DE·Deere & Company

Deere & Company is recalling more workers to its Dubuque facility due to rising orders, reflecting growing customer demand, particularly in construction and forestry. This follows a strong earnings report where the company exceeded expectations, driven by increased equipment sales and a raised full-year profit forecast. The company's management anticipates the current market cycle has bottomed, citing stabilization in North American large agriculture and robust construction market growth. However, the company faces potential headwinds, as it has approximately $600 million in tariff expenses tied to the Supreme Court's upcoming ruling on President Trump's tariff authority. Simultaneously, CPC Logistics drivers, who transport products for major companies including John Deere, voted to unionize with Teamsters Local 179, seeking improved wages and benefits. Additionally, Deere & Company has removed specific diversity criteria for board selection due to pressure from activist groups, potentially signaling a broader trend in corporate governance. Traders should watch the Supreme Court's tariff ruling, as it could significantly impact Deere's financial obligations and operating costs.