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Two Thousand Dealer LocationsWide moat

Deere & Company (DE) — moat facet

Deere sells through about 2,050 independent North American dealer locations, and the count kept rising while sales fell 30% from the peak.

A farmer whose combine breaks in the middle of harvest does not shop for a new brand. He calls the nearest dealer who can have a technician and a part in the field that day. Deere's answer to that call is a network of about 2,050 independent dealer locations in the U.S. and Canada, of which about 1,600 sell agricultural equipment and about 450 sell construction, roadbuilding, compact construction or forestry equipment1. Another roughly 100 locations sell only roadbuilding equipment and about 260 only turf2.

Deere dealer locations in the U.S. and Canada (approximate count)1,977FY20192,007FY20222,050FY2025Deere Forms 10-K FY2019, FY2022, FY2025; excludes roadbuilding-only and turf-only locations
The network grew a little even as sales fell.

The network has grown, slowly, through good years and bad. In fiscal 2019 the count was about 1,977, with 1,541 agricultural and 436 construction and forestry locations3. By fiscal 2022 it was about 2,0074, and by fiscal 2025 about 2,0505, a gain of about 73 locations in six years, while equipment net sales went from $55,565 million at the 2023 peak to $38,917 million in fiscal 20256. Dealers kept their doors open through a 30% fall in sales7.

That is the moat in its plainest form. A rival can design a tractor as good as a Deere. It cannot, in a few years, open about 1,600 agricultural dealer locations across the U.S. and Canada, staffed by people trained on its machines. The density matters more than the brand, because downtime during planting or harvest is the most expensive thing a farmer can buy.

The limit is that Deere owns almost none of it. The dealers are independent businesses with their own owners, their own debts and their own decisions about how many technicians to employ. Deere supplies them, finances their inventory and trains their staff, but the face the farmer sees belongs to someone else.

The count was the same a year earlier: the fiscal 2024 10-K also reported about 2,050 locations, about 1,600 agricultural and about 450 construction8. In fiscal 2022 the split was about 1,552 and 4559. The growth has come almost entirely on the farm side, where the service burden is greatest.

The network is holding as long as the count does. A future 10-K showing fewer than 2,000 U.S. and Canadian locations would mean consolidation or closures have started to thin the coverage that makes the brand worth paying for.

Moat trajectory: Holding steady

About 1,977 locations in FY2019, about 2,050 in FY2025.

The number that tests this moat
Reported
Independent dealer locations, U.S. and Canada
about 2,050 (FY2025: about 1,600 agricultural, about 450 construction and forestry), from about 1,977 in FY2019

The density of service coverage; a count below 2,000 would mean the network is thinning.

Source: Deere & Company Form 10-K, FY2025 ↗
⚠ Threats to the moat
⚠ THREAT 01
A Network Deere Does Not Own
Deere's service moat sits on about 2,050 independent dealers whose large-equipment sales fell 44% in two years.
References
  1. ReportedDeere's answer to that call is a network of about 2,050 independent dealer locations in the U.S. and Canada, of which about 1,600 sell agricultural equipment and about 450 sell construction, roadbuilding, compact construction or forestry equipment.
    Deere & Company Form 10-K for fiscal 2025 (year ended 2 November 2025), $ millions - Item 1 business: dealers, distribution, parts, used-equipment trade-ins, sales incentives and manufacturing. — FY2025 · publ. 18 December 2025 · source ↗
  2. ReportedAnother roughly 100 locations sell only roadbuilding equipment and about 260 only turf.
    Deere & Company Form 10-K for fiscal 2025 (year ended 2 November 2025), $ millions - segment net sales and operating profit (Note 27), revenue by product line and geography (Note 5), backlog and goodwill. — FY2025 · publ. 18 December 2025 · source ↗
  3. ReportedIn fiscal 2019 the count was about 1,977, with 1,541 agricultural and 436 construction and forestry locations.
    Deere & Company Form 10-K for fiscal 2019 (year ended 3 November 2019) - about 1,977 dealer locations in the U.S. and Canada, 1,541 selling agricultural equipment and 436 construction and forestry equipment, some owned by Nortrax. — FY2019 · publ. December 2019 · source ↗
  4. ReportedBy fiscal 2022 it was about 2,007, and by fiscal 2025 about 2,050, a gain of about 73 locations in six years, while equipment net sales went from $55,565 million at the 2023 peak to $38,917 million in fiscal 2025.
    Deere & Company Form 10-K for fiscal 2022 (year ended 30 October 2022) - segment net sales and operating profit for 2020-2022 on the current four-segment basis, and about 2,007 dealer locations in the U.S. and Canada. — FY2022 · publ. December 2022 · source ↗
  5. ReportedBy fiscal 2022 it was about 2,007, and by fiscal 2025 about 2,050, a gain of about 73 locations in six years, while equipment net sales went from $55,565 million at the 2023 peak to $38,917 million in fiscal 2025.
    Deere & Company Form 10-K for fiscal 2025 (year ended 2 November 2025), $ millions - selected financial data, MD&A and the supplemental consolidating data for equipment operations and financial services. — FY2025 · publ. 18 December 2025 · source ↗
  6. ReportedBy fiscal 2022 it was about 2,007, and by fiscal 2025 about 2,050, a gain of about 73 locations in six years, while equipment net sales went from $55,565 million at the 2023 peak to $38,917 million in fiscal 2025.
    Deere & Company Form 10-K for fiscal 2025 (year ended 2 November 2025), $ millions - selected financial data, MD&A and the supplemental consolidating data for equipment operations and financial services. — FY2025 · publ. 18 December 2025 · source ↗
  7. Moat Explorer calcDealers kept their doors open through a 30% fall in sales.
    Moat Explorer calculation from Deere & Company reported figures ($ millions unless stated; fiscal years end on the Sunday nearest 31 October). Cycle: net income FY2025 over FY2023 5,027 / 10,166 - 1 = -50.6%; net sales and revenues 45,684 / 61,251 - 1 = -25.4%; FY2025 over FY2024 45,684 / 51,716 - 1 = -11.7%; equipment net sales 38,917 / 55,565 - 1 = -30.0%; Production & Precision Ag sales 17,311 / 26,790 - 1 = -35.4%, FY2025 over FY2024 17,311 / 20,834 - 1 = -16.9%; Small Ag & Turf 10,224 / 13,980 - 1 = -26.9%; Construction & Forestry 11,382 / 14,795 - 1 = -23.1%; PPA operating profit 2,671 / 6,996 - 1 = -61.8%; PPA sales 2020-2023 26,790 / 12,962 = 2.07 times, more than double; PPA U.S. net sales and revenues 7,753 / 13,917 - 1 = -44.3%; U.S. net sales and revenues 23,974 / 34,105 - 1 = -29.7%; Latin America 5,607 / 8,197 - 1 = -31.6%; production agriculture product line 16,960 / 26,450 - 1 = -35.9%; roadbuilding 3,552 / 3,794 - 1 = -6.4%; roadbuilding over Construction & Forestry net sales 3,552 / 11,382 = 31.2%. Construction & Forestry product lines FY2023 to FY2025: construction 4,570 / 6,842 - 1 = -33.2%; compact construction 1,922 / 2,451 - 1 = -21.6%; forestry 1,124 / 1,429 - 1 = -21.3%; roadbuilding -6.4%. Segment margins (operating profit over segment net sales): PPA 2020 1,969 / 12,962 = 15.2%; 2021 3,334 / 16,509 = 20.2%; 2022 4,386 / 22,002 = 19.9%; 2023 6,996 / 26,790 = 26.1%; 2024 4,514 / 20,834 = 21.7%; 2025 2,671 / 17,311 = 15.4%. SAT 2020 1,000 / 9,363 = 10.7%; 2021 2,045 / 11,860 = 17.2%; 2022 1,949 / 13,381 = 14.6%; 2023 2,472 / 13,980 = 17.7%; 2024 1,627 / 10,969 = 14.8%; 2025 1,207 / 10,224 = 11.8%. CF 2020 590 / 8,947 = 6.6%; 2021 1,489 / 11,368 = 13.1%; 2022 2,014 / 12,534 = 16.1%; 2023 2,695 / 14,795 = 18.2%; 2024 2,009 / 12,956 = 15.5%; 2025 1,028 / 11,382 = 9.0%. Equipment operations operating profit 2,671 + 1,207 + 1,028 = 4,906 (FY2025), 4,514 + 1,627 + 2,009 = 8,150 (FY2024), 6,996 + 2,472 + 2,695 = 12,163 (FY2023); equipment operating margin 4,906 / 38,917 = 12.6%, 8,150 / 44,759 = 18.2%, 12,163 / 55,565 = 21.9%; first nine months FY2026 (1,372 + 1,538 + 1,134 = 4,044) / 30,779 = 13.1%; Q3 FY2026 527 + 622 + 436 = 1,585 against Q3 FY2025 580 + 485 + 237 = 1,302, an increase of 283. Nine-month operating profit change: PPA 1,372 / 2,066 - 1 = -33.6%; SAT 1,538 / 1,182 - 1 = +30.1%; CF 1,134 / 681 - 1 = +66.5%. PPA share of segment operating profit FY2023 6,996 / 12,958 = 54.0%; FY2025 2,671 / 6,020 = 44.4%. FS segment operating profit 1,114 / 795 - 1 = +40.1%. Equipment gross margin (net sales less consolidated cost of sales): FY2023 55,565 - 37,715 = 17,850, / 55,565 = 32.1%; FY2024 (44,759 - 30,775) / 44,759 = 31.2%; FY2025 38,917 - 28,159 = 10,758, / 38,917 = 27.6%. Equipment share of net sales and revenues 38,917 / 45,684 = 85.2% (FY2025); 55,565 / 61,251 = 90.7% (FY2023). Financial Services band (total net sales and revenues less equipment net sales): 2020 35,540 - (12,962 + 9,363 + 8,947 = 31,272) = 4,268; 2021 44,024 - (16,509 + 11,860 + 11,368 = 39,737) = 4,287; 2022 52,577 - (22,002 + 13,381 + 12,534 = 47,917) = 4,660; 2023 61,251 - 55,565 = 5,686; 2024 51,716 - 44,759 = 6,957; 2025 45,684 - 38,917 = 6,767 = finance and interest income 5,748 + other income 1,019; share of revenue 6,767 / 45,684 = 14.8% (FY2025), 5,686 / 61,251 = 9.3% (FY2023). Financial Services share of consolidated assets 70,021 / 105,996 = 66.1%; share of net income 890 / 5,027 = 17.7%; return on equity 890 / ((7,069 + 7,454) / 2 = 7,262) = 12.3%; Financial Services borrowings 13,382 + 6,595 + 34,788 = 54,765; consolidated borrowings 13,796 + 6,596 + 43,544 = 63,936; FS share 54,765 / 63,936 = 85.7%; Financial Services equity over assets 7,069 / 70,021 = 10.1%, about a tenth (debt to equity 8.6 to 1). Interest compensation to Financial Services 414 / 687 - 1 = -39.7%. Financing receivables 44,575 (about $44.6bn) / 23,702 = 1.88 times. Write-offs six months FY2026 150 / 44,575 = 0.3%. Equipment operations: net debt 9,171 - 6,557 = 2,614 (FY2025); 2,614 / 4,137 = 0.63 years of net income, less than eight months; return on invested capital estimate FY2025 (4,137 + 372 x 0.8 = 4,435) / (18,887 + 9,171 - 6,557 = 21,501) = 20.6%; FY2024 (6,404 + 396 x 0.8 = 6,721) / (15,389 + 7,516 - 5,740 = 17,165) = 39.2%; 20% tax on interest is an approximation. Equipment operations cash flow 5,100 / 11,919 - 1 = -57.2%. Costs and people: R&D over equipment net sales 2,177 / 55,565 = 3.9% (FY2023), 2,290 / 44,759 = 5.1% (FY2024), 2,311 / 38,917 = 5.9% (FY2025), 1,704 / 30,779 = 5.5% (nine months FY2026); nine-month R&D 1,704 / 1,631 - 1 = +4.5%; R&D at the FY2023 ratio 38,917 x 3.9% = about 1,520, difference 2,311 - 1,520 = about 790, about 2 points of 38,917. Employees 82,956 - 73,146 = 9,810, about 9,800, 9,810 / 82,956 = 11.8%. Tariff cost about 600 / 4,906 = 12.2% of equipment operating profit; 1,100 / 4,906 = 22%, about a fifth. Trade receivables 7,723 / 6,103 - 1 = +26.5%. Wirtgen first-year operating profit 116 / 5,327 = 2.2%; CF operating profit 1,028 / 5,327 = 19.3%, about a fifth; CF goodwill 3,051 / 4,188 = 72.9%. Tenna goodwill 286 / 439 = 65%. Backlog CF 3.8 / 2.2 - 1 = +73%. Engaged acres per connected machine 520 million / 1.2 million = about 433. Capital returns: cash returned FY2023 dividends paid 1,427 + repurchases 7,216 = 8,643; FY2025 1,720 + 1,138 = 2,858; 2,858 / 8,643 - 1 = -66.9%; diluted shares 271.7 / 316.6 - 1 = -14.2%; dividend payout 6.48 / 18.50 = 35.0%. Fiscal 2016 net margin 1,523.9 / 26,644.0 = 5.7%. Diluted EPS FY2025 over FY2023 18.50 / 34.63 - 1 = -46.6%. Equipment segment identifiable assets 8,787 + 3,987 + 7,792 = 20,566, over Financial Services 70,021 = 29.4%, less than a third. Valuation: trailing twelve months to 2 August 2026 net sales and revenues 45,684 - 33,290 + 35,589 = 47,983; net income 5,027 - 3,962 + 3,808 = 4,873; diluted EPS 18.50 - 14.57 + 14.06 = 17.99; P/E 185,230 / 4,873 = 38.0; P/S 185,230 / 47,983 = 3.86; market value over FY2023 net income 185,230 / 10,166 = 18.2 times; market value change since FY2025 year end 185,230 / 124,792 - 1 = +48.4%; trailing net income 4,873 / 5,027 - 1 = -3.1%; analyst target 691.83 / 687.00 - 1 = +0.7%; Deere over CNH and AGCO 185.23 / (16.67 + 8.03 = 24.70) = 7.5 times; Deere over Caterpillar 185.23 / 388.62 = 47.7%, about half; Caterpillar over Deere 388.62 / 185.23 = 2.1 times. Year-end P/E and P/S: 2015 24.15bn / 1,940 = 12.45, / 28,863 = 0.837; 2016 32.65 / 1,524 = 21.42, / 26,644 = 1.225; 2017 50.49 / 2,159 = 23.39, / 29,738 = 1.698; 2018 47.52 / 2,368 = 20.07, / 37,358 = 1.272; 2019 54.28 / 3,253 = 16.69, / 39,258 = 1.383; 2020 84.31 / 2,751 = 30.65, / 35,540 = 2.372; 2021 106.137 / 5,963 = 17.80, / 44,024 = 2.411; 2022 119.777 / 7,131 = 16.80, / 52,577 = 2.278; 2023 104.011 / 10,166 = 10.23, / 61,251 = 1.698; 2024 111.610 / 7,100 = 15.72, / 51,716 = 2.158; 2025 124.792 / 5,027 = 24.82, / 45,684 = 2.732. Guidance: fiscal 2026 net income midpoints (4,000 + 4,750) / 2 = 4,375 (November 2025); (4,500 + 5,000) / 2 = 4,750 (February and May 2026); (4,750 + 5,000) / 2 = 4,875, $4.875bn (August 2026); 4,875 / 5,027 - 1 = -3.0%; nine months 3,808 / 4,875 = 78.1%; implied fourth quarter 4,750 - 3,808 = 942 to 5,000 - 3,808 = 1,192. U.S. share of net sales and revenues 23,974 / 45,684 = 52.5% (FY2025), 34,105 / 61,251 = 55.7% (FY2023) - cycle, costs, people, capital returns and geography. — FY2015-Q3 FY2026 · publ. October 2026 · source ↗
    Method: Arithmetic on figures reported in Deere & Company Forms 10-K, 10-Q, results releases, the 2026 proxy statement, the Q3 FY2026 call, and stockanalysis.com market data; each operand is stated in the source line.
  8. ReportedThe count was the same a year earlier: the fiscal 2024 10-K also reported about 2,050 locations, about 1,600 agricultural and about 450 construction.
    Deere & Company Form 10-K for fiscal 2024 (year ended 27 October 2024) - segment results, dealer locations and backlog. — FY2024 · publ. December 2024 · source ↗
  9. ReportedIn fiscal 2022 the split was about 1,552 and 455.
    Deere & Company Form 10-K for fiscal 2022 (year ended 30 October 2022) - segment net sales and operating profit for 2020-2022 on the current four-segment basis, and about 2,007 dealer locations in the U.S. and Canada. — FY2022 · publ. December 2022 · source ↗
Sources
Generated October 5, 2026