JohnDeere’s profit fell by 35% in six months

The company lost more than a third of its profit in the first six months of business 2025 due to lower demand, loss of marginal sales.

“In the second quarter, we recorded a net profit of $1.804 billion, while last year it was $2.370 billion,” said Deere &Company Chairman John S. May. According to him, for the first half of the fiscal year the company received $2.673 billion — 35% less than a year earlier.

The company explained that profit fell due to lower supply volumes, a shift in demand to cheaper and less marginal models (at least 35% less revenue in the large equipment segment) and an unfavorable product mix, that is, they sold mainly cheaper equipment.

Reference: The decline in sales of agricultural machinery manufacturers may also be associated with the following three factors. First, farmers bought a lot of equipment after the pandemic, so the market is now saturated. Second, higher interest rates have made borrowing more expensive, which is reducing demand. Third, new tariffs on steel and aluminum in the US have increased production costs, which has affected the price of equipment. Together, these factors are holding back the company’s sales growth.