Full year reported operating margin of 5.9% and adjusted operating margin(1) of 7.7%
2025 full year reported earnings per share of $9.75 and adjusted earnings per share(1) of $5.28
Cash flow provided by operating activities of $988 million and record free cash flow(1) of $740 million
2026 net sales and earnings per share outlook above 2025 levels
DULUTH, Ga., Feb. 5, 2026 /PRNewswire/ -- AGCO (NYSE:AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, reported net sales of $2.9 billion for the fourth quarter of 2025, an increase of 1.1% compared to the fourth quarter of 2024. The fourth quarter of 2024 included other revenue of $74.7 million which represents revenue from the Company's divestiture of the majority of its Grain & Protein business as shown in the regional net sales table. Reported net income was $1.30 per share for the quarter and adjusted net income(1) was $2.17 per share. These results compare to reported net loss of $(3.42) per share and adjusted net income(1) of $1.97 per share for the fourth quarter of 2024. Excluding favorable currency translation impacts of 6.4%, net sales in the quarter decreased 5.3% compared to the fourth quarter of 2024.
"AGCO delivered strong fourth quarter results, achieving an adjusted operating margin(1) of 10.1% reflecting the team's ability to deliver despite ongoing pressures on farm income and global trade dynamics that influenced overall industry activity," said Eric Hansotia, AGCO's Chairman, President and Chief Executive Officer. "Even in this environment, we grew global market share, including our largest‑ever share gains in North American large ag. At the same time, we applied disciplined production planning, enabling us to finish 2025 with meaningfully lower company and dealer inventories compared to prior‑year levels. Our full‑year adjusted operating margin(1) of 7.7% was nearly double the performance recorded at the bottom of the last cycle. Strong working-capital management also supported record free cash flow, representing approximately 188% free cash flow conversion(1). These strong results in today's industry landscape demonstrate the continued resilience of AGCO's earnings profile, driven by our three high‑margin growth levers, continued cost discipline and the benefits of our multi‑year structural transformation."
Hansotia continued, "In 2026, we will remain dedicated to advancing our Farmer‑First strategy. Our innovation pipeline remains robust with a full slate of new product introductions designed to help make farmers more productive and profitable. This level of innovation, coupled with our ongoing cost‑reduction initiatives, demonstrates the strength of our execution. These actions will help balance the effects of low levels of farm profitability and persistent trade‑related uncertainty, while positioning the company to deliver improved performance in 2026. We are well prepared to accelerate growth when demand strengthens and solidify our role as the trusted partner for industry-leading, smart farming solutions."
Net sales for the full year of 2025 were approximately $10.1 billion, which is a decrease of 13.5% compared to 2024. Fiscal year 2024 included other revenue of $816.5 million which represents revenue from the Company's divestiture of the majority of its Grain & Protein business as shown in the regional net sales table. For the full year, reported net income was $9.75 per share and adjusted net income(1) was $5.28 per share. These results compare to reported net loss of $(5.69) per share and adjusted net income(1) of $7.50 per share in 2024. Excluding favorable currency translation impacts of 2.3%, net sales for the full year decreased 15.8% compared to 2024.
Highlights
Reported fourth-quarter regional sales results(2): Europe/Middle East ("EME") +7.9%, North America (7.8)%, South America (3.3)%, Asia/Pacific/Africa ("APA") +5.1%
Constant currency fourth-quarter regional sales results(1)(2)(3): EME (0.7)%, North America (8.5)%, South America (9.3)%, APA +2.8%
Fourth quarter regional operating margin performance: EME 16.8%, North America (6.4)%, South America 2.7%, APA 7.6%
Full-year reported operating margins and adjusted operating margins(1) were 5.9% and 7.7% respectively, in 2025 compared to (1.0)% and 8.9% in 2024
(1)
See reconciliation of non-GAAP measures in appendix.
(2)
As compared to fourth quarter 2024.
(3)
Excludes currency translation impact.
Market Update
Industry Unit Retail Sales
Tractors
Combines
Year ended December 31, 2025
Change from
Prior Year
Change from
Prior Year
North America(4)
(10) %
(27) %
Brazil(5)
(2) %
(22) %
Western Europe(5)
(7) %
(5) %
(4)
Excludes compact tractors.
(5)
Based on Company estimates.
Hansotia concluded, "Global agricultural markets remained under significant pressure in 2025. Crop‑focused producers operated with tighter margins as corn, soybean and wheat prices stayed near breakeven levels amid ample global supplies and evolving trade dynamics. In the U.S., record corn production further influenced grain pricing and placed added pressure on farm profitability. Livestock producers benefited from firmer pricing and improved cash receipts during 2025, contributing to a more encouraging backdrop in that sector. Overall sentiment among crop producers remained measured as input costs stayed elevated and government programs played a larger role in supporting income. As a result, demand for new equipment moderated further across all major markets, aligned with current farm economics and global trade conditions. We continue to expect increasing adoption of precision and smart‑farming technologies over time, though today's environment is contributing to softer demand across many equipment categories."
North American industry retail tractor sales were 10% lower during 2025 compared to the previous year with the most pronounced declines occurring in higher horsepower categories, particularly in recent months. Combine unit sales were 27% lower in 2025 compared to 2024. Current farm economics, evolving grain export demand and elevated input costs are expected to continue to pressure industry demand throughout 2026, especially for larger equipment.
Brazil industry retail tractor sales were 2% lower during 2025 compared to the previous year reflecting softer demand for larger tractors, partially offset by improved demand for smaller and mid-size tractors. While crop production remained healthy and certain trade developments provided opportunities for farmers, demand for larger equipment has not yet shown renewed growth. High financing costs, tight credit and broader political dynamics are expected to continue to constrain demand in 2026.
Western Europe industry retail tractor sales were 7% lower during 2025 compared to the previous year with double digit percentage decreases across most markets except Spain and Italy, which saw growth. Relatively healthy farm income in 2026, driven primarily by the dairy and livestock producers, as well as an aging fleet are expected to support industry demand slightly ahead of 2025 levels.
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended December 31,
2025
2024
% change from 2024
% change from 2024 due to currency translation(6)
% changeexcluding currency translation
North America
$ 466.0
$ 505.6
(7.8) %
0.7 %
(8.5) %
South America
259.9
268.8
(3.3) %
6.0 %
(9.3) %
EME
2,017.5
1,869.9
7.9 %
8.6 %
(0.7) %
APA
176.8
168.3
5.1 %
2.3 %
2.8 %
Total Segments
2,920.2
2,812.6
3.8 %
6.6 %
(2.8) %
Other(7)
—
74.7
(100.0) %
— %
(100.0) %
$ 2,920.2
$ 2,887.3
1.1 %
6.4 %
(5.3) %
Years Ended December 31,
2025
2024
% changefrom 2024
% change from 2024due to currencytranslation(6)
% changefrom 2024 due to acquisitionof a business(6)
% change excluding currency translation andacquisition of a business
North America
$ 1,665.5
$ 2,298.3
(27.5) %
(0.5) %
0.3 %
(27.3) %
South America
1,115.6
1,208.5
(7.7) %
(2.4) %
0.4 %
(5.7) %
EME
6,736.7
6,712.3
0.4 %
4.7 %
0.6 %
(4.9) %
APA
564.2
626.3
(9.9) %
0.1 %
0.9 %
(10.9) %
Total Segments
10,082.0
10,845.4
(7.0) %
2.5 %
0.5 %
(10.0) %
Other(7)
—
816.5
(100.0) %
— %
— %
(100.0) %
$ 10,082.0
$ 11,661.9
(13.5) %
2.3 %
0.5 %
(16.3) %
(6)
See footnotes for additional disclosures.
(7)
"Other" represents the results for the three months and year ended December 31, 2024 for the majority of the Company's Grain & Protein ("G&P") business which was divested on November 1, 2024. The results of the G&P business through the date of the divestiture were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments.
North America
North American net sales were 8.5% lower during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding the impact of favorable currency translation. Softer industry sales and production levels below end market demand contributed to lower sales. The most significant sales declines occurred in sprayers and mid-range tractors. Income from operations for the fourth quarter of 2025 was $33.1 million lower compared to the same period in 2024 and operating margins remained negative. This decrease was primarily a result of lower sales and production volumes.
South America
Net sales in the South American region were 9.3% lower during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding the impact of favorable currency translation. Industry demand was more moderate with lower sales in tractors and implements, partially offset by growth in combines. Income from operations for the fourth quarter of 2025 was $20.5 million lower compared to the same period in 2024. This decrease was primarily a result of lower sales and higher engineering expenses.
Europe/Middle East
Europe/Middle East net sales were 0.7% lower during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding the impact of favorable currency translation. Lower sales across most of the Western European markets were partially offset by growth in Germany and the U.K. Lower sales in tractors were partially offset by growth in hay tools. Income from operations increased $57.4 million in the fourth quarter of 2025 compared to the same period in 2024. This increase was primarily a result of positive net pricing and a favorable sales mix.
Asia/Pacific/Africa
Net sales in the Asia/Pacific/Africa region increased 2.8% during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding favorable currency translation impacts. Higher sales in Australia were partially offset by lower sales across most of the Asian markets. Income from operations increased $8.5 million in the fourth quarter of 2025 compared to the same period in 2024 primarily due to lower selling, general and administrative ("SG&A expenses").
Outlook
AGCO's net sales for 2026 are expected to range from $10.4 to $10.7 billion. Adjusted operating margins are projected to range from 7.5% - 8.0%. Production volumes are expected to be relatively flat with cost controls and positive pricing contributing to results. Based on these assumptions, 2026 earnings per share are targeted at approximately $5.50 to $6.00. These estimates incorporate the expected impact of tariffs in effect as of February 5, 2026, along with AGCO's mitigation strategies. Any changes to tariff policies or related responses could affect these projections.
* * * * *
AGCO will host a conference call with respect to this earnings announcement at 10 a.m. Eastern Time on Thursday, February 5. The Company will refer to slides on its conference call. Interested persons can access the conference call and slide presentation via AGCO's website at www.agcocorp.com under the "Investors" Section. A replay of the conference call will be available approximately two hours after the conclusion of the conference call for 12 months following the call. A copy of this press release will be available on AGCO's website for at least 12 months following the call.
* * * * *
Safe Harbor Statement
Statements that are not historical facts, including the projections of earnings per share, production levels, sales, industry demand, market conditions, commodity prices, currency translation, farm income levels, margin levels, strategy, investments in product and technology development, new product introductions, restructuring and other cost reduction initiatives, production volumes, tax rates and general economic conditions, are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. The following are among the factors that could cause actual results to differ materially from the results discussed in or implied by the forward-looking statements.
Our financial results depend entirely upon the agricultural industry, and factors that adversely affect the agricultural industry, including declines in the general economy, adverse weather, tariffs, increases in farm input costs, lower commodity prices, lower farm income and changes in the availability of credit for our retail customers, will adversely affect us.
We maintain an independent dealer and distribution network in the markets where we sell products. The financial and operational capabilities of our dealers and distributors are critical to our ability to compete in these markets. Higher inventory levels at our dealers and high utilization of dealer credit limits as well as the financial health of our dealers could negatively impact future sales and adversely impact our performance.
On April 1, 2024, we completed the acquisition of the ag assets and technologies of Trimble through the formation of a joint venture, PTx Trimble, of which we own 85%. Financing the PTx Trimble transaction significantly increased our indebtedness and interest expense. We also have made various assumptions relating to the acquisition that may not prove to be correct, and we may fail to realize all of the anticipated benefits of the acquisition. All acquisitions involve risk, and there is no certainty that the acquired business will operate as expected. Each of these items, as well as similar acquisition-related items, would adversely impact our performance.
A majority of our sales and manufacturing takes place outside the United States, and many of our sales involve products that are manufactured in one country and sold in a different country. As a result, we are exposed to risks related to foreign laws, taxes and tariffs, trade restrictions, economic conditions, labor supply and relations, political conditions and governmental policies. The recent announcements of significant trade policy and tariff actions by the U.S. government, including but not limited to tariffs on imported steel and aluminum products, tariffs on certain imports from China, tariffs on certain imports from Canada and Mexico, announced trade deal between the United States and European Union of baseline tariffs on certain imports from the European Union, and baseline tariffs on most imports from most other countries, continue to create significant uncertainty and potential risks for our business. These announcements in some cases were followed by delays and changes in implementation, and the ultimate tariff structures are unclear at the current time. Depending on the countries affected, increases in tariffs have raised the costs of inputs used in manufacturing our products, which in turn has impacted our cost of goods sold. Additionally, higher tariffs may lead to increased after-tariff sales prices for the products we sell. The impacts of the tariffs may be partially mitigated as a majority of our sales and manufacturing takes place outside the United States. While we are actively exploring opportunities to mitigate these increased costs, there can be no guarantee that we will be able to fully offset the impact of these tariffs. Furthermore, the imposition of retaliatory tariffs from other countries on our exported products could negatively affect our sales and marketplace access in those countries. Moreover, the uncertainty of the enforceability of the tariffs, any changes to such tariffs and any future trade policy changes has adversely impacted, and is expected to continue to adversely impact, our sales.
We cannot predict or control the impact of the conflict in Ukraine on our business. Already it has resulted in reduced sales in Ukraine as farmers have experienced economic distress, difficulties in harvesting and delivering their products, as well as general uncertainty. There is a potential for natural gas shortages, as well as shortages in other energy sources, throughout Europe, which could negatively impact our production in Europe both directly and through interrupting the supply of parts and components that we use. It is unclear how long these conditions will continue, or whether they will worsen, and what the ultimate impact on our performance will be. In addition, AGCO sells products in, and purchases parts and components from, other regions where there could be hostilities. Any hostilities likely would adversely impact our performance.
Most retail sales of the products that we manufacture are financed, either by our joint ventures with Rabobank or by a bank or other private lender. Our joint ventures with Rabobank, which are controlled by Rabobank and are dependent upon Rabobank for financing as well, finance approximately 50% of the retail sales of our tractors and combines in the markets where the joint ventures operate. Any difficulty by Rabobank to continue to provide that financing, or any business decision by Rabobank as the controlling member not to fund the business or particular aspects of it (for example, a particular country or region), would require the joint ventures to find other sources of financing (which may be difficult to obtain), or us to find another source of retail financing for our customers, or our customers would be required to utilize other retail financing providers. As a result of the recent economic downturn, financing for capital equipment purchases generally has become more difficult in certain regions and in some cases, can be expensive to obtain. To the extent that financing is not available or available only at unattractive prices, our sales would be negatively impacted. In addition, Rabobank also is the lead lender in our revolving credit facility and term loans and for many years has been an important financing partner for us. Any interruption or other challenges in that relationship would require us to obtain alternative financing, which could be difficult.
Both AGCO and our finance joint ventures have substantial accounts receivable from dealers and end customers, and we would be adversely impacted if the collectability of these receivables was less than optimal; this collectability is dependent upon the financial strength of the farm industry, which in turn is dependent upon the general economy and commodity prices, as well as several of the other factors listed in this section.
We can experience substantial and sustained volatility with respect to currency exchange rate and interest rate changes, which can adversely affect our reported results of operations and the competitiveness of our products.
Our success depends on the introduction of new products, particularly engines that comply with emission requirements and sustainable smart farming technology, which require substantial expenditures; there is no certainty that we can develop the necessary technology or that the technology that we develop will be attractive to farmers or available at competitive prices.
Our expansion plans in emerging markets, including establishing a greater manufacturing and marketing presence and growing our use of component suppliers, could entail significant risks.
Our business is increasingly subject to regulations relating to privacy and data protection, and if we violate any of those regulations, or otherwise are the victim of a cyberattack, we could be subject to significant claims, penalties and damages.
Cybersecurity breaches including ransomware attacks and other means are rapidly increasing. We continue to review and improve our safeguards to minimize our exposure to future attacks. However, there always will be the potential of the risk that a cyberattack will be successful and will disrupt our business, either through shutting down our operations, destroying data, exfiltrating data or otherwise.
We depend on suppliers for components, parts and raw materials for our products, and any failure by our suppliers to provide products as needed, or by us to promptly address supplier issues, will adversely impact our ability to timely and efficiently manufacture and sell products. In addition, the potential of future natural gas shortages in Europe, as well as predicted overall shortages in other energy sources, could also negatively impact our production and that of our supply chain in the future. There can be no assurance that there will not be future disruptions.
Any future pandemics could negatively impact our business through reduced sales, facilities closures, higher absentee rates and reduced production at both our plants and the plants that supply us with parts and components. In addition, logistical and transportation-related issues and similar problems may also arise.
We have previously experienced significant inflation in a range of costs, including for parts and components, shipping and energy. While we have been able to pass along most of those costs through increased prices, there can be no assurance that we will be able to continue to do so. If we are not, it will adversely impact our performance.
We face significant competition, and if we are unable to compete successfully against other agricultural equipment manufacturers, we would lose customers and our net sales and performance would decline.
We have a substantial amount of indebtedness (and have incurred additional indebtedness as part of the PTx Trimble joint venture transaction), and, as a result, we are subject to certain restrictive covenants and payment obligations, as well as increased leverage generally, that may adversely affect our ability to operate and expand our business.
Further information concerning these and other factors is included in AGCO's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2024 and subsequent Form 10-Qs. AGCO disclaims any obligation to update any forward-looking statements except as required by law.
* * * * *
About AGCO
AGCO (NYSE:AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.
AGCO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in millions)
December 31, 2025
December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents
$ 861.8
$ 612.7
Accounts and notes receivable, net
1,079.4
1,267.4
Inventories, net
2,709.3
2,731.3
Other current assets
545.6
526.6
Total current assets
5,196.1
5,138.0
Property, plant and equipment, net
1,996.2
1,818.6
Right-of-use lease assets
167.3
168.9
Investments in affiliates
609.9
519.6
Deferred tax assets
905.5
561.0
Other assets
481.0
435.2
Intangible assets, net
673.0
728.9
Goodwill
1,898.8
1,820.4
Total assets
$ 11,927.8
$ 11,190.6
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
Current Liabilities:
Borrowings due within one year
$ 117.7
$ 415.2
Accounts payable
951.0
813.0
Accrued expenses
2,538.7
2,469.6
Other current liabilities
121.7
128.2
Total current liabilities
3,729.1
3,826.0
Long-term debt, less current portion and debt issuance costs
2,323.1
2,233.3
Operating lease liabilities
122.1
127.5
Pension and postretirement health care benefits
169.2
155.6
Deferred tax liabilities
126.5
125.0
Other noncurrent liabilities
885.1
680.3
Total liabilities
7,355.1
7,147.7
Redeemable noncontrolling interests
299.2
300.1
Stockholders' Equity:
Preferred stock
—
—
Common stock
0.7
0.7
Additional paid-in capital
0.5
—
Retained earnings
6,047.2
5,645.0
Accumulated other comprehensive loss
(1,774.9)
(1,902.9)
Total stockholders' equity
4,273.5
3,742.8
Total liabilities, redeemable noncontrolling interests and stockholders' equity
$ 11,927.8
$ 11,190.6
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in millions, except per share data)
Three Months Ended December 31,
2025
2024
Net sales
$ 2,920.2
$ 2,887.3
Cost of goods sold
2,179.1
2,198.6
Gross profit
741.1
688.7
Operating expenses:
Selling, general and administrative expenses
316.3
323.2
Engineering expenses
130.9
103.0
Amortization of intangibles
17.1
26.6
Impairment charges
2.7
364.2
Restructuring and business optimization expenses
