Deere Reports Sales Decline, Tariff Hit
Deere & Company Reports Lower Second Quarter Income, But Exceeds Market Expectations
Deere & Company is reporting net income of $1.804 billion for its second quarter ended April 27, 2025, compared with net income of $2.370 billion for the quarter ended April 28, 2024.
The second quarter result, while down compared to 2024, still exceeds market expectations.
For the first six months of Deere's fiscal year, net income attributable to Deere & Company was $2.673 billion, compared with $4.121 billion for the same period last year. That's on worldwide net sales and revenues of $21,272 billion for the first half of Deere's fiscal year, down 22% from the first half of fiscal year 2024.
Deere says its second quarter net sales for production and precision agriculture hit $5.23 billion in the second quarter, down 21% compared to the second quarter a year ago.
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"In the near term, we'll continue to proactively manage what we can control, cost, production, inventory and quality to navigate this environment while driving the margins that fuel our investments in the future," John Deere chairman and CEO John May said during the second quarter earnings call with investors.
In addition to the sales decline, tariffs are heavily impacting Deere's income projections. Tariffs accounted for about $100 million in second-quarter costs.
Deere notes that more than 75% of components flowing into its U.S. factories are sourced from U.S.-based suppliers. However, the company projects the current tariffs could impact the fiscal year by more than $500 million.
Split by business unit, Deere expects 40% of the cost from tariffs to impact construction and forestry, about 35% hitting small ag and turf and about 25% hitting production and precision ag.
For fiscal 2025, Deere is forecasting net income to be in a range of $4.75 billion to $5.50 billion. Income was $7.1 billion in Deere's fiscal year 2024.
Deere is planning to make large investments in its U.S. production plants.
May says Deere is prepared to invest $20 billion in the U.S. over the next decade, as the manufacturer develops new products and technologies and installs advanced manufacturing systems. Nearly 80% of Deere's U.S. sales and 25% of its international sales are built in more than 60 U.S. manufacturing locations.
Dan Miller can be reached at dan.miller@dtn.com
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