DENYSEFarm Machinery & EquipmentUS GAAP · USD

Deere & Company

Deere & Co. designs and sells agricultural, turf, construction, and forestry equipment, with a growing layer of software, telematics, and precision-agriculture tools tied to that machinery. It also operates John Deere Financial, which finances equipment, parts, and related customer needs, making the company both an equipment manufacturer and an embedded financing platform.

Revenue45.7bn USD
−11.7 %y/y
Net income5,027m USD
−29.2 %y/y
Free cash flow6,099m USD
−19.7 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

020406080bn USD2020: 35.5 bn USD2020: EBIT 4.3 bn USD20202021: 44.0 bn USD2021: EBIT 8.0 bn USD20212022: 52.6 bn USD2022: EBIT 9.5 bn USD20222023: 61.3 bn USD2023: EBIT 13.0 bn USD20232024: 51.7 bn USD2024: EBIT 9.0 bn USD20242025: 45.7 bn USD202545.7
RevenueOperating profit (EBIT)

Business

Share of revenue
Production & Precision Agriculture45 %

Large farm equipment, precision technologies, and related aftermarket solutions for row-crop and high-acreage farming.

Small Agriculture & Turf20 %

Equipment for dairy, livestock, high-value crop, small-acre crop, turf, and utility applications.

Construction & Forestry25 %

Construction, earthmoving, roadbuilding, and forestry equipment sold through dealers and company-owned channels.

Parts & Services7 %

Proprietary parts, maintenance contracts, warranty extensions, and connected-machine support services.

Financial Services3 %

Customer financing for equipment, parts, services, and operating inputs through John Deere Financial.

Products

Reported · share of revenue
85.1%FY2025100 %
  • Products85.1 %
  • Turf6.0 %
  • Compact Construction Equipment4.2 %
  • Forestry2.5 %
  • Other2.2 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Deere sells primarily to commercial farmers, ranchers, and agribusinesses that need productive, durable equipment and increasingly want connected software to manage operations. It also serves contractors, roadbuilders, and forestry operators, plus dealers and rental partners that support end customers through inventory, service, and financing. The financing arm helps customers buy equipment and smooth seasonal working-capital needs, which deepens the relationship and supports equipment sales.

Large-scale agricultural producers

Buy high-horsepower tractors, harvesters, planters, sprayers, and precision tech to raise yield and efficiency.

Small agriculture, dairy, livestock, and turf customers

Buy smaller tractors, turf machines, and utility equipment for daily operations and land management.

Construction and roadbuilding contractors

Buy earthmoving, roadbuilding, and material-handling equipment for infrastructure and site work.

Forestry operators

Buy forestry machines and attachments for harvesting, land clearing, and timber operations.

Dealers and rental companies

Buy inventory, parts, and rental fleet equipment, and use Deere support and financing to serve end users.

Strategy

Deere is pushing deeper integration of technology into equipment through telematics, automation, machine learning, and digital workflow tools. It is also building a Solutions as a Service model and expanding precision technologies across segments to increase customer adoption, recurring engagement, and product differentiation. At the same time, the company is managing production levels and dealer inventory against softer equipment demand and a more competitive pricing environment.

Increase technology adoption across equipment fleetsMedium term

Connected machines and digital tools improve customer productivity and create differentiation beyond hardware.

Expand Solutions as a ServiceMedium term

Recurring digital and service offerings can increase utilization and customer lock-in over time.

Broaden technology reuse across segmentsMedium term

Reusing precision-agriculture capabilities in construction and forestry lowers development duplication and speeds innovation.

Protect market share through product performance and dealer supportShort term

The industry is highly competitive, so performance, service, and financing are key to retaining customers.

Geography

Deere is headquartered in the United States but operates globally, with manufacturing and assembly positioned close to end markets where possible. The company highlights strong exposure to North America, Brazil, Europe, India, Australia, and other emerging markets, while its forestry retail network and Wirtgen distribution add a broad international footprint. Geography matters because demand is tied to local crop cycles, construction activity, trade policy, currency moves, and regional regulation.

Risks

Deere is exposed to cyclical farm income, construction activity, and commodity prices, so demand can weaken quickly when the agricultural or broader economy softens. It also faces technology, cyber, supply-chain, trade, and regulatory risks because its products are increasingly connected, globally sourced, and sold across many jurisdictions. Financing credit losses, currency swings, and dealer inventory corrections can further amplify earnings volatility.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Agricultural cycle and weak farm economics1Trade, tariff, and geopolitical disruption2Cybersecurity and cloud-system disruption3Credit losses in financial services5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Agricultural cycle and weak farm economicsImpact: HighLikelihood: High

    Equipment purchases depend on crop prices, farm profitability, and access to funding.

    Exposure: Production and precision agriculture; small agriculture and turf

  2. Trade, tariff, and geopolitical disruptionImpact: HighLikelihood: Medium

    Global manufacturing and sales expose Deere to policy changes, sanctions, and border frictions.

    ExposureInternational operationsBrazilEuropeIndiaChina
  3. Cybersecurity and cloud-system disruptionImpact: HighLikelihood: Low

    Connected equipment and digital platforms create attack surfaces and third-party dependency.

    ExposureOperations CenterTelematicsDealer/customer data
  4. Construction and forestry demand slowdownImpact: High

    Sales depend on residential, commercial, public construction, and forestry conditions.

    Exposure: Construction & Forestry segment

  5. Credit losses in financial servicesImpact: MediumLikelihood: High

    Dealer and retail financing can deteriorate when customers face weaker cash flow or higher rates.

    Exposure: John Deere Financial

Accounting

Judgemental items
Credit loss allowance in Financial Services

Portfolio quality and macro conditions affect provisions and net income.

Impact: Can materially change earnings in downturns

Derivative valuation adjustments

Hedging and funding activities can create mark-to-market gains or losses.

Impact: Can move Financial Services earnings quarter to quarter

Seasonality and dealer inventory accounting

Equipment operations are seasonal and capital intensive, affecting revenue and working capital.

Impact: Quarterly comparability and cash flow

Foreign currency translation and transaction effects

Global sales and manufacturing expose Deere to exchange-rate volatility.

Impact: Revenue, margins, and reported operating income

Special items and deconsolidation effects

Items such as Banco John Deere S.A. can distort underlying trends.

Impact: Reported revenue, net income, and balance sheet comparability

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026