Deere & Company (DE) Financials

Deere & Company's recent financials over the last four years show several positive and negative trends worth noting for retail investors:

• Strong revenue growth over the years, with Q2 2025 revenue at $12.76 billion, reflecting solid demand in its core agricultural machinery business.
• Consistently positive net income, with Q2 2025 net income at $1.8 billion, nearly doubling from Q1 2025's $867 million, indicating improved profitability recently.
• Robust gross profit margins, with a gross profit of $5.15 billion in Q2 2025, supported by effective cost management relative to revenue.
• Healthy cash flow from operating activities, notably $1.7 billion in Q2 2025, helping fund investments and shareholder returns.
• Significant investments in property, plant, and equipment (~$1 billion in Q2 2025), signaling ongoing commitment to capacity expansion and modernization.
• Share repurchases and dividend payments continue, evidencing management’s focus on returning value to shareholders ($397 million repurchased and $440 million dividends paid in Q2 2025).
• Total assets have remained stable around $100 billion to $106 billion in recent quarters, providing a solid asset base for operations and growth.
• Long-term debt has increased moderately to about $50 billion by Q2 2025, which is manageable but suggests careful monitoring of leverage is needed.
• Cash flow from investing activities was negative $637 million in Q2 2025, reflecting high capital expenditures and investments that could pressure liquidity if not balanced by operations.
• Debt repayment and issuance activity shows an active balance sheet management, but the company increased net debt in recent quarters, which may raise interest costs and financial risk in a rising rate environment.

Summary: Deere & Company is demonstrating strong revenue and profit growth with solid operational cash flows, coupled with significant investments to drive future growth. The company maintains shareholder-friendly capital return policies. However, investors should watch the rising debt levels and cash outflows in investing activities which could weigh on financial flexibility. Overall, Deere appears well positioned but bears monitoring for leverage and ongoing investment efficiency.