DE · Earnings call · 2026Q3T · Full report
Construction Forestry Demand Growth
DEERE & CO · 2026-08-20 · Importance 31 · Surprise 32 · In source text
U.S. and Canadian earthmoving equipment industry sales are expected to increase 5%-10% for construction equipment and 5% for compact construction equipment in fiscal 2026. Large infrastructure, data-center, energy, and pipeline projects are supporting demand, while global roadbuilding industry sales are expected to increase approximately 10%. Construction and Forestry order books are four to five months long, compared with a typical two to three months, and customer backlogs extend well into fiscal 2027. Dealer-owned rental fleets and independent rental activity are expanding, with 30%-35% of earthmoving transactions currently beginning as rentals.
Key facts
- Industry sales for U.S. and Canada earthmoving construction equipment are now expected to be up 5% to 10% for the year, and compact construction equipment up 5%.
- Global forestry industry is now expected to be down 10% for the year.
- Global road building market is projected to be up approximately 10% for the year.
- Rental starts as anywhere from 30% to 35% of earthmoving transactions today.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | probable | — | Industry sales for U.S. and Canada earthmoving construction equipment are now expected to be up 5% to 10% for the year, and compact… |
| revenue | negative | probable | — | Global forestry industry is now expected to be down 10% for the year. |
| revenue | positive | probable | — | Global road building market is projected to be up approximately 10% for the year. |