Deere Reports Third Quarter Net Income of $1.289 Billion

Aug 14 2025 11:27 BST

Disciplined execution yields solid results in the face of a challenging environment.
Customers remain cautious amid ongoing uncertainty.
Full-year net income guidance narrowed.

MOLINE, Ill. , Aug. 14, 2025 /CNW/ -- Deere & Company (NYSE: DE) reported net income of $1.289 billion for the third quarter ended July 27, 2025, or $4.75 per share, compared with net income of $1.734 billion, or $6.29 per share, for the quarter ended July 28, 2024. For the first nine months of the year, net income attributable to Deere & Company was $3.962 billion, or $14.57 per share, compared with $5.855 billion, or $21.04 per share, for the same period last year.

Worldwide net sales and revenues decreased 9 percent, to $12.018 billion, for the third quarter of 2025 and decreased 18 percent, to $33.290 billion, for nine months. Net sales were $10.357 billion for the quarter and $28.338 billion for nine months, compared with $11.387 billion and $35.484 billion last year, respectively.

"By proactively managing inventory, we've matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs," said John May, chairman and CEO of John Deere. "By continuing to address the high levels of used equipment in the industry, we're building a healthier market for everyone—our customers, our dealers, and our business—even in these challenging times."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.25 billion.

"We remain committed to delivering solutions that address our customers' current needs while also laying the groundwork for future growth. For example, the increasing utilization and proven in-field effectiveness of advanced technologies—such as See & Spray and Harvest Settings Automation—are empowering customers to improve their productivity and better navigate industry challenges," May noted. "The positive outcomes we're enabling reinforce our confidence in Deere's future despite near-term uncertainty."

Deere & Company	Third Quarter					Year to Date
$ in millions, except per share amounts	2025		2024		% Change	2025		2024		% Change
Net sales and revenues	$	12,018	$	13,152	-9 %	$	33,290	$	40,572	-18 %
Net income	$	1,289	$	1,734	-26 %	$	3,962	$	5,855	-32 %
Fully diluted EPS	$	4.75	$	6.29		$	14.57	$	21.04

All periods presented were affected by special items. See Note 2 of the financial statements for further details. The cost of additional tariffs for each segment is included in the "Production costs" and "Other" categories below.

Production & Precision Agriculture	Third Quarter
$ in millions	2025		2024		% Change
Net sales	$	4,273	$	5,099	-16 %
Operating profit	$	580	$	1,162	-50 %
Operating margin		13.6 %		22.8 %

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes and unfavorable price realization. Operating profit decreased primarily due to lower shipment volumes / sales mix.

Small Agriculture & Turf	Third Quarter
$ in millions	2025		2024		% Change
Net sales	$	3,025	$	3,053	-1 %
Operating profit	$	485	$	496	-2 %
Operating margin		16.0 %		16.2 %

Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by favorable currency translation and price realization. Operating profit decreased due to higher tariffs, partially offset by reductions in warranty expenses and lower production costs. The decreased production costs were primarily the result of lower material costs.

Construction & Forestry	Third Quarter
$ in millions	2025		2024		% Change
Net sales	$	3,059	$	3,235	-5 %
Operating profit	$	237	$	448	-47 %
Operating margin		7.7 %		13.8 %

Construction and forestry sales decreased for the quarter primarily due to unfavorable price realization. Operating profit decreased primarily due to unfavorable price realization and higher production costs caused by higher tariffs, partially offset by favorable product mix.

Financial Services	Third Quarter
$ in millions	2025		2024		% Change
Net income	$	205	$	153	34 %

Financial services net income for the quarter was higher due to a lower provision for credit losses and prior year special items.

Industry Outlook for Fiscal 2025
Agriculture & Turf
U.S. & Canada:
Large Ag						Down ~ 30%
Small Ag & Turf						Down ~ 10%
Europe						Flat to down 5%
South America (Tractors & Combines)						Flat
Asia						Flat to up 5%

Construction & Forestry
U.S. & Canada:
Construction Equipment						Down ~ 10%
Compact Construction Equipment						Flat to down 5%
Global Forestry						Flat to down 5%
Global Roadbuilding						Flat


Deere Segment Outlook for Fiscal 2025		Currency	Price
$ in millions	Net Sales	Translation	Realization
Production & Precision Ag	Down 15% to 20%	Down 1.0%	Up 1.0%
Small Ag & Turf	Down ~ 10%	Up 0.5%	Up 0.5%
Construction & Forestry	Down 10% to 15%	~ Flat	Down 2.0%

Financial Services	Net Income	~ $770

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the section entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2025," "Deere Segment Outlook for Fiscal 2025," and "Condensed Notes to Interim Consolidated Financial Statements" relating to future events, expectations, forecasted financial and industry results, future investment and trends constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally while others could more heavily affect a particular line of business.

Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:

government policies and actions with respect to the global trade environment including increased and proposed tariffs announced by the U.S. government, and retaliatory trade regulations;
the uncertainty of the company's ability to sell products domestically or internationally, continue production at certain international facilities, procure raw materials and components, accurately forecast demand and inventory, manage increased costs of production, absorb or pass on increased pricing, accurately predict financial results and industry trends, and remain competitive based on trade actions, policies and general economic uncertainty;
the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, harvest yields, available farm acres, acreage planted, soil conditions, prices for commodities and livestock, input costs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth or a recession and regional or global liquidity constraints;
higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company's products and solutions;
the company's ability to adapt in highly competitive markets, including understanding and meeting customers' changing expectations for products and solutions, including delivery and utilization of precision technology;
housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment;
political, economic, and social instability of the geographies in which the company operates, including the ongoing war between Russia and Ukraine and the conflicts in the Middle East;
worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for the company's equipment;
investigations, claims, lawsuits, or other legal proceedings, including the lawsuit filed by the Federal Trade Commission (FTC) and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that the company unlawfully withheld self-repair capabilities from farmers and independent repair providers;
delays or disruptions in the company's supply chain;
changes in climate patterns, unfavorable weather events, and natural disasters;
availability and price of raw materials, components, and whole goods;
suppliers' and manufacturers' business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages;
loss of or challenges to intellectual property rights;
rationalization, restructuring, relocation, expansion and/or reconfiguration of manufacturing and warehouse facilities;
the ability to execute business strategies, including the company's Smart Industrial Operating Model and Leap Ambitions;
accurately forecasting customer demand for products and services and adequately managing inventory;
dealer practices and their ability to manage new and used inventory, distribute the company's products, and to provide support and service for precision technology solutions;
the ability to realize anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes;
negative claims or publicity that damage the company's reputation or brand;
the ability to attract, develop, engage, and retain qualified employees;
the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge;
labor relations and contracts, including work stoppages and other disruptions;
security breaches, cybersecurity attacks, technology failures, and other disruptions to the company's information technology infrastructure and products;
leveraging artificial intelligence and machine learning within the company's business processes;
changes to governmental communications channels (radio frequency technology);
changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environmental (including climate change and engine emissions), farming, health and safety, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, human rights, import / export and trade, tariffs, labor and employment, product liability, tax, telematics, and telecommunications;
governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy; and
warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations because of the deficient operation of the company's products.

Further information concerning the company or its businesses, including factors that could materially affect the company's financial results, is included in the company's filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.

DEERE & COMPANY THIRD QUARTER 2025 PRESS RELEASE (In millions of dollars) Unaudited
	Three Months Ended					Nine Months Ended
	July 27		July 28		%	July 27		July 28		%
	2025		2024		Change	2025		2024		Change
Net sales and revenues:
Production & precision ag net sales	$	4,273	$	5,099	-16	$	12,571	$	16,529	-24
Small ag & turf net sales		3,025		3,053	-1		7,767		8,663	-10
Construction & forestry net sales		3,059		3,235	-5		8,000		10,292	-22
Financial services revenues		1,418		1,489	-5		4,273		4,259
Other revenues		243		276	-12		679		829	-18
Total net sales and revenues	$	12,018	$	13,152	-9	$	33,290	$	40,572	-18

Operating profit: *
Production & precision ag	$	580	$	1,162	-50	$	2,066	$	3,857	-46
Small ag & turf		485		496	-2		1,182		1,393	-15
Construction & forestry		237		448	-47		681		1,682	-60
Financial services		266		191	+39		740		657	+13
Total operating profit		1,568		2,297	-32		4,669		7,589	-38
Reconciling items **		60		62	-3		198		111	+78
Income taxes		(339)		(625)	-46		(905)		(1,845)	-51
Net income attributable to Deere & Company	$	1,289	$	1,734	-26	$	3,962	$	5,855	-32


*	Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of financial services includes the effect of interest expense and foreign exchange gains and losses.

**	Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.

DEERE & COMPANY STATEMENTS OF CONSOLIDATED INCOME For the Three and Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars and shares except per share amounts) Unaudited
	Three Months Ended				Nine Months Ended
	2025		2024		2025		2024
Net Sales and Revenues
Net sales	$	10,357	$	11,387	$	28,338	$	35,484
Finance and interest income		1,426		1,461		4,233		4,207
Other income		235		304		719		881
Total		12,018		13,152		33,290		40,572

Costs and Expenses
Cost of sales		7,570		7,848		20,215		24,205
Research and development expenses		556		567		1,631		1,664
Selling, administrative and general expenses		1,217		1,278		3,387		3,608
Interest expense		794		840		2,408		2,478
Other operating expenses		281		264		817		930
Total		10,418		10,797		28,458		32,885

Income of Consolidated Group before Income Taxes		1,600		2,355		4,832		7,687
Provision for income taxes		339		625		905		1,845

Income of Consolidated Group		1,261		1,730		3,927		5,842
Equity in income of unconsolidated affiliates		10		1		11		4

Net Income		1,271		1,731		3,938		5,846
Less: Net loss attributable to noncontrolling interests		(18)		(3)		(24)		(9)
Net Income Attributable to Deere & Company	$	1,289	$	1,734	$	3,962	$	5,855

Per Share Data
Basic	$	4.76	$	6.32	$	14.61	$	21.13
Diluted		4.75		6.29		14.57		21.04
Dividends declared		1.62		1.47		4.86		4.41
Dividends paid		1.62		1.47		4.71		4.29

Average Shares Outstanding
Basic		270.7		274.5		271.1		277.1
Diluted		271.4		275.6		271.9		278.2

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars) Unaudited
	July 27		October 27		July 28
	2025		2024		2024
Assets
Cash and cash equivalents	$	8,580	$	7,324	$	7,004
Marketable securities		1,407		1,154		1,140
Trade accounts and notes receivable – net		6,103		5,326		7,469
Financing receivables – net		43,930		44,309		43,896
Financing receivables securitized – net		7,948		8,723		8,274
Other receivables		2,826		2,545		2,270
Equipment on operating leases – net		7,512		7,451		7,118
Inventories		7,713		7,093		7,696
Property and equipment – net		7,713		7,580		7,092
Goodwill		4,209		3,959		3,960
Other intangible assets – net		926		999		1,030
Retirement benefits		3,182		2,921		3,126
Deferred income taxes		2,209		2,086		1,898
Other assets		3,559		2,906		2,903
Assets held for sale				2,944		2,965
Total Assets	$	107,817	$	107,320	$	107,841

Liabilities and Stockholders' Equity

Liabilities
Short-term borrowings	$	14,607	$	13,533	$	15,294
Short-term securitization borrowings		7,610		8,431		7,869
Accounts payable and accrued expenses		13,582		14,543		14,397
Deferred income taxes		489		478		481
Long-term borrowings		44,429		43,229		42,692
Retirement benefits and other liabilities		1,836		2,354		2,156
Liabilities held for sale				1,827		1,803
Total liabilities		82,553		84,395		84,692

Redeemable noncontrolling interest		84		82		84

Stockholders' Equity
Total Deere & Company stockholders' equity		25,175		22,836		23,062
Noncontrolling interests		5		7		3
Total stockholders' equity		25,180		22,843		23,065
Total Liabilities and Stockholders' Equity	$	107,817	$	107,320	$	107,841

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS For the Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited
	2025		2024
Cash Flows from Operating Activities
Net income	$	3,938	$	5,846
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		258		222
Provision for depreciation and amortization		1,668		1,598
Impairments and other adjustments		29		53
Share-based compensation expense		104		159
Credit for deferred income taxes		(102)		(125)
Changes in assets and liabilities:
Receivables related to sales		(494)		(2,446)
Inventories		(526)		234
Accounts payable and accrued expenses		(717)		(1,015)
Accrued income taxes payable/receivable		(147)		31
Retirement benefits		(813)		(246)
Other		266		(172)
Net cash provided by operating activities		3,464		4,139

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)		19,712		19,143
Proceeds from maturities and sales of marketable securities		359		333
Proceeds from sales of equipment on operating leases		1,408		1,451
Cost of receivables acquired (excluding receivables related to sales)		(18,962)		(21,113)
Acquisitions of businesses, net of cash acquired		(89)
Purchases of marketable securities		(598)		(572)
Purchases of property and equipment		(852)		(1,043)
Cost of equipment on operating leases acquired		(2,009)		(2,165)
Collections of receivables from unconsolidated affiliates		334
Collateral on derivatives – net		127		390
Other		(231)		(95)
Net cash used for investing activities		(801)		(3,671)

Cash Flows from Financing Activities
Net payments in short-term borrowings (original maturities three months or less)		(2,060)		(992)
Proceeds from borrowings issued (original maturities greater than three months)		10,707		15,512
Payments of borrowings (original maturities greater than three months)		(7,743)		(10,792)
Repurchases of common stock		(1,136)		(3,227)
Dividends paid		(1,282)		(1,202)
Other		(43)		(88)
Net cash used for financing activities		(1,557)		(789)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		108		(6)

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		1,214		(327)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		7,633		7,620
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	8,847	$	7,293

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited

(1) Acquisitions

In 2025, the company acquired businesses to advance the capabilities of the company's existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions that improve profitability, efficiency, and sustainability. The combined cost of these acquisitions was $89 million, net of cash acquired. The businesses were assigned to the production and precision agriculture and construction and forestry segments. Most of the purchase price for these acquisitions was allocated to goodwill and intangible assets.

(2) Special Items

Impairment

In the third quarter of 2025, the company recorded a non-cash charge of $61 million pretax ($49 million after-tax), primarily related to the trade name and customer relationship assets of external overseas battery operations. Of this amount, $53 million was recorded in "Selling, administrative and general expenses" and $8 million in "Cost of sales." This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets.

Discrete Tax Items

In the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.

Banco John Deere S.A.

In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market. The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in "Equity in income of unconsolidated affiliates" within the financial services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in "Other assets" and "Other receivables," respectively.

BJD was reclassified as held for sale in the third quarter of 2024, resulting in a net loss of $15 million pretax and after-tax due to the establishment of a $53 million valuation allowance on the assets held for sale and a $38 million reversal of allowance for credit losses. In the first quarter of 2025, a gain of $32 million pretax and after-tax was recorded in "Selling, administrative and general expenses" related to a decrease in valuation allowance. This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. No significant gain or loss was recognized upon completion of the transaction. The equity interest in BJD was valued at $362 million at the deconsolidation date.

Employee-Separation Programs

In the third quarter of 2024, the company implemented employee-separation programs for the company's salaried workforce in several geographic areas, including the United States, Europe, Asia, and Latin America. The programs' main purpose was to help meet the company's strategic priorities while reducing overlap and redundancy in roles and responsibilities. The programs were largely involuntary in nature with the expense recorded when management committed to a plan, the plan was communicated to the employees, and the employees were not required to provide service beyond the legal notification period. For the limited voluntary employee-separation programs, the expense was recorded in the period in which the employee irrevocably accepted a separation offer.

The expenses for the three months and nine months ended July 28, 2024 were recorded in millions of dollars as follows:

	PPA		SAT		CF		FS		Total
Employee-Separation Programs:
Cost of sales	$	18	$	9	$	8			$	35
Research and development expenses		19		6		1				26
Selling, administrative and general expenses		25		14		11	$	9		59
Total operating profit decrease	$	62	$	29	$	20	$	9		120
Non-operating profit expenses*										4
Total									$	124

*	Relates primarily to corporate expenses.

Summary of 2025 and 2024 Special Items

The following table summarizes the operating profit impact of the special items recorded in millions of dollars for the three months and nine months ended July 27, 2025 and July 28, 2024.

	Three Months										Nine Months
	PPA		SAT		CF		FS		Total		PPA		SAT		CF		FS		Total
2025 Expense (benefit):
Impairment	$	28	$	17	$	16			$	61	$	28	$	17	$	16			$	61
BJD measurement																	$	(32)		(32)
Total expense (benefit)		28		17		16				61		28		17		16		(32)		29

2024 Expense:
BJD measurement							$	15		15								15		15
Employee-separation programs		62		29		20		9		120		62		29		20		9		120
Total expense		62		29		20		24		135		62		29		20		24		135

Period over period change	$	(34)	$	(12)	$	(4)	$	(24)	$	(74)	$	(34)	$	(12)	$	(4)	$	(56)	$	(106)

(3)

The consolidated financial statements represent the consolidation of all the company's subsidiaries.
The supplemental consolidating data in Note 4 to the financial statements is presented for
informational purposes. Equipment operations represent the enterprise without financial services.
Equipment operations include the company's production and precision agriculture operations, small
agriculture and turf operations, and construction and forestry operations, and other corporate assets,
liabilities, revenues, and expenses not reflected within financial services. Transactions between the
equipment operations and financial services have been eliminated to arrive at the consolidated
financial statements.

DEERE & COMPANY (4) SUPPLEMENTAL CONSOLIDATING DATA STATEMENTS OF INCOME For the Three Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2025		2024		2025		2024		2025		2024		2025		2024
Net Sales and Revenues
Net sales	$	10,357	$	11,387									$	10,357	$	11,387
Finance and interest income		133		155	$	1,433	$	1,537	$	(140)	$	(231)		1,426		1,461	¹
Other income		190		246		111		130		(66)		(72)		235		304	^{2, 3, 4}
Total		10,680		11,788		1,544		1,667		(206)		(303)		12,018		13,152

Costs and Expenses
Cost of sales		7,578		7,855						(8)		(7)		7,570		7,848	⁴
Research and development expenses		556		567										556		567
Selling, administrative and general expenses		999		962		220		318		(2)		(2)		1,217		1,278	⁴
Interest expense		102		91		720		812		(28)		(63)		794		840	¹
Interest compensation to Financial Services		112		168						(112)		(168)					¹
Other operating expenses		(8)		(16)		345		343		(56)		(63)		281		264	^{3, 4, 5}
Total		9,339		9,627		1,285		1,473		(206)		(303)		10,418		10,797

Income before Income Taxes		1,341		2,161		259		194						1,600		2,355
Provision for income taxes		274		583		65		42						339		625

Income after Income Taxes		1,067		1,578		194		152						1,261		1,730
Equity in income (loss) of unconsolidated affiliates		(1)				11		1						10		1

Net Income		1,066		1,578		205		153						1,271		1,731
Less: Net loss attributable to noncontrolling interests		(18)		(3)										(18)		(3)
Net Income Attributable to Deere & Company	$	1,084	$	1,581	$	205	$	153					$	1,289	$	1,734

¹	Elimination of intercompany interest income and expense.
²	Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.
³	Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets.
⁴	Elimination of intercompany service revenues and fees.
⁵	Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases.

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF INCOME For the Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2025		2024		2025		2024		2025		2024		2025		2024
Net Sales and Revenues
Net sales	$	28,338	$	35,484									$	28,338	$	35,484
Finance and interest income		351		441	$	4,268	$	4,466	$	(386)	$	(700)		4,233		4,207	¹
Other income		580		732		350		341		(211)		(192)		719		881	^{2, 3, 4}
Total		29,269		36,657		4,618		4,807		(597)		(892)		33,290		40,572

Costs and Expenses
Cost of sales		20,239		24,226						(24)		(21)		20,215		24,205	⁴
Research and development expenses		1,631		1,664										1,631		1,664
Selling, administrative and general expenses		2,761		2,844		632		771		(6)		(7)		3,387		3,608	⁴
Interest expense		282		314		2,206		2,354		(80)		(190)		2,408		2,478	¹
Interest compensation to Financial Services		306		510						(306)		(510)					¹
Other operating expenses		(47)		76		1,045		1,018		(181)		(164)		817		930	^{3, 4, 5}
Total		25,172		29,634		3,883		4,143		(597)		(892)		28,458		32,885

Income before Income Taxes		4,097		7,023		735		664						4,832		7,687
Provision for income taxes		752		1,700		153		145						905		1,845

Income after Income Taxes		3,345		5,323		582		519						3,927		5,842
Equity in income (loss) of unconsolidated affiliates		(4)				15		4						11		4

Net Income		3,341		5,323		597		523						3,938		5,846
Less: Net loss attributable to noncontrolling interests		(24)		(9)										(24)		(9)
Net Income Attributable to Deere & Company	$	3,365	$	5,332	$	597	$	523					$	3,962	$	5,855

¹	Elimination of intercompany interest income and expense.
²	Elimination of equipment operations' margin from inventory transferred to equipment on operating leases.
³	Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets.
⁴	Elimination of intercompany service revenues and fees.
⁵	Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases.

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEETS (In millions of dollars) Unaudited
	EQUIPMENT						FINANCIAL
	OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
	July 27		Oct 27		July 28		July 27		Oct 27		July 28		July 27		Oct 27		July 28		July 27		Oct 27		July 28
	2025		2024		2024		2025		2024		2024		2025		2024		2024		2025		2024		2024
Assets
Cash and cash equivalents	$	6,641	$	5,615	$	5,385	$	1,939	$	1,709	$	1,619							$	8,580	$	7,324	$	7,004
Marketable securities		240		125		155		1,167		1,029		985								1,407		1,154		1,140
Receivables from Financial Services		3,649		3,043		3,951							$	(3,649)	$	(3,043)	$	(3,951)							⁶
Trade accounts and notes receivable – net		1,335		1,257		1,150		7,064		6,225		8,890		(2,296)		(2,156)		(2,571)		6,103		5,326		7,469	⁷
Financing receivables – net		84		78		82		43,846		44,231		43,814								43,930		44,309		43,896
Financing receivables securitized – net		1		2		2		7,947		8,721		8,272								7,948		8,723		8,274
Other receivables		2,013		2,193		1,821		867		427		494		(54)		(75)		(45)		2,826		2,545		2,270	⁷
Equipment on operating leases – net								7,512		7,451		7,118								7,512		7,451		7,118
Inventories		7,713		7,093		7,696														7,713		7,093		7,696
Property and equipment – net		7,680		7,546		7,058		33		34		34								7,713		7,580		7,092
Goodwill		4,209		3,959		3,960														4,209		3,959		3,960
Other intangible assets – net		926		999		1,030														926		999		1,030
Retirement benefits		3,092		2,839		3,047		92		83		80		(2)		(1)		(1)		3,182		2,921		3,126	⁸
Deferred income taxes		2,471		2,262		2,192		44		43		35		(306)		(219)		(329)		2,209		2,086		1,898	⁹
Other assets		2,357		2,194		2,236		1,211		715		675		(9)		(3)		(8)		3,559		2,906		2,903
Assets held for sale										2,944		2,965										2,944		2,965
Total Assets	$	42,411	$	39,205	$	39,765	$	71,722	$	73,612	$	74,981	$	(6,316)	$	(5,497)	$	(6,905)	$	107,817	$	107,320	$	107,841

Liabilities and Stockholders' Equity

Liabilities
Short-term borrowings	$	461	$	911	$	983	$	14,146	$	12,622	$	14,311							$	14,607	$	13,533	$	15,294
Short-term securitization borrowings				2		1		7,610		8,429		7,868								7,610		8,431		7,869
Payables to Equipment Operations								3,649		3,043		3,951	$	(3,649)	$	(3,043)	$	(3,951)							⁶
Accounts payable and accrued expenses		12,795		13,534		13,880		3,146		3,243		3,141		(2,359)		(2,234)		(2,624)		13,582		14,543		14,397	⁷
Deferred income taxes		393		434		420		402		263		390		(306)		(219)		(329)		489		478		481	⁹
Long-term borrowings		8,789		6,603		6,592		35,640		36,626		36,100								44,429		43,229		42,692
Retirement benefits and other liabilities		1,767		2,250		2,048		71		105		109		(2)		(1)		(1)		1,836		2,354		2,156	⁸
Liabilities held for sale										1,827		1,803										1,827		1,803
Total liabilities		24,205		23,734		23,924		64,664		66,158		67,673		(6,316)		(5,497)		(6,905)		82,553		84,395		84,692

Redeemable noncontrolling interest		84		82		84														84		82		84

Stockholders' Equity
Total Deere & Company stockholders' equity		25,175		22,836		23,062		7,058		7,454		7,308		(7,058)		(7,454)		(7,308)		25,175		22,836		23,062	¹⁰
Noncontrolling interests		5		7		3														5		7		3
Financial Services' equity		(7,058)		(7,454)		(7,308)								7,058		7,454		7,308							¹⁰
Adjusted total stockholders' equity		18,122		15,389		15,757		7,058		7,454		7,308								25,180		22,843		23,065
Total Liabilities and Stockholders' Equity	$	42,411	$	39,205	$	39,765	$	71,722	$	73,612	$	74,981	$	(6,316)	$	(5,497)	$	(6,905)	$	107,817	$	107,320	$	107,841

⁶	Elimination of receivables / payables between equipment operations and financial services.
⁷	Primarily reclassification of sales incentive accruals on receivables sold to financial services.
⁸	Reclassification of net pension assets / liabilities.
⁹	Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.
¹⁰	Elimination of financial services' equity.

DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF CASH FLOWS For the Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2025		2024		2025		2024		2025		2024		2025		2024
Cash Flows from Operating Activities
Net income	$	3,341	$	5,323	$	597	$	523					$	3,938	$	5,846
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		18		10		240		212						258		222
Provision for depreciation and amortization		965		932		804		773	$	(101)	$	(107)		1,668		1,598	¹¹
Impairments and other adjustments		61				(32)		53						29		53
Share-based compensation expense										104		159		104		159	¹²
Distributed earnings of Financial Services		1,066		250						(1,066)		(250)					¹³
Provision (credit) for deferred income taxes		(242)		(49)		140		(76)						(102)		(125)
Changes in assets and liabilities:
Receivables related to sales		(66)		106						(428)		(2,552)		(494)		(2,446)	^{14, 16}
Inventories		(423)		391						(103)		(157)		(526)		234	¹⁵
Accounts payable and accrued expenses		(646)		(924)		69		212		(140)		(303)		(717)		(1,015)	¹⁶
Accrued income taxes payable/receivable		(89)		13		(58)		18						(147)		31
Retirement benefits		(770)		(241)		(43)		(5)						(813)		(246)
Other		123		(109)		182		44		(39)		(107)		266		(172)	^{11, 12, 15}
Net cash provided by operating activities		3,338		5,702		1,899		1,754		(1,773)		(3,317)		3,464		4,139

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)						20,178		19,826		(466)		(683)		19,712		19,143	¹⁴
Proceeds from maturities and sales of marketable securities		27		56		332		277						359		333
Proceeds from sales of equipment on operating leases						1,408		1,451						1,408		1,451
Cost of receivables acquired (excluding receivables related to sales)						(19,189)		(21,395)		227		282		(18,962)		(21,113)	¹⁴
Acquisitions of businesses, net of cash acquired		(89)												(89)
Purchases of marketable securities		(133)		(220)		(465)		(352)						(598)		(572)
Purchases of property and equipment		(851)		(1,041)		(1)		(2)						(852)		(1,043)
Cost of equipment on operating leases acquired						(2,148)		(2,377)		139		212		(2,009)		(2,165)	¹⁵
Decrease in investment in Financial Services				11								(11)					¹⁷
Increase in trade and wholesale receivables						(807)		(3,255)		807		3,255					¹⁴
Collections of receivables from unconsolidated affiliates		189				145								334
Collateral on derivatives – net		4				123		390						127		390
Other		(75)		(88)		(156)		(8)				1		(231)		(95)
Net cash used for investing activities		(928)		(1,282)		(580)		(5,445)		707		3,056		(801)		(3,671)

Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)		294		81		(2,354)		(1,073)						(2,060)		(992)
Change in intercompany receivables/payables		(660)		558		660		(558)
Proceeds from borrowings issued (original maturities greater than three months)		2,188		115		8,519		15,397						10,707		15,512
Payments of borrowings (original maturities greater than three months)		(863)		(1,061)		(6,880)		(9,731)						(7,743)		(10,792)
Repurchases of common stock		(1,136)		(3,227)										(1,136)		(3,227)
Capital returned to Equipment Operations								(11)				11					¹⁷
Dividends paid		(1,282)		(1,202)		(1,066)		(250)		1,066		250		(1,282)		(1,202)	¹³
Other		(25)		(37)		(18)		(51)						(43)		(88)
Net cash provided by (used for) financing activities		(1,484)		(4,773)		(1,139)		3,723		1,066		261		(1,557)		(789)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		96		12		12		(18)						108		(6)

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		1,022		(341)		192		14						1,214		(327)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		5,643		5,755		1,990		1,865						7,633		7,620
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	6,665	$	5,414	$	2,182	$	1,879					$	8,847	$	7,293

¹¹	Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.
¹²	Reclassification of share-based compensation expense.
¹³	Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations operating activities.
¹⁴	Primarily reclassification of receivables related to the sale of equipment.
¹⁵	Reclassification of direct lease agreements with retail customers.
¹⁶	Reclassification of sales incentive accruals on receivables sold to financial services.
¹⁷	Elimination of change in investment from equipment operations to financial services.

View original content to download multimedia:https://www.prnewswire.com/news-releases/deere-reports-third-quarter-net-income-of-1-289-billion-302530061.html

SOURCE John Deere Company

Company Announcements

Deere Reports Third Quarter Net Income of $1.289 Billion