John Deere(US:DE)2025-05-15 10:00Financial Performance - Deere & Company reported a net income of $1.804 billion for Q2 2025, down 24% from $2.370 billion in Q2 2024, with earnings per share decreasing from $8.53 to $6.64[1][5] - Worldwide net sales and revenues decreased by 16% to $12.763 billion for Q2 2025, and by 22% to $21.272 billion for the first six months of the year[2][24] - The company forecasts full-year net income for fiscal 2025 to be in the range of $4.75 billion to $5.50 billion[3] - Production & Precision Agriculture segment net sales fell by 21% to $5.230 billion, with operating profit down 30% to $1.148 billion[6][24] - Small Agriculture & Turf segment net sales decreased by 6% to $2.994 billion, while operating profit remained stable at $574 million[9][24] - Construction & Forestry segment net sales dropped by 23% to $2.947 billion, with operating profit declining 43% to $379 million[13][24] - Financial Services net income for Q2 2025 was flat at $161 million, reflecting less favorable financing spreads[15][24] - Total net income attributable to Deere & Company for the six months ended April 27, 2025, was $2,673 million, down from $4,121 million in the same period of 2024, representing a decline of 35%[27] - Net income attributable to Deere & Company for the three months ended April 27, 2025, was $1,643 million, down 25.5% from $2,208 million in the same period of 2024[35] - Net income attributable to Deere & Company for the six months ended April 27, 2025, was $2,282 million, down 39.2% from $3,751 million in the same period of 2024[37] Sales and Revenue Trends - Net sales for the three months ended April 27, 2025, were $11,171 million, a decrease of 18% compared to $13,610 million in the same period of 2024[27] - For the six months ended April 27, 2025, net sales were $17,980 million, a decline of 25.5% from $24,097 million in the same period of 2024[37] - Total costs and expenses for the three months ended April 27, 2025, were $10,426 million, a decrease of 13.9% from $12,118 million in the same period of 2024[35] Cash Flow and Liquidity - Cash and cash equivalents increased to $7,991 million as of April 27, 2025, compared to $5,553 million as of April 28, 2024[29] - The company reported a net cash provided by operating activities of $568 million for the six months ended April 27, 2025, compared to $944 million in the same period of 2024[31] - Cash flows from operating activities totaled $1,045 million in 2025, down from $3,031 million in 2024, reflecting a significant decline[43] - Cash and cash equivalents at the end of the period increased to $6,352 million in 2025 from $3,839 million in 2024, showing a strong liquidity position[43] Investments and Future Outlook - The company plans to continue significant investments in advanced products and manufacturing capabilities over the next decade[4] - The industry outlook indicates a decline of approximately 30% in large agriculture in the U.S. and Canada, and a 10-15% decrease in small agriculture and turf[18] - The company is navigating challenges from global import tariffs and uncertain trade environments, which may impact future performance[21] Balance Sheet and Assets - Total assets as of April 27, 2025, were $106,303 million, a slight decrease from $107,320 million as of October 27, 2024[29] - Total liabilities decreased to $81,925 million as of April 27, 2025, from $84,395 million as of October 27, 2024[29] - Stockholders' equity for Deere & Company increased to $24.287 billion in April 2025, compared to $22.684 billion in April 2024, marking a growth of about 7.1%[41] Dividends and Shareholder Returns - Dividends declared for the three months ended April 27, 2025, were $1.62 per share, an increase from $1.47 per share in the same period of 2024[27] - Dividends paid increased to $843 million in 2025 from $796 million in 2024, demonstrating a commitment to returning capital to shareholders[43] Other Financial Metrics - Research and development expenses for the three months ended April 27, 2025, were $549 million, slightly down from $565 million in the same period of 2024[27] - Interest expense for the three months ended April 27, 2025, was $784 million, a decrease of 6.2% from $836 million in the same period of 2024[35] - The provision for income taxes for the three months ended April 27, 2025, was $539 million, down from $751 million in the same period of 2024[35] - The provision for credit losses increased to $174 million in 2025 from $131 million in 2024, indicating a rise in expected credit losses[43]