John Deere’s logo is displayed while participants consider a 5105m utility tractor at the Deere & Co. stand during the World AG Expo at the International Agri-Center in Tulare, California, on February 11, 2025.
Patrick T. Fallon | AFP | Getty images
John Deere It is warned that tariff costs for the agricultural machine company could reach a total of $ 600 million for the year 2025.
On Thursday, the company published its financial report for financial results, beating on the superior lines and ultimately, but displaying significant decreases from one year to the other of net profit and sales.
The stock sank about 7% in midday traffic.
The company noted that the profits of the quarter operating mainly decreased due to the higher prices and production costs associated with it.
Deere’s director of investors with investors, John Beal, said on Thursday in a profits call with analysts that the company was important in the third quarter due to prices.
“The tariff costs during the quarter amounted to around $ 200 million, which leads us to around 300 million dollars in pricing expenses to date on the basis of the rate rates in force to date,” said Beal. “Our forecasts for the impact before tariff tax during the 2025 fiscal year are now adjusted to nearly $ 600 million.”
Here is how the company worked in the third tax quarter compared to what Wall Street was waiting, on the basis of a survey of LSEG analysts:
- Profit by action: $ 4.75 per share against $ 4.63 expected
- Income: $ 10.36 billion against $ 10.31 billion
For the quarter ending on July 24, Deere declared a net profit of $ 1.29 billion, down 26%, compared to $ 1.73 billion the previous year. The total net of 12.02 billion dollars in the company was 9% in the period, against 13.15 billion dollars.
Deere has also reduced the top of its net income prospects for the financial year to $ 4.75 billion to $ 5.25 billion compared to a prior estimate of $ 4.75 billion to $ 5.5 billion.
“We remain determined to provide solutions that meet the current needs of our customers while launching the basics of future growth,” said CEO John May in the report. “The positive results that we allow us to strengthen our confidence in the future of Deere despite short -term uncertainty.”
Oppenheimer’s analyst Kristen Owen said that the company took “prudently optimistic prospects” given the broader economic environment.
“Really, a large part of uncertainty is what ’26 looks like,” said Owen on “Money Movers” by CNBC. “What does the demand look like in 2026 now that we are in this environment where the backdrop of goods is not as favorable as six months ago, and you have a lot of commercial uncertainty?”
Deere also noted that the company saw green shoots of growing demand in Europe and South America.
Cory Reed, the president of the World Division of Deere and the Turf division, said on the appeal that the company considers that there are still good things to get out of economic difficulties.
“We think there are positive rear winds of what we see in commercial transactions, and we think there are positive rear winds of what we see in tax policy,” said Reed.