Deere posts first quarterly profit increase in three years, raises full-year forecast

Deere DE-N, the world’s largest farm equipment manufacturer, raised its full-year net income forecast on Thursday, after robust demand for small tractors and construction equipment helped the company post its first rise in quarterly profit in nearly three years.

Rising U.S. government and private spending on infrastructure alongside the vast AI-fuelled buildout of data centres has lifted demand for construction equipment, with Deere’s construction and forestry segment emerging as its fastest-growing business in the quarter.

The trend has helped the company weather a prolonged lull in demand for its large tractors and combine harvesters amid rising costs and falling agricultural yields.

Deere reported a profit of US$5.10 per share for the quarter ended Aug. 2, up from US$4.75 per share a year earlier. Its quarterly revenue rose 6 per cent to US$11-billion.

The John Deere tractor manufacturer now expects 2026 net income of US$4.75-billion to US$5-billion, compared with its earlier projection of US$4.5-billion to US$5-billion.

Shares of the company were up 2 per cent in pre-market trading.