The company continues to focus on structural profitability and strategically investing in solutions that deliver value to customers, indicating a long-term strategic approach despite current market challenges.

Research and development expenses increased to $2.3 billion in 2024 from $2.2 billion in 2023, indicating a continued focus on developing new technology solutions and product introductions.

The company is focusing on deeper integration of technology into equipment, reflecting a long-term strategy to capitalize on this market trend through its Smart Industrial Operating Model and Leap Ambitions.

The company introduced cost reduction measures, including employee separation programs, to manage profitability and inventory levels, indicating proactive management in response to market challenges.

The company incurred $157 million in pretax expenses in 2024 related to employee separation programs, indicating a significant restructuring effort to improve efficiency.

The company introduced new S7 Series combines and updated 9RX tractors in 2024, designed to enhance customer value and address key agricultural challenges, such as time constraints, labor shortages, and rising costs.

The company's financial results are largely dependent on the agricultural market business cycle and general economic conditions, and negative conditions in these areas can weaken demand, limit funding access, and increase funding costs.

The company acknowledges the risk of being unable to manage increasing political, economic, and social uncertainty in certain regions of the world, which could significantly change the dynamics of competition, customer base, and product offerings.

The company acknowledges that changes in the availability and price of raw materials, components, and whole goods have resulted and could result in disruptions to the supply chain, causing production issues, increased costs, and lower profits.

The agricultural equipment industry is becoming more competitive through the emergence and global expansion of many competitors, including both traditional and non-traditional players.

John Deere's brand recognition is a competitive factor in North America and many other parts of the world, indicating a strong market presence.

The industry is attracting non-traditional competitors, including technology-focused companies and start-up ventures, indicating a shift in the competitive landscape.

The company is directing considerable effort to manufacturing cost reductions through improvements in process, optimization of factories, and product design, indicating a focus on operational efficiency.

The company's flexible assembly lines, which can accommodate a wide product mix and deliver products in line with changes in demand, support process improvements.

The company is focused on proactively increasing the resiliency of its supply chain and actively monitoring supply chain risks, indicating a focus on minimizing business disruptions.

The company makes substantial investments in research and development to improve the quality and performance of its products, develop new products and technologies, and integrate sustainable solutions.

The integration of technology into equipment is a persistent market trend, and the company continues to capitalize on this trend, indicating a focus on future-oriented solutions.

The company continues to invest in the development and production of advanced technology through integrated agricultural solutions and precision technologies across its portfolio of equipment.

The company has a share repurchase plan authorized to purchase up to $18.0 billion of shares of common stock, indicating a commitment to returning value to shareholders.

The company is forecasting capital expenditures of $1.6 billion in 2025, indicating a continued investment in its operations and infrastructure.

The company maintains access to global markets at a reasonable cost and has various sources of liquidity, indicating a focus on financial stability and flexibility.

The company aims to reduce its environmental footprint through its Leap Ambitions framework and seeks opportunities to reduce environmental impacts on the communities where it operates, indicating a commitment to sustainability.

The company strives to comply with applicable environmental laws and regulations, and does not expect to incur material capital expenditures related to environmental controls during fiscal year 2025.

The company is continuing to focus on reducing the CO2e emissions from its equipment, including offering hybrid-electric and electric options where feasible.

Agriculture and turf equipment sales are projected to decline in 2025 due to contraction of agriculture markets globally, indicating a challenging market environment.

Construction equipment sales are projected to decline in 2025 as healthy end markets are offset by continued uncertainty in equipment purchases, indicating a challenging market environment.

Geopolitical tensions, including the Russia/Ukraine war and the conflict in the Middle East, have exacerbated market volatility and affected agricultural global production and demand levels, indicating a challenging and uncertain market environment.