Financial Data and Key Metrics Changes - For fiscal year 2025, net sales and revenues decreased by 12% to $45.7 billion, while net sales for equipment operations fell by 13% to $38.9 billion [8] - Net income attributable to Deere & Company was $5 billion, or $18.50 per diluted share [8] - In the fourth quarter, net sales and revenues increased by 11% to $12.4 billion, with net sales for equipment operations rising by 14% to $10.6 billion [8] - Net income attributable to Deere & Company for the fourth quarter decreased to $1.1 billion, or $3.93 per diluted share [8] Business Segment Data and Key Metrics Changes - Production and Precision Ag segment saw net sales of $4.74 billion, up 10% year-over-year, with an operating profit of $604 million and a 12.7% operating margin [9] - Small Ag and Turf segment reported net sales of $2.57 billion, up 7% year-over-year, but operating profit declined to $25 million due to higher costs [10] - Construction and Forestry segment's net sales increased by 27% year-over-year to $3.382 billion, with an operating profit of $348 million and a 10.3% operating margin [13] Market Data and Key Metrics Changes - Industry sales of large equipment in the U.S. and Canada are expected to decline by 15%-20% in fiscal year 2026, while small agriculture and turf demand is estimated to be flat to up 5% [10][11] - In Europe, the industry is projected to be flat to up 5%, with robust dairy sector margins and improving arable cash flows [11] - South America is expected to see flat industry sales, with Brazilian customer demand tempered by high interest rates and strong global crop yields [11] Company Strategy and Development Direction - The company aims to manage inventory carefully and avoid oversupply while focusing on used inventory reduction [37] - Deere is committed to advancing its Smart Industrial journey, emphasizing technology and innovation to enhance customer value [20][23] - The company anticipates growth in small ag and turf, as well as construction and forestry, while entering fiscal year 2026 with lean production in North American large ag [67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilization in certain segments and geographies, despite challenges in large ag [7][8] - The company highlighted strong crop use and consumption, new trade agreements, and supportive government payments as potential growth drivers [11] - Management acknowledged the resilience of the organization in navigating a challenging market environment while maintaining strong performance levels [20][26] Other Important Information - The company expects full-year net income for fiscal year 2026 to be in the range of $4 billion to $4.75 billion, with an effective tax rate between 25%-27% [17] - Cash flow from equipment operations is projected to be between $4 billion and $5 billion [17] - The company plans to resume normal capital allocation activities in 2026 after pausing buybacks in the fourth quarter of fiscal 2025 [66] Q&A Session Summary Question: How is the company thinking about offsetting the $1.2 billion tariff headwind in 2026? - The company expects to capture back some of the incremental exposure this year and some from 2025, with a plan to continue executing activities to mitigate the impact [73][74] Question: Can you provide insights on the production plans and product mix implications for seasonality? - The company anticipates net sales in production precision ag to be close to the first quarter of 2025, but margins will be significantly lower due to a lean production plan [51]

Financial Data and Key Metrics Changes - In Q4 2025, net sales and revenues increased by 11% to $12.4 billion, while net sales for equipment operations rose by 14% to $10.6 billion. However, net income attributable to Deere & Company decreased to $1.1 billion, or $3.93 per diluted share [6][12]. - For the full year, net sales and revenues were down 12% to $45.7 billion, with net sales for equipment operations down 13% to $38.9 billion. Net income was $5 billion, or $18.50 per diluted share [6][12]. Business Segment Data and Key Metrics Changes - Production and Precision Ag segment saw net sales of $4.74 billion, up 10% year-over-year, with an operating margin of 12.7%. The increase was attributed to higher shipment volumes and favorable price realization [7]. - Small Ag and Turf segment reported net sales of $2.57 billion, up 7% year-over-year, but operating profit declined to $25 million due to higher tariffs and production costs [8]. - Construction and Forestry segment experienced a 27% increase in net sales to $3.382 billion, with an operating margin of 10.3% [12]. Market Data and Key Metrics Changes - The outlook for large equipment sales in North America is expected to decline by 15%-20%, while small ag and turf demand is estimated to be flat to up 5% [9][10]. - In Europe, the industry is projected to be flat to up 5%, with robust dairy sector margins and improving arable cash flows [10][43]. - South America is expected to see flat industry sales, with Brazil's demand tempered by high interest rates and strong global crop yields [10][11]. Company Strategy and Development Direction - The company aims to manage inventory carefully and avoid oversupply while focusing on used inventory reduction. This strategy is expected to position the market well for 2026 [34]. - The company is committed to advancing its smart industrial journey, emphasizing technology and innovation to enhance customer value and operational efficiency [20][66]. - The focus on R&D investment is expected to support future growth and unlock value for customers and shareholders [64][66]. Management's Comments on Operating Environment and Future Outlook - Management noted that fiscal 2025 was marked by significant challenges, but the company demonstrated resilience with over $5 billion in net income and strong operating margins [5][18]. - The company anticipates a subdued large ag market in North America for 2026 but sees growth opportunities in small ag, turf, and construction forestry segments [6][10]. - Management expressed optimism about stabilizing market conditions and the potential for growth driven by favorable commodity demand and government support for farmers [37][46]. Other Important Information - The company expects a full-year net income forecast for 2026 to be in the range of $4 billion to $4.75 billion, with a projected effective tax rate between 25%-27% [16]. - The company plans to resume normal capital allocation activities in 2026 after pausing buybacks in Q4 2025 due to market uncertainty [64]. Q&A Session Summary Question: How is the company thinking about offsetting the $1.2 billion tariff headwind in 2026? - The company expects to capture back some of the incremental exposure from tariffs through price-cost positive strategies and plans to take additional price increases as needed [70]. Question: Can you unpack the decremental margin on the sales decline in the Production and Precision Ag segment? - The company acknowledged that a significant portion of the decremental margin is attributed to tariffs, and they are working on improving profitability in other regions, particularly Brazil [74].

Core Insights - Deere & Company shares declined following a weak forecast, indicating that challenging market conditions will persist for an extended period [1][5] Financial Performance - In the fourth quarter of fiscal 2025, Deere reported earnings per share of $3.93 and revenue of $12.39 billion, both surpassing analyst expectations [3] - The Production & Precision Agriculture division saw a sales increase of 10% to $4.74 billion, while the Small Agriculture & Turf unit grew by 7% to $2.46 billion, and the Construction & Forestry segment surged by 27% to $3.38 billion [3] Future Outlook - For fiscal 2026, Deere anticipates net income between $4.00 billion and $4.75 billion, lower than the analyst consensus of $5.19 billion [2] - The company expects a decline in Production & Precision Agriculture sales by 5% to 10%, while projecting a 10% increase in both Small Agriculture & Turf and Construction & Forestry sales [4]

Core Insights - Deere reported $10.58 billion in revenue for the quarter ended October 2025, a year-over-year increase of 14.1%, with an EPS of $3.93 compared to $4.55 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $9.99 billion by 5.92%, while the EPS fell short of the consensus estimate of $3.96 by 0.76% [1] Revenue Breakdown - Production & precision ag net sales reached $4.74 billion, surpassing the average estimate of $4.61 billion, reflecting a year-over-year increase of 10.1% [4] - Agriculture and Turf net sales totaled $7.2 billion, exceeding the average estimate of $6.8 billion, marking a 9% year-over-year increase [4] - Equipment Operations net sales were $10.58 billion, above the five-analyst average estimate of $9.9 billion, representing a 14.1% year-over-year change [4] - Small ag & turf net sales amounted to $2.46 billion, exceeding the average estimate of $2.2 billion, with a year-over-year increase of 6.6% [4] - Construction & forestry net sales reached $3.38 billion, surpassing the average estimate of $3.1 billion, indicating a significant year-over-year increase of 27% [4] - Other revenues were reported at $267 million, below the estimated $311.55 million, reflecting a year-over-year decline of 22.8% [4] - Financial services revenues totaled $1.55 billion, slightly below the average estimate of $1.57 billion, with a year-over-year increase of 1.7% [4] - Financial services- Other Income was $171 million, exceeding the estimated $126.74 million, showing a year-over-year increase of 46.2% [4] - Financial services- Total revenues were $1.67 billion, below the estimated $1.7 billion, representing a year-over-year decline of 0.9% [4] - Financial services- Finance and Interest Income was reported at $1.5 billion, below the average estimate of $1.58 billion, reflecting a year-over-year decrease of 4.4% [4] - Net sales were $10.58 billion, compared to the average estimate of $9.89 billion, indicating a year-over-year change of -5.1% [4] - Equipment Operations- Other income was $242 million, slightly below the average estimate of $247.22 million, with a year-over-year decline of 11.7% [4] Stock Performance - Deere's shares have returned +6.4% over the past month, contrasting with the Zacks S&P 500 composite's -0.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Performance - FY2025 - Deere & Company's FY2025 net sales and revenues reached $51716 million, a 13% increase compared to $45684 million in FY2024[7] - Net sales for equipment operations in FY2025 were $44759 million, up 15% from $38917 million in FY2024[7] - Net income attributable to Deere & Company for FY2025 was $7100 million, a 29% increase compared to $5027 million in FY2024[7] - Diluted earnings per share (EPS) for FY2025 were $2552, a 28% increase compared to $1850 in FY2024[7] Financial Performance - 4Q2025 - Net sales and revenues for 4Q2025 were $12394 million, a 11% increase compared to $11143 million in 4Q2024[9] - Net sales for equipment operations in 4Q2025 were $10579 million, up 14% from $9275 million in 4Q2024[9] - Net income attributable to Deere & Company for 4Q2025 was $1065 million, a 14% decrease compared to $1245 million in 4Q2024[9] - Diluted earnings per share (EPS) for 4Q2025 were $393, a 14% decrease compared to $455 in 4Q2024[9] Segment Performance - 4Q2025 - Production & Precision Ag net sales in 4Q2025 were $4740 million, a 10% increase compared to $4305 million in 4Q2024[11] - Small Ag & Turf net sales in 4Q2025 were $2457 million, a 7% increase compared to $2306 million in 4Q2024[13] - Construction & Forestry net sales in 4Q2025 were $3382 million, a 27% increase compared to $2664 million in 4Q2024[24] Financial Outlook - FY2026 - Deere & Company forecasts a net income attributable to the company of $40-475 billion for FY2026[35] - The company anticipates an effective tax rate of 25-27% for FY2026[35] - Net operating cash flow for FY2026 is projected to be $40-50 billion[36] - Capital expenditures are expected to be approximately $14 billion[37]

Market Overview - U.S. stocks traded higher, with the Nasdaq Composite gaining over 100 points on Wednesday. The Dow rose 0.61% to 47,399.75, the NASDAQ increased 0.55% to 23,151.20, and the S&P 500 climbed 0.51% to 6,800.09 [1] - Utilities shares experienced a notable increase of 0.9% on Wednesday [1] Sector Performance - Communication services stocks fell by 0.3% on Wednesday [2] Company Specifics - Deere & Company (NYSE:DE) shares fell more than 4% after reporting fourth-quarter results and a disappointing fiscal 2026 outlook. The company reported earnings per share of $3.93, exceeding the consensus of $3.88, and an 11% year-over-year increase in quarterly sales to $12.39 billion, surpassing the consensus of $9.85 billion [3][4] - Deere's fiscal 2026 net income is expected to be between $4.0 billion and $4.75 billion, indicating a year-over-year decline of 20% to 5.5%. The projected operating cash flow is estimated at $4.0 billion to $5.0 billion [4] Commodity Market - In commodity news, oil traded up 0.1% to $57.99, gold increased by 1.1% to $4,186.70, silver rose 3.3% to $52.635, and copper gained 1.7% to $5.1765 [5] International Markets - European shares were higher, with the eurozone's STOXX 600 rising 0.9%, Spain's IBEX 35 Index up 0.9%, London's FTSE 100 increasing by 0.8%, Germany's DAX 40 gaining 0.7%, and France's CAC 40 rising 0.7% [6] - Asian markets closed mostly higher, with Japan's Nikkei gaining 1.85%, Hong Kong's Hang Seng up 0.13%, China's Shanghai Composite falling 0.15%, and India's BSE Sensex increasing by 1.21% [7] Notable Stock Movements - Pasithea Therapeutics Corp. (NASDAQ:KTTA) shares surged 66% to $0.8100. Amber International Holding Limited (NASDAQ:AMBR) shares rose 60% to $2.52 after reporting better-than-expected third-quarter sales and a $50 million buyback. Boqii Holding Limited (NYSE:BQ) shares increased by 47% to $2.59 [9] - Conversely, Lazydays Holdings, Inc. (NASDAQ:GORV) shares dropped 31% to $0.5284, and MingZhu Logistics Holdings Limited (NASDAQ:YGMZ) fell 24% to $0.1415 following an $8 million registered direct offering [9]

Core Viewpoint - The farm equipment maker, Deer, anticipates annual profit to fall below estimates due to tariff impacts and reduced margins from large tractors [1] Group 1: Financial Performance - The recent quarter showed growth across all sectors, particularly in construction, which increased by 27% [2] - Deer expects a sales decline of 5% to 10% for the full year 2026, although this is an improvement compared to previous years where sales dropped by 17% in 2025 and 22% in 2024 [5] Group 2: Market Conditions - The farm economy remains volatile, leading to conservative guidance from Deer [2][5] - Bankruptcies among farmers in Iowa are increasing year on year, indicating stress in the agricultural sector [4] Group 3: Government and Policy Impact - There is potential relief for farmers expected to start in January, reminiscent of the $12 billion relief provided in 2018 [3] - Recent rollbacks on agricultural tariffs may also provide some relief to the farming community [4]

Core Viewpoint - Deere & Company (DE.US) experienced a decline of over 5.5%, reaching a low of $470.5, following the release of its fourth-quarter earnings report which showed mixed results [1] Financial Performance - The company reported fourth-quarter revenue of $12.39 billion, exceeding analyst expectations of $9.85 billion [1] - Net income for the quarter was $1.06 billion, or $3.93 per share, down from $1.24 billion or $4.55 per share in the same period last year [1] - The decline in net income was primarily attributed to weak demand for tractors and combine harvesters [1] Future Outlook - Deere & Company projects net income for the fiscal year 2026 to be between $4 billion and $4.75 billion, which is below analyst expectations of $5.33 billion [1]

Group 1 - Next Wednesday will feature significant earnings reports from major companies, including Royal Bank of Canada before the market opens and Salesforce Inc. after the market closes, along with Snowflake Inc. [1] - The day prior, Tuesday, will also see important earnings announcements from software and tech companies, such as CrowdStrike Holdings Inc. and Marvell Technology Inc. [1] - The earnings season will kick off on Wednesday with Deere & Company reporting in the industrials sector [1]

Core Viewpoint - Deere & Company reported a decline in net profit despite exceeding revenue expectations, primarily due to weak demand for tractors and combines [1] Financial Performance - Revenue for the fourth fiscal quarter was $12.39 billion, surpassing analyst expectations of $9.85 billion [1] - Net profit was $1.06 billion, or $3.93 per share, down from $1.24 billion or $4.55 per share in the same period last year [1] Future Outlook - The company projects net profit for fiscal year 2026 to be between $4 billion and $4.75 billion, which is below analyst expectations of $5.33 billion [1]