Deere & Company · NYSE:DE
Deere & — Q4 2024 Earnings Presentation
20 slides from Deere &'s earnings presentation, Nov 21, 2024
Slide 1: 4Q 2024 Earnings Call
4Q 2024 Earnings Call 21 November 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This earnings call and accompanying materials may include forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “forecast,” “guidanc
Slide 3: FY 2024 Results
FY 2024 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS Revenues (Equipment Operations) (attributable to Deere & Company) ($ per share) $61,251 $55,565 $10,166 $34.63 $51,716 $44,759 $7,100 $25.62 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024
Slide 4: 4Q 2024 Results
4Q 2024 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS Revenues (Equipment Operations) (attributable to Deere & Company) ($ per share) $15,412 $13,801 $2,369 $8.26 $11,143 $9,275 $1,245 $4.55 4Q 2023 4Q 2024 4Q 2023 4Q 2024 4Q 2023 4Q 2024 4Q 2023 4Q 2024 28%
Slide 5: Production and Precision Ag 4Q 2024 Results
Production and Precision Ag 4Q 2024 Results $ in millions Net Sales 38% Operating Profit Comparison ($1,204) $6,965 $1,836 $4,305 $2 ($60) $105 $7 $2 $39 ($70) $657 4Q 2023 4Q 2024 4Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2024 Mix Costs R&D Items 5 John Deere | 4Q 20
Slide 6: Small Ag and Turf 4Q 2024 Results
Small Ag and Turf 4Q 2024 Results $ in millions Net Sales 25% Operating Profit Comparison $3,094 ($344) $444 $2,306 $22 ($42) $42 $17 $6 $79 $10 $234 4Q 2023 4Q 2024 4Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2024 Mix Costs R&D Items 6 John Deere | 4Q 2024 Earnings Cal
Slide 7: Ag and Turf Industry Outlook FY 2025
Ag and Turf Industry Outlook (in units) – FY 2025 U.S. and CANADA U.S. and CANADA EUROPE AG LARGE AG SMALL AG and TURF ~30% ~10% 5-10% SOUTH AMERICA AG ASIA AG (tractors and combines) Flat Down slightly Source: Deere & Company forecast as of 21 November 2024 7 John Deere | 4Q 2024 Earnings Call | No
Slide 8: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook $ in millions Net Sales Operating Margin ~15% 17-18% $20,834 21.7% FY 2024 FY 2025 Fcst FY 2024 FY 2025 Fcst Source: Deere & Company forecast as of 21 November 2024 8 John Deere | 4Q 2024 Earnings Call | November 21, 2024
Slide 9: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook $ in millions Net Sales Operating Margin 13-14% ~10% $10,969 14.8% FY 2024 FY 2025 Fcst FY 2024 FY 2025 Fcst Source: Deere & Company forecast as of 21 November 2024 9 John Deere | 4Q 2024 Earnings Call | November 21, 2024
Slide 10: Construction and Forestry 4Q 2024 Results
Construction and Forestry 4Q 2024 Results $ in millions Net Sales 29% Operating Profit Comparison ($312) $3,742 $516 $2,664 $56 ($11) $67 $4 $328 $12 ($10) $6 4Q 2023 4Q 2024 4Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2024 Mix Costs R&D Items 10 John Deere | 4Q 2024 Ea
Slide 11: Construction and Forestry Industry Outlook FY 2025
Construction and Forestry Industry Outlook (in units) – FY 2025 U.S. and CANADA U.S. and CANADA COMPACT CONSTRUCTION EQUIPMENT CONSTRUCTION EQUIPMENT ~10% ~5% GLOBAL FORESTRY GLOBAL ROADBUILDING Flat to down 5% Flat Source: Deere & Company forecast as of 21 November 2024 11 John Deere | 4Q 2024 Earn
Slide 12: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook $ in millions Net Sales Operating Margin 10-15% 11.5-12.5% $12,956 15.5% FY 2024 FY 2025 Fcst FY 2024 FY 2025 Fcst Source: Deere & Company forecast as of 21 November 2024 12 John Deere | 4Q 2024 Earnings Call | November 21, 2024
Slide 13: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook $ in millions Quarter Results Fiscal Year Outlook $190 $173 $696 ~ $750 4Q 2023 4Q 2024 FY 2024 FY 2025 Fcst Source: Deere & Company forecast as of 21 November 2024 13 John Deere | 4Q 2024 Earnings Call | November 21, 2024
Slide 14: Deere & Company Outlook
Deere & Company Outlook FY 2025 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* $5.0-5.5B 23-25% $4.5-5.5B Research and Development Expenses* Down slightly Other Capital Expenditures* ~$1.6B *Equipment Operations Source: Deere & Company forecast as of 2
Slide 15: Appendix
Appendix 15 John Deere | 4Q 2024 Earnings Call | November 21, 2024
Slide 16: October 2024 Retail Sales and Dealer Inventories
October 2024 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 18% More than the industry 2WD Tractors (40 < 100 PTO hp) 14% In line with the industry 2WD Tractors (100+ PTO hp) 28% More than the industry 4WD Tractors
Slide 17: October 2024 Retail Sales (Rolling 3 Months)
October 2024 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Double digits Combines Double digits Retail Sales U.S. and Canada Deere* Selected Turf and Utility Equipment Low double digits Construction and Forestry First-in-the-Dirt Single digit Settlements Single digit * Based
Slide 18: Deere Use-of-Cash Priorities
Deere Use-of-Cash Priorities CASH FROM OPERATIONS Manage the balance sheet, including liquidity, to support a rating that provides COMMITTED access to low-cost and readily available short- and long-term funding TO “A” RATING mechanisms (reflects the strategic nature of our financial services operati
Slide 19: 1Q 2025 earnings call scheduled for 13 February 2025
Deere & Company’s 1Q 2025 earnings call is scheduled for 9:00 a.m. Central Time on Thursday, 13 February 2025. 19 John Deere | 4Q 2024 Earnings Call | November 21, 2024
Slide 20: John Deere
@ JOHN DEERE