Deere Reports Second Quarter Net Income of $1.804 Billion

Disciplined execution drives strong quarterly performance across all segments. Employees and dealers showcase resilience in supporting customers amidst heightened uncertainty. Full-year net income range broadened in response to dynamic environment.

MOLINE, Ill., May 15, 2025 /CNW/ -- Deere & Company reported net income of $1.804 billion for the second quarter ended April 27, 2025, or $6.64 per share, compared with net income of $2.370 billion, or $8.53 per share, for the quarter ended April 28, 2024. For the first six months of the year, net income attributable to Deere & Company was $2.673 billion, or $9.82 per share, compared with $4.121 billion, or $14.74 per share, for the same period last year.Production & Precision Agriculture Operating Profit Second Quarter 2025 Compared to Second Quarter 2024 $ in millions

Worldwide net sales and revenues decreased 16 percent, to $12.763 billion, for the second quarter of 2025 and decreased 22 percent, to $21.272 billion, for six months. Net sales were $11.171 billion for the quarter and $17.980 billion for six months, compared with $13.610 billion and $24.097 billion last year, respectively.

"As we navigate the current environment, our customers remain our top priority," said John May, chairman and CEO of John Deere. "I'm incredibly proud of our team's execution this quarter, delivering exceptional performance despite challenging market dynamics. Their dedication and hard work have been instrumental in ensuring our customers continue to receive the high-quality service and products they expect from John Deere."

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.50 billion.

"Despite the near-term market challenges, we remain confident in the future," said May. "Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions, and manufacturing capabilities. Over the next decade, we will continue to make significant investments in our core U.S. market, underscoring our dedication to innovation and growth while focusing on remaining cost-competitive in a global market."

Deere & Company  Second Quarter  Year to Date  $ in millions, except per share amounts  2025  2024  % Change  2025  2024  % Change  Net sales and revenues  $ 12,763  $ 15,235  -16 %  $ 21,272  $ 27,420  -22 %  Net income  $ 1,804  $ 2,370  -24 %  $ 2,673  $ 4,121  -35 %  Fully diluted EPS  $ 6.64  $ 8.53    $ 9.82  $ 14.74

Current period results were affected by special items. See Note 1 of the financial statements for further details. The cost of additional tariffs for each segment is included in the production costs and other items below, partially offsetting year-over-year cost reduction in these categories.

Story Continues

Production & Precision Agriculture  Second Quarter  $ in millions  2025  2024  % Change  Net sales  $ 5,230  $ 6,581  -21 %  Operating profit  $ 1,148  $ 1,650  -30 %  Operating margin   22.0 %   25.1 %

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes. Operating profit decreased due to lower shipment volumes / sales mix and the unfavorable effects of foreign currency exchange, partially offset by lower production costs and price realization.

Small Agriculture & Turf  Second Quarter  $ in millions  2025  2024  % Change  Net sales  $ 2,994  $ 3,185  -6 %  Operating profit  $ 574  $ 571  1 %  Operating margin   19.2 %   17.9 %

Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit held steady as favorable factors including lower production costs, lower warranty expenses, and price realization were offset by lower shipment volumes / sales mix.

Construction & Forestry  Second Quarter  $ in millions  2025  2024  % Change  Net sales  $ 2,947  $ 3,844  -23 %  Operating profit  $ 379  $ 668  -43 %  Operating margin   12.9 %   17.4 %

Construction and forestry sales decreased for the quarter due to lower shipment volumes. Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable price realization.

Financial Services  Second Quarter  $ in millions  2025  2024  % Change  Net income  $ 161  $ 162  -1 %

Financial services net income for the quarter was flat due to less-favorable financing spreads and a higher provision for credit losses, offset by lower SA&G expenses and a reduction in derivative valuation adjustments.

Industry Outlook for Fiscal 2025  Agriculture & Turf  U.S. & Canada:  Large Ag      Down ~ 30%  Small Ag & Turf      Down 10-15%  Europe      Down ~ 5%  South America (Tractors & Combines)      Flat  Asia      Flat   Construction & Forestry  U.S. & Canada:  Construction Equipment      Down ~ 10%  Compact Construction Equipment      Down ~ 5%  Global Forestry      Flat to down 5%  Global Roadbuilding      Flat

Deere Segment Outlook for Fiscal 2025

The Deere & Company outlook incorporates the impacts from global import tariffs that are in effect as of May 13, 2025. Due to the uncertain global trade environment, the potential impacts of future tariffs are not included in the outlook.

Currency  Price  $ in millions  Net Sales  Translation  Realization  Production & Precision Ag  Down 15% to 20%  Down 1.5%  Up 1.0%  Small Ag & Turf  Down 10% to 15%  ~ Flat  Up 0.5%  Construction & Forestry  Down 10% to 15%  ~ Flat  Down 1.0%   Financial Services  Net Income  ~$  750

FORWARD-LOOKING STATEMENTS

Certain 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, any potential retaliatory trade regulations, tariffs and policies and 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 these 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, the conflict between India and Pakistan, 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 inventory and distribution of 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, 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 as a result 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 SECOND QUARTER 2025 PRESS RELEASE
(In millions of dollars) Unaudited  Three Months Ended   Six Months Ended  April 27   April 28   %  April 27   April 28   %  2025  2024  Change  2025  2024  Change  Net sales and revenues:  Production & precision ag net sales  $ 5,230  $ 6,581  -21  $ 8,297  $ 11,430  -27  Small ag & turf net sales   2,994   3,185  -6   4,742   5,610  -15  Construction & forestry net sales   2,947   3,844  -23   4,941   7,057  -30  Financial services revenues   1,385   1,395  -1   2,856   2,770  +3  Other revenues   207   230  -10   436   553  -21  Total net sales and revenues  $ 12,763  $ 15,235  -16  $ 21,272  $ 27,420  -22   Operating profit: *  Production & precision ag  $ 1,148  $ 1,650  -30  $ 1,486  $ 2,695  -45  Small ag & turf   574   571  +1   698   897  -22  Construction & forestry   379   668  -43   444   1,234  -64  Financial services   207   209  -1   473   466  +2  Total operating profit   2,308   3,098  -26   3,101   5,292  -41  Reconciling items **   35   23  +52   138   49  +182  Income taxes   (539)   (751)  -28   (566)   (1,220)  -54  Net income attributable to Deere & Company  $ 1,804  $ 2,370  -24  $ 2,673  $ 4,121  -35

* 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 Six Months Ended April 27, 2025 and April 28, 2024
(In millions of dollars and shares except per share amounts) Unaudited   Three Months Ended   Six Months Ended  2025  2024  2025  2024  Net Sales and Revenues  Net sales  $ 11,171  $ 13,610  $ 17,980  $ 24,097  Finance and interest income   1,354   1,387   2,807   2,746  Other income   238   238   485   577  Total   12,763   15,235   21,272   27,420   Costs and Expenses  Cost of sales   7,609   9,157   12,646   16,357  Research and development expenses   549   565   1,075   1,098  Selling, administrative and general expenses   1,197   1,265   2,169   2,330  Interest expense   784   836   1,614   1,638  Other operating expenses   287   295   536   664  Total   10,426   12,118   18,040   22,087   Income of Consolidated Group before Income Taxes   2,337   3,117   3,232   5,333  Provision for income taxes   539   751   566   1,220   Income of Consolidated Group   1,798   2,366   2,666   4,113  Equity in income of unconsolidated affiliates   3   2   1   3   Net Income   1,801   2,368   2,667   4,116  Less: Net loss attributable to noncontrolling interests   (3)   (2)   (6)   (5)  Net Income Attributable to Deere & Company  $ 1,804  $ 2,370  $ 2,673  $ 4,121   Per Share Data  Basic  $ 6.65  $ 8.56  $ 9.85  $ 14.80  Diluted   6.64   8.53   9.82   14.74  Dividends declared   1.62   1.47   3.24   2.94  Dividends paid   1.62   1.47   3.09   2.82   Average Shares Outstanding  Basic   271.1   276.8   271.3   278.4  Diluted   271.8   277.9   272.1   279.5

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited   April 27   October 27   April 28  2025  2024  2024 Assets  Cash and cash equivalents  $ 7,991  $ 7,324  $ 5,553 Marketable securities   1,272   1,154   1,094 Trade accounts and notes receivable – net   6,748   5,326   8,880 Financing receivables – net   43,029   44,309   45,278 Financing receivables securitized – net   7,765   8,723   7,262 Other receivables   2,975   2,545   2,535 Equipment on operating leases – net   7,336   7,451   6,965 Inventories   7,870   7,093   8,443 Property and equipment – net   7,555   7,580   7,034 Goodwill   4,094   3,959   3,936 Other intangible assets – net   964   999   1,064 Retirement benefits   3,133   2,921   3,056 Deferred income taxes   2,088   2,086   1,936 Other assets   3,483   2,906   2,592 Assets held for sale      2,944  Total Assets  $ 106,303  $ 107,320  $ 105,628  Liabilities and Stockholders' Equity   Liabilities  Short-term borrowings  $ 15,948  ...

$ 13,533  $ 17,699 Short-term securitization borrowings   7,562   8,431   6,976 Accounts payable and accrued expenses   13,345   14,543   14,609 Deferred income taxes   496   478   491 Long-term borrowings   42,811   43,229   40,962 Retirement benefits and other liabilities   1,763   2,354   2,105 Liabilities held for sale      1,827  Total liabilities   81,925   84,395   82,842  Redeemable noncontrolling interest   83   82   98  Stockholders' Equity  Total Deere & Company stockholders' equity   24,287   22,836   22,684 Noncontrolling interests   8   7   4 Total stockholders' equity   24,295   22,843   22,688 Total Liabilities and Stockholders' Equity  $ 106,303  $ 107,320  $ 105,628

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Six Months Ended April 27, 2025 and April 28, 2024
(In millions of dollars) Unaudited   2025  2024 Cash Flows from Operating Activities  Net income  $ 2,667  $ 4,116 Adjustments to reconcile net income to net cash provided by operating activities:  Provision for credit losses   174   131 Provision for depreciation and amortization   1,104   1,045 Impairments and other adjustments   (32)  Share-based compensation expense   54   104 Provision (credit) for deferred income taxes   11   (120) Changes in assets and liabilities:  Receivables related to sales   (1,069)   (2,469) Inventories   (772)   (409) Accounts payable and accrued expenses   (898)   (1,300) Accrued income taxes payable/receivable   (147)   (29) Retirement benefits   (794)   (208) Other   270   83 Net cash provided by operating activities   568   944  Cash Flows from Investing Activities  Collections of receivables (excluding receivables related to sales)   14,348   13,703 Proceeds from maturities and sales of marketable securities   245   200 Proceeds from sales of equipment on operating leases   1,001   1,011 Cost of receivables acquired (excluding receivables related to sales)   (12,744)   (14,091) Purchases of marketable securities   (347)   (432) Purchases of property and equipment   (555)   (719) Cost of equipment on operating leases acquired   (1,254)   (1,369) Collections of receivables from unconsolidated affiliates   234  Collateral on derivatives – net   27   96 Other   (176)   (69) Net cash provided by (used for) investing activities   779   (1,670)  Cash Flows from Financing Activities  Net proceeds in short-term borrowings (original maturities three months or less)   551   58 Proceeds from borrowings issued (original maturities greater than three months)   5,156   10,189 Payments of borrowings (original maturities greater than three months)   (4,837)   (8,139) Repurchases of common stock   (838)   (2,422) Dividends paid   (843)   (796) Other   (10)   (52) Net cash used for financing activities   (821)   (1,162)  Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash   20   (5)  Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash   546   (1,893) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period   7,633   7,620 Cash, Cash Equivalents, and Restricted Cash at End of Period  $ 8,179  $ 5,727

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(In millions of dollars) Unaudited

(1) Special Items

Discrete Tax Items

In 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. In the first quarter of 2025, a pretax and after-tax gain (reversal of previous losses) of $32 million was recorded in "Selling, administrative and general expenses" and presented in "Impairments and other adjustments" in the statements of consolidated income and consolidated cash flows, respectively, related to a decrease in valuation allowance. 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.

(2)  The consolidated financial statements represent the consolidation of all the company's subsidiaries. The supplemental consolidating data in Note 3 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 consolidated financial statements.

DEERE & COMPANY (3) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended April 27, 2025 and April 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  $ 11,171  $ 13,610              $ 11,171  $ 13,610  Finance and interest income   108   129  $ 1,380  $ 1,496  $ (134)  $ (238)   1,354   1,387 1  Other income   187   198   121   92   (70)   (52)   238   238 2, 3, 4  Total   11,466   13,937   1,501   1,588   (204)   (290)   12,763   15,235   Costs and Expenses  Cost of sales   7,617   9,164         (8)   (7)   7,609   9,157 4  Research and development expenses   549   565               549   565  Selling, administrative and general expenses   961   1,007   238   260   (2)   (2)   1,197   1,265 4  Interest expense   94   114   721   780   (31)   (58)   784   836 1  Interest compensation to Financial Services   103   180         (103)   (180)       1  Other operating expenses   12   1   335   337   (60)   (43)   287   295 3, 4, 5  Total   9,336   11,031   1,294   1,377   (204)   (290)   10,426   12,118   Income before Income Taxes   2,130   2,906   207   211         2,337   3,117  Provision for income taxes   490   700   49   51         539   751   Income after Income Taxes   1,640   2,206   158   160         1,798   2,366  Equity in income of unconsolidated affiliates         3   2         3   2   Net Income   1,640   2,206   161   162         1,801   2,368  Less: Net loss attributable to noncontrolling interests   (3)   (2)               (3)   (2)  Net Income Attributable to Deere & Company  $ 1,643  $ 2,208  $ 161  $ 162        $ 1,804  $ 2,370

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 Six Months Ended April 27, 2025 and April 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  $ 17,980  $ 24,097              $ 17,980  $ 24,097  Finance and interest income   217   285  $ 2,835  $ 2,929  $ (245)  $ (468)   2,807   2,746 1  Other income   391   487   239   211   (145)   (121)   485   577 2, 3, 4  Total   18,588   24,869   3,074   3,140   (390)   (589)   21,272   27,420   Costs and Expenses  Cost of sales   12,662   16,371         (16)   (14)   12,646   16,357 4  Research and development expenses   1,075   1,098               1,075   1,098  Selling, administrative and general expenses   1,761   1,882   412   453   (4)   (5)   2,169   2,330 4  Interest expense   178   223   1,487   1,542   (51)   (127)   1,614   1,638 1  Interest compensation to Financial Services   194   341         (194)   (341)       1  Other operating expenses   (38)   91   699   675   (125)   (102)   536   664 3, 4, 5  Total   15,832   20,006   2,598   2,670   (390)   (589)   18,040   22,087   Income before Income Taxes   2,756   4,863   476   470         3,232   5,333  Provision for income taxes   477   1,117   89   103         566   1,220   Income after Income Taxes   2,279   3,746   387   367         2,666   4,113  Equity in income (loss) of unconsolidated affiliates   (3)      4   3         1   3   Net Income   2,276   3,746   391   370         2,667   4,116  Less: Net loss attributable to noncontrolling interests   (6)   (5)               (6)   (5)  Net Income Attributable to Deere & Company  $ 2,282  $ 3,751  $ 391  $ 370        $ 2,673  $ 4,121

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  Apr 27   Oct 27   Apr 28   Apr 27   Oct 27   Apr 28   Apr 27   Oct 27   Apr 28   Apr 27   Oct 27   Apr 28  2025  2024  2024  2025  2024  2024  2025  2024  2024  2025  2024  2024  Assets  Cash and cash equivalents   $ 6,331  $ 5,615  $ 3,800  $ 1,660  $ 1,709  $ 1,753           $ 7,991  $ 7,324  $ 5,553  Marketable securities    139   125   148   1,133   1,029   946            1,272   1,154   1,094  Receivables from Financial Services   2,497   3,043   4,480           $ (2,497)  $ (3,043)  $ (4,480)          6  Trade accounts and notes receivable – net    1,429   1,257   1,320   7,406   6,225   10,263   (2,087)   (2,156)   (2,703)   6,748   5,326   8,880 7  Financing receivables – net    82   78   80   42,947   44,231   45,198            43,029   44,309   45,278  Financing receivables securitized – net    2   2      7,763   8,721   7,262            7,765   8,723   7,262  Other receivables    2,009   2,193   1,822   1,009   427   760   (43)   (75)   (47)   2,975   2,545   2,535 7  Equipment on operating leases – net             7,336   7,451   6,965            7,336   7,451   6,965  Inventories    7,870   7,093   8,443                     7,870   7,093   8,443  Property and equipment – net    7,523   7,546   6,999   32   34   35            7,555   7,580   7,034  Goodwill    4,094   3,959   3,936                     4,094   3,959   3,936  Other intangible assets – net    964   999   1,064                     964   999   1,064  Retirement benefits    3,046   2,839   2,980   89   83   77   (2)   (1)   (1)   3,133   2,921   3,056 8  Deferred income taxes    2,377   2,262   2,210   42   43   71   (331)   (219)   (345)   2,088   2,086   1,936 9  Other assets    2,349   2,194   2,105   1,152   715   504   (18)   (3)   (17)   3,483   2,906   2,592  Assets held for sale                2,944                  2,944  Total Assets  $ 40,712  $ 39,205  $ 39,387  $ 70,569  $ 73,612  $ 73,834  $ (4,978)  $ (5,497)  $ (7,593)  $ 106,303  $ 107,320  $ 105,628   Liabilities and Stockholders' Equity   Liabilities  Short-term borrowings   $ 241  $ 911  $ 1,055  $ 15,707  $ 12,622  $ 16,644           $ 15,948  $ 13,533  $ 17,699  Short-term securitization borrowings    1   2      7,561   8,429   6,976            7,562   8,431   6,976  Payables to Equipment Operations            2,497   3,043   4,480  $ (2,497)  $ (3,043)  $ (4,480)          6  Accounts payable and accrued expenses    12,180   13,534   13,771   3,313   3,243   3,605   (2,148)   (2,234)   (2,767)   13,345   14,543   14,609 7  Deferred income taxes    405   434   421   422   263   415   (331)   (219)   (345)   496   478   491 9  Long-term borrowings    8,685   6,603   6,575   34,126   36,626   34,387            42,811   43,229   40,962  Retirement benefits and other liabilities    1,695   2,250   1,995   70   105   111   (2)   (1)   (1)   1,763   2,354   2,105 8  Liabilities held for sale                1,827                  1,827  Total liabilities    23,207   23,734   23,817   63,696   66,158   66,618   (4,978)   (5,497)   (7,593)   81,925   84,395   82,842   Redeemable noncontrolling interest   83   82   98                     83   82   98   Stockholders' Equity  Total Deere & Company stockholders' equity    24,287   22,836   22,684   6,873   7,454   7,216   (6,873)   (7,454)   (7,216)   24,287   22,836   22,684 10  Noncontrolling interests    8   7   4                     8   7   4  Financial Services' equity   (6,873)   (7,454)   (7,216)            6,873   7,454   7,216          10  Adjusted total stockholders' equity   17,422   15,389   15,472   6,873   7,454   7,216            24,295   22,843   22,688  Total Liabilities and Stockholders' Equity  $ 40,712  $ 39,205  $ 39,387  $ 70,569  $ 73,612  $ 73,834  $ (4,978)  $ (5,497)  $ (7,593)  $ 106,303  $ 107,320  $ 105,628

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 Six Months Ended April 27, 2025 and April 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  $ 2,276  $ 3,746  $ 391  $ 370        $ 2,667  $ 4,116  Adjustments to reconcile net income to net cash provided by operating activities:  Provision for credit losses   11   10   163   121         174   131  Provision for depreciation and amortization   643   608   529   509  $ (68)  $ (72)   1,104   1,045 11  Impairments and other adjustments         (32)            (32)  Share-based compensation expense               54   104   54   104 12  Distributed earnings of Financial Services   984   247         (984)   (247)       13  Provision (credit) for deferred income taxes   (153)   (74)   164   (46)         11   (120)  Changes in assets and liabilities:  Receivables related to sales   (185)   (58)         (884)   (2,411)   (1,069)   (2,469) 14, 16  Inventories   (691)   (300)         (81)   (109)   (772)   (409) 15  Accounts payable and accrued expenses   (1,069)   (1,012)   102   147   69   (435)   (898)   (1,300) 16  Accrued income taxes payable/receivable   (77)   (20)   (70)   (9)         (147)   (29)  Retirement benefits   (753)   (205)   (41)   (3)         (794)   (208)  Other   59   89   224   65   (13)   (71)   270   83 11, 12, 15  Net cash provided by operating activities   1,045   3,031   1,430   1,154   (1,907)   (3,241)   568   944   Cash Flows from Investing Activities  Collections of receivables (excluding receivables related to sales)         14,684   14,175   (336)   (472)   14,348   13,703 14  Proceeds from maturities and sales of marketable securities   18   58   227   142         245   200  Proceeds from sales of equipment on operating leases         1,001   1,011         1,001   1,011  Cost of receivables acquired (excluding receivables related to sales)         (12,875)   (14,238)   131   147   (12,744)   (14,091) 14  Purchases of marketable securities   (20)   (226)   (327)   (206)         (347)   (432)  Purchases of property and equipment   (555)   (718)      (1)         (555)   (719)  Cost of equipment on operating leases acquired         (1,363)   (1,516)   109   147   (1,254)   (1,369) 15  Decrease in investment in Financial Services      10            (10)       17  Increase in trade and wholesale receivables         (1,019)   (3,171)   1,019   3,171       14  Collections of receivables from unconsolidated affiliates   183      51            234  Collateral on derivatives – net   3      24   96         27   96  Other   (72)   (68)   (104)   (2)      1   (176)   (69)  Net cash provided by (used for) investing activities   (443)   (944)   299   (3,710)   923   2,984   779   (1,670)   Cash Flows from Financing Activities  Net proceeds (payments) in short-term borrowings (original maturities three months or less)   65   189   486   (131)         551   58  Change in intercompany receivables/payables   428   31   (428)   (31)  Proceeds from borrowings issued (original maturities greater than three months)   2,043   34   3,113   10,155         5,156   10,189  Payments of borrowings (original maturities greater than three months)   (766)   (1,012)   (4,071)   (7,127)         (4,837)   (8,139)  Repurchases of common stock   (838)   (2,422)               (838)   (2,422)  Capital returned to Equipment Operations            (10)      10       17  Dividends paid   (843)   (796)   (984)   (247)   984   247   (843)   (796) 13  Other   (4)   (27)   (6)   (25)         (10)   (52)  Net cash provided by (used for) financing activities   85   (4,003)   (1,890)   2,584   984   257   (821)   (1,162)   Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash   22      (2)   (5)         20   (5)   Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash   709   (1,916)   (163)   23         546   (1,893)  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  $ 6,352  $ 3,839  $ 1,827  $ 1,888        $ 8,179  $ 5,727

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.Small Agriculture & Turf Operating Profit Second Quarter 2025 Compared to Second Quarter 2024 $ in millionsConstruction & Forestry Operating Profit Second Quarter 2025 Compared to Second Quarter 2024 $ in millionsCision

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