Deere Sales Rise as Construction Growth Offsets Large Agriculture Weakness — Update
By Nicholas G. Miller
Deere posted higher fiscal second-quarter sales as growth in the company's construction equipment business helped to offset weakness in its production agriculture segment.
The company reiterated its fiscal-year guidance for net income of $4.5 billion to $5 billion.
Shares fell 3.7% to $539.50 in premarket trading.
Deere said it has recorded a recovery of $272 million from tariff refund claims accepted by the U.S. Customs and Border Protection after the Supreme Court struck down President Trump's emergency tariffs in February.
For the quarter, the company posted net income of $1.77 billion, or $6.55 a share, compared with $1.8 billion, or $6.64 a share, the year prior. Analysts polled by FactSet had expected $5.70 a share.
Net sales and revenue rose 5% to $13.37 billion. Wall Street had expected $12.73 billion.
Net sales in the company's production and precision agriculture business fell 14% to $4.5 billion. Deere has struggled from an extended slowdown in the tractor business with farmers cutting back on big-ticket purchases amid elevated interest rates and a challenging farming market.
Meanwhile, construction and forestry sales rose 29% to $3.79 billion and small agriculture and turf saw net sales increase 16% to $3.49 billion. In February, the company said it was seeing an ongoing recovery in demand in both segments.
It now expects construction and forestry net sales to be up 20% for the fiscal year, up from its prior forecast of up 15%. It maintained its outlook for small agriculture net sales to be up 15% and production agriculture sales to be down 5% to 10% for the fiscal year.
"As we address ongoing challenges within global agricultural markets, our comprehensive portfolio continues to drive market share expansion and support our targets for sustained growth," said Chief Executive John May.
Write to Nicholas G. Miller at nicholas.miller@wsj.com
(END) Dow Jones Newswires
May 21, 2026 08:25 ET (12:25 GMT)
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