Joshua Jepsen on construction
From Deere CFO Josh Jepsen: Very different agriculture environment, but fundamentals still strong · · CNBCTelevision
“We saw [the construction segment] get incrementally a little bit stronger in terms of the full-year outlook — infrastructure, which impacts our earth-moving and road-building equipment. Incrementally some improvement on single-family homes, which is beneficial as well, and we've seen that benefit compact construction equipment.”
On , Joshua Jepsen, Senior VP & CFO at Deere & Company, spoke about construction during Deere CFO Josh Jepsen: Very different agriculture environment, but fundamentals still strong on CNBCTelevision.
About Joshua Jepsen
Joshua Jepsen, Senior Vice President and CFO of Deere, said in a February 2024 interview that the current agricultural cycle is "very different from what we've seen in the past" because farmer fundamentals remain strong, with balance sheets in "some of the best shape they've ever been in," strong land values, and low debt-to-equity. He noted that the company does not have "tremendous amounts of used inventory," making the setup for farmer and fleet fundamentals better than a decade ago. Regarding the construction segment, Jepsen said the full-year outlook became "incrementally a little bit stronger," citing infrastructure projects and some improvement in single-family homes, which benefited compact construction equipment. Jepsen also discussed Deere's partnership with Starlink, calling it "a very big deal for our future." He stated that the company plans to roll out the service in the second half of 2024, focused on North America and South America, because nearly 70% of agricultural land in Brazil and almost 30% in the U.S. and Canada lacks cellular coverage. Jepsen described connectivity as "foundational" to enabling precision agriculture, automation, and autonomy, allowing machines to communicate via the cloud and farmers to operate remotely. He added that this supports Deere's strategy of offering "solutions as a service" with lower upfront costs and a pay-as-you-go model.