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

Core Insights - Deere & Company reported a net income of $1.065 billion for Q4 2025, down 14% from $1.245 billion in Q4 2024, with earnings per share decreasing from $4.55 to $3.93 [1][2][10] - For the fiscal year 2025, net income was $5.027 billion, a 29% decline from $7.100 billion in fiscal 2024 [1][2][10] - The company anticipates fiscal 2026 net income to range between $4.00 billion and $4.75 billion [4][10] Financial Performance - Worldwide net sales and revenues increased by 11% to $12.394 billion in Q4 2025, but decreased by 12% to $45.684 billion for the full year [2][10] - Net sales for Q4 2025 were $10.579 billion, compared to $9.275 billion in Q4 2024, while full-year net sales were $38.917 billion, down from $44.759 billion [2][10] - Operating profit for Q4 2025 was $1.351 billion, a 7% decrease from $1.450 billion in Q4 2024, with full-year operating profit down 33% to $6.020 billion [2][10] Segment Performance - Production & Precision Agriculture segment saw Q4 net sales of $4.740 billion, up 10% from $4.305 billion in Q4 2024, but operating profit decreased by 8% to $604 million [6][17] - Small Agriculture & Turf segment reported Q4 net sales of $2.457 billion, a 7% increase, but operating profit plummeted 89% to $25 million [7][17] - Construction & Forestry segment experienced a 27% increase in Q4 net sales to $3.382 billion, with operating profit rising 6% to $348 million [8][17] Market Outlook - The company expects 2026 to mark the bottom of the large agriculture cycle, with ongoing margin pressures from tariffs and challenges in the large agriculture sector [5][10] - Forecasts for 2026 indicate a decline of 15% to 20% in large agriculture, while small agriculture and turf are expected to remain flat to up 5% [11][10] - Construction equipment sales in the U.S. and Canada are projected to be flat to up 5% [11][10]