Q2 2026 Deere & Co Earnings Call Transcript
Key Points
- Deere & Co (DE) reported a 5% year-over-year increase in net sales, reaching $13.369 billion, showcasing solid execution and a strong diversified portfolio.
- The Small Ag and Turf segment saw a 16% increase in net sales, driven by higher shipment volumes and favorable currency translation, resulting in a 20.6% operating margin.
- Construction and Forestry segment experienced a 29% year-over-year increase in net sales, supported by higher shipment volumes and favorable currency translation.
- Deere & Co (DE) maintained its overall net income outlook for fiscal 2026, reflecting confidence in its ability to deliver structurally higher performance across the cycle.
- The company is making significant progress in inventory management, with new and used inventory levels improving, particularly in high-horsepower tractors and combines.
- The Production and Precision Ag segment experienced a 14% decline in net sales compared to the previous year, primarily due to lower shipment volumes.
- Deere & Co (DE) faces headwinds from elevated and volatile input costs and high interest rates, impacting grower margins despite recent grain price increases.
- The South American market, particularly Brazil, is experiencing a decline in industry sales due to high interest rates, elevated input costs, and a stronger Brazilian real.
- Tariff expenses remain a significant headwind, with a full-year impact of approximately $1.2 billion, representing a 3% margin headwind.
- The global forestry markets are expected to decline by 5%, reflecting continued pressure from weak residential construction activity and low log and lumber prices.
Good morning, and welcome to Deere & Company's second-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 Brent Norwood, Chief Financial Officer; and Chris Seibert, Manager, Investor Communications.
Today, we'll take a closer look at Deere's second-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 portion of this copyrighted broadcast without the expressed
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
