Deere to Scale Customer-Focused Mixed-Fleet Business with Tenna Buyout

Deere & Company DE announced that it inked a deal to acquire a construction technology company, Tenna. Deere will scale and grow the business using Tenna's customer-focused mixed-fleet model. Deere will focus on scaling the business, leveraging Tenna's customer-focused mixed-fleet model.

Details on DE’s Deal With Tenna

Tenna, part of The Conti Group, is a construction technology platform that powers equipment fleet operations. The technology automates and optimizes construction operation workflows.

Headquartered in Pennsylvania, Tenna provides contractors with a near real-time platform for a full-picture view of equipment operations. Contractors use it to understand equipment trends and maintenance needs, improving visibility, planning and job-site coordination, boosting productivity and cutting costs.s

The deal is expected to be completed in February 2026, subject to regulatory approvals. Post closing, Tenna will keep operating as an independent business marketed directly to construction customers under the Tenna tradename.

Deere’s Q4 Performance

DE reported fourth-quarter fiscal 2025 earnings of $3.93 per share, which missed the Zacks Consensus Estimate of $3.96. The bottom line decreased 14% from the prior-year quarter as gains from higher volumes were offset by higher production costs and tariff impacts.

Net sales of equipment operations (comprising Agriculture, and Turf, Construction and Forestry) were $10.6 billion, up 14% year over year, surpassing the Zacks Consensus Estimate of $9.99 billion. Total net sales (including financial services and others) were $12.4 billion, up 11% year over year.

DE Stock Price Performance

DE shares have gained 9.2% in the past year compared with the industry’s growth of 6.9%.

Deere's Zacks Rank & Stocks to Consider

Deere currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the Industrial Products sector are Flowserve Corporation FLS, Watts Water Technologies, Inc. WTS and Crane Company CR. These three stocks have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Flowserve’s 2025 earnings is pegged at $3.45 per share, indicating a year-over-year increase of 31.2%. Flowserve’s shares have gained 19.6% in a year.

Watts Water delivered an average trailing four-quarter earnings surprise of 10.9%. The Zacks Consensus Estimate for WTS’s 2025 earnings is pinned at $10.27 per share, which indicates a year-over-year rise of 15.9%. WTS’s shares have gained 36.1% in a year.

Crane delivered an average trailing four-quarter earnings surprise of 9.3%. The Zacks Consensus Estimate for CR’s 2025 earnings is pinned at $5.94 per share, which indicates year-over-year growth of 21.7%. The company’s shares have gained 21.5% in a year.

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This article originally published on Zacks Investment Research (zacks.com).

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