MOLINE, Ill. – John Deere & Co. recently reported its second-quarter production and precision agriculture segment net sales were down 21 percent, leading to a 30-percent decline in operating profit for the sector.

Worldwide, the Moline, Ill.-based company reported net sales and revenues decreased 16 percent to $12.76 billion, for the second quarter, leading to an overall drop of 22 percent, to $21.27 billion year-to-date, led by a 30-percent decline in construction and forestry, and a 27 percent drop in agricultural sales.

John May, John Deere & Co. chair and CEO, reported 2025 net sales were $11.17 billion for the quarter and $17.9 billion for six months, compared with $13.6 billion and nearly $25 billion last year, respectively.

He said in a May 15 media statement, however, “As we navigate the current environment, our customers remain our top priority. 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.”

The report said production and precision agriculture sales decreased for the quarter due to lower shipment volumes. Operating profit decreased due to lower shipment volumes, sales and the unfavorable effects of foreign currency exchange, partially offset by lower production costs and price realization (the difference between the price a company expects to get for its products or services and the actual price it receives).

The report added that small agriculture and turf sales decreased for the quarter because of lower shipment volumes, partially offset by pricing. Operating profit held steady as favorable factors including lower production costs, lower warranty expenses and pricing, were partially offset by lower shipment volumes and sales.

Jen Hartmann, John Deere & Co., global director of strategic public relations and enterprise, told Farm World, “First, farmers remain cautious of large equipment purchases due to higher input costs and the uncertainty due to tariffs.

“Second, we mentioned in our second-quarter report that lower shipments for this segment were down due to demand normalization (the process of adjusting demand data to isolate and understand the effects of specific factors, like price, on overall demand),” she said.

“Previous years showed a strong demand for production and precision agricultural markets, and we are now seeing a normalization in the market conditions,” she added. “Finally, we are seeing some dealer inventory corrections take place. Previous supply chain disruptions caused dealers to stock up on product, and they are now rebalancing inventory to align with where our customers are at.”

Hartmann said farmers will still be able to find ample inventory of new equipment. “In addition, used equipment is likely to remain strong, helping farmers find the machine that best fits their farm,” she said.

For the company’s outlook, the report said net income attributable to John Deere & Co. for fiscal 2025 is forecast to be in a range of $4.75 billion to $5.5 billion.

“Despite the near-term market challenges, we remain confident in the future,” May said. “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,” he added.