Deere posts first profit gain in three years, raises outlook

Deere & Company, one of the world’s largest farm and construction equipment manufacturers, posted its first year-over-year profit increase since 2023, driven by surging demand for construction machinery even as the farm equipment cycle remained weak.

The Moline, Illinois-based company reported net income of US$1.38 billion, or US$5.10 per diluted share, for the fiscal third quarter ended August 2, up from US$4.75 per share a year earlier. Total net sales and revenues rose five per cent to US$12.61 billion, topping Wall Street estimates of US$10.81 billion.

“Deere delivered a strong quarter, reflecting disciplined execution by our teams and continued resilience across our portfolio,” said John May, chairman and chief executive officer, in a release. “Our performance underscores the strength of our business, supported by stable US market conditions, our ability to manage softer conditions in Brazil and Europe, and our commitment to helping customers succeed.”

Construction and forestry equipment led the results. Net sales in that segment climbed 18 per cent to US$3.62 billion, while operating profit surged 84 per cent to US$436 million as infrastructure, data centre and energy projects fuelled demand. Small agriculture and turf equipment also contributed, with revenue up 12 per cent to US$3.38 billion.

The gains offset continued softness in large-scale farming machinery, where production and precision agriculture sales fell 6.0 per cent amid weak global demand, particularly in South America and Europe.

Deere raised the lower end of its full-year net income guidance to US$4.75 billion from US$4.5 billion, leaving the ceiling at US$5 billion. It also lifted its cash-flow outlook to US$5 billion–US$5.5 billion.

The company also declared a quarterly dividend of US$1.62 per share, payable on November 9, 2026.

CEO May said the quarter reflected strong execution across all business segments and affirmed that fiscal 2026 represents the bottom of the current agriculture equipment cycle.

“As we look ahead, we continue to believe 2026 will mark the bottom of the current equipment cycle,” May said. “Across our business, early order programme trends, improving used-equipment inventories, and increasing customer adoption of our advanced technologies give us confidence that Deere is well positioned for long-term value creation.”

business@gleanerjm.com