Q1 2026 Deere & Co Earnings Call Transcript
Key Points
- Deere & Co (DE) reported a 13% increase in net sales and revenues, reaching $9.611 billion, with equipment operations up 18% to $8.001 billion.
- The company achieved a 5.9% operating margin for equipment operations, reflecting strong performance across all business segments.
- Small Ag and Turf segment saw a 24% increase in net sales, driven by higher shipment volumes and positive currency effects.
- Construction and Forestry segment experienced a 34% year-over-year increase in net sales, supported by higher shipment volumes and production efficiencies.
- Deere & Co (DE) increased its net income forecast for fiscal year 2026 to between $4.5 billion and $5 billion, indicating confidence in future performance.
- The Production and Precision Ag segment faced a decrease in operating profit due to higher tariffs, unfavorable sales mix, and increased warranty expenses.
- The large ag equipment industry in the US and Canada is expected to decline by 15% to 20% this year, posing challenges for growth in this segment.
- South American ag equipment market projections have softened, with industry sales of tractors and combines expected to decline by approximately 5%.
- Tariffs are projected to cost the company around $1.2 billion for the year, impacting overall profitability.
- Despite positive developments, the global ag economy remains pressured, with producer margins under strain in many regions.
Good morning, and welcome to Deere & Company first-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; Ryan Campbell, President, Worldwide Construction, Forestry, and Power Systems; and Chris Seibert, Manager, Investor Communications. Today, we'll take a closer look at Deere's first-quarter earnings, then spend some time talking about our markets and our current outlook for fiscal 2026. 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 & Company. Any other use, recording, or transmission of any
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