Agricultural equipment manufacturer John Deere sees a decrease in revenue, with a significant dip of 18% in turnover reported.

John Deere, the renowned agricultural equipment manufacturer, has released its quarterly figures for the first nine months of 2025. The report reveals a challenging landscape for the company, with a significant drop in revenue and profits.

The company's revenue for the year has fallen by 18%, reaching 33.29 billion US dollars. This decline is reflected in the net profit, which stands at around 3.9 billion US dollars compared to 5.8 billion US dollars in the previous year.

The third quarter saw a decrease in operating profit, attributed to higher tariffs. However, this was partially offset by a reduction in warranty expenses and lower production costs. The decrease in production costs was primarily due to lower material costs.

Sales in the Compact Farm Machinery and Lawn and Ground Care segments experienced a 1% decrease, largely due to low delivery volumes. The large machines and precision agriculture segment saw a more substantial 16% decrease in sales in the third quarter.

Revenue in the Construction and Forestry machinery segment also decreased due to unfavourable pricing trends and increased production costs resulting from higher tariffs.

John Deere's net profit fell from around 1.7 billion US dollars in the third quarter of 2024 to around 1.3 billion US dollars in 2025. The company's CEO and Chairman, John C. May, stated that through proactive inventory management, they have adjusted production to meet demand.

The company continues to focus on technologies like See & Spray and Harvest Settings Automation to meet current customer needs and provide a foundation for future growth. However, the challenges remain, with uncertainties regarding whether products can be sold domestically and internationally, and how production can continue in international plants.

Rising production costs and the question of whether to absorb or pass on price increases are causing concern. The company expects up to a 20% decrease in revenue for large machines and precision agriculture, a 10% decrease for compact farm machinery and lawn and ground care, and a minus 10 to 15% decrease for construction and forestry machinery.

China and the EU have implemented US tariffs and "retaliatory measures" on John Deere products, contributing to the decline in sales in the third quarter. These trade tensions, along with political decisions and general economic uncertainty, present significant challenges for John Deere as it strives to predict financial results and remain competitive.

Despite these challenges, the company has narrowed the net profit range for the current year, with Deere & Company estimating net profit at between 4.75 and 5.25 billion US dollars. Machine sales are in decline, with around 10.4 billion US dollars in the quarter and 28.3 billion US dollars in the first nine months, compared to 11.4 and 35.5 billion US dollars respectively in the previous year.

As John Deere navigates these challenging times, it remains committed to its mission of empowering farmers and land managers with advanced technology and innovative solutions.

Agricultural equipment manufacturer John Deere sees a decrease in revenue, with a significant dip of 18% in turnover reported.