DE · Earnings call · 2026Q3T · Full report

Customer and Dealer Inventory Trends

DEERE & CO · 2026-08-20 · Importance 40 · Surprise 56 · In source text

Deere has balanced production with demand through the downturn, improving equipment inventory health across the company and its dealer channel. In North America, new inventories remain tight, while late-model used inventory has improved; model-year 2023 and 2024 high-horsepower tractor inventories are down nearly 40% year over year. The spread between new and used equipment values has largely normalized, improving replacement economics and supporting healthier trade cycles. Deere is modestly underproducing retail demand in South America and Construction and Forestry, while construction field inventories are positioned to support measured dealer rental-fleet expansion in 2027.

Key facts

• Deere is modestly underproducing retail demand in South America and has adjusted production levels there.
• In North America, new inventories remain tight while late-model used inventory continues to improve; 2023 and 2024 high-horsepower tractors used inventory is down nearly 40% from a year ago.
• The spread between new and used equipment values has largely normalized, improving replacement economics.

Impact estimates