Total Revenue

–16% (from $15.235B to $12.763B)

Overall revenue declined due to major drops in key equipment segments—with Production & Precision Agriculture down by 21% and Construction & Forestry down by 23%—reflecting lower shipment volumes and market uncertainty compared to Q2 2024. " " "

Production & Precision Agriculture

–21% (from $6.581B to $5.230B)

Net sales in this segment fell significantly because lower shipment volumes and less favorable market conditions dampened revenue compared to the previous period, highlighting a contraction in agricultural equipment demand. " " " "

Construction & Forestry

–23% (from $3.844B to $2.947B)

This segment experienced a sharp decline due to lower shipment volumes and potential planned underproduction to manage inventory, which contributed to adverse sales performance versus Q2 2024. " " " "

Net Income Attributable to Deere & Company

–24% (from $2.368B to $1.804B)

Net income decreased as the decline in overall revenue from lower equipment sales squeezed margins, compounded possibly by higher costs, reflecting the challenging operating environment of Q2 2025 relative to Q2 2024. " "

United States Revenue

+78% (from $3.881B to $6.927B)

U.S. revenue rebounded strongly driven by improved domestic demand and higher order volumes, marking a significant recovery from a relatively lower base in Q2 2024. " "

Canada Revenue

+98% (from $600M to $1.189B)

Canadian revenue nearly doubled, suggesting a robust recovery in shipment volumes and market conditions, with local demand significantly stronger in Q2 2025 compared to the prior period. " "

Western Europe Revenue

+176% (from $659M to $1.820B)

Revenue surged in Western Europe due to a combination of favorable market improvements, better order velocity, and positive currency translation effects, representing a dramatic turnaround from Q2 2024. " "

Central Europe & CIS Revenue

+56% (from $275M to $428M)

Moderate recovery in this region reflects incremental improvements in shipment volumes and market sentiment over Q2 2024, helping increase revenue from previously lower levels. " "

Latin America Revenue

+61% (from $850M to $1.372B)

Latin America showed improved performance—likely driven by better commodity prices and production outcomes—boosting demand for equipment compared to the previous quarter. " "

Asia, Africa, Oceania & Middle East Revenue

+148% (from $414M to $1.027B)

Substantial revenue growth in these regions is attributable to a rebound in international market conditions, enhanced by favorable currency translations and improved economic outlook relative to Q2 2024. " "

Net Income (Company-wide)

FY 2025

Projected between $5.0B and $5.5B " " "

Projected between $4.75B and $5.5B "

lowered

Effective Tax Rate

FY 2025

Expected to be between 20% and 22% " " "

Expected to be between 20% and 22% "

no change

Operating Cash Flow (Equipment Ops)

FY 2025

$4.5B to $5.5B " " "

$4.5B to $5.5B "

no change

PPA – Net Sales Decline

FY 2025

Decline by 15% to 20% " " "

Decline by 15% to 20% "

no change

PPA – Price Realization

FY 2025

Approximately 1% positive " " "

1 point of positive price realization "

no change

PPA – Currency Impact

FY 2025

Approximately 2.5% negative " " "

1.5 points negative "

raised

PPA – Operating Margin

FY 2025

Between 16% and 17% " " "

Between 15.5% and 17% "

lowered

Small Ag & Turf – Net Sales Decline

FY 2025

Decline by 10% " " "

Decline by 10% to 15% "

lowered

Small Ag & Turf – Price Realization

FY 2025

Approximately 0.5% positive " " "

0.5 points positive "

no change

Small Ag & Turf – Currency Impact

FY 2025

Approximately 1.5% negative " " "

Flat "

raised

Small Ag & Turf – Operating Margin

FY 2025

Between 13% and 14% " " "

Between 11.5% and 13.5% "

lowered

C&F – Net Sales Decline

FY 2025

Decline by 10% to 15% " " "

Decline by 10% to 15% "

no change

C&F – Price Realization

FY 2025

Expected to be flat " " "

1 point of negative price realization "

lowered

C&F – Currency Impact

FY 2025

Approximately 1.5% negative " " "

Flat "

raised

C&F – Operating Margin

FY 2025

Between 11.5% and 12.5% " " "

Between 8.5% and 11.5% "

lowered

Financial Services – Net Income

FY 2025

no prior guidance

$750 million "

no prior guidance

Tariff Impact

FY 2025

no prior guidance

Pretax impact just over $500 million (40% C&F, 35% Small Ag & Turf, 25% PPA) "

no prior guidance

Inventory Management

In Q1 2025, Deere discussed significant inventory reductions, mix adjustments, and proactive management to align with demand ( " " ); in Q3 2024, the focus was on proactive adjustments to reduce field inventories amid softening demand ( " " " ).

Q2 2025 emphasized resilient production supported by seasonal production adjustments and strategic cost management—including actions to mitigate external pressures like tariffs ( " ).

Consistent focus on inventory control continues with an added emphasis on managing tariff‐driven cost risks in Q2 2025.

Production Planning

Q1 2025 details highlighted aligning production with retail demand through scheduled underproduction ( " " ); Q3 2024 reinforced production adjustments to keep field inventories low as market demand softened ( " " ).

Q2 2025 maintained a proactive stance on production planning, stressing factory resilience, seasonal adjustments, and integrating tariff mitigation into sourcing and production decisions ( " ).

Steady emphasis with an increased strategic focus on external trade pressures and cost management in the current period.

Margin Performance

Q1 2025 reported lower overall margins (7.7%) with expectations for sequential improvement ( " ); meanwhile, Q3 2024 noted stronger margins near 18.5% driven by cost efficiencies ( " " ).

Q2 2025 achieved an 18.8% equipment operations margin, even as tariff headwinds eroded margins somewhat—reflecting mixed performance across segments ( " " ).

Varied performance—while some segments show strong outcomes, tariff headwinds continue to create margin pressure in Q2 2025.

Pricing Strategies

Q1 2025 discussed positive price realization (around 1 point) enhanced through selective incentive programs ( " " ); Q3 2024 highlighted adjustments in pricing guidance due to competitive dynamics and dealer collaboration ( " " ).

Q2 2025 maintained a 1% price realization target with early order programs aiming for 2–4% increases in select segments, balancing competitive pressures with cost challenges ( " ).

Consistent approach to balancing price increases with market realities while navigating ongoing competitive pressure.

Tariff Impacts

Q1 2025 mentioned tariff impacts in a forward‑looking manner with limited detail ( " ); Q3 2024 did not explicitly address tariffs.

Q2 2025 provided detailed quantification of tariff impacts (e.g. $100 million in Q2 and an estimated $500 million for the full year) along with strategic sourcing adjustments to mitigate these effects ( " " " ).

Increased emphasis on quantifying and managing tariff risks in Q2 2025 relative to previous periods.

Cost Mitigation

Q1 2025 referenced supplier resiliency and optimizing global trade flows to moderate costs ( " ); Q3 2024 outlined concrete measures such as workforce reductions and engineered cost savings ( " ).

Q2 2025 outlined initiatives like dual sourcing, duty‑free certification, and targeted price actions as part of a broader strategy to offset tariff and operational cost pressures ( " " ).

Persistent focus on cost control, with clearer, more detailed strategies emerging in Q2 2025.

Digital Transformation

Q1 2025 highlighted the rollout of Precision Ag Essentials, JDLink Boost for connectivity, and significant remote engagement metrics ( " ); Q3 2024 mentioned positive feedback on precision technologies but with limited digital transformation detail ( " " ).

Q2 2025 expanded on digital transformation by bundling SaaS solutions, integrating digital platforms across product lines (e.g. the Operations Center now supports roadbuilding), and reporting strong order growth for precision tech solutions ( " ).

Strengthened emphasis on digital integration and an expanded SaaS strategy compared to previous commentary.

SaaS & Precision Technologies Expansion

Q1 2025 discussed subscription‑based models, with notable adoption of subscription packages and significant order volumes ( " ); Q3 2024 featured only limited feedback on precision technologies without broad expansion discussion.

Q2 2025 showcased broadened SaaS offerings with bundling strategies across crops and geographies, along with robust growth in orders for solutions like See & Spray ( " " " ).

Accelerated growth and broadened offerings signal a ramp‑up in focus on SaaS and precision tech expansion in Q2 2025.

Demand Dynamics

Q1 2025 and Q3 2024 both described constrained demand due to macroeconomic factors and regional declines (e.g. 15–30% drops in key markets) ( " " " ).

Q2 2025 reiterated these challenges with detailed regional forecasts—such as a 30% decline in North American large ag and 10–15% in small ag and turf—emphasizing ongoing demand softness ( " ).

Consistent downward pressure on demand continues across regions, underscoring persistent macroeconomic headwinds.

Shipment Volumes

Q1 2025 noted significantly lower shipment volumes driving net sales declines ( " ); Q3 2024 reported similar declines across agriculture and construction segments ( " " ).

Q2 2025 confirmed continued lower shipment volumes across all segments, directly impacting net sales figures and prompting production scheduling adjustments ( " ).

Continuous trend of reduced volumes, reinforcing the need for agile production planning amid weak demand.

Government Support

Q1 2025 detailed substantial government support (e.g. $10 billion in U.S. aid) boosting farmer liquidity and margins, though not immediately translating into orders ( " " ); Q3 2024 omitted discussion on government support.

Q2 2025 reiterated the role of government support by noting that nearly 75% of the $10 billion emergency assistance had been distributed, which helped stabilize market sentiment in North America ( " ).

Consistent critical factor in Q1 and Q2, even though government support was not mentioned in Q3 2024—highlighting its importance in the agricultural sector.

Recovery Uncertainty

Q1 2025 mentioned market uncertainty and long‑term margin targets with cautious commentary ( " ); Q3 2024 provided detailed regional analysis on recovery challenges and dealer sentiment amid softening conditions ( " " ).

Q2 2025 did not expressly discuss recovery uncertainty, though broader comments on volatile global trade conditions suggest its implicit relevance ( " ).

Slight de‑emphasis in explicit commentary on recovery in Q2 2025, even though underlying global uncertainty persists.

Potential Restructuring

Q1 2025 featured minimal talk of restructuring, focusing instead on margin improvements ( " ); Q3 2024 disclosed active measures such as workforce reductions and production shutdowns as part of restructuring efforts ( " " ).

Q2 2025 did not explicitly discuss any potential restructuring measures, omitting references to workforce or production adjustments on that front.

Reduced short‑term focus on restructuring in Q2 2025 compared to explicit actions taken in Q3 2024, suggesting a temporary pause on further restructuring discussions.

Competitive Pressures & Pricing Declines

Q1 2025 highlighted strong competitive pressures, particularly in the Construction & Forestry segment, leading to negative price realization and the need for incentives ( " " " ); Q3 2024 echoed these challenges with heightened competition spurring pricing adjustments and reduced guidance ( " " ).

Q2 2025 continued to experience competitive pressures—especially in earthmoving—with revised pricing outlooks and clearly observed pricing declines in key segments ( " " ).

Steady and persistent pressure from competitors is driving a continuous challenge to maintain pricing power and margins across periods.