Deere & Company

C&F order bank risen over 50% in past quarter to highest point since May 2024. Retail settlements up mid-teens YOY in Q1. Industry outlooks raised for both construction and compact construction to up ~5%. New Deere-designed excavator launch at CONEXPO.

HP tractors down over 10% from March 2025 peak. Model year '22 and model year '23 ADARs down over 40% from peak and over 20% sequentially in Q1. Model year '24 ADARs also declining by over 10%. Combines about 15% below their peak in March 2024 with normal model year distribution.

South America industry now expected down ~5% (from flat) driven by Brazilian market where subdued commodity prices, 15% benchmark rate, and stronger real are pressuring producer margins. PPA pricing in SA required incremental incentives in Q1.

Excluding tariffs, production costs lower YOY for all business segments in Q1 from operational efficiencies and disciplined overhead spending. Price/cost approximately neutral for full year inclusive of $1.2B tariffs. Tariff mitigation on 232 steel and India relief offsetting volume growth.