Core Viewpoint - Deere's recent earnings report showed a mixed performance, with earnings per share missing estimates and a decline in net income, while net sales increased year over year, indicating potential challenges ahead for the company [2][11]. Financial Performance - Fourth-quarter fiscal 2025 earnings were $3.93 per share, missing the Zacks Consensus Estimate of $3.96, and decreased 14% from the prior year [2]. - Net sales of equipment operations reached $10.6 billion, up 14% year over year, surpassing the Zacks Consensus Estimate of $9.99 billion [3]. - Total net sales, including financial services, were $12.4 billion, an 11% increase year over year [3]. - The cost of sales rose 21% year over year to $7.94 billion, leading to a total gross profit decrease of 2.7% to $4.45 billion [4]. Segment Performance - Production & Precision Agriculture segment sales increased 10% year over year to $4.74 billion, but operating profit decreased 8% to $604 million due to higher production costs [5]. - Small Agriculture & Turf sales rose 7% to $2.46 billion, but operating profit plummeted 89% to $25 million, impacted by higher warranty expenses and tariffs [6]. - Construction & Forestry sales were $3.38 billion, up 27% year over year, with operating profit increasing 6% to $237 million [7]. - Financial Services division revenues were $1.55 billion, up 2% year over year, with net income rising to $293 million from $173 million in the prior year [8]. Cash and Debt Position - Cash and cash equivalents at the end of fiscal 2025 were $8.28 billion, up from $7.32 billion at the end of fiscal 2024 [9]. - Cash flow from operating activities was $7.5 billion in fiscal 2025, down from $9.23 billion in the prior fiscal year [9]. - Long-term borrowing increased to $43.5 billion from $43.23 billion at the end of fiscal 2024 [9]. Fiscal Guidance - For fiscal 2026, Deere expects net income between $4.00 billion and $4.75 billion, with varying projections for different segments [12]. - Production & Precision Agriculture sales are expected to decrease by 5-10%, while Small Agriculture & Turf sales are projected to rise by 10% [12]. Estimate Trends - Since the earnings release, there has been a downward trend in estimates, with the consensus estimate shifting down by 27.39% [13]. VGM Scores - Deere has a Growth Score of B but lags in Momentum with an F, resulting in an aggregate VGM Score of C [14]. Outlook - The overall trend in estimates has been downward, leading to a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [15].

Group 1: Acquisition Announcement - Deere & Company announced the acquisition of construction technology company Tenna to scale and grow its business using Tenna's customer-focused mixed-fleet model [1][7] - Tenna is part of The Conti Group and provides a platform that automates and optimizes construction operation workflows [2] - The deal is expected to close in February 2026, pending regulatory approvals, with Tenna continuing to operate independently under its own brand [3][7] Group 2: Financial Performance - Deere reported fourth-quarter fiscal 2025 earnings of $3.93 per share, missing the Zacks Consensus Estimate of $3.96, and reflecting a 14% decrease from the prior-year quarter due to higher production costs and tariff impacts [4] - Net sales of equipment operations reached $10.6 billion, a 14% year-over-year increase, surpassing the Zacks Consensus Estimate of $9.99 billion; total net sales, including financial services, were $12.4 billion, up 11% year over year [5] Group 3: Stock Performance - Deere's shares have increased by 9.2% over the past year, outperforming the industry's growth of 6.9% [6]

Key Points Fertilizer company FMC saw share prices plummet throughout 2025, but there's another agricultural stock that has delivered positive gains. Farm machinery maker Deere is up by around 11% year-to-date despite unfavorable macroeconomic conditions in the agricultural space. While FMC's future is highly uncertain, Deere may have a path to higher prices based on its pivot towards selling AI-enabled services to its customers. 10 stocks we like better than Deere & Company › It's an understate ...

Jamie McCarthy / Getty Images Microsoft (NASDAQ:MSFT) founder Bill gates is best-known for his founding of the most valuable company in the world (on multiple occasions, just not now). And rightfully so. That said, over the years, Bill Gates has adjusted his portfolio holdings, choosing to divest in a range of companies via his own personal portfolio but also via his charitable organizations and other investment funds. One could argue that he would have been much better off just staying highly concentrate ...

Acquisition Overview - Deere & Company has agreed to acquire Tenna, a US-based construction technology company, for an undisclosed amount, with the transaction subject to regulatory approval and expected completion by February 2026 [1] - Following the acquisition, Tenna will operate independently under its existing tradename, focusing on expanding its mixed-fleet management model [2] Technology and Operations - Tenna's technology integrates operations across job sites, equipment shops, and office locations, helping contractors manage resources effectively [3] - The platform automates workflows and enables near real-time monitoring of assets, providing insights on equipment status and trends to support decision-making [3] Company Background and Market Strategy - Deere & Company, established in 1837, manufactures construction, agricultural, and forestry machinery, and has recently updated its backhoe range to enhance operator comfort and jobsite visibility [4] - During its Investor Day 2025, Deere announced a target of 10% compound annual growth rate in net sales from 2025 to 2030 and plans to launch in-house designed excavators for the North American market in mid-2026, with excavators representing approximately 40% of earthmoving equipment sales [5] Financial Performance - In the fourth quarter of fiscal 2025, Deere's Construction and Forestry segment sales increased by 27% due to higher shipment volumes, while operating profit grew by 6%, although growth was tempered by increased production costs [6]

2026 Machinery & Electricals Outlook: New year, new gear - the case for a cyclical recovery 18 December 2025 U.S. Machinery A bottom is forming in truck & ag equipment and a few positive catalysts to watch. N. America HD truck is set to decline by 6% Y/Y in 2026 at 225K units, 40K below replacement levels, but there are several catalysts ahead: driver supply reduction (CDL, ELP), a $450B in individual tax return boost raising goods demand, 2027 NOX pre-buy (bull case), and section 232 CV tariffs that benefi ...

Eric Lee/Getty Images The One Big Beautiful Bill Act will boost cyclical sectors of the market next year, SocGen says. Manish Kabra highlights 30 stocks set to benefit from new tax and regulatory policies. Key beneficiary sectors include defense, small-caps, consumer, and energy. It might seem like ages ago that One Big Beautiful Bill Act was signed into law by President Donald Trump on July 4, but most of the bill will kick into effect starting in January, and there are considerable implications f ...

Financial Performance - In fiscal year 2025, Production & Precision Agriculture (PPA) generated $17,311 million in net sales, accounting for 45% of equipment operations net sales[21] - Small Agriculture & Turf (SAT) segment generated $10,224 million in net sales, representing 26% of equipment operations net sales[21] - Construction & Forestry (CF) segment generated $11,382 million in net sales, making up 29% of equipment operations net sales[21] - The backlog orders for the CF segment increased to approximately $3.8 billion as of November 2, 2025, compared to $2.2 billion at October 27, 2024, indicating planned production levels are rising in line with retail demand[79] - As of November 2, 2025, the company indirectly owned 100% of the voting shares of Capital Corporation, with a consolidated tangible net worth of $5,929.8 million[85] Strategic Focus - The company is focused on three pillars: Production Systems, Technology Stack, and Lifecycle Solutions to enhance customer value and operational excellence[16][17][18] - The company introduced its Leap Ambitions in 2022, which are focused goals to guide the implementation of its Smart Industrial Operating Model[19] - The company is developing autonomous solutions and connectivity capabilities to meet sustainability goals and unlock new markets[32] - The company is investing significantly in research and development to improve product quality and performance, and to integrate sustainable solutions[66] Technology and Innovation - Investments in precision technology are expected to transform agricultural equipment into smarter, more efficient machines[23] - The company leverages advanced telematics systems to provide real-time alerts and information about equipment performance and maintenance[25][26] - The company’s precision technology solutions include SmartWeigh™, Smart Grade™, and John Deere Operations Center™, aimed at enhancing customer productivity[46] - The company is focusing on delivering hybrid-electric and battery electric equipment solutions to reduce tailpipe emissions while maintaining power and performance[46] Operations and Manufacturing - The company is expanding its operations in Brazil, having built a research and development center in Indaiatuba dedicated to tropical agriculture[39] - The company has a global manufacturing footprint, with most large agricultural equipment assembled in the U.S. for U.S. customers[62] - The company operates approximately 2,050 independent dealer locations in the U.S. and Canada, with around 450 selling construction and forestry equipment[70] - The company has implemented strategies to increase supply chain resiliency and mitigate risks related to supply disruptions[77] Employee and Safety Metrics - The company has approximately 73,100 employees, with 32,500 being full-time production employees as of November 2, 2025[99] - In fiscal year 2025, the company reported a total recordable incident rate of 1.45 and a lost time frequency rate of 0.61, indicating safety performance metrics per 100 full-time employees[111] - Approximately 77% of U.S. production and maintenance employees are represented by unions, with collective bargaining agreements expiring between 2025 and 2027[100] - The company is committed to providing comprehensive and competitive pay and benefits, including medical, dental, and vision plans for eligible full-time employees in the U.S.[108] Compliance and Sustainability - Compliance with environmental controls did not materially affect the company's capital expenditures, earnings, or competitive position in fiscal year 2025[90] - The company does not expect to incur material capital expenditures related to compliance with regulations during fiscal year 2026[98] - The company is subject to various local, state, and federal laws and regulations, which require significant investment in compliance efforts[96] - The company continues to monitor and review developing sustainability frameworks and global regulations, such as the EU's Corporate Sustainability Reporting Directive[94] Financial Services - The financial services segment provides financing for retail purchases, enhancing sales of products and generating financing income[81] - The company completed a transaction with Banco Bradesco S.A. in Q2 of fiscal year 2025, resulting in Bradesco becoming a 50% owner of its Brazilian subsidiary, Banco John Deere S.A.[86] Seasonal Demand - Seasonal demand for agricultural equipment is anticipated based on planting and harvesting seasons, affecting cash flows and production schedules[40][41] Training and Support - The company offers comprehensive training for dealers and customers to maximize the utilization of its technology solutions[47]

Group 1 - Deere & Company has introduced optimistic long-term financial forecasts, expecting net sales to grow at a 10% compound annual growth rate from this year through 2030, which is significantly higher than previous decades [1] - Historical revenue growth rates for Deere show a compounded growth of 7% from 2000 to 2009, 5% from 2010 to 2019, and only 4% from 2020 to 2025, indicating a substantial improvement in projected growth [1] - The company is recognized as a "high-quality company" that manufactures farming, turf, construction, and forestry equipment, along with supporting parts and tools [2] Group 2 - There is a perspective that while Deere has potential as an investment, certain AI stocks may offer greater upside potential and carry less downside risk [3]

Core Insights - Deere & Company is a global leader in agricultural, construction, and forestry machinery, providing precision agriculture technologies and financial services, operating in over 100 countries [1][2] Financial Performance - For the fourth quarter of 2025, Deere reported net sales and revenues of approximately $12.4 billion, an 11% increase year-over-year, exceeding analyst expectations of $9.8-9.9 billion [5] - Diluted EPS for the quarter was $3.93, slightly above the consensus of $3.85, but down around 14% from $4.55 a year earlier due to margin pressure [5][7] - Net income attributable to Deere for the quarter was roughly $1.07 billion [5] Segment Performance - Equipment operations net sales rose 14% to about $10.6 billion, with notable performance in different segments [6] - Production & Precision Agriculture sales increased 10% to $4.74 billion, with a 12.7% operating margin [6] - Small Agriculture & Turf sales rose 7% to $2.46 billion, but operating profit fell to $25 million [6] - Construction & Forestry segment saw a significant 27% sales growth to $3.38 billion, with a 10.3% operating margin [6] Market Performance - Deere's stock is currently trading about 13% below its 52-week high of $533.78, reflecting pressure from a weaker 2026 outlook [3] - Over the past five days, the stock is down about 1%, and it has seen an 8% decline over the past six months [3][4] - The stock offers a dividend yield of approximately 1.38%, totaling $1.62 for the past four quarters [3]