Despite a positive finish to quarter four (Q4), with net sales at $12,394 billion, up 11% on last year, Deere & Company has reported a drop in net sales of 12% for 2025.

The increase in Q4 sales was driven by a 10% increase in production and precision agriculture equipment sales, combined with a 27% increase in construction and forestry equipment sales.

Net sales for the fiscal year ended 2 November – at a total of $45.684 billion, a 12% decline on 2024 – were affected heavily by tariffs and a sluggish farm economy. Therefore, net income totalled $5.027 billion, down a significant 29% on 2024.

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“This past year brought its share of challenges and uncertainty,” said John May, chairman and CEO of John Deere, “but thanks to the structural improvements we’ve made and the diverse customer segments and geographies we serve, we were able to achieve our best results yet for this point in the cycle.”

Outlook

Net income attributable to Deere & Company for fiscal 2026 is forecasted to range between $4bn and $4.75bn.

“Looking ahead, we believe 2026 will mark the bottom of the large ag cycle,” May said.

In terms of percentage points, the US and Canadian agriculture and turf equipment sector is expected witness a further 15% to 20% decrease in sales while Europe is expected to remain flat or grow by up to 5%.

Meanwhile, sales of construction and forestry equipment for the US and Canada is expected to grow by 5%, or remain flat.

Right to repair

Among all the known risks that could potentially affect the 2026 fiscal performance – such as trade tariffs, raw material prices, geo political issues, farm income etc – Deere & Co also cited that uncertainties around the right to repair lawsuit could affect its financial performance.

The lawsuit was earlier filed by the Federal Trade Commission and the attorneys general for Arizona, Illinois, Michigan, Minnesota, and Wisconsin, alleging that the company unlawfully withheld self-repair capabilities from farmers and independent repair providers.