Equipment construction and forestry operating margin measures operating profit as a percentage of segment net sales.
Deere reported a 12.1% Construction & Forestry operating margin in its fiscal third quarter of 2026, up from 7.7% a year earlier.
Pricing drove much of the margin improvement
The company said operating profit increased primarily because of favorable price realization, partly offset by higher selling, administrative and general expense and R&D costs.
Margin therefore reflects more than unit demand. Pricing power and the cost needed to support the segment can move profitability even when shipment volumes are strong.
Deere's segment operating profit has a defined scope
Deere defines segment operating profit before corporate expenses, certain external interest expense, certain foreign-exchange gains and losses, and income taxes.
Use the margin with Construction & Forestry net sales growth and Construction & Forestry price realization.
Primary source: Deere fiscal Q3 2026 Form 10-Q.
Part of the Agriculture & Construction Equipment Economics
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- DEOpen operating-model research →9 of 9 reviewed concepts in Agriculture & Construction Equipment EconomicsSegment operating conversion3 of 3 bridge concepts supportedContinue through this bridge:Production & Precision Ag MarginSmall Ag & Turf Margin
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Compare Construction & Forestry margins
Compare segment operating-margin conversion with pricing, shipment volume, material costs, and operating expenses in context.
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