John Deere Reports A Sharp 12% Decline In Sales: A Tough Market In 2025

The year is ending, and it has been challenging for many industry sharks like John Deere. In a recent report, John Deere has revealed a sharp 12% decline in its sales, but luckily, its position in the market is stable. 

The economic stress, tough tariff rules, and certain other factors are to be blamed for this decline. However, the company is stabilizing and expecting to come back with a better strategy in 2026.

Did the construction and agriculture sectors feel the stress?

The largest impact was felt by Deere’s Production & Precision Agriculture division, which saw an annual decline of 17%. The company’s largest segment is still affected by declining commodity prices, tighter farm budgets, and postponed equipment purchases. Sales of construction and forestry fell 12% from the previous year, which is indicative of a general lack of confidence in the infrastructure and land development sectors.

Deere observed that demand conditions started to stabilize toward the end of the year despite these declines in heavy construction equipment for sale. This late-year improvement indicates that customer confidence has not completely vanished, even though the overall cycle is still under pressure.

At one point, the fourth quarter of 2025 was noticeably better

The fourth quarter of Deere’s 2025 performance was one of its strong points. The quarter’s global net sales increased 11% to $12.39 billion, indicating better activity in a few key areas and product categories. However, quarterly net income fell to $1.07 billion from $1.25 billion during the same period last year, indicating that this recovery did not entirely translate into increased profitability.

Even when sales volumes show short-term improvement, the inconsistent results highlight the difficulties manufacturers still face, such as cost pressures and cautious spending.

How optimistic is the leadership about the coming year?

John Deere’s chairman and CEO, John May, stressed the company’s long-term positioning while acknowledging the challenging environment. 

He credited structural improvements, a diverse clientele, and a global presence for Deere’s success in navigating what he described as one of the more uncertain points in the current cycle. May claims that these elements enabled the business to perform well in spite of the obstacles.

In the future, Deere thinks that 2026 might be the end of the major agricultural cycle. The company expects growth in small agriculture and turf, along with a gradual recovery in construction and forestry, to offset the ongoing softness in its core agricultural markets.

What positive signs are present in Deere’s 2026 plans?

John Deere has estimated that its net income will be between $4.0 billion and $4.75 billion in 2026. This forecast indicates that the company is planning for a gradual but steady recovery rather than a dramatic decline, even though it also shows ongoing caution. The forecast supports expectations of a competitive market where timing, value, and dependability will be even more important factors in purchasing decisions for equipment dealers and buyers.

Deere’s performance will be closely monitored throughout the current cycle in both the construction and agricultural equipment markets, particularly as farmers and contractors balance new purchases against an increasingly active used equipment market.

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