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Will Deere's Tenna Buyout Aid Its Construction & Forestry Segment?
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Key Takeaways
Deere acquired Tenna in February 2026 to scale its mixed-fleet tech model and expand its construction push.
Tenna offers a near real-time platform, showing equipment operations, trends and maintenance needs.
DE will combine Tenna products with the Operations Center to help contractors optimize fleets and job sites.
Deere & Company (DE - Free Report) acquired construction technology company Tenna in February 2026 with the aim of scaling and growing the business using Tenna's customer-focused mixed-fleet model. The deal also aligns with Deere's broader strategy to expand the Construction & Forestry business.
Deere aims to focus on three key areas in the construction industry — machines, tasks and job sites. First, the company is focused on completing its earthmoving equipment range with high-precision and basic machines to have a world-class product portfolio. For tasks, Deere is boosting machine performance with precision techs like SmartGrade, SmartDetect and SmartWeigh. Finally, the company aims to effectively provide tools to help contractors optimize their fleets, operations and job sites.
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.
Combining Tenna’s leading fleet-based products with the foundational capabilities of the Deere Operations Center positions the company perfectly to help customers optimize their fleets, operations and job sites. Tenna remains committed to a brand-neutral approach that will focus on mixed fleet solutions to fit the industry's diverse fleets and job sites.
Strategic Actions of Deere’s Peers
Lindsay Corporation (LNN - Free Report) acquired a 49.9% minority interest in Pessl Instruments GmbH in January 2025, enhancing its position as an irrigation management and scheduling solution provider in the industry.
Under this acquisition, Lindsay will benefit from Pessl’s leading position in specialty crop applications. Whereas, Pessl will benefit from Lindsay’s leading position in row crop applications. Customers using Lindsay's FieldNET and Pessl's METOS solutions will gain from advanced agronomic insights, which will provide them with informed decisions for healthier crops, optimized resource use and higher yields.
AGCO Corporation (AGCO - Free Report) is focusing on strategic transformation, wherein it intends to streamline and focus its portfolio of agricultural machinery and precision ag technology solutions. In line with this, on Apr. 1, 2024, AGCO Corp formed a joint venture with Trimble to form PTx Trimble. PTx Trimble is now a new company with an 85% stake in AGCO and a 15% stake in Trimble.
On Nov. 1, the company sold the majority of its Grain & Protein business to American Industrial Partners. AGCO Corp intends to use the net proceeds from the transaction per its capital allocation goals, which include debt repayment, disciplined investment in technology and organic growth initiatives and capital return to shareholders.
DE’s Price Performance, Valuations & Estimates
Deere shares have gained 24% in a year compared with the Zacks Manufacturing - Farm Equipment industry’s 25% growth. In comparison, the broader Zacks Industrial Products sector has returned 31% and the S&P 500 has rallied 24%.
Image Source: Zacks Investment Research
Deere is currently trading at a forward 12-month price/earnings of 30.23X, a premium compared with the industry’s 29.67X. It is also higher than DE’s five-year median of 24.20X.
Image Source: Zacks Investment Research
The consensus estimate for fiscal 2026 earnings suggests a year-over-year decline of 4.3%. However, the same for fiscal 2027 indicates year-over-year growth of 29.4%. The Zacks Consensus Estimate for 2026 sales implies 4.6% year-over-year growth. The same for fiscal 2027 suggests growth of 8.9%.
Image Source: Zacks Investment Research
EPS estimates for 2026 and 2027 have moved north over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Will Deere's Tenna Buyout Aid Its Construction & Forestry Segment?
Key Takeaways
Deere & Company (DE - Free Report) acquired construction technology company Tenna in February 2026 with the aim of scaling and growing the business using Tenna's customer-focused mixed-fleet model. The deal also aligns with Deere's broader strategy to expand the Construction & Forestry business.
Deere aims to focus on three key areas in the construction industry — machines, tasks and job sites. First, the company is focused on completing its earthmoving equipment range with high-precision and basic machines to have a world-class product portfolio. For tasks, Deere is boosting machine performance with precision techs like SmartGrade, SmartDetect and SmartWeigh. Finally, the company aims to effectively provide tools to help contractors optimize their fleets, operations and job sites.
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.
Combining Tenna’s leading fleet-based products with the foundational capabilities of the Deere Operations Center positions the company perfectly to help customers optimize their fleets, operations and job sites. Tenna remains committed to a brand-neutral approach that will focus on mixed fleet solutions to fit the industry's diverse fleets and job sites.
Strategic Actions of Deere’s Peers
Lindsay Corporation (LNN - Free Report) acquired a 49.9% minority interest in Pessl Instruments GmbH in January 2025, enhancing its position as an irrigation management and scheduling solution provider in the industry.
Under this acquisition, Lindsay will benefit from Pessl’s leading position in specialty crop applications. Whereas, Pessl will benefit from Lindsay’s leading position in row crop applications. Customers using Lindsay's FieldNET and Pessl's METOS solutions will gain from advanced agronomic insights, which will provide them with informed decisions for healthier crops, optimized resource use and higher yields.
AGCO Corporation (AGCO - Free Report) is focusing on strategic transformation, wherein it intends to streamline and focus its portfolio of agricultural machinery and precision ag technology solutions. In line with this, on Apr. 1, 2024, AGCO Corp formed a joint venture with Trimble to form PTx Trimble. PTx Trimble is now a new company with an 85% stake in AGCO and a 15% stake in Trimble.
On Nov. 1, the company sold the majority of its Grain & Protein business to American Industrial Partners. AGCO Corp intends to use the net proceeds from the transaction per its capital allocation goals, which include debt repayment, disciplined investment in technology and organic growth initiatives and capital return to shareholders.
DE’s Price Performance, Valuations & Estimates
Deere shares have gained 24% in a year compared with the Zacks Manufacturing - Farm Equipment industry’s 25% growth. In comparison, the broader Zacks Industrial Products sector has returned 31% and the S&P 500 has rallied 24%.
Deere is currently trading at a forward 12-month price/earnings of 30.23X, a premium compared with the industry’s 29.67X. It is also higher than DE’s five-year median of 24.20X.
The consensus estimate for fiscal 2026 earnings suggests a year-over-year decline of 4.3%. However, the same for fiscal 2027 indicates year-over-year growth of 29.4%. The Zacks Consensus Estimate for 2026 sales implies 4.6% year-over-year growth. The same for fiscal 2027 suggests growth of 8.9%.
EPS estimates for 2026 and 2027 have moved north over the past 60 days.
Deere currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.