DEERE & CO

Deere & Company designs, manufactures and distributes agricultural, turf, construction and forestry equipment while providing complementary parts, precision‑agriculture technology and equipment financing through its dealer network. The company generates revenue primarily from equipment sales to dealers, aftermarket parts and service, and financing interest and fees that support equipment purchases and dealer inventory.^[1]

Business Segments

• Production & Precision Agriculture (PPA): large tractors, combines, planting/soil‑preparation and precision‑agriculture solutions; roughly 47% of equipment‑operations net sales per the company’s filings.^[2]
• Small Agriculture & Turf (SAT): utility/compact tractors, mowing and turf equipment, turf/utility vehicles and related implements; roughly 24% of equipment‑operations net sales.^[2]
• Construction & Forestry (CF): earthmoving, roadbuilding and timber‑harvesting machines and related parts and attachments; roughly 29% of equipment‑operations net sales.^[2]
• Financial Services: wholesale and retail financing, leases, revolving charge accounts and extended warranties that support equipment sales and generate financing income for the enterprise.^[2]

Competitive Position

• Strong brand and global scale: a leading, widely recognized equipment brand with a large installed base, extensive dealer/service network and global manufacturing footprint that supports aftermarket parts and service revenue.^[3]
• Integrated product + financing model: combining equipment, precision technology and in‑house financing raises switching costs for customers and deepens dealer relationships, creating recurring lifetime value.^[4]

Investment Considerations

• Structural cyclicality and end‑market sensitivity: demand for big agricultural and construction equipment is cyclical and tied to farm incomes, commodity prices and capital availability—this is a persistent volume risk.^[2]
• Technology and service monetization opportunity: investments in precision ag, telematics, autonomy and software aim to grow recurring and higher‑margin services over time, potentially smoothing cyclicality.^[4]
• Dealer and supply‑chain dependencies: distribution through independent dealers and a global manufacturing/sourcing footprint create operational leverage but also exposure to supply disruptions, tariffs and localized demand swings.^[2]
• Capital‑intensive business with financing exposure: the financial services arm supports sales but adds credit, interest‑rate and regulatory risks that can amplify earnings volatility in downturns.^[2]