Deere &DE

01Deere commands pricing power that converts to profit growth even amid cycle weakness in large agriculture. The ability to realize favorable pricing across all three equipment segments while PPA volumes decline suggests the installed base values Deere equipment above commodity substitutes, protecting margins through the down-cycle.

02Deeper integration of technology into equipment to enable customers to do more with less remains a persistent market trend Customers seek to improve profitability, productivity, and sustainability by selecting our equipment and technology solutions Leap Ambitions feature multi-year financial and operational goals, emphasizing the use of our differentiated equipment and service solutions, including automation, autonomy, digitalization, lifecycle solutions, and Solutions as a Service (SaaS) While we continue to benefit from the adoption of these technologies, revenue from SaaS products did not represent a significant percentage of our revenues in the periods presented

03The captive finance arm locks in repeat purchases by making Deere the lowest-friction financing option for its own equipment, while generating incremental profit through favorable spreads. Ample unused credit lines and securitization capacity give Deere funding flexibility to support dealers and customers through the agricultural downturn without straining the balance sheet.

04Deere generates substantial operating cash even at the cyclical trough, enabling simultaneous shareholder returns and debt paydown. This capital discipline positions the company to emerge from the downturn with a stronger balance sheet, ready to invest or acquire when competitors are stretched.