Q3 2025 Deere & Co Earnings Call Transcript
Key Points
- Deere & Co (DE) achieved a 12.6% operating margin in the quarter despite challenging market dynamics.
- Turf and compact utility tractor shipments in North America exceeded expectations, reflecting improved consumer confidence and favorable weather conditions.
- Year-over-year retail sales increased for tractors in Europe and earthmoving and forestry equipment in North America.
- Deere & Co (DE) has effectively managed inventories, resulting in significant year-over-year declines across all business units and geographies.
- The company has seen strong adoption of its Precision Ag Solutions, with over 5,000 global orders for JDLink Boost and 21,000 orders for Precision Essentials.
- Net sales and revenues were down 9% year-over-year, with equipment operations also down 9%.
- Production and Precision Ag segment saw a 16% decline in net sales due to lower shipment volumes and unfavorable price realization.
- Tariff costs in the quarter were approximately $200 million, contributing to higher decremental margins.
- The Construction & Forestry segment experienced a 5% year-over-year decline in net sales due to unfavorable price realization.
- High interest rates and trade uncertainty continue to pressure demand in key markets, particularly in North America.
Good morning, and welcome to Deere & Company's third quarter earnings conference call. (Operator Instructions) I would now like to turn the call over to Mr. Josh Beal, Director of Investor Relations. Thank you. You may begin.
Hello. Welcome, and thank you for joining us on today's call. Joining me on the call today are Josh Jepsen, Chief Financial Officer; Cory Reed, President, Worldwide Agriculture & Turf Division, Production and Precision Ag, Americas and Australia, and Chris Seibert, Manager, Investor Communications.
They will take a closer look at Deere's third quarter earnings, then spend some time talking about our end markets and our current outlook for fiscal 2025. After that, we'll respond to your questions. Please note that slides are available to complement the call this morning. They can be accessed on our website at johndeere.com/earnings.
First, a reminder, this call is broadcast live on the Internet and recorded for future transmission and use by Deere &
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