Business mix
- The production of agricultural equipment is the largest product line, followed by small agriculture, construction and lawn care. 61% of sales revenue in fiscal year 2025 comes from the US and Canadian markets.
- The technology stack covers autonomous driving, machine learning, digital solutions and interconnection, and has connected more than 1 million machines and 500 million acres of arable land to promote precision agriculture and sustainable development.
- Lifecycle solutions include repairs, parts and telematics designed to maximize customer equipment uptime and reduce lifecycle costs.
Current key questions
- The company has set a target of 20% return on operating assets and 45% operating profit margin, but fluctuations in the agricultural cycle may affect equipment demand, and it is necessary to pay attention to changes in commodity prices and farmers' income.
- R&D expenditures in fiscal year 2025 are US$2.3 billion, accounting for 5.9% of net sales in the equipment business. The speed of technology commercialization and the impact of cooperation such as Starlink on competitiveness are key variables.
- Net income fell year over year in the second quarter of fiscal 2026, despite sales growth, cost pressures and market share battles may squeeze margins, need to track orders and channel inventory.
