John Deere acquires provider of aerial imaging applications.
John Deere acquires Sentera, which offers drone technology along with software that analyzes plants during flights using a camera and sends the data to the field mapping system.
Deere & Company, the US agricultural machinery conglomerate, has reported a 22 percent decrease in the first six months of the 2025 fiscal year compared to the same period last year. Despite this, CEO John C. May remains optimistic about the future.
In the second quarter of the fiscal year (April 27, 2025), Deere & Company reported a net profit of 1.804 billion US dollars. In comparison, the net profit in the second quarter of the previous year as of April 28, 2024, was 2.370 billion US dollars or 8.53 US dollars per share. For the first six months of the fiscal year, Deere & Company's net profit amounted to 2.673 billion US dollars, compared to 4.121 billion US dollars in the same period last year. Worldwide, sales and revenues declined by 16 percent in the second quarter of 2025 and by 22 percent in the first six months. Machinery sales totaled 11.171 billion US dollars in the quarter and 17.980 billion US dollars for the first six months, compared to 13.610 billion US dollars and 24.097 billion US dollars in the previous year's periods.
The current challenging market poses difficulties for agricultural machinery manufacturers.
Deere & Company's CEO and Chairman of the Board, John C. May, emphasized in a statement that despite the challenging market environment, customers remain a top priority. He expressed pride in the teams that have delivered excellent work under difficult conditions in the past quarter, ensuring the usual quality of service and products for customers. A net profit attributable to Deere & Company of 4.75 to 5.5 billion US dollars is expected for the 2025 fiscal year.
"Despite the short-term challenges in the market, we look to the future with confidence," said John C. May. "Our commitment to providing value to our customers is reflected in our continuous investments in advanced products, solutions, and manufacturing capabilities. Over the next ten years, we will continue to make significant investments in our core market, the USA, demonstrating our commitment to innovation and growth while remaining competitive in a global market.
The results for the current period were influenced by specific effects. The costs of additional tariffs in various segments are included in production costs and other listed items, partially offsetting cost reductions in these categories compared to the previous year.
John Deere's balance sheet: a look into the individual segments.
Sales of large machinery and precision agricultural technology in the second quarter declined due to lower delivery volumes. Operating profit decreased mainly due to lower delivery volumes, a poorer product mix, and unfavorable exchange rates. This effect was partially offset by lower production costs and better prices.
In the Compact Utility Tractors and Lawn & Garden segment, revenue in the second quarter decreased due to lower delivery volumes. The effect was partially offset by better prices. Operating profit remained stable due to positive effects such as lower production costs, lower warranty costs, and better prices, offset by lower delivery volumes and an unfavorable product mix. Sales revenue for the Construction & Forestry segment in the second quarter decreased compared to the same period last year due to lower delivery volumes. Operating profit also decreased, mainly due to lower delivery volumes, a poorer product mix, and lower prices.
The article "John Deere: Tariffs and Lower Delivery Volumes Impact Revenue" was first published in Agrartechnik.