The decline in sales and income can be attributed to several factors, including lower shipment volumes and unfavorable price realization in the Production & Precision Agriculture segment, which saw a 16% decrease in net sales.

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For Q3 of fiscal 2025, revenue was $679.8 million, down from $694.1 million in the same period last year. Equipment revenue decreased to $495.1 million from $521.8 million, while parts revenue rose to $121.1 million from $115.0 million.

Gross profit for the quarter was $110.5 million, down from $138.3 million, with a gross margin of 16.3%, compared to 19.9% last year.
Net income for Q3 was $1.7 million, or $0.07 per diluted share, down from $30.2 million, or $1.32 per diluted share, last year.

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Regionally, South American sales took the biggest hit in the first 9 months at down 42%, followed by North America at 20.4%. Europe/Middle East sales dropped 18.2% for the period and Asia/Pacific/Africa sales were down 11.7%.

J.P. Morgan noted that management said the third quarter represented the largest year-over-year production cuts the company had taken in over a decade by at least 35%.

AGCO cut production guidance and sees underproduction likely through at least the first half of 2025, she said writing, “In efforts to manage inventory levels, AGCO cut global production by 35% in 3Q, which was 19% more than it anticipated. Notably, in South America the company cut production levels by >50% YoY in the quarter. Looking ahead, additional cuts are expected in 4Q and in 1H25 as FY production is now guided down ~25% vs. prior down 20-25%.

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| Member since 1972

Worldwide net sales and revenues decreased 17%, to $13.152 billion, for the third quarter of 2024 and decreased 11%, to $40.572 billion, for nine months. Net sales were $11.387 billion for the quarter and $35.484 billion for nine months, compared with $14.284 billion and $41.765 billion last year, respectively.

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Worldwide net sales and revenues decreased 17 percent, to $13.152 billion, for the third quarter of 2024 and decreased 11 percent, to $40.572 billion, for nine months. Net sales were $11.387 billion for the quarter and $35.484 billion for nine months, compared with $14.284 billion and $41.765 billion last year, respectively.

“John Deere’s third-quarter results showcase our disciplined execution in the face of challenging conditions in the global agricultural and construction sectors,” said John C. May, chairman and CEO. “Despite facing significant headwinds, our teams have demonstrated resiliency in adapting to market fluctuations, allowing us to remain focused on advancing our strategy and consistently providing exceptional value to our customers.”

Net income attributable to Deere & Company for fiscal 2024 is forecasted to be approximately $7 billion.

“In response to weak market conditions, we have taken steps to reduce costs and strategically align our production with customer needs,” said May, alluding to recent heavy layoffs. “Although these decisions were difficult, they are vital for our continued success and competitiveness. Our commitment to our customers is at the heart of everything we do, and we are confident that these proactive measures will allow us to continue investing in innovative, high-quality products and solutions that improve our customers’ lives.”

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For the third quarter of 2023, gross profit was $7.4 million compared to $8.7 million in the prior year third quarter. As a percentage of revenue, gross profit was 12.4%, down from 13.3% in the third quarter of 2022. For the nine months ended September 30, 2023, gross profit was $24.8 million, up from $24.1 million in the same period last year. As a percentage of revenue, gross profit was 13.5%, as compared with 13.5% in the prior year to date period.

| Member since 1972

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Highlights for the Quarter

• Eighth consecutive quarterly record for sales and earnings
• Net sales of $419.6 million, up 13.8%
• Vegetation Management net sales of $246.9 million, up 8.0%
• Industrial Equipment net sales of $172.7 million, up 23.1%
• Income from operations of $49.8 million, (11.9% of net sales), up 38.8%
• Net income of $34.9 million, or $2.91 per diluted share, up 35.2%
• Trailing twelve-month EBITDA of $245.0 million, up 25.0% from full year 2022(1)
• Backlog of $890.9 million, down 2% compared to prior year third quarter-end

Record third quarter 2023 net sales were $419.6 million and increased 13.8% compared to $368.8 million in the third quarter of 2022. 

Gross margin improved in the quarter vs. the third quarter of 2022 by $21.8 million or 23.6%. Third quarter net income improved 35.2% to $34.9 million, or $2.91 per diluted share, compared to net income of $25.8 million, or $2.16 per diluted share in the third quarter of 2022.  

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Net sales of Industrial Activities were $5.33 billion, a decrease of 1% when compared to the corresponding period from the previous year. This decline is mainly due to lower industry demand in Agriculture, especially in South America and in EMEA for combines. Pricing continued to be favorable for both Industrial segments, and Construction net sales grew by approximately 6%.

Agriculture net sales decreased for the quarter by 2.6% to $4.38 billion primarily as a result of lower industry volume, mainly in EMEA and South America partially offset by favorable mix in North America and continued price realization.

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The third quarter sales in their Agricultural Products segment were $5,530,000 compared to $6,345,000 during the same period of fiscal 2022, a decrease of $815,000, or 12.8%. Year-to-date agricultural product sales were $17,343,000 compared to $15,823,000 during the same period in fiscal 2022, an increase of $1,520,000, or 9.6%.

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