Moline, Illinois - Deere & Company., a construction machinery manufacturer, closed fiscal year 2025 with a strong fourth quarter in its construction equipment business, rebounding after three consecutive quarters of declining sales, even as the company faced $600 million in tariff expenses.
Construction net sales in Q4 rise 27% year-over-year to $3.4 billion, up from $2.7 billion in the same period last year. The growth was largely driven by higher shipment volumes. Construction operating profit increased 6% to $348 million, primarily supported by a $235 million gain from shipment volumes and sales mix. These gains helped offset a $32 million loss from price realization—the difference between listed and actual selling prices—and a $125 million rise in production costs due to tariffs.
During the earnings call, Director of Investor Relations Josh Beal noted that fourth-quarter construction equipment retail sales grew in the mid-single digits, although compact construction equipment sales saw a year-over-year decline.
In the previous quarter, 4,819 new John Deere machines were financed in the U.S., according to Fusable’s EDA equipment finance data. Among the most popular models were the 325G and 333 P-Tier compact track loaders, as well as the 35 P-Tier compact excavators.
For the full fiscal year 2025, construction net sales fell 12% to $11.4 billion, while construction operating profit dropped 49% to $1 billion. Manager of Investor Communications Chris Seibert described 2025 as a challenging year for Deere’s construction and forestry segment, citing intensified price competition and the highest tariff exposure across its business units.
Across all segments, Deere reported total net sales of $12.4 billion in Q4, up 11% year-over-year, though full-year net sales declined 12% to $45.7 billion. Net income fell 14% in the fourth quarter to $1.1 billion and decreased 29% for the full fiscal year, reaching $5 billion.
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