The John Deere emblem is displayed as attendees view a 5105M utility tractor on the Deere & Co. sales space throughout the World Ag Expo on the Worldwide Agri-Heart in Tulare, California on February 11, 2025.
Patrick T. Fallon | AFP | Getty Photographs
John Deere is warning that tariff prices for the agricultural equipment firm may attain a complete of $600 million for the fiscal 2025 yr.
The corporate launched its fiscal third-quarter earnings report Thursday, beating on the highest and backside strains however posting important year-over-year decreases in web revenue and gross sales.
The inventory sank roughly 7% in noon buying and selling.
The corporate famous that working income for the quarter decreased primarily as a result of increased tariffs and manufacturing prices related to it.
Deere’s Director of Investor Relations John Beal mentioned on an earnings name with analysts Thursday that the corporate took a major hit within the third quarter as a result of tariffs.
“Tariff prices within the quarter have been roughly $200 million, which brings us to roughly $300 million in tariff expense year-to-date based mostly on tariff charges in impact as of at the moment,” Beal mentioned. “Our forecast for the pre-tax impression of tariffs in fiscal 2025 is now adjusted to just about $600 million.”
Here is how the corporate carried out within the fiscal third quarter in contrast with what Wall Road was anticipating, based mostly on a survey of analysts by LSEG:
- Earnings per share: $4.75 per share vs. $4.63 anticipated
- Income: $10.36 billion vs. $10.31 billion
For the quarter ending July 24, Deere reported a web revenue of $1.29 billion, down 26% from $1.73 billion the yr prior. The corporate’s complete web gross sales of $12.02 billion took a 9% hit over the interval, down from $13.15 billion.
Deere additionally trimmed the excessive finish of its web revenue outlook for the fiscal yr to $4.75 billion to $5.25 billion, in contrast with a previous estimate of $4.75 billion to $5.5 billion.
“We stay dedicated to delivering options that tackle our clients’ present wants whereas additionally laying the groundwork for future development,” CEO John Might mentioned within the report. “The optimistic outcomes we’re enabling reinforce our confidence in Deere’s future regardless of near-term uncertainty.”
Oppenheimer analyst Kristen Owen mentioned the corporate is taking an “appropriately cautiously optimistic outlook” given the broader financial atmosphere.
“Actually, quite a lot of the uncertainty is what does ’26 appear like,” Owen mentioned on CNBC’s “Cash Movers.” “What does 2026 demand appear like now that we’re on this atmosphere the place the commodities backdrop is not practically as favorable because it was six months in the past, and you’ve got an terrible lot of commerce uncertainty?”
Deere additionally famous that the corporate is seeing inexperienced shoots of rising demand in Europe and South America.
Cory Reed, the president of Deere’s worldwide agriculture and turf division, mentioned on the decision that the corporate believes there are good issues but to come back out of the financial struggles.
“We expect there’s optimistic tailwinds from each what we see within the commerce offers, and we predict there are optimistic tailwinds from what we see in tax coverage,” Reed mentioned.
