Financial PerformanceDeere's earnings are substantially above prior peak/comparable prior cycle, with better margins too, indicating a strong financial performance even in challenging environments.
Market StrategyInvestor reaction to the softer-than-expected FY2025 guide has been positive, driven by the belief that performance could be flattish or possibly positive, reflecting confidence in Deere's strategic direction.
Operational EfficiencyDeere will deliver considerably higher margins and earnings than in prior cycles, adding fuel to the normal cyclical multiple expansion on trough fundamentals, showcasing operational efficiency and resilience.