CLAIM #20370 · Deere & Company (DE) · 2026Q1 earnings call · Feb 19, 2026
“We'll underproduce retail for Brazilian combines in our second and third quarters to bring those inventory levels down.”
Josh Beal · Director of Investor Relations
How to check this claim
Look at: Deere production of Brazilian combines relative to retail sales (underproduction to reduce dealer inventory), Q2 and Q3 fiscal 2026
It came true if: Company production volume for Brazilian combines is less than retail sales volume in both fiscal Q2 and Q3 2026, resulting in a decline in Brazil combine field inventory levels from Q1 2026 level by end of Q3
Where: Management commentary on Q2 and Q3 FY2026 earnings calls (inventory and production commentary for South America/Brazil combines)
Knowable after: 2026-08-31
In context
“s were down over 20% sequentially with model year '24 ADARs also declining by over 10%. While continued reduction in used tractors remains a focus, we're encouraged by the progress that we're seeing. At the same time, large tractor order velocity for the North American market has picked up, and our rolling order books now provide visibility into the fourth quarter. We also just recently took our last calls for North American combine orders for the year-end, while we still expect that overall North American large ag industry to be down 15% to 20% this year, combines will be down less than that range. Similar to North America, we feel good about our new inventory positions in both Europe and South America. The one exception is combines in Brazil, where we're a bit higher than we want to be. We'll underproduce retail for Brazilian combines in our second and third quarters to bring those inventory levels down. Despite being higher than our target, our current inventory to sales ratio for combines is still significantly lower than what we see with competitors. As far as order visibility, European tractor order books are currently 4 to 5 months out, while South American orders are full through our second quarter. Turning to Small Ag & Turf in North America. Last year's underproduction resulted in healthy beginning inventory levels for this segment that remain in place today. For reference, current new field inventory for both tractor horsepower categories in this segment, that's the less than 100-horsepower category and the 100 to 220-horsepower category are each about 40% lower year-over-year. Our ability to maintain those lower inventory levels reinforces our plan to build in line with retail d”
Verify independently
SEC filings for DE ↗ · Quote is verbatim from the 2026Q1 earnings call.