Deere Reports Net Income of $1.065 Billion for Fourth Quarter, $5.027 Billion for Fiscal Year

Rhea-AI Summary

{"summary":"","positive":[],"negative":[],"faq":[]}

News Market Reaction

-5.67% 3.5x vol

4 alerts

-5.67% News Effect

-$8.09B Valuation Impact

$134.66B Market Cap

3.5x Rel. Volume

On the day this news was published, DE declined 5.67%, reflecting a notable negative market reaction. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $8.09B from the company's valuation, bringing the market cap to $134.66B at that time. Trading volume was very high at 3.5x the daily average, suggesting heavy selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net income: $1.065 billion FY 2025 net income: $5.027 billion FY 2025 diluted EPS: $18.50 +5 more

8 metrics

Q4 2025 net income $1.065 billion Quarter ended November 2, 2025 vs $1.245 billion in Q4 2024

FY 2025 net income $5.027 billion Fiscal 2025 vs $7.100 billion in fiscal 2024

FY 2025 diluted EPS $18.50 Fiscal 2025 vs $25.62 in fiscal 2024

FY 2025 net sales $38.917 billion Net sales vs $44.759 billion in fiscal 2024

Q4 2025 net sales & revenues $12.394 billion Quarter up 11% vs $11.143 billion in Q4 2024

2026 net income guidance $4.00–$4.75 billion Projected fiscal 2026 earnings vs FY 2025 net income of $5.027 billion

Construction & Forestry Q4 sales $3.382 billion Fourth quarter 2025, up 27% vs $2.664 billion in 2024

Financial Services Q4 net income $293 million Fourth quarter 2025, up 69% vs $173 million in 2024

Market Reality Check

Price: $593.27 Vol: Volume 1,169,443 vs 20-da...

normal vol

$593.27 Last Close

Volume Volume 1,169,443 vs 20-day average 1,677,959 indicates trading was below typical levels before this release. normal

Technical Price at $475.94 sat below the 200-day MA of $483.72, with shares about 10.84% under the 52-week high.

Peers on Argus

Before this release, DE was up 1.5%. Peers were mixed: CAT (+2.48%), CNH (+1.54%...

Before this release, DE was up 1.5%. Peers were mixed: CAT (+2.48%), CNH (+1.54%), AGCO (+0.67%), TEX (+0.88%), while PCAR declined 0.61%, pointing to stock-specific rather than unified sector positioning.

Historical Context

5 past events · Latest: Dec 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 04	Board change	Positive	+0.3%	New Cargill CEO director added, expanding board and industry expertise.
Dec 03	Dividend declaration	Positive	+2.7%	Quarterly dividend of <b>$1.62</b> per share confirmed for Feb 2026.
Dec 01	Investor Day	Neutral	+0.8%	Announcement of Investor Day webcast and strategic presentations.
Nov 26	Earnings release	Negative	-5.7%	Q4 and FY 2025 net income down year over year with 2026 outlook.
Nov 12	Earnings date	Neutral	+0.6%	Notice of upcoming Q4 2025 earnings call and materials posting.

Pattern Detected

Recent news flow shows price direction generally aligning with news tone, with notably negative moves on earnings updates and modest positive reactions to dividends and governance items.

Recent Company History

Over the last months, Deere issued several updates, including Q1–Q3 2025 earnings that showed declining net income and softer net sales, alongside maintained but later narrowed full-year guidance. The August and February earnings reports saw declines in large ag and construction, while Financial Services improved. An earnings-date notice on Nov 12 and this Nov 26 fiscal 2025/Q4 release fit a pattern of earnings acting as key catalysts for multi-percent moves.

Market Pulse Summary

The stock moved -5.7% in the session following this news. A negative reaction despite ongoing profit...

Analysis

The stock moved -5.7% in the session following this news. A negative reaction despite ongoing profitability would fit the pattern of prior earnings that saw multi-percent declines when guidance or segment trends weakened. Fiscal 2025 net income fell to $5.027 billion from $7.100 billion, and 2026 earnings are projected at $4.00–$4.75 billion, below 2025. Continued softness in large ag and margin pressure could contribute to concerns about the depth of this cycle.

Key Terms

operating margin, forward-looking statements, provision for credit losses

3 terms

operating margin financial

"Operating margin | | 1.0 % | | 10.1 %"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

forward-looking statements regulatory

"Certain statements contained herein... constitute "forward-looking statements" as defined"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

provision for credit losses financial

"and a lower provision for credit losses."

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

AI-generated analysis. Not financial advice.

• 2025 results highlight resilient performance in the face of difficult market conditions
• Outlook for small ag and construction and forestry improves as large ag remains subdued
• Full-year 2026 earnings are projected to be between $4.00 billion and $4.75 billion

MOLINE, Ill., Nov. 26, 2025 /PRNewswire/ -- Deere & Company (NYSE: DE) reported net income of $1.065 billion for the fourth quarter ended November 2, 2025, or $3.93 per share, compared with net income of $1.245 billion, or $4.55 per share, for the quarter ended October 27, 2024. For fiscal year 2025, net income attributable to Deere & Company was $5.027 billion, or $18.50 per share, compared with $7.100 billion, or $25.62 per share, in fiscal 2024.

Worldwide net sales and revenues increased 11%, to $12.394 billion, for the fourth quarter of 2025 and decreased 12%, to $45.684 billion, for the full year. Net sales were $10.579 billion for the quarter and $38.917 billion for the year, compared with $9.275 billion and $44.759 billion in fiscal 2024, respectively.

"This past year brought its share of challenges and uncertainty, but thanks to the structural improvements we've made and the diverse customer segments and geographies we serve, we were able to achieve our best results yet for this point in the cycle," said John May, chairman and CEO of John Deere. "Our continued commitment to delivering customer value and focusing on operational efficiency enabled us to remain resilient and demonstrate the strength of our business."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.00 billion to $4.75 billion.

"Looking ahead, we believe 2026 will mark the bottom of the large ag cycle," May stated. "While ongoing margin pressures from tariffs and persistent challenges in the large ag sector remain, our commitment to inventory management and cost control, coupled with expected growth in small agriculture & turf and construction & forestry, positions us to effectively manage the business and seize emerging opportunities as market conditions begin to recover."

Deere & Company		Fourth Quarter								Full Year
$ in millions, except per share amounts		2025			2024			% Change		2025			2024			% Change
Net sales and revenues		$	12,394		$	11,143		11 %		$	45,684		$	51,716		-12 %
Net income		$	1,065		$	1,245		-14 %		$	5,027		$	7,100		-29 %
Fully diluted EPS		$	3.93		$	4.55				$	18.50		$	25.62

Results for the presented periods were affected by special items. See Note 2 of the financial statements for further details. The cost of additional tariffs for each segment is included in the "Production costs" and "Other" categories below.

Production & Precision Agriculture		Fourth Quarter
$ in millions		2025			2024			% Change
Net sales		$	4,740		$	4,305		10 %
Operating profit		$	604		$	657		-8 %
Operating margin			12.7 %			15.3 %

Production & Precision Agriculture sales increased for the quarter due to higher shipment volumes and favorable price realization. Operating profit decreased primarily due to higher production costs, higher tariffs, and special items described in Note 2, partially offset by price realization and higher shipment volumes / sales mix.

Small Agriculture & Turf		Fourth Quarter
$ in millions		2025			2024			% Change
Net sales		$	2,457		$	2,306		7 %
Operating profit		$	25		$	234		-89 %
Operating margin			1.0 %			10.1 %

Small Agriculture & Turf sales increased for the quarter due to higher shipment volumes. Operating profit decreased due to higher tariffs, warranty expenses, and production costs.

Construction & Forestry		Fourth Quarter
$ in millions		2025			2024			% Change
Net sales		$	3,382		$	2,664		27 %
Operating profit		$	348		$	328		6 %
Operating margin			10.3 %			12.3 %

Construction & Forestry sales increased for the quarter due to higher shipment volumes. Operating profit increased primarily due to higher shipment volumes / sales mix, partially offset by increased production costs driven by higher tariffs and special items described in Note 2.

Financial Services		Fourth Quarter
$ in millions		2025			2024			% Change
Net income		$	293		$	173		69 %

Financial Services net income for the quarter was higher due to favorable financing spreads, special items described in Note 2, and a lower provision for credit losses.

Industry Outlook for Fiscal 2026
Agriculture & Turf
U.S. & Canada:
Large Ag						Down 15 to 20%
Small Ag & Turf						Flat to up 5%
Europe						Flat to up 5%
South America (Tractors & Combines)						Flat
Asia						Down ~5%
Construction & Forestry
U.S. & Canada:
Construction Equipment						Flat to up 5%
Compact Construction Equipment						Flat to up 5%
Global Forestry						Flat
Global Roadbuilding						Flat

 

Deere Segment Outlook for Fiscal 2026				Currency		Price
$ in millions		Net Sales		Translation		Realization
Production & Precision Ag		Down 5 to 10%		+1.5 %		~ +1.5%
Small Ag & Turf		Up ~10%		+1.0 %		~ +2.0%
Construction & Forestry		Up ~10%		+1.0 %		~ +3.0%
Financial Services		Net Income		~ $830

 

FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in the section entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2026," "Deere Segment Outlook for Fiscal 2026," and "Condensed Notes to Consolidated Financial Statements" relating to future events, expectations, and trends constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally while others could more heavily affect a particular line of business.

Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:

• the agricultural business cycle, which can be unpredictable and is affected by factors such as farm income, international trade, world grain stocks, crop yields, available farm acres, soil conditions, prices for commodities and livestock, input costs, governmental farm programs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth or a recession, and regional or global liquidity constraints
• the uncertainty of government policies and actions with respect to the global trade environment including increased and proposed tariffs announced by the U.S. government, and retaliatory trade regulations
• political, economic, and social instability in the geographies in which the company operates, including the ongoing war between Russia and Ukraine and the conflicts in the Middle East
• worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for the company's equipment
• rationalization, restructuring, relocation, expansion and/or reconfiguration of manufacturing and warehouse facilities
• accurately forecasting customer demand for products and services and adequately managing inventory
• uncertainty of the company's ability to sell products domestically or internationally, manage increased costs of production, absorb or pass on increased pricing, and accurately predict financial results and industry trends
• availability and price of raw materials, components, and whole goods
• delays or disruptions in the company's supply chain
• changes in climate patterns, unfavorable weather events, and natural disasters
• suppliers' and manufacturers' business practices and compliance with laws applicable to topics such as human rights, safety, environmental, and fair wages
• higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company's products and solutions
• ability to adapt in highly competitive markets, including understanding and meeting customers' changing expectations for products and solutions, including delivery and utilization of precision technology
• the ability to execute business strategies, including the company's Smart Industrial Operating Model and Leap Ambitions
• dealer practices and their ability to manage new and used inventory, distribute the company's products, and to provide support and service for precision technology solutions
• the ability to realize anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes
• negative claims or publicity that damage the company's reputation or brand
• the ability to attract, develop, engage, and retain qualified employees
• the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge
• labor relations and contracts, including work stoppages and other disruptions
• security breaches, cybersecurity attacks, technology failures, and other disruptions to the company's information technology infrastructure and products
• leveraging artificial intelligence and machine learning within the company's business processes
• changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environmental (including climate change and engine emissions), farming, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, health and safety, human rights, import / export and trade, labor and employment, tariffs, product liability, tax, telematics, and telecommunications
• governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy
• warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations because of the deficient operation of the company's products
• investigations, claims, lawsuits, or other legal proceedings, including the lawsuit filed by the Federal Trade Commission (FTC) and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that the company unlawfully withheld self-repair capabilities from farmers and independent repair providers
• loss of or challenges to intellectual property rights

Further information concerning the company or its businesses, including factors that could materially affect the company's financial results, is included in the company's filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.

 

DEERE & COMPANY FOURTH QUARTER 2025 PRESS RELEASE (In millions of dollars) Unaudited
		Three Months Ended								Years Ended
		November 2			October 27			%		November 2			October 27			%
		2025			2024			Change		2025			2024			Change
Net sales and revenues:
Production & Precision Ag net sales		$	4,740		$	4,305		+10		$	17,311		$	20,834		-17
Small Ag & Turf net sales			2,457			2,306		+7			10,224			10,969		-7
Construction & Forestry net sales			3,382			2,664		+27			11,382			12,956		-12
Financial Services revenues			1,548			1,522		+2			5,821			5,782		+1
Other revenues			267			346		-23			946			1,175		-19
Total net sales and revenues		$	12,394		$	11,143		+11		$	45,684		$	51,716		-12
Operating profit: *
Production & Precision Ag		$	604		$	657		-8		$	2,671		$	4,514		-41
Small Ag & Turf			25			234		-89			1,207			1,627		-26
Construction & Forestry			348			328		+6			1,028			2,009		-49
Financial Services			374			231		+62			1,114			889		+25
Total operating profit			1,351			1,450		-7			6,020			9,039		-33
Reconciling items **			68			43		+58			266			155		+72
Income taxes			(354)			(248)		+43			(1,259)			(2,094)		-40
Net income attributable to Deere & Company		$	1,065		$	1,245		-14		$	5,027		$	7,100		-29

*	Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of Financial Services includes the effect of interest expense and foreign exchange gains and losses.
**	Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.

 

DEERE & COMPANY STATEMENTS OF CONSOLIDATED INCOME For the Three Months and Years Ended November 2, 2025 and October 27, 2024 (In millions of dollars and shares except per share amounts) Unaudited
		Three Months Ended						Years Ended
		2025			2024			2025			2024
Net Sales and Revenues
Net sales		$	10,579		$	9,275		$	38,917		$	44,759
Finance and interest income			1,515			1,551			5,748			5,759
Other income			300			317			1,019			1,198
Total			12,394			11,143			45,684			51,716
Costs and Expenses
Cost of sales			7,944			6,571			28,159			30,775
Research and development expenses			681			626			2,311			2,290
Selling, administrative and general expenses			1,276			1,232			4,663			4,840
Interest expense			762			870			3,170			3,348
Other operating expenses			307			326			1,124			1,257
Total			10,970			9,625			39,427			42,510
Income of Consolidated Group before Income Taxes			1,424			1,518			6,257			9,206
Provision for income taxes			354			248			1,259			2,094
Income of Consolidated Group			1,070			1,270			4,998			7,112
Equity in loss of unconsolidated affiliates			(10)			(28)						(24)
Net Income			1,060			1,242			4,998			7,088
Less: Net loss attributable to noncontrolling interests			(5)			(3)			(29)			(12)
Net Income Attributable to Deere & Company		$	1,065		$	1,245		$	5,027		$	7,100
Per Share Data
Basic		$	3.94		$	4.57		$	18.55		$	25.73
Diluted			3.93			4.55			18.50			25.62
Dividends declared			1.62			1.47			6.48			5.88
Dividends paid			1.62			1.47			6.33			5.76
Average Shares Outstanding
Basic			270.3			272.6			270.9			276.0
Diluted			271.1			273.6			271.7			277.1

See Condensed Notes to Consolidated Financial Statements.

 

DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS As of November 2, 2025 and October 27, 2024 (In millions of dollars) Unaudited
		2025			2024
Assets
Cash and cash equivalents		$	8,276		$	7,324
Marketable securities			1,411			1,154
Trade accounts and notes receivable – net			5,317			5,326
Financing receivables – net			44,575			44,309
Financing receivables securitized – net			6,831			8,723
Other receivables			2,403			2,545
Equipment on operating leases – net			7,600			7,451
Inventories			7,406			7,093
Property and equipment – net			8,079			7,580
Goodwill			4,188			3,959
Other intangible assets – net			892			999
Retirement benefits			3,273			2,921
Deferred income taxes			2,284			2,086
Other assets			3,461			2,906
Assets held for sale						2,944
Total Assets		$	105,996		$	107,320
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings		$	13,796		$	13,533
Short-term securitization borrowings			6,596			8,431
Accounts payable and accrued expenses			13,909			14,543
Deferred income taxes			434			478
Long-term borrowings			43,544			43,229
Retirement benefits and other liabilities			1,710			2,354
Liabilities held for sale						1,827
Total liabilities			79,989			84,395
Redeemable noncontrolling interest			51			82
Stockholders' Equity
Total Deere & Company stockholders' equity			25,950			22,836
Noncontrolling interests			6			7
Total stockholders' equity			25,956			22,843
Total Liabilities and Stockholders' Equity		$	105,996		$	107,320

See Condensed Notes to Consolidated Financial Statements.

 

DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS For the Years Ended November 2, 2025 and October 27, 2024 (In millions of dollars) Unaudited
		2025			2024
Cash Flows from Operating Activities
Net income		$	4,998		$	7,088
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses			296			310
Depreciation and amortization			2,229			2,118
Impairments and other adjustments			41			125
Share-based compensation expense			151			208
Credit for deferred income taxes			(288)			(294)
Changes in assets and liabilities:
Receivables related to sales			1,084			421
Inventories			(275)			788
Accounts payable and accrued expenses			(251)			(1,040)
Accrued income taxes payable/receivable			(136)			(123)
Retirement benefits			(865)			(227)
Other			475			(143)
Net cash provided by operating activities			7,459			9,231
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)			26,480			25,162
Proceeds from maturities and sales of marketable securities			486			832
Proceeds from sales of equipment on operating leases			1,917			1,929
Cost of receivables acquired (excluding receivables related to sales)			(26,340)			(28,816)
Acquisitions of businesses, net of cash acquired			(101)
Purchases of marketable securities			(703)			(1,055)
Purchases of property and equipment			(1,360)			(1,640)
Cost of equipment on operating leases acquired			(2,868)			(3,162)
Collections of receivables from unconsolidated affiliates			507
Loans to unconsolidated affiliates			(109)
Collateral on derivatives – net			182			413
Other			(148)			(127)
Net cash used for investing activities			(2,057)			(6,464)
Cash Flows from Financing Activities
Net payments in short-term borrowings (original maturities three months or less)			(2,539)			(1,856)
Proceeds from borrowings issued (original maturities greater than three months)			13,161			18,096
Payments of borrowings (original maturities greater than three months)			(12,264)			(13,232)
Repurchases of common stock			(1,138)			(4,007)
Dividends paid			(1,720)			(1,605)
Other			(79)			(113)
Net cash used for financing activities			(4,579)			(2,717)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash			77			(37)
Net Increase in Cash, Cash Equivalents, and Restricted Cash			900			13
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year			7,633			7,620
Cash, Cash Equivalents, and Restricted Cash at End of Year		$	8,533		$	7,633

See Condensed Notes to Consolidated Financial Statements.

 

DEERE & COMPANY
Condensed Notes to Consolidated Financial Statements
(In millions of dollars) Unaudited

(1)   Acquisitions

In 2025, the company acquired several small-scale businesses to advance the capabilities of the company's existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions aimed at improving profitability, efficiency, and sustainability. In addition, the company acquired the remaining ownership interest of an equity method investment. The combined purchase price consideration for these acquisitions was $115 million, consisting of $101 million cash, net of cash acquired, and $14 million loan forgiven. The businesses were assigned to the Production & Precision Agriculture (PPA), Small Agriculture & Turf (SAT), and Construction & Forestry (CF) segments. Most of the purchase price for these acquisitions was allocated to goodwill and intangible assets.

(2)   Special Items

Litigation Accrual

In the fourth quarter of 2025, the company increased the total accrued losses on unresolved legal matters in connection with a consolidated multidistrict class action antitrust lawsuit by $95 million pretax ($75 million after-tax) which was included in "Selling, administrative and general expenses."

Impairment of Intangible Assets

In the third quarter of 2025, the company recorded a non-cash impairment charge of $61 million pretax ($49 million after-tax), primarily related to the trade name and customer relationship assets of external overseas battery operations. Of this amount, $53 million was recorded in "Selling, administrative and general expenses" and $8 million in "Cost of sales." This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets.

Discrete Tax Items

In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.

Banco John Deere S.A.

In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market. The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in "Equity in income (loss) of unconsolidated affiliates" within the Financial Services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in "Other assets" and "Other receivables," respectively.

BJD was reclassified as held for sale in 2024, resulting in a net loss of $59 million pretax and after-tax due to the establishment of a $97 million valuation allowance on the assets held for sale and a $38 million reversal of allowance for credit losses. In the first quarter of 2025, a gain of $32 million pretax and after-tax was recorded in "Selling, administrative and general expenses" related to a decrease in valuation allowance. The valuation allowance changes are presented in "Impairments and other adjustments" in the statements of consolidated cash flows. No significant gain or loss was recognized upon completion of the transaction. The equity interest in BJD was valued at $362 million at the deconsolidation date.

Legal Settlements

The company reached legal settlements concerning patent infringement claims. As a result of these settlements, in the fourth quarter of 2024, the company recognized a total of $57 million pretax gain ($45 million after-tax) in "Other Income," providing a benefit of $17 million to PPA and $40 million to CF. These settlements resolve the disputes without any admission of liability by the parties involved. The company believes that these settlements enhance its ability to protect its intellectual property and reinforce its commitment to innovation and technological advancement.

Impairment of Investment in Unconsolidated Affiliate

In the fourth quarter of 2024, the company recorded a non-cash charge of $28 million pretax and after-tax in "Equity in income (loss) of unconsolidated affiliates" for an other than temporary decline in value of an investment recorded in SAT. This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows.

Employee-Separation Programs

In the third quarter of 2024, the company implemented employee-separation programs for the company's salaried workforce in several geographic areas, including the United States, Europe, Asia, and Latin America. The programs' main purpose was to help meet the company's strategic priorities while reducing overlap and redundancy in roles and responsibilities. The programs were largely involuntary in nature with the expense recorded when management committed to a plan, the plan was communicated to the employees, and the employees were not required to provide service beyond the legal notification period. For the limited voluntary employee-separation programs, the expense was recorded in the period in which the employee irrevocably accepted a separation offer.

The programs' pretax expenses recorded for the periods ended October 27, 2024, by operating segment were as follows in millions of dollars:

		Three Months															Fiscal Year
		PPA			SAT			CF			FS			Total			PPA			SAT			CF			FS			Total
Cost of sales		$	3		$	2								$	5		$	21		$	11		$	8					$	40
Research and development expenses			3			3		$	1						7			22			9			2						33
Selling, administrative and general expenses			9			9			1		$	1			20			34			23			12		$	10			79
Total operating profit decrease		$	15		$	14		$	2		$	1			32		$	77		$	43		$	22		$	10			152
Non-operating profit expenses*															1															5
Total														$	33														$	157

*	Relates primarily to corporate expenses.

 

Summary of 2025 and 2024 Special Items

The following table summarizes the operating profit impact, in millions of dollars, of the special items recorded for the three months and fiscal years ended November 2, 2025, and October 27, 2024:

		Three Months															Fiscal Years
		PPA			SAT			CF			FS			Total			PPA			SAT			CF			FS			Total
2025 Expense (benefit):
Litigation accrual		$	47		$	24		$	24					$	95		$	47		$	24		$	24					$	95
Impairment																		28			17			16						61
BJD measurement																										$	(32)			(32)
Total expense (benefit)			47			24			24						95			75			41			40			(32)			124
2024 Expense (benefit):
Legal settlements			(17)						(40)						(57)			(17)						(40)						(57)
Impairment						28									28						28									28
Employee-separation programs			15			14			2		$	1			32			77			43			22			10			152
BJD measurement												44			44												59			59
Total expense (benefit)			(2)			42			(38)			45			47			60			71			(18)			69			182
Period over period change		$	49		$	(18)		$	62		$	(45)		$	48		$	15		$	(30)		$	58		$	(101)		$	(58)

(3)

The consolidated financial statements represent the consolidation of all the company's subsidiaries.  The supplemental consolidating data in Note 4 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without Financial Services. Equipment operations include the company's Production & Precision Agriculture operations, Small Agriculture & Turf operations, Construction & Forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within Financial Services. Transactions between the equipment operations and Financial Services have been eliminated to arrive at the consolidated financial statements.

 

DEERE & COMPANY (4) SUPPLEMENTAL CONSOLIDATING DATA STATEMENTS OF INCOME For the Three Months Ended November 2, 2025 and October 27, 2024 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2025			2024			2025			2024			2025			2024			2025			2024
Net Sales and Revenues
Net sales		$	10,579		$	9,275														$	10,579		$	9,275
Finance and interest income			169			154		$	1,500		$	1,569		$	(154)		$	(172)			1,515			1,551		1
Other income			242			274			171			117			(113)			(74)			300			317		2, 3, 4
Total			10,990			9,703			1,671			1,686			(267)			(246)			12,394			11,143
Costs and Expenses
Cost of sales			7,950			6,578									(6)			(7)			7,944			6,571		4
Research and development expenses			681			626															681			626
Selling, administrative and general expenses			1,095			946			183			288			(2)			(2)			1,276			1,232		4
Interest expense			91			83			716			828			(45)			(41)			762			870		1
Interest compensation to Financial Services			109			131									(109)			(131)								1
Other operating expenses			16			54			396			337			(105)			(65)			307			326		3, 4, 5
Total			9,942			8,418			1,295			1,453			(267)			(246)			10,970			9,625
Income before Income Taxes			1,048			1,285			376			233									1,424			1,518
Provision for income taxes			269			187			85			61									354			248
Income after Income Taxes			779			1,098			291			172									1,070			1,270
Equity in income (loss) of unconsolidated affiliates			(12)			(29)			2			1									(10)			(28)
Net Income			767			1,069			293			173									1,060			1,242
Less: Net loss attributable to noncontrolling interests			(5)			(3)															(5)			(3)
Net Income Attributable to Deere & Company		$	772		$	1,072		$	293		$	173								$	1,065		$	1,245

1 Elimination of intercompany interest income and expense.

2 Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.

3 Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.

4 Elimination of intercompany service revenues and fees.

5 Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

 

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF INCOME For the Years Ended November 2, 2025 and October 27, 2024 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2025			2024			2025			2024			2025			2024			2025			2024
Net Sales and Revenues
Net sales		$	38,917		$	44,759														$	38,917		$	44,759
Finance and interest income			521			596		$	5,768		$	6,035		$	(541)		$	(872)			5,748			5,759		1
Other income			821			1,006			521			458			(323)			(266)			1,019			1,198		2, 3, 4
Total			40,259			46,361			6,289			6,493			(864)			(1,138)			45,684			51,716
Costs and Expenses
Cost of sales			28,190			30,803									(31)			(28)			28,159			30,775		4
Research and development expenses			2,311			2,290															2,311			2,290
Selling, administrative and general expenses			3,856			3,791			815			1,059			(8)			(10)			4,663			4,840		4
Interest expense			372			396			2,923			3,182			(125)			(230)			3,170			3,348		1
Interest compensation to Financial Services			414			640									(414)			(640)								1
Other operating expenses			(29)			133			1,439			1,354			(286)			(230)			1,124			1,257		3, 4, 5
Total			35,114			38,053			5,177			5,595			(864)			(1,138)			39,427			42,510
Income before Income Taxes			5,145			8,308			1,112			898									6,257			9,206
Provision for income taxes			1,020			1,887			239			207									1,259			2,094
Income after Income Taxes			4,125			6,421			873			691									4,998			7,112
Equity in income (loss) of unconsolidated affiliates			(17)			(29)			17			5												(24)
Net Income			4,108			6,392			890			696									4,998			7,088
Less: Net loss attributable to noncontrolling interests			(29)			(12)															(29)			(12)
Net Income Attributable to Deere & Company		$	4,137		$	6,404		$	890		$	696								$	5,027		$	7,100

1 Elimination of intercompany interest income and expense.

2 Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.

3 Elimination of income and expenses between equipment operations and Financial Services related to intercompany guarantees of investments in certain international markets.

4 Elimination of intercompany service revenues and fees.

5 Elimination of Financial Services' lease depreciation expense related to inventory transferred to equipment on operating leases.

 

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEETS As of November 2, 2025 and October 27, 2024 (In millions of dollars) Unaudited
	EQUIPMENT						FINANCIAL
	OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
	2025			2024			2025			2024			2025			2024			2025			2024
Assets
Cash and cash equivalents	$	6,340		$	5,615		$	1,936		$	1,709								$	8,276		$	7,324
Marketable securities		217			125			1,194			1,029									1,411			1,154
Receivables from Financial Services		4,649			3,043								$	(4,649)		$	(3,043)								6
Trade accounts and notes receivable – net		1,316			1,257			5,900			6,225			(1,899)			(2,156)			5,317			5,326		7
Financing receivables – net		88			78			44,487			44,231									44,575			44,309
Financing receivables securitized – net		1			2			6,830			8,721									6,831			8,723
Other receivables		1,809			2,193			658			427			(64)			(75)			2,403			2,545		7
Equipment on operating leases – net								7,600			7,451									7,600			7,451
Inventories		7,406			7,093															7,406			7,093
Property and equipment – net		8,047			7,546			32			34									8,079			7,580
Goodwill		4,188			3,959															4,188			3,959
Other intangible assets – net		892			999															892			999
Retirement benefits		3,181			2,839			94			83			(2)			(1)			3,273			2,921		8
Deferred income taxes		2,507			2,262			46			43			(269)			(219)			2,284			2,086		9
Other assets		2,218			2,194			1,244			715			(1)			(3)			3,461			2,906
Assets held for sale											2,944												2,944
Total Assets	$	42,859		$	39,205		$	70,021		$	73,612		$	(6,884)		$	(5,497)		$	105,996		$	107,320
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings	$	414		$	911		$	13,382		$	12,622								$	13,796		$	13,533
Short-term securitization borrowings		1			2			6,595			8,429									6,596			8,431
Payables to Equipment Operations								4,649			3,043		$	(4,649)		$	(3,043)								6
Accounts payable and accrued expenses		12,757			13,534			3,116			3,243			(1,964)			(2,234)			13,909			14,543		7
Deferred income taxes		347			434			356			263			(269)			(219)			434			478		9
Long-term borrowings		8,756			6,603			34,788			36,626									43,544			43,229
Retirement benefits and other liabilities		1,646			2,250			66			105			(2)			(1)			1,710			2,354		8
Liabilities held for sale											1,827												1,827
Total liabilities		23,921			23,734			62,952			66,158			(6,884)			(5,497)			79,989			84,395
Redeemable noncontrolling interest		51			82															51			82
Stockholders' Equity
Total Deere & Company stockholders' equity		25,950			22,836			7,069			7,454			(7,069)			(7,454)			25,950			22,836		10
Noncontrolling interests		6			7															6			7
Financial Services' equity		(7,069)			(7,454)									7,069			7,454								10
Adjusted total stockholders' equity		18,887			15,389			7,069			7,454									25,956			22,843
Total Liabilities and Stockholders' Equity	$	42,859		$	39,205		$	70,021		$	73,612		$	(6,884)		$	(5,497)		$	105,996		$	107,320

6  Elimination of receivables / payables between equipment operations and Financial Services.

7  Primarily reclassification of sales incentive accruals on receivables sold to Financial Services.

8  Reclassification of net pension assets / liabilities.

9  Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.

10 Elimination of Financial Services' equity.

 

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF CASH FLOWS For the Years Ended November 2, 2025 and October 27, 2024 (In millions of dollars) Unaudited
		EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		2025			2024			2025			2024			2025			2024			2025			2024
Cash Flows from Operating Activities
Net income		$	4,108		$	6,392		$	890		$	696								$	4,998		$	7,088
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses			18			14			278			296									296			310
Depreciation and amortization			1,280			1,220			1,082			1,040		$	(133)		$	(142)			2,229			2,118		11
Impairments and other adjustments			73			28			(32)			97									41			125
Share-based compensation expense															151			208			151			208		12
Distributed earnings of Financial Services			1,368			250									(1,368)			(250)								13
Provision (credit) for deferred income taxes			(369)			(97)			81			(197)									(288)			(294)
Changes in assets and liabilities:
Receivables related to sales			(91)			(13)									1,175			434			1,084			421		14, 16
Inventories			(138)			1,011									(137)			(223)			(275)			788		15
Accounts payable and accrued expenses			(617)			(1,429)			109			277			257			112			(251)			(1,040)		16
Accrued income taxes payable/receivable			(112)			(218)			(24)			95									(136)			(123)
Retirement benefits			(814)			(215)			(51)			(12)									(865)			(227)
Other			394			(38)			147			40			(66)			(145)			475			(143)		11, 12, 15
Net cash provided by operating activities			5,100			6,905			2,480			2,332			(121)			(6)			7,459			9,231
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)									27,037			26,029			(557)			(867)			26,480			25,162		14
Proceeds from maturities and sales of marketable securities			46			99			440			733									486			832
Proceeds from sales of equipment on operating leases									1,917			1,929									1,917			1,929
Cost of receivables acquired (excluding receivables related to sales)									(26,623)			(29,152)			283			336			(26,340)			(28,816)		14
Acquisitions of businesses, net of cash acquired			(101)																		(101)
Purchases of marketable securities			(125)			(209)			(578)			(846)									(703)			(1,055)
Purchases of property and equipment			(1,358)			(1,636)			(2)			(4)									(1,360)			(1,640)
Cost of equipment on operating leases acquired									(3,053)			(3,464)			185			302			(2,868)			(3,162)		15
Decrease (increase) in investment in Financial Services			(10)			4									10			(4)								17
Decrease in trade and wholesale receivables									1,161			21			(1,161)			(21)								14
Collections of receivables from unconsolidated affiliates			190						317												507
Loans to unconsolidated affiliates									(109)												(109)
Collateral on derivatives – net			(1)						183			413									182			413
Other			(90)			(125)			(61)			(8)			3			6			(148)			(127)
Net cash provided by (used for) investing activities			(1,449)			(1,867)			629			(4,349)			(1,237)			(248)			(2,057)			(6,464)
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)			144			28			(2,683)			(1,884)									(2,539)			(1,856)
Change in intercompany receivables/payables			(1,695)			1,459			1,695			(1,459)
Proceeds from borrowings issued (original maturities greater than three months)			2,369			159			10,792			17,937									13,161			18,096
Payments of borrowings (original maturities greater than three months)			(923)			(1,123)			(11,341)			(12,109)									(12,264)			(13,232)
Repurchases of common stock			(1,138)			(4,007)															(1,138)			(4,007)
Capital investment from (returned to) Equipment Operations									10			(4)			(10)			4								17
Dividends paid			(1,720)			(1,605)			(1,368)			(250)			1,368			250			(1,720)			(1,605)		13
Other			(53)			(46)			(26)			(67)									(79)			(113)
Net cash provided by (used for) financing activities			(3,016)			(5,135)			(2,921)			2,164			1,358			254			(4,579)			(2,717)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash			86			(15)			(9)			(22)									77			(37)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash			721			(112)			179			125									900			13
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year			5,643			5,755			1,990			1,865									7,633			7,620
Cash, Cash Equivalents, and Restricted Cash at End of Year		$	6,364		$	5,643		$	2,169		$	1,990								$	8,533		$	7,633

11 Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.

12 Reclassification of share-based compensation expense.

13 Elimination of dividends from Financial Services to the equipment operations, which are included in the equipment operations operating activities.

14 Primarily reclassification of receivables related to the sale of equipment.

15 Reclassification of direct lease agreements with retail customers.

16 Reclassification of sales incentive accruals on receivables sold to Financial Services.

17 Elimination of change in investment from equipment operations to Financial Services.

 

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SOURCE John Deere Company