Deere Reports Second Quarter Net Income of $1.804 Billion
-- Disciplined execution drives strong quarterly performance across all
segments.
-- Employees and dealers showcase resilience in supporting customers amidst
heightened uncertainty.
-- Full-year net income range broadened in response to dynamic environment.
MOLINE, Ill., May 15, 2025 /PRNewswire/ -- Deere & Company reported net income of $1.804 billion for the second quarter ended April 27, 2025, or $6.64 per share, compared with net income of $2.370 billion, or $8.53 per share, for the quarter ended April 28, 2024. For the first six months of the year, net income attributable to Deere & Company was $2.673 billion, or $9.82 per share, compared with $4.121 billion, or $14.74 per share, for the same period last year.
Worldwide net sales and revenues decreased 16 percent, to $12.763 billion, for the second quarter of 2025 and decreased 22 percent, to $21.272 billion, for six months. Net sales were $11.171 billion for the quarter and $17.980 billion for six months, compared with $13.610 billion and $24.097 billion last year, respectively.
"As we navigate the current environment, our customers remain our top priority," said John May, chairman and CEO of John Deere. "I'm incredibly proud of our team's execution this quarter, delivering exceptional performance despite challenging market dynamics. Their dedication and hard work have been instrumental in ensuring our customers continue to receive the high-quality service and products they expect from John Deere."
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.50 billion.
"Despite the near-term market challenges, we remain confident in the future," said May. "Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions, and manufacturing capabilities. Over the next decade, we will continue to make significant investments in our core U.S. market, underscoring our dedication to innovation and growth while focusing on remaining cost-competitive in a global market."
Deere & Company
Second Quarter
Year to Date
$ in millions, except per share amounts 2025 2024 % Change 2025 2024 % Change
Net sales and revenues $
12,763 $
15,235 -16 % $
21,272 $
27,420 -22 %
Net income $
1,804 $
2,370 -24 % $
2,673 $
4,121 -35 %
Fully diluted EPS $
6.64 $
8.53 $
9.82 $
14.74
Current period results were affected by special items. See Note 1 of the financial statements for further details. The cost of additional tariffs for each segment is included in the production costs and other items below, partially offsetting year-over-year cost reduction in these categories.
Production & Precision Agriculture
Second Quarter
$ in millions 2025 2024 % Change
Net sales $
5,230 $
6,581 -21 %
Operating profit $
1,148 $
1,650 -30 %
Operating margin 22.0 % 25.1 %
Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes. Operating profit decreased due to lower shipment volumes / sales mix and the unfavorable effects of foreign currency exchange, partially offset by lower production costs and price realization.
Small Agriculture & Turf
Second Quarter
$ in millions 2025 2024 % Change
Net sales $
2,994 $
3,185 -6 %
Operating profit $
574 $
571 1 %
Operating margin 19.2 % 17.9 %
Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit held steady as favorable factors including lower production costs, lower warranty expenses, and price realization were offset by lower shipment volumes / sales mix.
Construction & Forestry
Second Quarter
$ in millions 2025 2024 % Change
Net sales $
2,947 $
3,844 -23 %
Operating profit $
379 $
668 -43 %
Operating margin 12.9 % 17.4 %
Construction and forestry sales decreased for the quarter due to lower shipment volumes. Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable price realization.
Financial Services
Second Quarter
$ in millions 2025 2024 % Change
Net income $
161 $
162 -1 %
Financial services net income for the quarter was flat due to less-favorable financing spreads and a higher provision for credit losses, offset by lower SA&G expenses and a reduction in derivative valuation adjustments.
Industry Outlook for Fiscal 2025
Agriculture & Turf
U.S. & Canada:
Large Ag Down ~ 30%
Small Ag & Turf Down 10-15%
Europe Down ~ 5%
South America (Tractors & Combines) Flat
Asia Flat
Construction & Forestry
U.S. & Canada:
Construction Equipment Down ~ 10%
Compact Construction Equipment Down ~ 5%
Global Forestry Flat to down
5%
Global Roadbuilding Flat
Deere Segment Outlook for Fiscal 2025
The Deere & Company outlook incorporates the impacts from global import tariffs that are in effect as of May 13, 2025. Due to the uncertain global trade environment, the potential impacts of future tariffs are not included in the outlook.
Currency Price
$ in millions Net Sales Translation Realization
Production & Precision Ag Down 15% to 20% Down 1.5% Up 1.0%
Small Ag & Turf Down 10% to 15% ~ Flat Up 0.5%
Construction & Forestry Down 10% to 15% ~ Flat Down 1.0%
Financial Services Net Income ~$ 750
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, any potential retaliatory trade regulations, tariffs
and policies and 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
these 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, the conflict between India and Pakistan, 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 inventory and distribution
of 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, 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 as a result 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
SECOND QUARTER 2025 PRESS RELEASE
(In millions of dollars) Unaudited
Three Months Ended
Six Months Ended
April 27 April 28 % April 27 April 28 %
2025 2024 Change 2025 2024 Change
Net sales and revenues:
Production & precision ag net sales $
5,230 $
6,581 -21 $
8,297 $
11,430 -27
Small ag & turf net sales 2,994 3,185 -6 4,742 5,610 -15
Construction & forestry net sales 2,947 3,844 -23 4,941 7,057 -30
Financial services revenues 1,385 1,395 -1 2,856 2,770 +3
Other revenues 207 230 -10 436 553 -21
Total net sales and revenues $
12,763 $
15,235 -16 $
21,272 $
27,420 -22
Operating profit: *
Production & precision ag $
1,148 $
1,650 -30 $
1,486 $
2,695 -45
Small ag & turf 574 571 +1 698 897 -22
Construction & forestry 379 668 -43 444 1,234 -64
Financial services 207 209 -1 473 466 +2
Total operating profit 2,308 3,098 -26 3,101 5,292 -41
Reconciling items ** 35 23 +52 138 49 +182
Income taxes (539) (751) -28 (566) (1,220) -54
Net income attributable to Deere & Company $
1,804 $
2,370 -24 $
2,673 $
4,121 -35
* 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 Six Months Ended April 27, 2025 and April 28, 2024
(In millions of dollars and shares except per share amounts) Unaudited
Three Months Ended Six Months Ended
2025 2024 2025 2024
Net Sales and Revenues
Net sales $
11,171 $
13,610 $
17,980 $
24,097
Finance and interest income 1,354 1,387 2,807 2,746
Other income 238 238 485 577
Total 12,763 15,235 21,272 27,420
Costs and Expenses
Cost of sales 7,609 9,157 12,646 16,357
Research and development expenses 549 565 1,075 1,098
Selling, administrative and general expenses 1,197 1,265 2,169 2,330
Interest expense 784 836 1,614 1,638
Other operating expenses 287 295 536 664
Total 10,426 12,118 18,040 22,087
Income of Consolidated Group before Income Taxes 2,337 3,117 3,232 5,333
Provision for income taxes 539 751 566 1,220
Income of Consolidated Group 1,798 2,366 2,666 4,113
Equity in income of unconsolidated affiliates 3 2 1 3
Net Income 1,801 2,368 2,667 4,116
Less: Net loss attributable to noncontrolling interests (3) (2) (6) (5)
Net Income Attributable to Deere & Company $
1,804 $
2,370 $
2,673 $
4,121
Per Share Data
Basic $
6.65 $
8.56 $
9.85 $
14.80
Diluted 6.64 8.53 9.82 14.74
Dividends declared 1.62 1.47 3.24 2.94
Dividends paid 1.62 1.47 3.09 2.82
Average Shares Outstanding
Basic 271.1 276.8 271.3 278.4
Diluted 271.8 277.9 272.1 279.5
See Condensed Notes to Interim Consolidated Financial
Statements.
DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
April 27 October 27 April 28
2025 2024 2024
Assets
Cash and cash equivalents $
7,991 $
7,324 $
5,553
Marketable securities 1,272 1,154 1,094
Trade accounts and notes receivable - net 6,748 5,326 8,880
Financing receivables - net 43,029 44,309 45,278
Financing receivables securitized - net 7,765 8,723 7,262
Other receivables 2,975 2,545 2,535
Equipment on operating leases - net 7,336 7,451 6,965
Inventories 7,870 7,093 8,443
Property and equipment - net 7,555 7,580 7,034
Goodwill 4,094 3,959 3,936
Other intangible assets - net 964 999 1,064
Retirement benefits 3,133 2,921 3,056
Deferred income taxes 2,088 2,086 1,936
Other assets 3,483 2,906 2,592
Assets held for sale 2,944
Total Assets $
106,303 $
107,320 $
105,628
Liabilities and Stockholders' Equity
Liabilities
Short-term borrowings $
15,948 $
13,533 $
17,699
Short-term securitization borrowings 7,562 8,431 6,976
Accounts payable and accrued expenses 13,345 14,543 14,609
Deferred income taxes 496 478 491
Long-term borrowings 42,811 43,229 40,962
Retirement benefits and other liabilities 1,763 2,354 2,105
Liabilities held for sale 1,827
Total liabilities 81,925 84,395 82,842
Redeemable noncontrolling interest 83 82 98
Stockholders' Equity
Total Deere & Company stockholders' equity 24,287 22,836 22,684
Noncontrolling interests 8 7 4
Total stockholders' equity 24,295 22,843 22,688
Total Liabilities and Stockholders' Equity $
106,303 $
107,320 $
105,628
See Condensed Notes to Interim Consolidated Financial
Statements.
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Six Months Ended April 27, 2025 and April 28, 2024
(In millions of dollars) Unaudited
2025 2024
Cash Flows from Operating Activities
Net income $
2,667 $
4,116
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses 174 131
Provision for depreciation and amortization 1,104 1,045
Impairments and other adjustments (32)
Share-based compensation expense 54 104
Provision (credit) for deferred income taxes 11 (120)
Changes in assets and liabilities:
Receivables related to sales (1,069) (2,469)
Inventories (772) (409)
Accounts payable and accrued expenses (898) (1,300)
Accrued income taxes payable/receivable (147) (29)
Retirement benefits (794) (208)
Other 270 83
Net cash provided by operating activities 568 944
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales) 14,348 13,703
Proceeds from maturities and sales of marketable securities 245 200
Proceeds from sales of equipment on operating leases 1,001 1,011
Cost of receivables acquired (excluding receivables related to sales) (12,744) (14,091)
Purchases of marketable securities (347) (432)
Purchases of property and equipment (555) (719)
Cost of equipment on operating leases acquired (1,254) (1,369)
Collections of receivables from unconsolidated affiliates 234
Collateral on derivatives - net 27 96
Other (176) (69)
Net cash provided by (used for) investing activities 779 (1,670)
Cash Flows from Financing Activities
Net proceeds in short-term borrowings (original maturities three months or less) 551 58
Proceeds from borrowings issued (original maturities greater than three months) 5,156 10,189
Payments of borrowings (original maturities greater than three months) (4,837) (8,139)
Repurchases of common stock (838) (2,422)
Dividends paid (843) (796)
Other (10) (52)
Net cash used for financing activities (821) (1,162)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 20 (5)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 546 (1,893)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 7,633 7,620
Cash, Cash Equivalents, and Restricted Cash at End of Period $
8,179 $
5,727
See Condensed Notes to Interim Consolidated Financial
Statements.
DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited
(1) Special Items
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. In the first quarter of 2025, a pretax and after-tax gain (reversal of previous losses) of $32 million was recorded in "Selling, administrative and general expenses" and presented in "Impairments and other adjustments" in the statements of consolidated income and consolidated cash flows, respectively, related to a decrease in valuation allowance. 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.
(2) The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 3 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
(3) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended April 27, 2025 and April 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 $
11,171 $
13,610 $
11,171 $
13,610
Finance and interest income 108 129 $
1,380 $
1,496 $
(134) $
(238) 1,354 1,387 1
Other income 187 198 121 92 (70) (52) 238 238 2, 3,
4
Total 11,466 13,937 1,501 1,588 (204) (290) 12,763 15,235
Costs and Expenses
Cost of sales 7,617 9,164 (8) (7) 7,609 9,157 4
Research and development expenses 549 565 549 565
Selling, administrative and general expenses 961 1,007 238 260 (2) (2) 1,197 1,265 4
Interest expense 94 114 721 780 (31) (58) 784 836 1
Interest compensation to Financial Services 103 180 (103) (180) 1
Other operating expenses 12 1 335 337 (60) (43) 287 295 3, 4,
5
Total 9,336 11,031 1,294 1,377 (204) (290) 10,426 12,118
Income before Income Taxes 2,130 2,906 207 211 2,337 3,117
Provision for income taxes 490 700 49 51 539 751
Income after Income Taxes 1,640 2,206 158 160 1,798 2,366
Equity in income of unconsolidated affiliates 3 2 3 2
Net Income 1,640 2,206 161 162 1,801 2,368
Less: Net loss attributable to noncontrolling interests (3) (2) (3) (2)
Net Income Attributable to Deere & Company $
1,643 $
2,208 $
161 $
162 $
1,804 $
2,370
(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 Six Months Ended April 27, 2025 and April 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 $
17,980 $
24,097 $
17,980 $
24,097
Finance and interest income 217 285 $
2,835 $
2,929 $
(245) $
(468) 2,807 2,746 1
Other income 391 487 239 211 (145) (121) 485 577 2, 3,
4
Total 18,588 24,869 3,074 3,140 (390) (589) 21,272 27,420
Costs and Expenses
Cost of sales 12,662 16,371 (16) (14) 12,646 16,357 4
Research and development expenses 1,075 1,098 1,075 1,098
Selling, administrative and general expenses 1,761 1,882 412 453 (4) (5) 2,169 2,330 4
Interest expense 178 223 1,487 1,542 (51) (127) 1,614 1,638 1
Interest compensation to Financial Services 194 341 (194) (341) 1
Other operating expenses (38) 91 699 675 (125) (102) 536 664 3, 4,
5
Total 15,832 20,006 2,598 2,670 (390) (589) 18,040 22,087
Income before Income Taxes 2,756 4,863 476 470 3,232 5,333
Provision for income taxes 477 1,117 89 103 566 1,220
Income after Income Taxes 2,279 3,746 387 367 2,666 4,113
Equity in income (loss) of unconsolidated affiliates (3) 4 3 1 3
Net Income 2,276 3,746 391 370 2,667 4,116
Less: Net loss attributable to noncontrolling interests (6) (5) (6) (5)
Net Income Attributable to Deere & Company $
2,282 $
3,751 $
391 $
370 $
2,673 $
4,121
(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
Apr 27 Oct 27 Apr 28 Apr 27 Oct 27 Apr 28 Apr 27 Oct 27 Apr 28 Apr 27 Oct 27 Apr 28
2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024
Assets
Cash and cash equivalents $
6,331 $
5,615 $
3,800 $
1,660 $
1,709 $
1,753 $
7,991 $
7,324 $
5,553
Marketable securities 139 125 148 1,133 1,029 946 1,272 1,154 1,094
Receivables from Financial
Services 2,497 3,043 4,480 $
(2,497) $
(3,043) $
(4,480) 6
Trade accounts and notes
receivable - net 1,429 1,257 1,320 7,406 6,225 10,263 (2,087) (2,156) (2,703) 6,748 5,326 8,880 7
Financing receivables - net 82 78 80 42,947 44,231 45,198 43,029 44,309 45,278
Financing receivables securitized
- net 2 2 7,763 8,721 7,262 7,765 8,723 7,262
Other receivables 2,009 2,193 1,822 1,009 427 760 (43) (75) (47) 2,975 2,545 2,535 7
Equipment on operating leases -
net 7,336 7,451 6,965 7,336 7,451 6,965
Inventories 7,870 7,093 8,443 7,870 7,093 8,443
Property and equipment - net 7,523 7,546 6,999 32 34 35 7,555 7,580 7,034
Goodwill 4,094 3,959 3,936 4,094 3,959 3,936
Other intangible assets - net 964 999 1,064 964 999 1,064
Retirement benefits 3,046 2,839 2,980 89 83 77 (2) (1) (1) 3,133 2,921 3,056 8
Deferred income taxes 2,377 2,262 2,210 42 43 71 (331) (219) (345) 2,088 2,086 1,936 9
Other assets 2,349 2,194 2,105 1,152 715 504 (18) (3) (17) 3,483 2,906 2,592
Assets held for sale 2,944 2,944
Total Assets $
40,712 $
39,205 $
39,387 $
70,569 $
73,612 $
73,834 $
(4,978) $
(5,497) $
(7,593) $
106,303 $
107,320 $
105,628
Liabilities and Stockholders'
Equity
Liabilities
Short-term borrowings $
241 $
911 $
1,055 $
15,707 $
12,622 $
16,644 $
15,948 $
13,533 $
17,699
Short-term securitization
borrowings 1 2 7,561 8,429 6,976 7,562 8,431 6,976
Payables to Equipment Operations 2,497 3,043 4,480 $
(2,497) $
(3,043) $
(4,480) 6
Accounts payable and accrued
expenses 12,180 13,534 13,771 3,313 3,243 3,605 (2,148) (2,234) (2,767) 13,345 14,543 14,609 7
Deferred income taxes 405 434 421 422 263 415 (331) (219) (345) 496 478 491 9
Long-term borrowings 8,685 6,603 6,575 34,126 36,626 34,387 42,811 43,229 40,962
Retirement benefits and other
liabilities 1,695 2,250 1,995 70 105 111 (2) (1) (1) 1,763 2,354 2,105 8
Liabilities held for sale 1,827 1,827
Total liabilities 23,207 23,734 23,817 63,696 66,158 66,618 (4,978) (5,497) (7,593) 81,925 84,395 82,842
Redeemable noncontrolling interest 83 82 98 83 82 98
Stockholders' Equity
Total Deere & Company
stockholders' equity 24,287 22,836 22,684 6,873 7,454 7,216 (6,873) (7,454) (7,216) 24,287 22,836 22,684 10
Noncontrolling interests 8 7 4 8 7 4
Financial Services' equity (6,873) (7,454) (7,216) 6,873 7,454 7,216 10
Adjusted total stockholders'
equity 17,422 15,389 15,472 6,873 7,454 7,216 24,295 22,843 22,688
Total Liabilities and
Stockholders' Equity $
40,712 $
39,205 $
39,387 $
70,569 $
73,612 $
73,834 $
(4,978) $
(5,497) $
(7,593) $
106,303 $
107,320 $
105,628
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 Six Months Ended April 27, 2025 and April 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 $
2,276 $
3,746 $
391 $
370 $
2,667 $
4,116
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses 11 10 163 121 174 131
Provision for depreciation and amortization 643 608 529 509 $
(68) $
(72) 1,104 1,045 11
Impairments and other adjustments (32) (32)
Share-based compensation expense 54 104 54 104 12
Distributed earnings of Financial Services 984 247 (984) (247) 13
Provision (credit) for deferred income taxes (153) (74) 164 (46) 11 (120)
Changes in assets and liabilities:
Receivables related to sales (185) (58) (884) (2,411) (1,069) (2,469) 14, 16
Inventories (691) (300) (81) (109) (772) (409) 15
Accounts payable and accrued expenses (1,069) (1,012) 102 147 69 (435) (898) (1,300) 16
Accrued income taxes payable/receivable (77) (20) (70) (9) (147) (29)
Retirement benefits (753) (205) (41) (3) (794) (208)
Other 59 89 224 65 (13) (71) 270 83 11,
12,
15
Net cash provided by operating activities 1,045 3,031 1,430 1,154 (1,907) (3,241) 568 944
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales) 14,684 14,175 (336) (472) 14,348 13,703 14
Proceeds from maturities and sales of marketable securities 18 58 227 142 245 200
Proceeds from sales of equipment on operating leases 1,001 1,011 1,001 1,011
Cost of receivables acquired (excluding receivables related to sales) (12,875) (14,238) 131 147 (12,744) (14,091) 14
Purchases of marketable securities (20) (226) (327) (206) (347) (432)
Purchases of property and equipment (555) (718) (1) (555) (719)
Cost of equipment on operating leases acquired (1,363) (1,516) 109 147 (1,254) (1,369) 15
Decrease in investment in Financial Services 10 (10) 17
Increase in trade and wholesale receivables (1,019) (3,171) 1,019 3,171 14
Collections of receivables from unconsolidated affiliates 183 51 234
Collateral on derivatives - net 3 24 96 27 96
Other (72) (68) (104) (2) 1 (176) (69)
Net cash provided by (used for) investing activities (443) (944) 299 (3,710) 923 2,984 779 (1,670)
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less) 65 189 486 (131) 551 58
Change in intercompany receivables/payables 428 31 (428) (31)
Proceeds from borrowings issued (original maturities greater than three months) 2,043 34 3,113 10,155 5,156 10,189
Payments of borrowings (original maturities greater than three months) (766) (1,012) (4,071) (7,127) (4,837) (8,139)
Repurchases of common stock (838) (2,422) (838) (2,422)
Capital returned to Equipment Operations (10) 10 17
Dividends paid (843) (796) (984) (247) 984 247 (843) (796) 13
Other (4) (27) (6) (25) (10) (52)
Net cash provided by (used for) financing activities 85 (4,003) (1,890) 2,584 984 257 (821) (1,162)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 22 (2) (5) 20 (5)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 709 (1,916) (163) 23 546 (1,893)
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 $
6,352 $
3,839 $
1,827 $
1,888 $
8,179 $
5,727
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.
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SOURCE John Deere Company
