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Released December 02, 2025 | SUGAR LAND
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Written by Will Ploch, Assistant Editor-in-Chief for Industrial Info Resources (Sugar Land, Texas)
In a quarterly earnings-related conference call, Christopher Seibert, the manager of Investor Communications for Deere, pointed out that the full 2025 fiscal year's "net sales and revenues were down 12% to $45.7 billion, while net sales for equipment operations were down 13% to $38.9 billion." While the company saw a significant jump in sales and revenues when compared with the fourth quarter of last year, net income nonetheless came in at $1.1 billion, an 11.65% drop from the same period last year.
Josh Beal, the director of Investor Relations for Deere, expects to see similar problems in the new year: "For fiscal year 2026, our full-year net income forecast is expected to be in the range of $4 billion and $4.75 billion. Included in this estimate is projected pretax direct tariff expense of approximately $1.2 billion, with additional inflationary pressures also contemplated from the direct and indirect impacts of tariffs."
North America is expected to be one of the toughest markets for Deere in fiscal 2026. The company expects industry sales of large equipment in the U.S. and Canada to be down 15% to 20%, with executives pointing to "challenging farm fundamentals," which are pushing farmers to invest in cheaper used machinery, instead of the new machinery produced by Deere and its competitors.
By the Numbers
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more about the Kernersville projects--including capacities, investment values and necessary equipment--from detailed reports on the projects for construction equipment and battery modules.
Another major development is a warehouse and distribution center in Lowell, Indiana, which is intended to bolster the company's supply chain and distribution across the region. The addition of workspace and jobs bucks Deere's recent history in the U.S. Midwest; the company announced last year it would be laying off workers in Illinois and Iowa, citing a drop in demand for products made at related sites. Subscribers can learn more from a detailed plant profile and project report.
John May, the chief executive officer of Deere, said in the earnings call that supply-chain and distribution efforts are essential to navigating risks in the current market: "Our logistics, supply management, and finance teams partnered with the broader organization to assess and mitigate tariff exposures; manage disruptions in global supply chains, and maintain sufficient liquidity all in an effort to ensure our factories continued producing the complete goods and parts that support our customers on a daily basis."
May also said the worst could be coming to an end in the domestic agricultural market: "For large ag in North America, while we see the industry declining in 2026, we also see a number of positive factors that lead us to believe this coming year will mark the bottom of the cycle. Consumption of U.S. corn and soy remains strong and is expected to grow. Paired with strong support for biofuels and recent improvement in commodity prices, demand picture on grains feels incrementally better compared to a quarter ago."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects worldwide from Deere and can click here for a full list of reports for active and proposed projects in the U.S. sector for agricultural products.
Key Takeaways
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Executives at Deere are warning of a rough North American agricultural market in the near term, with its sales for related equipment projected to decline throughout 2026.Tariffs, Used Equipment are Hurdles
Deere & Company (Moline, Illinois) reported stronger-than-expected results for its 2025 fiscal year, but its outlook is not so good. While higher shipments and commodity prices elevated results for the agricultural equipment producer, executives warned the impacts of tariffs and economic uncertainty will weigh on the U.S. ag sector for the foreseeable future. Industrial Info is tracking about $600 million worth of active and proposed projects from Deere, as well as nearly $15 billion in active and proposed projects in the U.S. sector for agricultural products.In a quarterly earnings-related conference call, Christopher Seibert, the manager of Investor Communications for Deere, pointed out that the full 2025 fiscal year's "net sales and revenues were down 12% to $45.7 billion, while net sales for equipment operations were down 13% to $38.9 billion." While the company saw a significant jump in sales and revenues when compared with the fourth quarter of last year, net income nonetheless came in at $1.1 billion, an 11.65% drop from the same period last year.
Josh Beal, the director of Investor Relations for Deere, expects to see similar problems in the new year: "For fiscal year 2026, our full-year net income forecast is expected to be in the range of $4 billion and $4.75 billion. Included in this estimate is projected pretax direct tariff expense of approximately $1.2 billion, with additional inflationary pressures also contemplated from the direct and indirect impacts of tariffs."
North America is expected to be one of the toughest markets for Deere in fiscal 2026. The company expects industry sales of large equipment in the U.S. and Canada to be down 15% to 20%, with executives pointing to "challenging farm fundamentals," which are pushing farmers to invest in cheaper used machinery, instead of the new machinery produced by Deere and its competitors.
By the Numbers
- Between $4 billion and $4.75 billion: Deere's projected net income for fiscal 2026
- $1.2 billion: Deere's projected tariff expense for fiscal 2026
- 15% to 20%: Deere's projected drop in U.S. and Canadian large equipment sales in fiscal 2026
Execs Say Hope is on the Horizon
Deere's projects under construction include two developments in Kernersville, North Carolina. The company is expanding its production of excavation-related construction equipment and building a new plant, called Project Socket, which will produce lithium-ion, immersion-cooled battery modules for off-highway equipment. The two facilities will be located less than a mile apart in an area just east of Winston-Salem.Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more about the Kernersville projects--including capacities, investment values and necessary equipment--from detailed reports on the projects for construction equipment and battery modules.
Another major development is a warehouse and distribution center in Lowell, Indiana, which is intended to bolster the company's supply chain and distribution across the region. The addition of workspace and jobs bucks Deere's recent history in the U.S. Midwest; the company announced last year it would be laying off workers in Illinois and Iowa, citing a drop in demand for products made at related sites. Subscribers can learn more from a detailed plant profile and project report.
John May, the chief executive officer of Deere, said in the earnings call that supply-chain and distribution efforts are essential to navigating risks in the current market: "Our logistics, supply management, and finance teams partnered with the broader organization to assess and mitigate tariff exposures; manage disruptions in global supply chains, and maintain sufficient liquidity all in an effort to ensure our factories continued producing the complete goods and parts that support our customers on a daily basis."
May also said the worst could be coming to an end in the domestic agricultural market: "For large ag in North America, while we see the industry declining in 2026, we also see a number of positive factors that lead us to believe this coming year will mark the bottom of the cycle. Consumption of U.S. corn and soy remains strong and is expected to grow. Paired with strong support for biofuels and recent improvement in commodity prices, demand picture on grains feels incrementally better compared to a quarter ago."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects worldwide from Deere and can click here for a full list of reports for active and proposed projects in the U.S. sector for agricultural products.
Key Takeaways
- Tariffs took a bite out of Deere's earnings for fiscal 2025--and likely will do so again for fiscal 2026.
- Strong supply-chain and distribution management is essential to navigating the present market.
- Deere executives are optimistic the domestic ag market will see an upswing after the coming year.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
