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Deere's Profit Leaps on Construction Boom
20 Aug
Summary
- Deere reported its first profit increase in three years.
- Construction equipment demand drove significant revenue growth.
- Full-year income guidance was raised by the company.
Deere & Company announced its third-quarter net income reached $1.379 billion, marking the first profit increase on a year-over-year basis in nearly three years. This positive financial performance was primarily fueled by robust demand in the construction equipment sector.
The construction and forestry segment saw its net sales jump 18% to $3.62 billion, with operating profit surging 84%. This growth compensated for a continued downturn in the large farm machinery market, where net sales declined 6% to $3.998 billion due to reduced shipment volumes.
Deere has raised the lower end of its full-year net income forecast to $4.75 billion, projecting it to reach up to $5 billion. The company acquired Tenna LLC in February 2026 for $439 million, a move expected to bolster its construction technology offerings.
