Deere & Co. finished the year stronger than expected after aggressively cutting production and seeing solid demand for new tractors and precision agriculture technology.
The Moline, Illinois-based tractor giant reported a net profit of $1.3 billion in the fourth quarter compared to $2.4 billion last year as farmers grappled with high interest rates and low commodity prices. Sales and revenue totaled $11.1 billion, down 28% from a year ago. Despite economic challenges, Deere Chairman and CEO John May said in an earnings call that company performance was better than expected, which led to strong reinvestment across the enterprise.
Josh Beal, Deere’s director of investor relations, said in the call that order books are full for the company’s new high-horsepower 9RX tractor through the fourth quarter of 2025. The company also noted “record adoption” of its technology stack, including hardware, software, data platforms and applications.
Executives though are bracing for another tough year in terms of demand. The strong Q4 earnings for Deere comes amid the company’s numerous layoffs throughout the Midwest over the last year. Just this year alone, the company has laid off more than 2,500 workers across multiple states including Iowa and Illinois, citing the downturn in the ag economy.
