% exceeding profit expectations and 78% surpassing revenue forecasts, indicating robust overall market performance.
- Ulta Beauty Investment Opportunity: Ulta Beauty is expected to report earnings on June 1, and Morgan Stanley analysts believe that after a 12% year-to-date decline, the company's $434 million investment will drive future growth, setting a price target of $685, implying a 29% upside.
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- Access Information: Investors can access the earnings call via Deere's website at www.JohnDeere.com/earnings, with a recorded version available afterward for stakeholders who cannot participate live, enhancing accessibility to critical information.
- Financial Information Availability: In addition to the call, investors can obtain Deere's earnings release, other financial data, and the earnings call presentation at the same link, ensuring a comprehensive understanding of the company's financial health and future outlook.
- Company Background: Founded nearly 200 years ago, Deere & Company emphasizes its role in driving innovation across agriculture, construction, and forestry, highlighting its significant contribution to global food, fiber, fuel, and infrastructure production, showcasing its extensive market influence.
See More
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- Earnings Call Schedule: Deere & Company will hold its Q2 2026 earnings call on May 21 at 9:00 a.m. Central Time, where financial and operational performance will be discussed with analysts and investors, likely attracting significant participation from the financial community.
- Financial Information Access: Investors can access the earnings release, financial information, and call presentation on Deere's website, ensuring transparency and providing essential financial data support for stakeholders.
- Company Background: Founded nearly 200 years ago, Deere is committed to innovation across agriculture, construction, and forestry, playing a crucial role in helping produce food, fiber, and fuel, highlighting its importance in the global economy.
- Market Impact Analysis: This earnings call will provide investors with critical financial data and operational insights, potentially influencing market expectations regarding Deere's future performance, although no significant stock price fluctuations are currently observed.
See More
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- Price Fluctuation Analysis: DFUV's 52-week low is $39.4799 and high is $52.07, with the latest trade at $52.05, indicating price stability near the high, which may influence investor buying decisions.
- Technical Analysis Tool: Comparing the latest stock price to the 200-day moving average can provide valuable insights for investors, aiding in market trend assessment and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding focuses on those experiencing notable inflows (new units created) or outflows (old units destroyed), assessing their impact on underlying assets and market sentiment.
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