Jim Cramer has labeled Deere & Company's updated long-term financial outlook as 'very, very bullish,' highlighting strong revenue and margin targets. The company's new guidance includes a projected 5% annual revenue growth and adjusted EBITDA margins expanding to 18% by 2028.
- Deere & Company projects 5% annual revenue growth through 2028
- Adjusted EBITDA margins expected to reach 18% by 2028
- Stock rose 3.2% in after-hours trading post-guidance release
- Focus on precision agriculture and electric equipment driving margin expansion
- Dividend yield of 1.8% with a history of annual increases
- Capital allocation strategy emphasizes balance sheet strength and shareholder returns
Jim Cramer has declared Deere & Company's recently released long-term financial projections as 'very, very bullish,' signaling renewed confidence in the agricultural equipment giant's strategic trajectory. The comments come after the company unveiled a five-year outlook that outlines ambitious growth targets and margin improvements across its core machinery segments. Deere's new guidance anticipates annual revenue growth of 5% through 2028, driven by demand in North American and international markets. The company also projects adjusted EBITDA margins to reach 18%, up from current levels of approximately 14%. These targets reflect a shift toward higher-margin products, including precision agriculture technologies and electric-powered equipment, as well as continued cost discipline in manufacturing and supply chain operations. The market reacted positively, with Deere's stock rising 3.2% in after-hours trading following the announcement. Analysts note that the revised forecasts indicate a more resilient business model capable of withstanding cyclical downturns in commodity prices and farm income. The company's focus on digital integration and long-term customer relationships is seen as a key differentiator in a competitive landscape. Investors are particularly attentive to Deere's capital allocation strategy, which includes a commitment to maintain a strong balance sheet while returning capital through dividends and share buybacks. The company currently offers a dividend yield of 1.8% and has a history of consistent increases, reinforcing its appeal to income-focused portfolios.