Deere Reports Earnings Beat but Warns of Weak 2025 Outlook

The farm equipment giant expects a significant profit drop next year as declining farm incomes and economic pressures weigh on demand.

Deere & Company exceeded analysts' expectations for its fiscal 2024 fourth-quarter earnings, despite a 28% revenue decline and a 47% drop in net income year-over-year.
The company reported $11.14 billion in revenue and $1.25 billion in net income for the quarter, surpassing forecasts of $10.68 billion and $1.05 billion, respectively.
Deere projects fiscal 2025 net income between $5.0 billion and $5.5 billion, falling short of analysts' estimates of $5.93 billion and significantly below the $7.1 billion earned in 2024.
Lower farm incomes, high interest rates, and economic uncertainty are driving reduced demand for agricultural equipment, with U.S. farm income expected to decline for a second consecutive year in 2024.
Dealers, facing a slowdown in demand, are limiting inventory restocking, contributing to Deere's forecast of a 10% to 15% decline in machinery sales across all segments in 2025.