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- **Record Performance**: $5 billion net income in FY2025, best at this cycle point.\n- **Tariff Impact**: FY2026 direct tariff expense of $1.2 billion, partially offset by price/cost improvements.\n- **Technology Growth**: See & Spray covers 5 million acres, autonomy solutions ordered for 2026.\n- **Segment Outlook**: Small ag/turf up 10%, C&F up 10%, PPA down 5–10%.\n- **Inventory Management**: Used tractor inventory down 7% YoY, new inventory at cycle lows.\n

**【CEO Summary Section】**
- Delivered $5 billion net income in FY2025, marking the best performance at this cycle point.\n- Emphasized resilience through Smart Industrial journey, with equipment operations margins at 12.6% despite tariffs.\n- Highlighted technology advancements, including autonomous solutions and digital tools like John Deere Operations Center, covering 500 million acres.\n- Noted used inventory reduction progress, with North American large ag tractor inventory down 7% year-over-year.\n- Expressed optimism for 2026, citing stabilization in North America and growth in small ag, turf, and construction.\n
**【CFO Financial Commentary】**
- FY2025 net income: $5 billion ($18.50 per share), up 12% YoY.\n- FY2026 net income guidance: $4.0–4.75 billion (midpoint $4.375 billion).\n- Direct tariff expense: $1.2 billion in FY2026, up from $600 million in FY2025.\n- Operating cash flow: $5.1 billion in FY2025, with FY2026 guidance of $4–5 billion.\n- Share buybacks paused in Q4 FY2025 due to market uncertainty, resuming in FY2026.\n- Effective tax rate: 25–27% in FY2026, higher due to geographic mix.\n
**【Q&A Highlights】**
- **Tariffs Mitigation**: FY2026 price/cost ex-tariffs expected to be positive, with $1.2 billion tariff impact.\n- **Production & Precision Ag (PPA) Sales**: FY2026 down 5–10%, driven by North America large ag decline (15–20%).\n- **Small Ag & Turf Growth**: FY2026 net sales up ~10%, supported by dairy margins and turf recovery.\n- **Technology Adoption**: See & Spray covered 5 million acres in FY2025, with 50% herbicide savings.\n- **Autonomy**: Tillage autonomy kits ordered for spring 2026, covering 200,000 acres.\n- **Construction & Forestry (C&F)**: FY2026 net sales up ~10%, with earthmoving demand improving.\n- **Used Inventory Progress**: North American large ag tractor inventory at 8% of sales, lowest in 17 years.\n

Deere & Company (DE) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

DE

DE fundamentals

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