Equipment production and precision agriculture operating margin measures operating profit as a percentage of segment net sales.
Deere reported a 13.2% Production & Precision Agriculture operating margin in its fiscal third quarter of 2026, compared with 13.6% a year earlier.
Volume and production costs pressured conversion
Deere said operating profit declined primarily because of lower shipment volumes and sales mix plus higher production costs from increased material costs.
Favorable price realization and foreign-exchange effects partly offset those pressures.
Margin can hold up better than sales
The segment's net sales declined 6% while operating margin slipped only 40 basis points year over year.
Use the margin with Production & Precision Agriculture net sales growth and Production & Precision Agriculture 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:Construction & Forestry MarginSmall Ag & Turf Margin
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Compare production agriculture margins
Compare segment operating margins with volume, mix, material costs, pricing, and foreign-exchange effects in view.
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