Deere & Company (NYSE:DE) Q1 2026 Earnings call February 19, 2026 10:00 AM ET Company ParticipantsChris Seibert - Manager, Investor CommunicationsJosh Beal - Director of Investor RelationsJosh Jepsen - Chief Financial OfficerRyan Campbell - President, Worldwide Construction, Forestry, and Power SystemsConference Call ParticipantsAngel Castillo - AnalystChad Dillard - AnalystDavid Raso - AnalystEvan McCall - AnalystJairam Nathan - AnalystJamie Cook - Research AnalystKristen Owen - AnalystMike Shlisky - Analy ...

Financial Data and Key Metrics Changes - Net sales and revenues increased by 13% to $9.611 billion, while net sales for equipment operations rose by 18% to $8.001 billion [7] - Net income attributable to the company was $656 million, or $2.42 per diluted share [7] - The operating margin for equipment operations was reported at 5.9% [5] Business Segment Data and Key Metrics Changes - Production and Precision Ag segment net sales were $3.163 billion, up 3% year-over-year, with an operating margin of 4.4% [7][9] - Small Ag and Turf segment net sales increased by 24% to $2.168 billion, with an operating margin of 9% [9] - Construction and Forestry segment net sales rose by approximately 34% to $2.67 billion, with an operating margin of 5.1% [13][14] Market Data and Key Metrics Changes - The large ag equipment industry in the U.S. and Canada is expected to decline by 15%-20% this year, while small ag and turf demand estimates remain flat to up 5% [10][11] - In South America, industry sales of tractors and combines are projected to decrease by approximately 5% [12] - The construction equipment market in the U.S. and Canada is expected to grow by around 5% year-over-year [14] Company Strategy and Development Direction - The company aims to maintain production in line with retail demand and has seen improvements in order activity across various segments [30][31] - Investments in new product launches and technology enhancements are prioritized to meet market demands and improve operational efficiency [34][38] - The acquisition of Tenna is expected to enhance the company's capabilities in optimizing fleet operations and job site management [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilization in the agricultural market, supported by government programs and improved commodity prices [22][24] - The company anticipates mid-single-digit net sales growth for equipment operations in fiscal 2026, reflecting a positive outlook despite challenges in certain markets [6][21] - The management highlighted the importance of maintaining high levels of investment throughout the cycle to position for future growth [41] Other Important Information - The company returned nearly $750 million in cash to shareholders through dividends and share repurchases, demonstrating strong financial performance [42] - The effective tax rate for fiscal year 2026 is projected to be between 25% and 27% [17] Q&A Session Summary Question: Pricing expectations for PPA and C&F segments - Management indicated that pricing for large ag is expected to maintain a positive realization for the full year, despite some incentives in South America [49][50] - C&F pricing was slightly negative in Q1, but management remains confident in future price realization [51][52] Question: Order strength in C&F segment - Management noted that contractor confidence is high, with strength in larger projects driving order activity [56][58] Question: Headwinds affecting forecasts - Management acknowledged mixed conditions in the market, particularly in housing, but overall remains optimistic about growth [62] Question: Large ag order book dynamics - The order book for large ag is showing stability, with some improvement in order velocity, although the industry outlook remains cautious [70][72] Question: Tariff impacts and potential relief - Management discussed the ongoing tariff costs and the uncertainty surrounding potential relief, indicating a cautious approach to pricing adjustments [92][93]

2025年，国家持续健全粮食生产支持政策体系，启动实施中央统筹下的粮食产销区省际横向利益补偿， 充分调动农民种粮和地方抓粮积极性。各地严格落实粮食安全党政同责，强化耕地保护和质量提升，多 措并举稳定粮食播种面积，进一步扩大粮食单产提升工程实施规模，全年粮食实现增产丰收。全国粮食 产量14297.5亿斤，比上年增加167.5亿斤，增长1.2%，连续两年稳定在1.4万亿斤以上。全国粮食播种面 积17.91亿亩，比上年增加134.8万亩，增长0.1%，连续六年保持增长。全国粮食单产399.1公斤/亩，比 上年增加4.4公斤/亩，增长1.1%。 分季节看，2025年，全国夏粮产量2994.9亿斤，比上年减少2.9亿斤，下降0.1%，总体保持稳定;早稻产 量570.3亿斤，增加6.8亿斤，增长1.2%;秋粮产量10732.3亿斤，增加163.6亿斤，增长1.5%。 分品种看，玉米、稻谷产量有所增加，小麦产量基本持平;豆类、薯类产量稳中有增。2025年，全国谷 物产量13204.1亿斤，比上年增加158.4亿斤，增长1.2%。其中，玉米产量6024.7亿斤，增加126.4亿斤， 增长2.1%，是粮食增产的主要因素;稻谷产 ...

Core Insights - The agricultural sector in China has shown a positive trend in the first three quarters of the year, with a year-on-year increase of 3.6% in the value added by agriculture [1] - The overall grain production is expected to achieve another bumper harvest this year, supported by stable policies and favorable conditions [2][3] Agricultural Production - The total summer grain and early rice production reached 178.25 million tons, an increase of 190,000 tons from the previous year [1] - Summer grain production faced slight challenges but remained stable, with a total output of 299.48 billion pounds, a minor decrease of 3.1 million pounds or 0.1% [2] - Early rice production increased by 6.8 million pounds, marking a growth of 1.2% [2] Livestock Production - Livestock production has shown steady growth, with a total meat output of 73.12 million tons, reflecting a year-on-year increase of 3.8% [1][3] - The number of pigs slaughtered reached 529.92 million heads, an increase of 962,000 heads or 1.8% [3] - The production of pork, beef, and poultry meat has also increased, with pork production rising by 3% to 43.68 million tons [3][4] Market Conditions - The agricultural product market remains stable, with producer prices decreasing by 3.6% year-on-year [5] - Price trends show a widening decline, with a 4.5% drop in the third quarter [5][6] - Certain agricultural products, such as live cattle and sheep, have shown signs of price recovery, with live sheep prices turning positive in the third quarter [6] Future Outlook - The government aims to enhance food security, targeting a stable grain production of over 1.3 trillion pounds during the 14th Five-Year Plan period, with expectations to exceed 1.4 trillion pounds in 2024 [6]

Group 1: Agricultural Production Overview - In the first three quarters, the agricultural value added increased by 3.6% year-on-year, with summer grain and early rice production totaling 178.25 million tons, an increase of 190,000 tons from the previous year [1] - The livestock production showed stable growth, with a total meat output of 73.12 million tons, reflecting a year-on-year increase of 3.8% [1][3] Group 2: Grain Production and Policies - The government has implemented policies to support grain production, including minimum purchase prices and subsidies, which have encouraged farmers to increase grain planting [2] - Summer grain production faced slight challenges but remained stable, with a total output of 299.48 billion pounds, a decrease of 31 million pounds or 0.1% from the previous year [2] - Early rice production increased by 6.8 billion pounds, marking a growth of 1.2% [2] Group 3: Livestock Production Details - Pig production is a key focus, with pig slaughter numbers reaching 529.92 million heads, an increase of 9.62 million heads or 1.8% year-on-year [3][4] - The total pork output was 43.68 million tons, reflecting a year-on-year increase of 128,000 tons or 3% [3] - Cattle and sheep production remained stable, with beef output at 5.5 million tons, an increase of 3.3% [4] Group 4: Agricultural Product Market Dynamics - The agricultural producer price index decreased by 3.6% year-on-year, indicating a stable market supply [5] - Prices for major agricultural products showed mixed trends, with grain prices slightly declining, while some livestock prices experienced increases [6] - The overall agricultural market is expected to maintain stability, supported by a solid foundation of grain production [6][7]

Group 1 - The agricultural economy is showing a stable and improving trend under the strong leadership of the central government, with a good outlook for grain production in 2025 [1] - Summer grain production faced challenges but achieved a total output of 299.48 billion jin, slightly down by 0.1% year-on-year, while early rice production increased by 1.2% to 57.03 billion jin [1] - The autumn grain production is stable, supported by government policies that encourage farmers, with an increase in sowing area and favorable weather conditions [1] Group 2 - Livestock production is steadily developing, with total meat production reaching 73.12 million tons, an increase of 3.8% year-on-year [2] - The number of pigs slaughtered increased by 1.8% to 52.992 million heads, with pork production rising by 3.0% to 43.68 million tons [2] - Poultry production also saw growth, with poultry meat production increasing by 7.2% to 20.53 million tons and egg production slightly up by 0.2% to 26.46 million tons [2] Group 3 - The supply of agricultural products is abundant, with producer prices decreasing by 3.6% year-on-year [3] - Prices for various agricultural products have varied, with grain prices down by 3.3%, while fruits saw a slight increase of 1.1% [3] - Specific declines were noted in prices for pigs (down 6.9%) and various grains, while live cattle prices showed a slight recovery in the second and third quarters [3]