Shares in agricultural and construction equipment manufacturers rose almost 4%. Over the past five years, the stock has risen nearly 310%.
John Deere’s revenue and revenue fell due to global declines in sales in the second quarter of fiscal year 2025, but we won expectations. The company has reaffirmed guidance for the remaining fiscal year and continues to accept local American manufacturing.
On May 15, the Moline, Illinois-based agricultural and construction equipment manufacturer reported that its net profit of $1.84 billion ($6.64 per share) exceeded market forecasts in the second quarter, which ended April 27. This is compared to net income of $2.37 billion, or $8.53 per share, for the same period last year.
Net income was $4.11 billion in the same period last year, or $2673 million, or $9.82 per share, for the first six months of the fiscal year.
Globally, net sales and revenue fell 16% in the second quarter, down to $12.763 billion, and market forecasts also broke.
“Customers continue to be our number one priority as we navigate our current environment,” said John May, John Deere Chairman and CEO. “We are extremely proud of the team’s execution this quarter, delivering exceptional performance despite the challenging market dynamics.”
Meanwhile, the company maintained its full-year revenue outlook from $4.755 billion to $55 billion, slightly wider than what was offered in February. It also hopes that cash flow from equipment operations will remain between $4.5 billion and $5.5 billion, stabilizing guidance despite market volatility.
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“Despite the short-term market challenges, we are confident in the future,” May said. “Our commitment to deliver value to our customers includes continuous investment in advanced products, solutions and manufacturing capabilities.
“We will continue to invest heavily in the core US markets over the next decade, highlighting our commitment to innovation and growth while focusing on the remaining cost competition in the global market.”
John Deere shares rose 3.78% during the trading session on May 15th. Over the past five years, the stock has risen nearly 310%, surpassing the S&P 500 index, earning over 106% over the same period.
Meanwhile, the company continues to embrace American manufacturing heritage. We mainly produce our products from home because we have factories in Iowa, Georgia, Illinois, Louisiana and Wisconsin.
During the call to revenue, May promoted the company’s strategy of combining advanced technology with manufacturing, Smart Industrial.
“We will continue to invest robust capital in R&D to bring these integrated solutions into the market and to increase global competitiveness. We are proud that this innovative work is based on American roots. We are ready to invest $20 billion in the US.”
Meanwhile, the company noted that profit margins are surpassing forecast despite tariff headwinds, thanks to increased efficiency in its material sourcing and factory operations, resulting in better sales and reduced production costs.
Global uncertainty could change later this year as it continues to hamper customer sentiment across business segments and markets.
“The top edge of the outlook in Section 25 has been relatively unchanged from previous guidance, but as we are actively working to mitigate the impact on both our customers and our deer, the fluid customs environment has broadened the scope of our guidance,” May said.
