Operating expenses dropped to $92.7M. Net loss was $6.0M ($0.26/share), compared to $4.3M ($0.19/share) last year. CEO Bryan Knutson emphasized inventory optimization and expects to exceed the $100M reduction target by year-end. Parts and service continue to provide stability amid a challenging equipment cycle.

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Agricultural Products, though impacted by lower row crop prices, saw strong demand for grinder mixers driven by record-high livestock prices. Streamlined staffing efforts in fiscal 2024 continue to reduce overhead and prepare the company for cyclical recovery.

Despite declines in top-line revenue, Art’s Way is positioning for future growth through targeted inventory builds and program releases to improve liquidity.

As markets reset, Art’s Way remains optimistic about improved conditions over the next 12–18 months.

| Member since 1961

Worldwide net sales and revenues decreased 16%, to $12.763 billion, for the second quarter of 2025 and decreased 22 percent, to $21.272 billion, for six months. Net sales were $11.171 billion for the quarter and $17.980 billion for six months, compared with $13.610 billion and $24.097 billion last year, respectively.

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Worldwide net sales and revenues decreased 16 percent, to $12.763 billion, for the second quarter of 2025 and decreased 22 percent, to $21.272 billion, for six months. Net sales were $11.171 billion for the quarter and $17.980 billion for six months, compared with $13.610 billion and $24.097 billion last year, respectively.

“As we navigate the current environment, our customers remain our top priority,” said John May, chairman and CEO of John Deere. “I’m incredibly proud of our team’s execution this quarter, delivering exceptional performance despite challenging market dynamics. Their dedication and hard work have been instrumental in ensuring our customers continue to receive the high-quality service and products they expect from John Deere.”

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For the second quarter of fiscal 2025, revenue was $633.7 million compared to $642.6 million in the second quarter of last year. Equipment revenue was $465.2 million for the second quarter of fiscal 2025, compared to $480.1 million in the second quarter last year. Parts revenue was $109.8 million for the second quarter of fiscal 2025, compared to $108.5 million in the second quarter last year. Revenue generated from service was $47.3 million for the second quarter of fiscal 2025, compared to $42.5 million in the second quarter last year. Revenue from rental and other was $11.4 million for the second quarter of fiscal 2025, compared to $11.5 million in the second quarter last year.

Gross profit for the second quarter of fiscal 2025 was $112.4 million, compared to $133.4 million in the second quarter last year. The Company’s gross profit margin was 17.7% in the second quarter of fiscal 2025, compared to 20.8% in the second quarter last year. The year-over-year decrease in gross profit margin was primarily due to lower equipment margins which are being driven by higher levels of inventory and softening demand.

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Second quarter 2024 net sales were $416.3 million compared to $440.7 million in the second quarter of 2023. Gross margin was $108.2 million, or 26.0% of net sales, compared to $118.1 million, or 26.8% of net sales in the comparison period of 2023. Strong Industrial Equipment Division results partially offset the Vegetation Management headwinds.

Net income was $28.3 million, or $2.35 per diluted share, compared to $36.4 million, or $3.03 per diluted share, in the second quarter of 2023. The Company’s backlog at the end of the second quarter remained healthy at $768.9 million. While Vegetation Management backlog normalized to pre-Covid levels, Industrial Equipment backlog continues to grow and is 16% higher versus the end of the second quarter 2023.

Source: | Member since 1970

Net sales for the first six months of 2024 were approximately $6.2 billion, which is a decrease of 13.7% compared to 2023. For the first six months of 2024, reported net loss was $(2.67) per share, which includes the estimated loss on the Grain & Protein business held for sale, and adjusted net income was $4.85 per share.

Source: | Member since 1970

• Second quarter consolidated revenue declined 16% on lower industry demand
• Second quarter diluted EPS at $0.34; adjusted diluted EPS at $0.38 ($0.52 in the second quarter of 2023)
• Results reflect continued execution of cost savings initiatives mitigating the impact of market headwinds
• Returned $1.2 billion to shareholders through dividends and share repurchases in the first half of 2024
• Full-year guidance updated to reflect weaker market conditions

Source: |Member since 1970

The Agricultural segment showed the largest sales decline at 19.6% with sales of $216.3 million compared to $269.1 million in the prior year period. The sales decline was primarily due to significantly reduced global demand for agricultural equipment, particularly in North America and Brazil. High interest rates continue to negatively affect large equipment purchases.

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Second Quarter 2024 Financial Highlights

• Revenue of $870.8 million, down 12 percent on a year-over-year basis, up 1 percent on an organic basis
• Annualized recurring revenue (“ARR”) was $2.11 billion, up 12 percent year-over-year, up 14 percent on an organic basis
• GAAP operating income was $61.6 million, 7.1 percent of revenue and non-GAAP operating income was $194.4 million, 22.3 percent of revenue
• GAAP net income was $1,316.4 million and non-GAAP net income was $151.9 million
• Diluted earnings per share (“EPS”) was $5.34 on a GAAP basis and $0.62 on a non-GAAP basis
• Adjusted EBITDA was $214.0 million, 24.6 percent of revenue

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