Deere Harvests Strong 2025 Sales, Precision Ag Leads Growth

Ticker: DE · Form: 10-K · Filed: 2025-12-18T00:00:00.000Z

Sentiment: bullish

Topics: Agricultural Equipment, Precision Agriculture, Construction Equipment, Financial Services, Smart Industrial Model, Automation, Sustainability

Related Tickers: DE, CAT, CNH, AGCO

TL;DR

**Deere's precision agriculture bet is paying off big, making it a solid long-term hold despite market volatility.**

AI Summary

Deere & Co. (DE) reported a robust fiscal year ending November 2, 2025, with its equipment operations generating $38.917 billion in net sales. The Production & Precision Agriculture (PPA) segment led with $17.311 billion in net sales, accounting for 45% of equipment operations, driven by strong demand for large-scale farming equipment and advanced precision technologies. The Construction & Forestry (CF) segment contributed $11.382 billion, or 29%, focusing on smart and sustainable solutions for jobsite challenges. Small Agriculture & Turf (SAT) recorded $10.224 billion, or 26%, expanding its portfolio with autonomous and electric solutions. The company continues to advance its Smart Industrial Operating Model and Leap Ambitions, refining long-term financial and operational goals in December 2025 to emphasize automation, autonomy, digitalization, and Solutions as a Service (SaaS). Investments in a new research and development center in Indaiatuba, Brazil, in 2024 underscore its commitment to global growth and unlocking customer value.

Why It Matters

Deere's strong performance, particularly in Production & Precision Agriculture, signals robust demand for advanced farming technology, benefiting investors through potential dividend growth and stock appreciation. For employees, continued investment in R&D and global expansion, like the Brazil R&D center, suggests job stability and innovation opportunities. Customers gain from enhanced productivity and sustainability through solutions like the John Deere Operations Center and Smart Detect, crucial for navigating labor shortages and volatile input costs. Competitively, Deere's focus on automation and SaaS positions it strongly against rivals like Caterpillar and CNH Industrial, potentially expanding its market share in an evolving agricultural and construction landscape.

Risk Assessment

Risk Level: medium — Deere faces medium risk due to its reliance on agricultural and construction markets, which are susceptible to economic downturns, commodity price fluctuations, and weather conditions. The company also highlights 'Strategic Risks—We may not realize the anticipated benefits of our Smart Industrial Operating Model and Leap Ambitions,' indicating potential challenges in achieving its ambitious technology and operational goals, which could impact future profitability.

Analyst Insight

Investors should consider holding DE, given its strong market position and strategic investments in high-growth precision agriculture and sustainable solutions. Monitor global agricultural commodity prices and the company's progress on its Leap Ambitions, as successful execution could drive further long-term value.

Revenue Breakdown

SegmentRevenueGrowth
Production & Precision Agriculture (PPA)$17.311B
Construction & Forestry (CF)$11.382B
Small Agriculture & Turf (SAT)$10.224B

Key Numbers

Key Players & Entities

FAQ

What were Deere & Co.'s total equipment operations net sales for fiscal year 2025?

Deere & Co.'s total equipment operations net sales for the fiscal year ended November 2, 2025, amounted to $38.917 billion, combining the Production & Precision Agriculture, Small Agriculture & Turf, and Construction & Forestry segments.

Which business segment contributed the most to Deere & Co.'s equipment net sales in 2025?

The Production & Precision Agriculture (PPA) segment contributed the most to Deere & Co.'s equipment net sales in fiscal year 2025, generating $17.311 billion, which represented 45% of the total equipment operations net sales.

What is the Smart Industrial Operating Model at Deere & Co.?

Deere & Co.'s Smart Industrial Operating Model aims to deliver greater customer value, accelerate competitive advantage in advanced technologies, and capitalize on opportunities by leveraging advanced technologies with operational excellence, focusing on Production Systems, Technology Stack, and Lifecycle Solutions.

What are Deere & Co.'s Leap Ambitions?

Deere & Co.'s Leap Ambitions are a set of focused goals introduced in 2022 and refined in December 2025, designed to guide the implementation of the Smart Industrial Operating Model, emphasizing automation, autonomy, digitalization, lifecycle solutions, and Solutions as a Service (SaaS) for sustained growth towards 2030.

What are the primary risks affecting Deere & Co.'s agricultural equipment sales?

Sales of Deere & Co.'s agricultural equipment are primarily affected by total farm cash receipts, which reflect farm commodity prices, world grain stocks, acreage, crop yields, farm input costs, government policies, and general economic conditions like interest and exchange rates.

How does Deere & Co. address seasonality in its equipment sales?

Deere & Co. addresses seasonality by estimating demand in advance and manufacturing equipment to achieve efficient utilization of personnel and facilities. They also offer early order programs with incentives and waivers of retail finance charges for customers taking delivery during non-use seasons.

What is the significance of the John Deere Operations Center?

The John Deere Operations Center is a digital management system that remotely connects equipment owners, business managers, and dealers to equipment in the field, providing real-time alerts and information on location, utilization, performance, and maintenance to improve productivity and efficiency.

Where did Deere & Co. build a new research and development center in 2024?

In 2024, Deere & Co. built a new research and development center in Indaiatuba, Brazil, specifically dedicated to tropical agriculture and serving customers in that region.

What was the aggregate market price of Deere & Co.'s voting stock held by non-affiliates?

The aggregate quoted market price of voting stock of Deere & Co. held by non-affiliates at April 25, 2025, was $124,313,866,554.

What types of products are included in Deere & Co.'s Small Agriculture & Turf segment?

The Small Agriculture & Turf (SAT) segment includes specialty, utility, and compact tractors, hay and forage equipment, turf and utility equipment like riding lawn mowers and golf course equipment, and related attachments and service parts.

Risk Factors

Industry Context

Deere & Company operates in the highly competitive agricultural, construction, and forestry equipment manufacturing industry. Key trends include increasing demand for automation, precision agriculture technologies, and sustainable solutions. Competitors range from large global players to specialized regional manufacturers, all vying for market share through innovation and product development.

Regulatory Implications

Deere faces evolving regulatory landscapes, particularly concerning environmental standards and emissions controls for its equipment. Compliance with these regulations, such as those related to Tier 4 emissions, requires ongoing investment in research and development and may impact product costs and market access.

What Investors Should Do

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Key Dates

Glossary

Smart Industrial Operating Model
A strategic framework focused on integrating smart technologies and data analytics across the company's operations to enhance efficiency and customer value. (Central to Deere's strategy for driving innovation and operational excellence.)
Leap Ambitions
Deere's long-term strategic goals aimed at transforming the company through automation, autonomy, digitalization, and Solutions as a Service. (Represents the company's vision for future growth and market leadership.)
Solutions as a Service (SaaS)
A business model where customers pay for access to a service or solution, rather than owning the underlying asset, often involving recurring revenue streams. (A key focus area for Deere's future revenue generation and customer engagement.)
Production & Precision Agriculture (PPA)
A business segment focused on large-scale farming equipment and advanced precision technologies for crops like corn and soybeans. (The largest segment by net sales, indicating its significant contribution to the company's revenue.)
Small Agriculture & Turf (SAT)
A business segment offering a range of tractors, utility vehicles, and mowing equipment for smaller farms and property maintenance. (Represents a significant portion of sales, with a focus on expanding into autonomous and electric solutions.)
Construction & Forestry (CF)
A business segment providing equipment for construction, road building, and timber harvesting operations. (Contributes substantially to revenue, with an emphasis on smart and sustainable solutions.)

Year-Over-Year Comparison

While specific comparative figures for revenue growth, margin changes, and new risks are not detailed in the provided excerpt, the company's strategic refinements in December 2025 to emphasize automation, autonomy, digitalization, and SaaS suggest a proactive adaptation to evolving market demands. The investment in a new R&D center in Brazil also indicates continued expansion and a focus on unlocking new customer value, potentially signaling growth initiatives compared to prior periods.

Filing Stats: 4,247 words · 17 min read · ~14 pages · Grade level 15.8 · Accepted 2025-12-18 08:15:12

Key Financial Figures

Filing Documents

BUSINESS

BUSINESS 2 ITEM 1A.

RISK FACTORS

RISK FACTORS 14 ITEM 1B. UNRESOLVED STAFF COMMENTS 25 ITEM 1C. CYBERSECURITY 25 ITEM 2.

PROPERTIES

PROPERTIES 26 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 27 ITEM 4. MINE SAFETY DISCLOSURES 27 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 27 ITEM 6. [RESERVED] 29 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 29 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 29 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 29 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 29 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 29 ITEM 9B. OTHER INFORMATION 29 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 29 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 30 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 30 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 30 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 30 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 30 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 31 ITEM 16. FORM 10-K SUMMARY 31 1 Table of Contents PART I

BUSINESS

ITEM 1. BUSINESS. This Annual Report on Form 10-K contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this Annual Report on Form 10-K are forward-looking statements. Forward-looking statements provide our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements as they do not relate to historical or current facts and by words such as "believe," "expect," "estimate," "anticipate," "will," "aim," "should," "plan," "forecast," "target," "guide," "project," "intend," "could," and similar words or expressions. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected. Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, and other important information about forward-looking statements are disclosed under Item 1A, "Risk Factors," and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations–Forward-Looking Statements," in this Annual Report on Form 10-K. As used herein, the terms "John Deere," "we," "us," "our," or "the Company" refer collectively to Deere & Company and its subsidiaries, unless designated or identified otherwise. All amounts are presented in millions of U.S. dollars, unless otherwise specified. Products John Deere has manufactured agricultural equipment since 1837. Deere & Company was incorporated under the laws of Delaware in 1958. Our business is managed through the following four business segments: Production & Precision Agriculture (PPA), Small Agriculture & Turf (SAT), Construction & Forestry (CF), and Financial Services (John Deere Financial or FS). BUSINESS SEGMENT PRODUCTION & PRECISION AGRICULTURE SMALL AGRICUL

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