Deere Reports Third Quarter Net Income of $1.289 Billion

Disciplined execution yields solid results in the face of a challenging environment. Customers remain cautious amid ongoing uncertainty. Full-year net income guidance narrowed. , /PRNewswire/ -- Deere & Company (NYSE: DE) reported net income of $1.289 billion for the third quarter ended July 27, 2025, or $4.75 per share, compared with net income of $1.734 billion, or $6.29 per share, for the quarter ended July 28, 2024. For the first nine months of the year, net income attributable to Deere & Company was $3.962 billion, or $14.57 per share, compared with $5.855 billion, or $21.04 per share, for the same period last year. Production & Precision Agriculture Operating Profit Third Quarter 2025 Compared to Third Quarter 2024 $ in millions Small Agriculture & Turf Operating Profit Third Quarter 2025 Compared to Third Quarter 2024 $ in millions Construction & Forestry Operating Profit Third Quarter 2025 Compared to Third Quarter 2024 $ in millions Worldwide net sales and revenues decreased 9 percent, to $12.018 billion, for the third quarter of 2025 and decreased 18 percent, to $33.290 billion, for nine months. Net sales were $10.357 billion for the quarter and $28.338 billion for nine months, compared with $11.387 billion and $35.484 billion last year, respectively. "By proactively managing inventory, we've matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs," said John May, chairman and CEO of John Deere. "By continuing to address the high levels of used equipment in the industry, we're building a healthier market for everyone—our customers, our dealers, and our business—even in these challenging times." Company Outlook & SummaryNet income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.25 billion."We remain committed to delivering solutions that address our customers' current needs while also laying the groundwork for future growth. For example, the increasing utilization and proven in-field effectiveness of advanced technologies—such as See & Spray and Harvest Settings Automation—are empowering customers to improve their productivity and better navigate industry challenges," May noted. "The positive outcomes we're enabling reinforce our confidence in Deere's future despite near-term uncertainty." Deere & Company Third Quarter Year to Date $ in millions, except per share amounts 2025 2024 % Change 2025 2024 % Change Net sales and revenues $ 12,018 $ 13,152 -9 % $ 33,290 $ 40,572 -18 % Net income $ 1,289 $ 1,734 -26 % $ 3,962 $ 5,855 -32 % Fully diluted EPS $ 4.75 $ 6.29 $ 14.57 $ 21.04 All periods presented were affected by special items. See Note 2 of the financial statements for further details. The cost of additional tariffs for each segment is included in the "Production costs" and "Other" categories below. Production & Precision Agriculture Third Quarter $ in millions 2025 2024 % Change Net sales $ 4,273 $ 5,099 -16 % Operating profit $ 580 $ 1,162 -50 % Operating margin 13.6 % 22.8 % Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes and unfavorable price realization. Operating profit decreased primarily due to lower shipment volumes / sales mix. Small Agriculture & Turf Third Quarter $ in millions 2025 2024 % Change Net sales $ 3,025 $ 3,053 -1 % Operating profit $ 485 $ 496 -2 % Operating margin 16.0 % 16.2 % Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by favorable currency translation and price realization. Operating profit decreased due to higher tariffs, partially offset by reductions in warranty expenses and lower production costs. The decreased production costs were primarily the result of lower material costs. Construction & Forestry Third Quarter $ in millions 2025 2024 % Change Net sales $ 3,059 $ 3,235 -5 % Operating profit $ 237 $ 448 -47 % Operating margin 7.7 % 13.8 % Construction and forestry sales decreased for the quarter primarily due to unfavorable price realization. Operating profit decreased primarily due to unfavorable price realization and higher production costs caused by higher tariffs, partially offset by favorable product mix. Financial Services Third Quarter $ in millions 2025 2024 % Change Net income $ 205 $ 153 34 % Financial services net income for the quarter was higher due to a lower provision for credit losses and prior year special items. Industry Outlook for Fiscal 2025 Agriculture & Turf U.S. & Canada: Large Ag Down ~ 30% Small Ag & Turf Down ~ 10% Europe Flat to down 5% South America (Tractors & Combines) Flat Asia Flat to up 5% Construction & Forestry U.S. & Canada: Construction Equipment Down ~ 10% Compact Construction Equipment Flat to down 5% Global Forestry Flat to down 5% Global Roadbuilding Flat Deere Segment Outlook for Fiscal 2025 Currency Price $ in millions Net Sales Translation Realization Production & Precision Ag Down 15% to 20% Down 1.0% Up 1.0% Small Ag & Turf Down ~ 10% Up 0.5% Up 0.5% Construction & Forestry Down 10% to 15% ~ Flat Down 2.0% Financial Services Net Income ~ $770 FORWARD-LOOKING STATEMENTSCertain statements contained herein, including in the section entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2025," "Deere Segment Outlook for Fiscal 2025," and "Condensed Notes to Interim Consolidated Financial Statements" relating to future events, expectations, forecasted financial and industry results, future investment and trends constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally while others could more heavily affect a particular line of business.Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to: government policies and actions with respect to the global trade environment including increased and proposed tariffs announced by the U.S. government, and retaliatory trade regulations; the uncertainty of the company's ability to sell products domestically or internationally, continue production at certain international facilities, procure raw materials and components, accurately forecast demand and inventory, manage increased costs of production, absorb or pass on increased pricing, accurately predict financial results and industry trends, and remain competitive based on trade actions, policies and general economic uncertainty; the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, harvest yields, available farm acres, acreage planted, soil conditions, prices for commodities and livestock, input costs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth or a recession and regional or global liquidity constraints; higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for the company's products and solutions; the company's ability to adapt in highly competitive markets, including understanding and meeting customers' changing expectations for products and solutions, including delivery and utilization of precision technology; housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment; political, economic, and social instability of the geographies in which the company operates, including the ongoing war between Russia and Ukraine and the conflicts in the Middle East; worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for the company's equipment; investigations, claims, lawsuits, or other legal proceedings, including the lawsuit filed by the Federal Trade Commission (FTC) and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that the company unlawfully withheld self-repair capabilities from farmers and independent repair providers; delays or disruptions in the company's supply chain; changes in climate patterns, unfavorable weather events, and natural disasters; availability and price of raw materials, components, and whole goods; suppliers' and manufacturers' business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages; loss of or challenges to intellectual property rights; rationalization, restructuring, relocation, expansion and/or reconfiguration of manufacturing and warehouse facilities; the ability to execute business strategies, including the company's Smart Industrial Operating Model and Leap Ambitions; accurately forecasting customer demand for products and services and adequately managing inventory; dealer practices and their ability to manage new and used inventory, distribute the company's products, and to provide support and service for precision technology solutions; the ability to realize anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes; negative claims or publicity that damage the company's reputation or brand; the ability to attract, develop, engage, and retain qualified employees; the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge; labor relations and contracts, including work stoppages and other disruptions; security breaches, cybersecurity attacks, technology failures, and other disruptions to the company's information technology infrastructure and products; leveraging artificial intelligence and machine learning within the company's business processes; changes to governmental communications channels (radio frequency technology); changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign and international laws, regulations, and policies relating to, but not limited to the following: advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environmental (including climate change and engine emissions), farming, health and safety, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, human rights, import / export and trade, tariffs, labor and employment, product liability, tax, telematics, and telecommunications; governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy; and warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations because of the deficient operation of the company's products. Further information concerning the company or its businesses, including factors that could materially affect the company's financial results, is included in the company's filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material. DEERE & COMPANY THIRD QUARTER 2025 PRESS RELEASE (In millions of dollars) Unaudited Three Months Ended Nine Months Ended July 27 July 28 % July 27 July 28 % 2025 2024 Change 2025 2024 Change Net sales and revenues: Production & precision ag net sales $ 4,273 $ 5,099 -16 $ 12,571 $ 16,529 -24 Small ag & turf net sales 3,025 3,053 -1 7,767 8,663 -10 Construction & forestry net sales 3,059 3,235 -5 8,000 10,292 -22 Financial services revenues 1,418 1,489 -5 4,273 4,259 Other revenues 243 276 -12 679 829 -18 Total net sales and revenues $ 12,018 $ 13,152 -9 $ 33,290 $ 40,572 -18 Operating profit: * Production & precision ag $ 580 $ 1,162 -50 $ 2,066 $ 3,857 -46 Small ag & turf 485 496 -2 1,182 1,393 -15 Construction & forestry 237 448 -47 681 1,682 -60 Financial services 266 191 +39 740 657 +13 Total operating profit 1,568 2,297 -32 4,669 7,589 -38 Reconciling items ** 60 62 -3 198 111 +78 Income taxes (339) (625) -46 (905) (1,845) -51 Net income attributable to Deere & Company $ 1,289 $ 1,734 -26 $ 3,962 $ 5,855 -32 * Operating profit is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of financial services includes the effect of interest expense and foreign exchange gains and losses. ** Reconciling items are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests. DEERE & COMPANY STATEMENTS OF CONSOLIDATED INCOME For the Three and Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars and shares except per share amounts) Unaudited Three Months Ended Nine Months Ended 2025 2024 2025 2024 Net Sales and Revenues Net sales $ 10,357 $ 11,387 $ 28,338 $ 35,484 Finance and interest income 1,426 1,461 4,233 4,207 Other income 235 304 719 881 Total 12,018 13,152 33,290 40,572 Costs and Expenses Cost of sales 7,570 7,848 20,215 24,205 Research and development expenses 556 567 1,631 1,664 Selling, administrative and general expenses 1,217 1,278 3,387 3,608 Interest expense 794 840 2,408 2,478 Other operating expenses 281 264 817 930 Total 10,418 10,797 28,458 32,885 Income of Consolidated Group before Income Taxes 1,600 2,355 4,832 7,687 Provision for income taxes 339 625 905 1,845 Income of Consolidated Group 1,261 1,730 3,927 5,842 Equity in income of unconsolidated affiliates 10 1 11 4 Net Income 1,271 1,731 3,938 5,846 Less: Net loss attributable to noncontrolling interests (18) (3) (24) (9) Net Income Attributable to Deere & Company $ 1,289 $ 1,734 $ 3,962 $ 5,855 Per Share Data Basic $ 4.76 $ 6.32 $ 14.61 $ 21.13 Diluted 4.75 6.29 14.57 21.04 Dividends declared 1.62 1.47 4.86 4.41 Dividends paid 1.62 1.47 4.71 4.29 Average Shares Outstanding Basic 270.7 274.5 271.1 277.1 Diluted 271.4 275.6 271.9 278.2 See Condensed Notes to Interim Consolidated Financial Statements. DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (In millions of dollars) Unaudited July 27 October 27 July 28 2025 2024 2024 Assets Cash and cash equivalents $ 8,580 $ 7,324 $ 7,004 Marketable securities 1,407 1,154 1,140 Trade accounts and notes receivable – net 6,103 5,326 7,469 Financing receivables – net 43,930 44,309 43,896 Financing receivables securitized – net 7,948 8,723 8,274 Other receivables 2,826 2,545 2,270 Equipment on operating leases – net 7,512 7,451 7,118 Inventories 7,713 7,093 7,696 Property and equipment – net 7,713 7,580 7,092 Goodwill 4,209 3,959 3,960 Other intangible assets – net 926 999 1,030 Retirement benefits 3,182 2,921 3,126 Deferred income taxes 2,209 2,086 1,898 Other assets 3,559 2,906 2,903 Assets held for sale 2,944 2,965 Total Assets $ 107,817 $ 107,320 $ 107,841 Liabilities and Stockholders' Equity Liabilities Short-term borrowings $ 14,607 $ 13,533 $ 15,294 Short-term securitization borrowings 7,610 8,431 7,869 Accounts payable and accrued expenses 13,582 14,543 14,397 Deferred income taxes 489 478 481 Long-term borrowings 44,429 43,229 42,692 Retirement benefits and other liabilities 1,836 2,354 2,156 Liabilities held for sale 1,827 1,803 Total liabilities 82,553 84,395 84,692 Redeemable noncontrolling interest 84 82 84 Stockholders' Equity Total Deere & Company stockholders' equity 25,175 22,836 23,062 Noncontrolling interests 5 7 3 Total stockholders' equity 25,180 22,843 23,065 Total Liabilities and Stockholders' Equity $ 107,817 $ 107,320 $ 107,841 See Condensed Notes to Interim Consolidated Financial Statements. DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS For the Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited 2025 2024 Cash Flows from Operating Activities Net income $ 3,938 $ 5,846 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 258 222 Provision for depreciation and amortization 1,668 1,598 Impairments and other adjustments 29 53 Share-based compensation expense 104 159 Credit for deferred income taxes (102) (125) Changes in assets and liabilities: Receivables related to sales (494) (2,446) Inventories (526) 234 Accounts payable and accrued expenses (717) (1,015) Accrued income taxes payable/receivable (147) 31 Retirement benefits (813) (246) Other 266 (172) Net cash provided by operating activities 3,464 4,139 Cash Flows from Investing Activities Collections of receivables (excluding receivables related to sales) 19,712 19,143 Proceeds from maturities and sales of marketable securities 359 333 Proceeds from sales of equipment on operating leases 1,408 1,451 Cost of receivables acquired (excluding receivables related to sales) (18,962) (21,113) Acquisitions of businesses, net of cash acquired (89) Purchases of marketable securities (598) (572) Purchases of property and equipment (852) (1,043) Cost of equipment on operating leases acquired (2,009) (2,165) Collections of receivables from unconsolidated affiliates 334 Collateral on derivatives – net 127 390 Other (231) (95) Net cash used for investing activities (801) (3,671) Cash Flows from Financing Activities Net payments in short-term borrowings (original maturities three months or less) (2,060) (992) Proceeds from borrowings issued (original maturities greater than three months) 10,707 15,512 Payments of borrowings (original maturities greater than three months) (7,743) (10,792) Repurchases of common stock (1,136) (3,227) Dividends paid (1,282) (1,202) Other (43) (88) Net cash used for financing activities (1,557) (789) Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 108 (6) Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 1,214 (327) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 7,633 7,620 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 8,847 $ 7,293 See Condensed Notes to Interim Consolidated Financial Statements. DEERE & COMPANYCondensed Notes to Interim Consolidated Financial Statements (In millions of dollars) Unaudited(1) AcquisitionsIn 2025, the company acquired businesses to advance the capabilities of the company's existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions that improve profitability, efficiency, and sustainability. The combined cost of these acquisitions was $89 million, net of cash acquired. The businesses were assigned to the production and precision agriculture and construction and forestry segments. Most of the purchase price for these acquisitions was allocated to goodwill and intangible assets.(2) Special ItemsImpairmentIn the third quarter of 2025, the company recorded a non-cash charge of $61 million pretax ($49 million after-tax), primarily related to the trade name and customer relationship assets of external overseas battery operations. Of this amount, $53 million was recorded in "Selling, administrative and general expenses" and $8 million in "Cost of sales." This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets.Discrete Tax ItemsIn the first quarter of 2025, the company recorded favorable net discrete tax items primarily due to tax benefits of $110 million related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $53 million from an adjustment to an uncertain tax position of a foreign subsidiary.Banco John Deere S.A.In 2024, the company entered into an agreement with a Brazilian bank, Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become 50% owner of the company's wholly-owned subsidiary in Brazil, Banco John Deere S.A. (BJD). BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment. The transaction is intended to reduce the company's incremental risk as it continues to grow in the Brazilian market. The company deconsolidated BJD upon completion of the transaction in February 2025. The company accounts for its investment in BJD using the equity method of accounting and results of its operations are reported in "Equity in income of unconsolidated affiliates" within the financial services segment. The company reports investments in unconsolidated affiliates and receivables from unconsolidated affiliates in "Other assets" and "Other receivables," respectively.BJD was reclassified as held for sale in the third quarter of 2024, resulting in a net loss of $15 million pretax and after-tax due to the establishment of a $53 million valuation allowance on the assets held for sale and a $38 million reversal of allowance for credit losses. In the first quarter of 2025, a gain of $32 million pretax and after-tax was recorded in "Selling, administrative and general expenses" related to a decrease in valuation allowance. This is presented in "Impairments and other adjustments" in the statements of consolidated cash flows. No significant gain or loss was recognized upon completion of the transaction. The equity interest in BJD was valued at $362 million at the deconsolidation date.Employee-Separation ProgramsIn the third quarter of 2024, the company implemented employee-separation programs for the company's salaried workforce in several geographic areas, including the United States, Europe, Asia, and Latin America. The programs' main purpose was to help meet the company's strategic priorities while reducing overlap and redundancy in roles and responsibilities. The programs were largely involuntary in nature with the expense recorded when management committed to a plan, the plan was communicated to the employees, and the employees were not required to provide service beyond the legal notification period. For the limited voluntary employee-separation programs, the expense was recorded in the period in which the employee irrevocably accepted a separation offer.The expenses for the three months and nine months ended July 28, 2024 were recorded in millions of dollars as follows: PPA SAT CF FS Total Employee-Separation Programs: Cost of sales $ 18 $ 9 $ 8 $ 35 Research and development expenses 19 6 1 26 Selling, administrative and general expenses 25 14 11 $ 9 59 Total operating profit decrease $ 62 $ 29 $ 20 $ 9 120 Non-operating profit expenses* 4 Total $ 124 * Relates primarily to corporate expenses. Summary of 2025 and 2024 Special ItemsThe following table summarizes the operating profit impact of the special items recorded in millions of dollars for the three months and nine months ended July 27, 2025 and July 28, 2024. Three Months Nine Months PPA SAT CF FS Total PPA SAT CF FS Total 2025 Expense (benefit): Impairment $ 28 $ 17 $ 16 $ 61 $ 28 $ 17 $ 16 $ 61 BJD measurement $ (32) (32) Total expense (benefit) 28 17 16 61 28 17 16 (32) 29 2024 Expense: BJD measurement $ 15 15 15 15 Employee-separation programs 62 29 20 9 120 62 29 20 9 120 Total expense 62 29 20 24 135 62 29 20 24 135 Period over period change $ (34) $ (12) $ (4) $ (24) $ (74) $ (34) $ (12) $ (4) $ (56) $ (106) (3) The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 4 to the financial statements is presented for informational purposes. Equipment operations represent the enterprise without financial services. Equipment operations include the company's production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within financial services. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidatedfinancial statements. DEERE & COMPANY (4) SUPPLEMENTAL CONSOLIDATING DATA STATEMENTS OF INCOME For the Three Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited EQUIPMENT FINANCIAL OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED 2025 2024 2025 2024 2025 2024 2025 2024 Net Sales and Revenues Net sales $ 10,357 $ 11,387 $ 10,357 $ 11,387 Finance and interest income 133 155 $ 1,433 $ 1,537 $ (140) $ (231) 1,426 1,461 1 Other income 190 246 111 130 (66) (72) 235 304 2, 3, 4 Total 10,680 11,788 1,544 1,667 (206) (303) 12,018 13,152 Costs and Expenses Cost of sales 7,578 7,855 (8) (7) 7,570 7,848 4 Research and development expenses 556 567 556 567 Selling, administrative and general expenses 999 962 220 318 (2) (2) 1,217 1,278 4 Interest expense 102 91 720 812 (28) (63) 794 840 1 Interest compensation to Financial Services 112 168 (112) (168) 1 Other operating expenses (8) (16) 345 343 (56) (63) 281 264 3, 4, 5 Total 9,339 9,627 1,285 1,473 (206) (303) 10,418 10,797 Income before Income Taxes 1,341 2,161 259 194 1,600 2,355 Provision for income taxes 274 583 65 42 339 625 Income after Income Taxes 1,067 1,578 194 152 1,261 1,730 Equity in income (loss) of unconsolidated affiliates (1) 11 1 10 1 Net Income 1,066 1,578 205 153 1,271 1,731 Less: Net loss attributable to noncontrolling interests (18) (3) (18) (3) Net Income Attributable to Deere & Company $ 1,084 $ 1,581 $ 205 $ 153 $ 1,289 $ 1,734 1 Elimination of intercompany interest income and expense. 2 Elimination of equipment operations' margin from inventory transferred to equipment on operating leases. 3 Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets. 4 Elimination of intercompany service revenues and fees. 5 Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases. DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF INCOME For the Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited EQUIPMENT FINANCIAL OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED 2025 2024 2025 2024 2025 2024 2025 2024 Net Sales and Revenues Net sales $ 28,338 $ 35,484 $ 28,338 $ 35,484 Finance and interest income 351 441 $ 4,268 $ 4,466 $ (386) $ (700) 4,233 4,207 1 Other income 580 732 350 341 (211) (192) 719 881 2, 3, 4 Total 29,269 36,657 4,618 4,807 (597) (892) 33,290 40,572 Costs and Expenses Cost of sales 20,239 24,226 (24) (21) 20,215 24,205 4 Research and development expenses 1,631 1,664 1,631 1,664 Selling, administrative and general expenses 2,761 2,844 632 771 (6) (7) 3,387 3,608 4 Interest expense 282 314 2,206 2,354 (80) (190) 2,408 2,478 1 Interest compensation to Financial Services 306 510 (306) (510) 1 Other operating expenses (47) 76 1,045 1,018 (181) (164) 817 930 3, 4, 5 Total 25,172 29,634 3,883 4,143 (597) (892) 28,458 32,885 Income before Income Taxes 4,097 7,023 735 664 4,832 7,687 Provision for income taxes 752 1,700 153 145 905 1,845 Income after Income Taxes 3,345 5,323 582 519 3,927 5,842 Equity in income (loss) of unconsolidated affiliates (4) 15 4 11 4 Net Income 3,341 5,323 597 523 3,938 5,846 Less: Net loss attributable to noncontrolling interests (24) (9) (24) (9) Net Income Attributable to Deere & Company $ 3,365 $ 5,332 $ 597 $ 523 $ 3,962 $ 5,855 1 Elimination of intercompany interest income and expense. 2 Elimination of equipment operations' margin from inventory transferred to equipment on operating leases. 3 Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets. 4 Elimination of intercompany service revenues and fees. 5 Elimination of financial services' lease depreciation expense related to inventory transferred to equipment on operating leases. DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) CONDENSED BALANCE SHEETS (In millions of dollars) Unaudited EQUIPMENT FINANCIAL OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED July 27 Oct 27 July 28 July 27 Oct 27 July 28 July 27 Oct 27 July 28 July 27 Oct 27 July 28 2025 2024 2024 2025 2024 2024 2025 2024 2024 2025 2024 2024 Assets Cash and cash equivalents $ 6,641 $ 5,615 $ 5,385 $ 1,939 $ 1,709 $ 1,619 $ 8,580 $ 7,324 $ 7,004 Marketable securities 240 125 155 1,167 1,029 985 1,407 1,154 1,140 Receivables from Financial Services 3,649 3,043 3,951 $ (3,649) $ (3,043) $ (3,951) 6 Trade accounts and notes receivable – net 1,335 1,257 1,150 7,064 6,225 8,890 (2,296) (2,156) (2,571) 6,103 5,326 7,469 7 Financing receivables – net 84 78 82 43,846 44,231 43,814 43,930 44,309 43,896 Financing receivables securitized – net 1 2 2 7,947 8,721 8,272 7,948 8,723 8,274 Other receivables 2,013 2,193 1,821 867 427 494 (54) (75) (45) 2,826 2,545 2,270 7 Equipment on operating leases – net 7,512 7,451 7,118 7,512 7,451 7,118 Inventories 7,713 7,093 7,696 7,713 7,093 7,696 Property and equipment – net 7,680 7,546 7,058 33 34 34 7,713 7,580 7,092 Goodwill 4,209 3,959 3,960 4,209 3,959 3,960 Other intangible assets – net 926 999 1,030 926 999 1,030 Retirement benefits 3,092 2,839 3,047 92 83 80 (2) (1) (1) 3,182 2,921 3,126 8 Deferred income taxes 2,471 2,262 2,192 44 43 35 (306) (219) (329) 2,209 2,086 1,898 9 Other assets 2,357 2,194 2,236 1,211 715 675 (9) (3) (8) 3,559 2,906 2,903 Assets held for sale 2,944 2,965 2,944 2,965 Total Assets $ 42,411 $ 39,205 $ 39,765 $ 71,722 $ 73,612 $ 74,981 $ (6,316) $ (5,497) $ (6,905) $ 107,817 $ 107,320 $ 107,841 Liabilities and Stockholders' Equity Liabilities Short-term borrowings $ 461 $ 911 $ 983 $ 14,146 $ 12,622 $ 14,311 $ 14,607 $ 13,533 $ 15,294 Short-term securitization borrowings 2 1 7,610 8,429 7,868 7,610 8,431 7,869 Payables to Equipment Operations 3,649 3,043 3,951 $ (3,649) $ (3,043) $ (3,951) 6 Accounts payable and accrued expenses 12,795 13,534 13,880 3,146 3,243 3,141 (2,359) (2,234) (2,624) 13,582 14,543 14,397 7 Deferred income taxes 393 434 420 402 263 390 (306) (219) (329) 489 478 481 9 Long-term borrowings 8,789 6,603 6,592 35,640 36,626 36,100 44,429 43,229 42,692 Retirement benefits and other liabilities 1,767 2,250 2,048 71 105 109 (2) (1) (1) 1,836 2,354 2,156 8 Liabilities held for sale 1,827 1,803 1,827 1,803 Total liabilities 24,205 23,734 23,924 64,664 66,158 67,673 (6,316) (5,497) (6,905) 82,553 84,395 84,692 Redeemable noncontrolling interest 84 82 84 84 82 84 Stockholders' Equity Total Deere & Company stockholders' equity 25,175 22,836 23,062 7,058 7,454 7,308 (7,058) (7,454) (7,308) 25,175 22,836 23,062 10 Noncontrolling interests 5 7 3 5 7 3 Financial Services' equity (7,058) (7,454) (7,308) 7,058 7,454 7,308 10 Adjusted total stockholders' equity 18,122 15,389 15,757 7,058 7,454 7,308 25,180 22,843 23,065 Total Liabilities and Stockholders' Equity $ 42,411 $ 39,205 $ 39,765 $ 71,722 $ 73,612 $ 74,981 $ (6,316) $ (5,497) $ (6,905) $ 107,817 $ 107,320 $ 107,841 6 Elimination of receivables / payables between equipment operations and financial services. 7 Primarily reclassification of sales incentive accruals on receivables sold to financial services. 8 Reclassification of net pension assets / liabilities. 9 Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions. 10 Elimination of financial services' equity. DEERE & COMPANY SUPPLEMENTAL CONSOLIDATING DATA (Continued) STATEMENTS OF CASH FLOWS For the Nine Months Ended July 27, 2025 and July 28, 2024 (In millions of dollars) Unaudited EQUIPMENT FINANCIAL OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED 2025 2024 2025 2024 2025 2024 2025 2024 Cash Flows from Operating Activities Net income $ 3,341 $ 5,323 $ 597 $ 523 $ 3,938 $ 5,846 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 18 10 240 212 258 222 Provision for depreciation and amortization 965 932 804 773 $ (101) $ (107) 1,668 1,598 11 Impairments and other adjustments 61 (32) 53 29 53 Share-based compensation expense 104 159 104 159 12 Distributed earnings of Financial Services 1,066 250 (1,066) (250) 13 Provision (credit) for deferred income taxes (242) (49) 140 (76) (102) (125) Changes in assets and liabilities: Receivables related to sales (66) 106 (428) (2,552) (494) (2,446) 14, 16 Inventories (423) 391 (103) (157) (526) 234 15 Accounts payable and accrued expenses (646) (924) 69 212 (140) (303) (717) (1,015) 16 Accrued income taxes payable/receivable (89) 13 (58) 18 (147) 31 Retirement benefits (770) (241) (43) (5) (813) (246) Other 123 (109) 182 44 (39) (107) 266 (172) 11, 12, 15 Net cash provided by operating activities 3,338 5,702 1,899 1,754 (1,773) (3,317) 3,464 4,139 Cash Flows from Investing Activities Collections of receivables (excluding receivables related to sales) 20,178 19,826 (466) (683) 19,712 19,143 14 Proceeds from maturities and sales of marketable securities 27 56 332 277 359 333 Proceeds from sales of equipment on operating leases 1,408 1,451 1,408 1,451 Cost of receivables acquired (excluding receivables related to sales) (19,189) (21,395) 227 282 (18,962) (21,113) 14 Acquisitions of businesses, net of cash acquired (89) (89) Purchases of marketable securities (133) (220) (465) (352) (598) (572) Purchases of property and equipment (851) (1,041) (1) (2) (852) (1,043) Cost of equipment on operating leases acquired (2,148) (2,377) 139 212 (2,009) (2,165) 15 Decrease in investment in Financial Services 11 (11) 17 Increase in trade and wholesale receivables (807) (3,255) 807 3,255 14 Collections of receivables from unconsolidated affiliates 189 145 334 Collateral on derivatives – net 4 123 390 127 390 Other (75) (88) (156) (8) 1 (231) (95) Net cash used for investing activities (928) (1,282) (580) (5,445) 707 3,056 (801) (3,671) Cash Flows from Financing Activities Net proceeds (payments) in short-term borrowings (original maturities three months or less) 294 81 (2,354) (1,073) (2,060) (992) Change in intercompany receivables/payables (660) 558 660 (558) Proceeds from borrowings issued (original maturities greater than three months) 2,188 115 8,519 15,397 10,707 15,512 Payments of borrowings (original maturities greater than three months) (863) (1,061) (6,880) (9,731) (7,743) (10,792) Repurchases of common stock (1,136) (3,227) (1,136) (3,227) Capital returned to Equipment Operations (11) 11 17 Dividends paid (1,282) (1,202) (1,066) (250) 1,066 250 (1,282) (1,202) 13 Other (25) (37) (18) (51) (43) (88) Net cash provided by (used for) financing activities (1,484) (4,773) (1,139) 3,723 1,066 261 (1,557) (789) Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 96 12 12 (18) 108 (6) Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 1,022 (341) 192 14 1,214 (327) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 5,643 5,755 1,990 1,865 7,633 7,620 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 6,665 $ 5,414 $ 2,182 $ 1,879 $ 8,847 $ 7,293 11 Elimination of depreciation on leases related to inventory transferred to equipment on operating leases. 12 Reclassification of share-based compensation expense. 13 Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations operating activities. 14 Primarily reclassification of receivables related to the sale of equipment. 15 Reclassification of direct lease agreements with retail customers. 16 Reclassification of sales incentive accruals on receivables sold to financial services. 17 Elimination of change in investment from equipment operations to financial services. 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Deere Reports Third Quarter Net Income of $1.289 Billion

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