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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsDeere’s construction and compact-equipment push broadens its precision-technology story beyond farming, but it has not displaced agriculture as the company’s largest equipment business. Fiscal 2025 sales, named construction technologies and the company’s limited SaaS disclosure point to a wider technology ambition—not yet proof of a fundamental change in Deere’s earnings mix or software economics.
What Deere’s fiscal 2025 sales mix says about the shift
Deere manages equipment operations in three segments—Production & Precision Agriculture, Small Agriculture & Turf, and Construction & Forestry—alongside Financial Services. In fiscal 2025, Production & Precision Agriculture remained the largest equipment segment, while Construction & Forestry represented nearly three-tenths of equipment-operations net sales.
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| Equipment segment | Fiscal 2025 net sales | Share of equipment-operations net sales |
|---|---|---|
| Production & Precision Agriculture | $17.311 billion | 45% |
| Small Agriculture & Turf | $10.224 billion | 26% |
| Construction & Forestry | $11.382 billion | 29% |
These are Deere & Company figures for fiscal 2025, as reported in its 2025 Annual Report. The categories also show why “shift” needs qualification: Deere has a substantial construction business, but its two agriculture equipment segments together accounted for 71% of equipment-operations net sales.
How construction fits Deere’s technology strategy
Deere frames its strategy around “Smart Industrial” and an integrated technology stack. In its annual report, the company says, “Deeper integration of technology into equipment to enable customers to do more with less remains a persistent market trend.” That positioning extends to Construction & Forestry, where Deere describes technologies intended to address jobsite safety, skilled-labor shortages, input costs, rework, uptime and environmental footprint.
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The construction portfolio is not limited to compact machines: Construction & Forestry also encompasses earthmoving, forestry and Wirtgen roadbuilding equipment. Deere lists roadbuilding systems including Wirtgen Performance Tracker, Mill Assist, Level Pro, Vögele Roadscan, Smart Compact, WITOS Paving and Spective Connect. That breadth makes the technology story a cross-category one rather than a simple move from tractors to small construction equipment.
Compact equipment and the named technologies
Deere identifies skid steers, compact excavators, compact wheel loaders and compact track loaders as compact-construction products. Its cited construction technologies cover machine functions, automation, safety and connected operations:
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- SmartWeigh and Smart Grade: named technologies in Deere’s construction offering.
- Machine and system automation: capabilities positioned to help automate equipment or work processes.
- SmartDetect: a jobsite-safety technology.
- John Deere Operations Center: connected operational tools for managing work and equipment information.
These examples establish that Deere applies precision and connectivity concepts to construction, not that the technologies have independently demonstrated a particular productivity gain. The annual report describes intended customer benefits; it does not quantify construction customer adoption, return on investment or the technologies’ contribution to segment margins.
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Autonomy points to ambition across categories, not yet proven scale
At CES 2025, Deere announced autonomous machines intended for customer uses in construction and commercial landscaping as well as agriculture. The announcement, detailed in John Deere’s CES 2025 autonomous-machines release, is evidence that the company’s autonomy ambition spans more than farm equipment. An announcement, however, does not establish broad deployment or a material financial contribution.
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Why the technology narrative is not yet a software-revenue story
Deere says SaaS revenue did not represent a significant percentage of fiscal 2025 revenue. Its precision story therefore should not be read as evidence that subscription software has become a material recurring-revenue engine. Technologies integrated into equipment, retrofit offerings and connected services may support customer relationships and equipment value, but the cited disclosures do not quantify their construction-specific revenue or margin effects.
The company says aftermarket precision technology and retrofit solutions are available through its dealer network, and connected-machine support is provided through Operations Center. Deere also says many service parts are proprietary. Those details are relevant to the equipment lifecycle and customer relationship, but they do not by themselves establish how much construction revenue or profit is attributable to technology or parts.
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Construction adds different cycle exposure
Construction and forestry demand does not move for the same reasons as farm equipment demand. Deere says its construction and forestry markets are influenced by residential, commercial and public construction; infrastructure investment; economic conditions and interest rates; trade-policy uncertainty; government spending and credit; and relevant commodity prices. The larger construction footprint broadens Deere’s exposure, but it does not establish that construction will offset agricultural downturns or make results less cyclical.
Deere reported Construction & Forestry backlog of $3.8 billion at November 2, 2025, compared with $2.2 billion at October 27, 2024, in its 2025 Annual Report. These are dated backlog measures, not a forecast of when orders will be delivered or recognized as revenue.
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What would show that the narrative has materially changed?
The available disclosures support a wider technology narrative, but not a conclusion that the strategic expansion has already changed Deere’s economics. To establish that, investors would need operating evidence beyond product names and strategic statements:
- Construction technology adoption and customer results, including measurable productivity or safety benefits.
- Segment-level evidence that technology contributes to revenue, margins or durable customer retention.
- Recurring software revenue becoming financially material, rather than remaining an insignificant share of total revenue.
- Performance across different construction and agricultural cycles, showing whether the broader mix changes Deere’s resilience.
Deere’s Investor Relations site is the company’s hub for subsequent company disclosures. Until operating results establish adoption and returns, the defensible conclusion is that construction expands where Deere applies precision technology—not that it has replaced agriculture as the core of the business or transformed the economics of that technology.
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