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AGCO REPORTS FIRST-QUARTER RESULTSMay 5, 2026 7:30 AM
PR Newswire (US) Net sales of $2.3 billion, up 14.3% year-over-yearReported earnings per share of $0.76 and adjusted earnings per share(1) of $0.94Full-year adjusted earnings per share outlook increased to approximately $6.00Regular quarterly dividend increased to $0.30 per share$350 million in share repurchases to commence in the second quarter of 2026DULUTH, Ga., May 5, 2026 /PRNewswire/ -- AGCO (NYSE: AGCO) reported net sales of $2.3 billion for the first quarter ended March 31, 2026, an increase of 14.3% compared to the first quarter of 2025. Reported net income was $0.76 per share for the quarter and adjusted net income(1) was $0.94 per share. These results compare to reported net income of $0.14 per share and adjusted net income(1) of $0.41 per share for the first quarter of 2025. Excluding favorable foreign currency translation of 9.6%, net sales in the quarter increased 4.7% compared to the first quarter of 2025. "AGCO delivered healthy first-quarter sales and margin results, reflecting disciplined execution in a demanding agricultural market and dynamic global environment," said Eric Hansotia, AGCO's Chairman, President and CEO. "We outpaced the market, particularly in high-horsepower equipment and precision agriculture, underscoring the strength of our differentiated portfolio and Farmer-First approach. We stayed focused on supporting customers while maintaining operational flexibility with continued production alignment delivering further progress on dealer and company inventories. We achieved near-record first-quarter margins in Europe and continued to grow market share in high-horsepower offerings in North America."Hansotia continued, "The first quarter results demonstrate a resilient earnings profile, a solid margin structure and positive momentum from our multi-year structural transformation that reinforce our confidence in our strategy which is delivering increased value to our shareholders underscored by our increased quarterly dividend and next phase of share repurchases. As we progress through 2026, we remain firmly focused on executing our Farmer-First strategy with a strong innovation pipeline and continued cost discipline to support healthy cash generation, positioning AGCO to navigate ongoing subdued demand and deliver improved performance as market fundamentals recover while keeping farmers at the center of everything we do."First Quarter HighlightsReported regional sales results(2): Europe/Middle East ("EME") +20.3%, North America +10.0%, Latin America ("LATAM") (17.3)%, Asia/Pacific/Africa ("APA") +31.2%Constant currency regional sales results(1)(2)(3): EME +9.0%, North America +9.0%, LATAM (30.3)%, APA +20.9%Regional operating margin performance: EME 16.2%, North America (12.5)%, LATAM (19.3)%, APA 3.2%The Company plans to initiate $350 million in share repurchases in the second quarter of 2026The Company's Board of Directors approved an increase in the Company's regular quarterly dividend to $0.30 per share, from $0.29 per share(1) See reconciliation of non-GAAP measures in appendix.(2) As compared to first quarter 2025.(3) Excludes currency translation impact.Today the Company is also announcing the strategic evolution of its long-standing AGCO Finance U.S. and Canada joint ventures to better align with evolving market dynamics and increasing regulatory and compliance requirements. The new framework will optimize regulatory capital efficiency and capital deployment while strengthening AGCO's strategic partnership with Rabobank and its commitment to providing competitive financing solutions to farmers and dealers. On April 30, 2026, the Company executed two purchase agreements with wholly owned subsidiaries of Rabobank to sell its 49% equity interests in the joint ventures in the U.S. and Canada, AGCO Finance LLC and AGCO Finance Canada, Ltd., respectively, for approximately $190.0 million. The proceeds will be utilized towards share repurchases. In connection with the purchase agreements, the Company entered into Financing Framework Agreements with wholly owned subsidiaries of Rabobank that establish the commercial terms governing the future provision of financing solutions. The Company will continue to evaluate similar agreements in respect of other joint ventures with wholly owned subsidiaries of Rabobank in the future.Market Update
Industry Unit Retail Sales
Tractors
CombinesThree Months Ended March 31, 2026
Change fromPrior Year Period
Change fromPrior Year PeriodNorth America(4)
(8) %
(7) %Brazil(5)
(10) %
(38) %Western Europe(5)
7 %
(5) %
(4) Excludes compact tractors.(5) Based on Company estimates.Hansotia concluded, "Global agricultural markets entered 2026 with heightened focus on cost management and productivity, particularly for crop-focused producers operating with tight margins as corn, soybean and wheat prices are near breakeven levels amid ample global supplies and evolving geopolitical and trade dynamics. Developments in the Middle East increased volatility across global energy, logistics and input markets, resulting in higher fuel, fertilizer and transportation costs that reinforced the importance of operational efficiency. In the U.S., strong harvests continued to shape grain pricing and farm profitability, while livestock producers benefited from firmer pricing and improved cash receipts, supporting a more favorable backdrop in that sector. Overall sentiment among crop producers remains cautious as input costs stay elevated and government programs continue to play an important role in supporting farm income. While demand for new equipment remains measured across many markets, it has largely aligned with current farm economics. Adoption of smart farming technologies continues to advance as farmers emphasize productivity, efficiency and returns on invested capital, even as near-term demand across several equipment categories remains selective."North American industry retail tractor sales were 8% lower in the first three months of 2026 compared to the same period in 2025 with the most pronounced declines occurring in higher horsepower categories. Combine unit sales were 7% lower year-over-year during the same period. Current farm economics, evolving grain export demand and elevated input costs are expected to continue to pressure industry demand throughout 2026, particularly for larger equipment.Brazil industry retail tractor sales were 10% lower in the first three months of 2026 compared to the same period in 2025 reflecting softer demand for larger tractors partially offset by improved demand for smaller and mid-size equipment. Brazil is producing near-record crops, but profitability is under pressure due to high production costs, particularly for imported fertilizer and 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% higher during the first three months of 2026 compared to the same period in 2025 with growth across most of the Western European markets. Farm income levels in 2025, supported primarily by dairy and livestock producers, together with an aging equipment fleet, provides a foundation for 2026 industry demand to remain modestly above 2025 levels.Regional ResultsAGCO Regional Net Sales (in millions)Three Months Ended March 31,
2026
2025
% change
from 2025
% change
from 2025
due to
currency
translation(6)
% change
excluding
currency
translationNorth America
$ 406.4
$ 369.5
10.0 %
1.0 %
9.0 %LATAM(7)
211.7
256.0
(17.3) %
13.0 %
(30.3) %EME
1,600.8
1,330.5
20.3 %
11.3 %
9.0 %APA
124.0
94.5
31.2 %
10.3 %
20.9 %Total
$ 2,342.9
$ 2,050.5
14.3 %
9.6 %
4.7 %
(6)See footnotes for additional disclosures.(7)Note: Effective January?1, 2026, the Company realigned its organizational structure to support its Farmer-First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change.North AmericaNorth American net sales increased 9.0% during the first quarter of 2026 compared to the first quarter of 2025, excluding the impact of favorable currency translation. Higher unit sales compared to the prior year supported the increase in sales. The most significant sales increases occurred in high-horsepower tractors, hay tools and sprayers. Income from operations for the first quarter of 2026 was $26.8 million lower compared to the same period in 2025 and operating margins remained negative. This decrease was primarily a result of higher tariff-related input costs.Latin AmericaNet sales in the Latin American region were 30.3% lower during the first quarter of 2026 compared to the first quarter of 2025, excluding the impact of favorable currency translation. Softer industry demand resulted in lower sales across all product categories. Income from operations for the first quarter of 2026 was $47.4 million lower compared to the same period in 2025. This decrease was primarily the result of significantly lower sales and negative pricing.Europe/Middle EastNet sales in the Europe/Middle East region increased 9.0% during the first quarter of 2026 compared to the first quarter of 2025, excluding the impact of favorable currency translation. The increased sales resulted from increased unit volumes compared to the first quarter of 2025 which included dealer inventory de-stocking. Sales growth in Germany and the United Kingdom was partially offset by declines in Turkey and France. Growth in high-horsepower tractor sales drove most of the increase. Income from operations increased $104.6 million in the first quarter of 2026 compared to the same period in 2025. This increase was primarily a result of sales growth, favorable product mix and increased production volumes.Asia/Pacific/AfricaAsia/Pacific/Africa region net sales increased 20.9% during the first quarter of 2026 compared to the first quarter of 2025, excluding favorable currency translation impacts. Higher sales in Australia and South Africa were partially offset by lower sales across most of the Asian markets. Income from operations increased $6.7 million in the first quarter of 2026 compared to the same period in 2025 primarily due to higher levels of sales and production volumes.OutlookAGCO's net sales for 2026 are expected to range from $10.5 to $10.7 billion. Adjusted operating margins are projected to range from 7.5% - 8.0% reflecting continued emphasis on pricing discipline, cost management and operational alignment. Production volumes are expected to remain relatively flat to slightly lower, with cost controls and positive pricing contributing to performance. Based on these assumptions, 2026 earnings per share are targeted at approximately $6.00. These estimates reflect tariff policies as of May 5, 2026, together with AGCO's established mitigation actions and sourcing strategies. Any changes to tariff policies or related responses could affect these projections.* * * * *AGCO will host a conference call for this earnings announcement at 10 a.m. Eastern Time on Tuesday, May 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. The webcast will also be archived immediately afterward for 12 months. A copy of this press release will be available on AGCO's website for at least 12 months following the call.* * * * *Safe Harbor StatementStatements 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 generally, 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 global trade landscape continues to be highly volatile. In 2025, the U.S. government implemented a series of tariffs on goods imported into the United States from various countries, and in many cases these measures resulted in reciprocal tariffs and other actions on goods exported from the United States. These tariffs and related actions are complex and continue to evolve as trade negotiations occur. In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act ("IEEPA"), which the U.S. government had relied on to impose certain tariffs, does not authorize the administration to impose such tariffs. Following that decision, on March 4, 2026, the U.S. Court of International Trade ("CIT") ordered U.S. Customs and Border Protection ("CBP") to process refunds of tariffs imposed under IEEPA, and on March 27, 2026, the CIT issued an amended order expanding the scope of entries subject to reliquidation. On April 20, 2026, the Consolidated Administration and Processing of Entries system opened for the first phase of refund filings. We have submitted certain refund claims under this initial phase; however, these claims remain subject to CBP review, and we cannot predict the timing, amount or ultimate collectability of any refunds to which we may be entitled. The IEEPA tariffs remain subject to ongoing litigation, and the administration has announced plans to implement new tariffs under alternative statutory authority. As a result, the timing and extent of any refunds, the structure and scope of any new tariffs and the overall tariff framework remain uncertain and could create significant risks for our business. Depending on the countries affected, increases in tariffs have raised, and may continue to raise, the costs of inputs used in manufacturing our products, which in turn has impacted, and may further impact, our cost of goods sold. In addition, higher tariffs may lead to increased after-tariff sales prices for the products we sell. Additionally, the economic uncertainty caused by the tariffs may result in customers delaying planned purchases of products and services. While impacts of the tariffs may be partially mitigated by the fact that a majority of our sales and manufacturing takes place outside the United States, there can be no guarantee that we will be able to fully offset the impact of existing or future tariffs through pricing, sourcing changes or other measures. Furthermore, retaliatory tariffs imposed by other countries on our exported products could negatively affect our sales and marketplace access in those countries. The economic uncertainty caused by these tariffs and related trade policy developments, together with uncertainty regarding their enforceability, continuation or modification, 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 or the Middle East on our business. These conflicts have already driven increased volatility across global energy, logistics and input markets, leading to higher fuel, fertilizer, transportation and input costs, as well as general uncertainty for farmers. 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, 2025, and subsequent Form 10-Qs. AGCO disclaims any obligation to update any forward-looking statements except as required by law.* * * * *About AGCOAGCO (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 CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(unaudited and in millions)
March 31, 2026
December 31, 2025ASSETS
Current Assets:
Cash and cash equivalents$ 514.9
$ 861.8Accounts and notes receivable, net1,242.3
1,079.4Inventories, net3,001.8
2,709.3Other current assets579.2
545.6Total current assets5,338.2
5,196.1Property, plant and equipment, net1,954.8
1,996.2Right-of-use lease assets159.4
167.3Investments in affiliates628.1
609.9Deferred tax assets932.2
905.5Other assets474.6
481.0Intangible assets, net663.0
673.0Goodwill1,890.6
1,898.8Total assets$ 12,040.9
$ 11,927.8
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITYCurrent Liabilities:
Borrowings due within one year $ 555.5
$ 117.7Accounts payable 1,121.5
951.0Accrued expenses 2,267.2
2,538.7Other current liabilities 184.1
121.7Total current liabilities4,128.3
3,729.1Long-term debt, less current portion and debt issuance costs2,018.7
2,323.1Operating lease liabilities115.9
122.1Pension and postretirement health care benefits167.8
169.2Deferred tax liabilities123.7
126.5Other noncurrent liabilities894.5
885.1Total liabilities7,448.9
7,355.1Redeemable noncontrolling interests295.5
299.2Stockholders' Equity:
Preferred stock—
—Common stock0.7
0.7Additional paid-in capital—
0.5Retained earnings6,032.2
6,047.2Accumulated other comprehensive loss(1,736.4)
(1,774.9)Total stockholders' equity4,296.5
4,273.5Total liabilities, redeemable noncontrolling interests and stockholders' equity$ 12,040.9
$ 11,927.8See accompanying notes to condensed consolidated financial statements. AGCO CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited and in millions, except per share data)
Three Months Ended March 31,
2026
2025Net sales$ 2,342.9
$ 2,050.5Cost of goods sold1,761.5
1,529.9Gross profit581.4
520.6Operating expenses:
Selling, general and administrative expenses339.1
325.8Engineering expenses132.6
116.0Amortization of intangibles16.9
15.3Impairment charges2.1
1.1Restructuring and business optimization expenses10.0
13.0Income from operations80.7
49.4Interest expense, net15.2
18.5Other expense, net26.5
32.3Income (loss) before income taxes and equity in net earnings of affiliates39.0
(1.4)Income tax provision 4.6
2.0Income (loss) before equity in net earnings of affiliates34.4
(3.4)Equity in net earnings of affiliates18.0
12.1Net income52.4
8.7Net loss attributable to noncontrolling interests2.6
1.8Net income attributable to AGCO Corporation$ 55.0
$ 10.5Net income per common share attributable to AGCO Corporation
Basic$ 0.76
$ 0.14Diluted$ 0.76
$ 0.14Cash dividends declared and paid per common share$ 0.29
$ 0.29Weighted average number of common and common equivalent shares outstanding:
Basic72.5
74.6Diluted72.7
74.7See accompanying notes to condensed consolidated financial statements. AGCO CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in millions)
Three Months Ended March 31,
2026
2025Cash flows from operating activities:
Net income$ 52.4
$ 8.7Adjustments to reconcile net income to net cash used in operating activities:
Depreciation66.7
60.5Amortization of intangibles16.9
15.3Stock compensation expense10.4
7.3Impairment charges2.1
1.1Equity in net earnings of affiliates, net of cash received(18.0)
(12.1)Deferred income tax benefit(23.6)
(27.3)Other4.0
6.6Changes in operating assets and liabilities:
Accounts and notes receivable, net(177.1)
44.7Inventories, net(284.1)
(149.4)Other current and noncurrent assets(24.0)
2.5Accounts payable202.3
177.9Accrued expenses(254.2)
(384.9)Other current and noncurrent liabilities15.8
36.9Total adjustments(462.8)
(220.9)Net cash used in operating activities(410.4)
(212.2)Cash flows from investing activities:
Purchases of property, plant and equipment(44.6)
(48.2)Proceeds from sale of property, plant and equipment0.1
1.1Investments in unconsolidated affiliates, net(8.5)
(0.1)Other(12.6)
(4.1)Net cash used in investing activities(65.6)
(51.3)Cash flows from financing activities:
Proceeds from indebtedness187.2
531.2Repayments of indebtedness(31.5)
(297.0)Payment of dividends to stockholders(21.0)
(21.6)Payment of minimum tax withholdings on stock compensation(4.6)
(7.4)Net cash provided by financing activities130.1
205.2Effects of exchange rate changes on cash, cash equivalents and restricted cash(1.0)
8.2Decrease in cash, cash equivalents and restricted cash(346.9)
(50.1)Cash, cash equivalents and restricted cash, beginning of period861.8
612.7Cash, cash equivalents and restricted cash, end of period$ 514.9
$ 562.6See accompanying notes to condensed consolidated financial statements. AGCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions)1. SEGMENT REPORTINGThe Company has four operating segments which are also its reportable segments which consist of the North America, Latin America, Europe/Middle East and Asia/Pacific/Africa regions. Effective January?1, 2026, the Company realigned its organizational structure to support its Farmer-First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change. The Company's reportable segments are geography based and distribute a full range of agricultural machinery and precision agriculture technology. The Company's Chief Operating Decision Maker ("CODM"), Eric P. Hansotia, Chairman of the Board, President and Chief Executive Officer, evaluates segment performance primarily based on income from operations. The CODM utilizes income from operations to evaluate each segment's performance including the allocation of resources. Sales for each segment are based on the location of the third-party customer. The Company's selling, general and administrative expenses and engineering expenses are generally charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income (loss) from operations for one segment may not be comparable to another segment. Segment results for the three months ended March 31, 2026 and 2025 based on the Company's reportable segments are as follows (in millions):Three Months Ended March 31,
North
America
Latin
America
Europe/
Middle East
Asia/Pacific/
Africa
Total
Segments2026
Net sales
$ 406.4
$ 211.7
$ 1,600.8
$ 124.0
$ 2,342.9Cost of goods sold
338.1
203.9
1,119.5
100.0
1,761.5Selling, general and administrative expenses
82.2
36.0
142.1
17.4
277.7Engineering expenses
37.1
12.7
80.2
2.6
132.6Income (loss) from operations
$ (51.0)
$ (40.9)
$ 259.0
$ 4.0
$ 171.1
2025
Net sales
$ 369.5
$ 256.0
$ 1,330.5
$ 94.5
$ 2,050.5Cost of goods sold
275.6
205.1
970.9
78.3
1,529.9Selling, general and administrative expenses
84.8
34.2
135.2
16.4
270.6Engineering expenses
33.3
10.2
70.0
2.5
116.0Income (loss) from operations
$ (24.2)
$ 6.5
$ 154.4
$ (2.7)
$ 134.0A reconciliation from the segment information to the consolidated balances for income from operations is set forth below (in millions):
Three Months Ended March 31,
2026
2025Segment income from operations$ 171.1
$ 134.0Impairment charges(2.1)
(1.1)Corporate expenses(51.1)
(48.1)Amortization of intangibles(16.9)
(15.3)Stock compensation expense(10.3)
(7.1)Restructuring and business optimization expenses(10.0)
(13.0)Consolidated income from operations$ 80.7
$ 49.4RECONCILIATION OF NON-GAAP MEASURESThis earnings release discloses adjusted income from operations, adjusted operating margin, adjusted net income, adjusted net income per share and net sales on a constant currency basis, each of which excludes amounts that are typically included in the most directly comparable measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). A reconciliation of each of those measures to the most directly comparable GAAP measure is included below.The following is a reconciliation of reported income from operations, net income attributable to AGCO and net income per share attributable to AGCO to adjusted income from operations, adjusted net income and adjusted net income per share for the three months ended March 31, 2026 and 2025 (in millions, except per share data):
Three Months Ended March 31,
2026
2025
Income From
Operations
Net
Income(1)
Net Income
Per Share(1)
Income From
Operations
Net
Income(1)
Net Income
Per Share(1)As reported$ 80.7
$ 55.0
$ 0.76
$ 49.4
$ 10.5
$ 0.14Restructuring and business optimization expenses(2)10.0
8.4
0.12
13.0
9.7
0.13Amortization of PTx Trimble acquired intangibles(3)14.4
11.1
0.15
12.8
7.6
0.10Transaction-related costs(4)0.2
—
—
7.1
2.0
0.03Impairment charges(5)2.1
2.1
0.03
1.1
1.1
0.01Discrete tax items(6)—
(8.5)
(0.12)
—
—
—As adjusted$ 107.4
$ 68.1
$ 0.94
$ 83.4
$ 30.9
$ 0.41____________________________________(1) Net income and net income per share amounts are after tax.(2)The restructuring expenses recorded during the three months ended March 31, 2026 and 2025 related primarily to severance, business optimization and other related costs associated with the Company's restructuring program.(3)Amortization of intangibles related to intangibles acquired as part of the Company's acquisition of PTx Trimble.(4)The transaction-related costs recorded during the three months ended March 31, 2026 related to the Company's divestiture of the majority of its Grain & Protein ("G&P") business. The transaction-related costs recorded during the three months ended March 31, 2025 related to the Company's divestiture of the majority of its G&P business and the formation of the PTx Trimble joint venture.(5)The impairment charges recorded during the three months ended March 31, 2026 and 2025 primarily related to the impairment of certain other assets.(6)During the three months ended March 31, 2026, the Company received a refund resulting from a favorable resolution related to a prior settlement under the Brazilian government's "Litigation Zero" tax amnesty program.The following is a reconciliation of adjusted operating margin for the three months ended March 31, 2026 and 2025 (in millions, except margin data):
Three Months Ended March 31,
2026
2025Net sales
$ 2,342.9
$ 2,050.5
Income from operations
80.7
49.4Adjusted income from operations(1)
$ 107.4
$ 83.4Operating margin(2)
3.4 %
2.4 %Adjusted operating margin(2)
4.6 %
4.1 %__________________________________(1) Refer to the previous table for the reconciliation of income from operations to adjusted income from operations.(2)Operating margin is defined as the ratio of income from operations divided by net sales. Adjusted operating margin is defined as the ratio of adjusted income from operations divided by net sales.The Company does not provide a quantitative reconciliation of forward-looking, non-GAAP financial measures to the most directly comparable GAAP financial measure because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have a significant impact on such calculations and providing them may imply a degree of precision that would be confusing or potentially misleading.The following table sets forth, for the three months ended March 31, 2026 and 2025, the impact to net sales of currency translation by geographical segment (in millions, except percentages):
Three Months Ended March 31,
Change due to currency
translation
2026
2025
% change
from 2025
$
%North America$ 406.4
$ 369.5
10.0 %
$ 3.7
1.0 %Latin America(1)211.7
256.0
(17.3) %
33.4
13.0 %Europe/Middle East1,600.8
1,330.5
20.3 %
150.6
11.3 %Asia/Pacific/Africa124.0
94.5
31.2 %
9.7
10.3 %
$ 2,342.9
$ 2,050.5
14.3 %
$ 197.4
9.6 %_________________________________(1) Effective January?1, 2026, the Company realigned its organizational structure to support its Farmer-First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change. View original content to download multimedia:https://www.prnewswire.com/news-releases/agco-reports-first-quarter-results-302761859.htmlSOURCE AGCO Corporation Original: AGCO REPORTS FIRST-QUARTER RESULTS
US Market News
4月前
AGCO REPORTS FOURTH QUARTER AND 2025 FULL YEAR RESULTSFebruary 5, 2026 7:30 AM
PR Newswire (US)
Net sales of $10.1 billion, down 13.5%, in 2025Full 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 $5.28Cash flow provided by operating activities of $988 million and record free cash flow(1) of $740 million2026 net sales and earnings per share outlook above 2025 levelsDULUTH, 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.HighlightsReported 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
CombinesYear ended December 31, 2025
Change fromPrior Year
Change fromPrior 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 ResultsAGCO Regional Net Sales (in millions)Three Months Ended December 31,
2025
2024
% change
from 2024
% change
from 2024
due to
currency
translation(6)
% change
excluding
currency
translationNorth 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
% change
from 2024
% change
from 2024
due to
currency
translation(6)
% change
from 2024
due to
acquisition
of a
business(6)
% change
excluding
currency
translation and
acquisition of
a businessNorth 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 AmericaNorth 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 AmericaNet 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 EastEurope/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/AfricaNet 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").OutlookAGCO'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 StatementStatements 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 AGCOAGCO (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 CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(unaudited and in millions)
December 31, 2025
December 31, 2024ASSETS
Current Assets:
Cash and cash equivalents$ 861.8
$ 612.7Accounts and notes receivable, net1,079.4
1,267.4Inventories, net2,709.3
2,731.3Other current assets545.6
526.6Total current assets5,196.1
5,138.0Property, plant and equipment, net1,996.2
1,818.6Right-of-use lease assets167.3
168.9Investments in affiliates609.9
519.6Deferred tax assets905.5
561.0Other assets481.0
435.2Intangible assets, net673.0
728.9Goodwill1,898.8
1,820.4Total assets$ 11,927.8
$ 11,190.6
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITYCurrent Liabilities:
Borrowings due within one year$ 117.7
$ 415.2Accounts payable951.0
813.0Accrued expenses2,538.7
2,469.6Other current liabilities121.7
128.2Total current liabilities3,729.1
3,826.0Long-term debt, less current portion and debt issuance costs2,323.1
2,233.3Operating lease liabilities122.1
127.5Pension and postretirement health care benefits169.2
155.6Deferred tax liabilities126.5
125.0Other noncurrent liabilities885.1
680.3Total liabilities7,355.1
7,147.7Redeemable noncontrolling interests299.2
300.1Stockholders' Equity:
Preferred stock—
—Common stock0.7
0.7Additional paid-in capital0.5
—Retained earnings6,047.2
5,645.0Accumulated other comprehensive loss(1,774.9)
(1,902.9)Total stockholders' equity4,273.5
3,742.8Total liabilities, redeemable noncontrolling interests and stockholders' equity$ 11,927.8
$ 11,190.6See accompanying notes to condensed consolidated financial statements. AGCO CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited and in millions, except per share data)
Three Months Ended December 31,
2025
2024Net sales$ 2,920.2
$ 2,887.3Cost of goods sold2,179.1
2,198.6Gross profit741.1
688.7Operating expenses:
Selling, general and administrative expenses316.3
323.2Engineering expenses130.9
103.0Amortization of intangibles17.1
26.6Impairment charges2.7
364.2Restructuring and business optimization expenses44.9
131.0Loss (gain) on sale of business(1.5)
9.5Income (loss) from operations230.7
(268.8)Interest expense, net14.6
27.3Other expense, net54.5
50.1Income (loss) before income taxes and equity in net earnings of affiliates161.6
(346.2)Income tax provision (benefit)77.3
(24.2)Income (loss) before equity in net earnings of affiliates84.3
(322.0)Equity in net earnings of affiliates8.9
8.4Net income (loss)93.2
(313.6)Net loss attributable to noncontrolling interests2.3
57.9Net income (loss) attributable to AGCO Corporation$ 95.5
$ (255.7)Net income (loss) per common share attributable to AGCO Corporation:
Basic$ 1.30
$ (3.42)Diluted$ 1.30
$ (3.42)Cash dividends declared and paid per common share$ 0.29
$ 0.29Weighted average number of common and common equivalent shares outstanding:
Basic73.8
74.5Diluted73.9
74.6See accompanying notes to condensed consolidated financial statements. AGCO CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited and in millions, except per share data)
Years Ended December 31,
2025
2024Net sales$ 10,082.0
$ 11,661.9Cost of goods sold7,515.2
8,762.8Gross profit2,566.8
2,899.1Operating expenses:
Selling, general and administrative expenses1,309.3
1,397.7Engineering expenses487.7
493.0Amortization of intangibles71.1
81.0Impairment charges10.0
369.5Restructuring and business optimization expenses82.2
172.7Loss on sale of business10.8
507.3Income (loss) from operations595.7
(122.1)Interest expense, net66.4
93.0Other expense (income), net(72.7)
218.5Income (loss) before income taxes and equity in net earnings of affiliates602.0
(433.6)Income tax provision (benefit)(77.4)
98.4Income (loss) before equity in net earnings of affiliates679.4
(532.0)Equity in net earnings of affiliates39.6
46.4Net income (loss)719.0
(485.6)Net loss attributable to noncontrolling interests7.5
60.8Net income (loss) attributable to AGCO Corporation$ 726.5
$ (424.8)Net income (loss) per common share attributable to AGCO Corporation:
Basic$ 9.76
$ (5.69)Diluted$ 9.75
$ (5.69)Cash dividends declared and paid per common share$ 1.16
$ 3.66Weighted average number of common and common equivalent shares outstanding:
Basic74.4
74.6Diluted74.5
74.7See accompanying notes to condensed consolidated financial statements. AGCO CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in millions)
Years Ended December 31,
2025
2024Cash flows from operating activities:
Net income (loss)$ 719.0
$ (485.6)Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation256.5
251.2Amortization of intangibles71.1
81.0Stock compensation expense28.4
18.4Impairment charges10.0
369.5Loss on sale of business10.8
507.3Gain on sale of investment in affiliate(251.9)
—U.S. pension plan termination and settlement—
18.5Equity in net earnings of affiliates, net of cash received(20.6)
(29.4)Deferred income tax benefit(366.5)
(102.7)Other35.7
32.2Changes in operating assets and liabilities:
Accounts and notes receivable, net231.0
59.1Inventories, net237.5
308.8Other current and noncurrent assets(17.1)
(36.7)Accounts payable43.4
(224.9)Accrued expenses(114.1)
(190.2)Other current and noncurrent liabilities114.9
113.4Total adjustments269.1
1,175.5Net cash provided by operating activities988.1
689.9Cash flows from investing activities:
Purchases of property, plant and equipment(247.9)
(393.3)Proceeds from sale of property, plant and equipment2.0
2.1Purchase of businesses, net of cash acquired—
(1,903.7)Proceeds from sale of business(1.8)
630.7Sale of (investments in) unconsolidated affiliates, net236.8
(7.4)Proceeds from cross currency swap contract—
22.6Other(17.4)
(1.4)Net cash used in investing activities(28.3)
(1,650.4)Cash flows from financing activities:
Proceeds from indebtedness57.0
1,875.7Repayments of indebtedness(436.7)
(513.4)Purchases and retirement of common stock(250.0)
(22.0)Payment of dividends to stockholders(86.5)
(273.1)Payment of minimum tax withholdings on stock compensation(13.0)
(14.1)Payment of debt issuance costs—
(15.7)Investments by noncontrolling interests, net—
8.1Net cash provided by (used in) financing activities(729.2)
1,045.5Effect of exchange rate changes on cash, cash equivalents and restricted cash18.5
(67.8)Increase in cash, cash equivalents and restricted cash249.1
17.2Cash, cash equivalents and restricted cash, beginning of year612.7
595.5Cash, cash equivalents and restricted cash, end of year$ 861.8
$ 612.7See accompanying notes to condensed consolidated financial statements.AGCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions, except share amounts, per share data)1. ACCOUNTS RECEIVABLE SALES AGREEMENTS The Company has accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. The cash received from receivables sold under these accounts receivable sales agreements that remain outstanding as of December 31, 2025 and 2024 was approximately $2.1 billion and $2.3 billion, respectively.In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world. The cash received from trade receivables sold under factoring arrangements that remain outstanding as of December 31, 2025 and 2024 was approximately $270.5 million and $220.5 million, respectively.Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within "Other expense (income), net" in the Company's Condensed Consolidated Statements of Operations, were approximately $29.7 million and $90.3 million, respectively, during the three months and year ended December 31, 2025. Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within "Other expense (income), net" in the Company's Condensed Consolidated Statements of Operations, were approximately $26.0 million and $118.2 million, respectively, during the three months and year ended December 31, 2024.The Company's finance joint ventures in Europe, Brazil and Australia also provide wholesale financing directly to the Company's dealers. As of December 31, 2025 and 2024, these finance joint ventures had approximately $107.5 million and $139.2 million, respectively, of outstanding accounts receivable associated with these arrangements.2. INVENTORIESInventories, net at December 31, 2025 and 2024 were as follows (in millions):
December 31, 2025
December 31, 2024Finished goods$ 1,070.6
$ 1,187.9Repair and replacement parts824.6
754.6Work in process181.9
170.0Raw materials632.2
618.8Inventories, net$ 2,709.3
$ 2,731.33. INDEBTEDNESSLong-term debt consisted of the following at December 31, 2025 and 2024 (in millions):
December 31, 2025
December 31, 2024Credit Facility, expires 2027$ —
$ —5.450% Senior notes due 2027400.0
400.05.800% Senior notes due 2034700.0
700.00.800% Senior notes due 2028703.8
622.71.002% EIB Senior term loan due 2025—
259.5EIB Senior term loan due 2029293.3
259.5EIB Senior term loan due 2030199.4
176.4Senior term loans due between 2025 and 202897.9
152.0Debt issuance costs(9.7)
(12.0)
2,384.7
2,558.1Less:
1.002% EIB Senior term loan due 2025—
(259.5)Senior term loans due 2025—
(65.3)Senior term loans due 2026(61.6)
—Total long-term indebtedness, less current portion$ 2,323.1
$ 2,233.3As of December 31, 2025 and 2024, the Company had short-term borrowings due within one year, excluding the current portion of long-term debt, of approximately $56.1 million and $90.4 million, respectively.1.002% European Investment Bank ("EIB") Senior Term Loan Due 2025On January 24, 2025, the Company repaid €250.0 million (or approximately $262.3 million) upon maturity of the EIB Senior term loan due 2025.Senior Term Loans Due Between 2025 and 2028In August 2025, the Company repaid €63.0 million (or approximately $72.8 million) upon maturity of the Senior term loans due 2025.4. RESTRUCTURING AND BUSINESS OPTIMIZATION EXPENSESOn June 24, 2024, the Company announced a restructuring program (the "Program") in response to increased weakening demand in the agriculture industry. The Company estimated that it would incur charges for one-time termination benefits of approximately $150.0 million to $200.0 million in connection with the initial phase of the Program, primarily consisting of cash charges related to severance payments, employees benefits and related costs. The Company incurred a substantial portion of the charges by the end of fiscal year 2025.As of December 31, 2024, accrued severance and other related costs primarily associated with the Program were approximately $136.2 million. During the three months and year ended December 31, 2025, the Company recorded $40.3 million and $46.2 million of severance and other related costs, net of reversals, primarily associated with the Program, and paid approximately $10.8 million and $111.2 million, respectively, of severance costs. The accrued severance and other related costs were $82.8 million as of December 31, 2025, inclusive of approximately $11.6 million of foreign currency translation impacts.Business optimization expenses primarily relate to professional services costs incurred as part of the restructuring program aimed at reducing structural costs, enhancing global efficiencies by changing the Company's operating model for certain corporate and back-office functions. During the three months and year ended December 31, 2025, the Company recognized approximately $4.6 million and $36.0 million, respectively, of business optimization expenses.5. SEGMENT REPORTINGThe Company has four operating segments which are also its reportable segments which consist of the North America, South America, Europe/Middle East and Asia/Pacific/Africa regions. The Company's reportable segments are geography based and distribute a full range of agricultural machinery and precision agriculture technology. The Company's Chief Operating Decision Maker ("CODM"), Eric P. Hansotia, Chairman of the Board, President and Chief Executive Officer, evaluates segment performance primarily based on income from operations. The CODM utilizes income from operations to evaluate each segment's performance including the allocation of resources. Sales for each segment are based on the location of the third-party customer. The Company's selling, general and administrative expenses and engineering expenses are charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income (loss) from operations for one segment may not be comparable to another segment. Segment results for the three months and years ended December 31, 2025 and 2024 based on the Company's reportable segments are as follows (in millions):Three Months Ended December 31,
NorthAmerica
SouthAmerica
Europe/Middle East
Asia/Pacific/Africa
Total Segments
Other(1)
Total2025
Net sales
$ 466.0
$ 259.9
$ 2,017.5
$ 176.8
$ 2,920.2
$ —
$ 2,920.2Cost of goods sold
378.0
213.3
1,443.6
144.2
2,179.1
—
2,179.1Selling, general and administrative expenses
83.4
26.5
154.6
16.6
281.1
—
281.1Engineering expenses
34.6
13.1
80.6
2.6
130.9
—
130.9Income (loss) from operations
$ (30.0)
$ 7.0
$ 338.7
$ 13.4
$ 329.1
$ —
$ 329.12024
Net sales(2)
$ 505.6
$ 268.8
$ 1,869.9
$ 168.3
$ 2,812.6
$ 74.7
$ 2,887.3Cost of goods sold
396.9
213.6
1,388.9
131.5
2,130.9
67.7
2,198.6Selling, general and administrative expenses
77.0
22.5
135.8
29.2
264.5
10.1
274.6Engineering expenses
28.6
5.2
63.9
2.7
100.4
2.6
103.0Income from operations(3)
$ 3.1
$ 27.5
$ 281.3
$ 4.9
$ 316.8
$ (5.7)
$ 311.1
(1)"Other" represents the results for the three months 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.(2)Of the $74.7 million of the net sales of the divested G&P business recast to "Other", $41.2 million, $13.2 million, $12.9 million and $7.4 million were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments, respectively.(3)Of the $(5.7) million of the income (loss) from operations of the divested G&P business recast to "Other", $0.9 million, $3.0 million, $(10.0) million and $0.4 million were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments, respectively. Years Ended December 31,
NorthAmerica
SouthAmerica
Europe/Middle East
Asia/Pacific/Africa
Total Segments
Other(1)
Total2025
Net sales
$ 1,665.5
$ 1,115.6
$ 6,736.7
$ 564.2
$ 10,082.0
$ —
$ 10,082.0Cost of goods sold
1,303.4
901.4
4,857.6
452.8
7,515.2
—
7,515.2Selling, general and administrative expenses
335.2
121.3
575.9
72.7
1,105.1
—
1,105.1Engineering expenses
138.9
41.5
296.4
10.9
487.7
—
487.7Income (loss) from operations
$ (112.0)
$ 51.4
$ 1,006.8
$ 27.8
$ 974.0
$ —
$ 974.02024
Net sales(2)
$ 2,298.3
$ 1,208.5
$ 6,712.3
$ 626.3
$ 10,845.4
$ 816.5
$ 11,661.9Cost of goods sold
1,750.1
975.3
4,913.4
494.9
8,133.7
629.1
8,762.8Selling, general and administrative expenses
333.8
101.0
553.8
88.7
1,077.3
90.2
1,167.5Engineering expenses
130.4
45.2
283.8
11.5
470.9
22.1
493.0Income from operations(3)
$ 84.0
$ 87.0
$ 961.3
$ 31.2
$ 1,163.5
$ 75.1
$ 1,238.6
(1)"Other" represents the results for the year ended December 31, 2024 for the majority of the Company's 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.(2)Of the $816.5 million of the net sales of the divested G&P business recast to "Other", $552.0 million, $107.4 million, $100.6 million and $56.5 million were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments, respectively.(3)Of the $75.1 million of the income (loss) from operations of the divested G&P business recast to "Other", $91.8 million, $17.4 million, $(35.6) million and $1.5 million were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments, respectively.A reconciliation from the segment information to the consolidated balances for income (loss) from operations is set forth below (in millions):
Three Months Ended December 31,
Years Ended December 31,
2025
2024
2025
2024Segment income from operations$ 329.1
$ 316.8
$ 974.0
$ 1,163.5Other(1)—
(5.7)
—
75.1Impairment charges(2.7)
(364.2)
(10.0)
(369.5)Loss (gain) on sale of business1.5
(9.5)
(10.8)
(507.3)Corporate expenses(31.8)
(51.1)
(176.5)
(212.3)Amortization of intangibles(17.1)
(26.6)
(71.1)
(81.0)Stock compensation expense(3.4)
2.5
(27.7)
(17.9)Restructuring and business optimization expenses(44.9)
(131.0)
(82.2)
(172.7)Consolidated income (loss) from operations$ 230.7
$ (268.8)
$ 595.7
$ (122.1)
(1)"Other" represents the results for the three months and full year ended December 31, 2024 for the majority of the Company's 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.RECONCILIATION OF NON-GAAP MEASURESThis earnings release discloses adjusted income from operations, adjusted operating margin, adjusted net income, adjusted net income per share, free cash flow, free cash flow conversion and net sales on a constant currency basis and excluding a recent acquisition, each of which excludes amounts that are typically included in the most directly comparable measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The net sales for the three months ended December 31, 2025 were not adjusted to exclude a recent acquisition as the acquisition occurred in the second quarter of 2024. A reconciliation of each of those measures to the most directly comparable GAAP measure is included below.The following is a reconciliation of reported income (loss) from operations, net income (loss) attributable to AGCO and net income (loss) per share attributable to AGCO to adjusted income from operations, adjusted net income and adjusted net income per share for the three months and years ended December 31, 2025 and 2024 (in millions, except per share data):
Three Months Ended December 31,
2025
2024
Income From Operations
Net Income(1)
Net Income
Per Share(1)
Income
(Loss) From
Operations
Net Income (Loss)(1)
Net Income
(Loss) Per
Share(1)As reported$ 230.7
$ 95.5
$ 1.30
$ (268.8)
$ (255.7)
$ (3.42)Restructuring and business optimization expenses(2)44.9
44.0
0.59
131.0
103.5
1.38Amortization of PTx Trimble acquired intangibles(3)14.4
18.8
0.26
23.9
15.0
0.20Transaction-related costs(4)3.9
3.4
0.04
25.5
23.8
0.32Impairment charges(5)2.7
2.6
0.04
364.2
231.5
3.10Loss (gain) on sale of business(6)(1.5)
(1.9)
(0.03)
9.5
9.5
0.13U.S. pension plan termination and settlement(7)—
—
—
—
18.5
0.25Divestiture-related foreign currency translation release(8)—
—
—
—
0.7
0.01Discrete tax items(9)—
(1.9)
(0.03)
—
—
—As adjusted$ 295.1
$ 160.5
$ 2.17
$ 285.3
$ 146.8
$ 1.97
(1)Net income (loss) and net income (loss) per share amounts are after tax.(2)The restructuring expenses recorded during the three months ended December 31, 2025 and 2024 related primarily to severance, business optimization and other related costs associated with the Company's Program.(3)Amortization of intangibles related to intangibles acquired as part of the Company's acquisition of PTx Trimble.(4)The transaction-related costs recorded during the three months ended December 31, 2025 primarily related to the Company's divestiture of the majority of its Grain & Protein ("G&P") business. The transaction-related costs recorded during the three months ended December 31, 2024 related to the Company's divestiture of the majority of its G&P business and the formation of the PTx Trimble joint venture.(5)The impairment charges recorded during the three months ended December 31, 2025 primarily related to the impairment of certain other assets. The impairment charges recorded during the three months ended December 31, 2024 primarily related to the impairment of goodwill related to the Company's North America segment.(6)During the three months ended December 31, 2025, the Company recorded a gain on sale of business related to an immaterial divestiture. During the three months ended December 31, 2024, the Company completed the divestiture of the majority of its G&P business and recorded an additional loss on sale of business of $9.5 million.(7)During the three months ended December 31, 2024, the Company terminated its U.S. qualified defined benefit plan and the settlement resulted in the recognition of approximately $18.5 million in "Other expense, net" within the Company's Condensed Consolidated Statements of Operations representing the amounts previously recognized in "Accumulated other comprehensive loss."(8)During the three months ended December 31, 2024, the Company divested its interest in its Irish finance joint venture. Foreign currency translation impacts since inception of the Ireland finance joint venture previously recognized within "Accumulated other comprehensive loss" were recorded within "Other expense, net" in the Company's Condensed Consolidated Statements of Operations.(9)During the three months ended December 31, 2025, the Company's income tax provision included a net tax benefit of $1.9 million related to a legal entity reorganization.
Years Ended December 31,
2025
2024
Income From
Operations
Net
Income(1)
Net Income
Per Share(1)
Income
(Loss) From
Operations
Net Income
(Loss)(1)
Net Income
(Loss) Per
Share(1)As reported$ 595.7
$ 726.5
$ 9.75
$ (122.1)
$ (424.8)
$ (5.69)Restructuring and business optimization expenses(2)82.2
71.7
0.96
172.7
135.9
1.82Amortization of PTx Trimble acquired intangibles(3)60.7
46.8
0.63
48.2
30.3
0.40Transaction-related costs(4)21.6
8.3
0.11
67.7
55.0
0.74Impairment charges(5)10.0
9.9
0.13
369.5
236.8
3.17Loss on sale of business(6)10.8
10.8
0.14
507.3
507.3
6.80Gain on sale of investment in affiliate(7)—
(219.2)
(2.93)
—
—
—U.S. pension plan termination and settlement(8)—
—
—
—
18.5
0.25Divestiture-related foreign currency translation release(9)—
—
—
—
0.7
0.01Discrete tax items(10)—
(261.8)
(3.51)
—
—
—As adjusted$ 781.0
$ 393.0
$ 5.28
$ 1,043.3
$ 559.7
$ 7.50
(1)Net income (loss) and net income (loss) per share amounts are after tax.(2)The restructuring expenses recorded during the year ended December 31, 2025 and 2024 related primarily to severance, business optimization and other related costs associated with the Company's Program.(3)Amortization of intangibles related to intangibles acquired as part of the Company's acquisition of PTx Trimble.(4)The transaction-related costs recorded during the year ended December 31, 2025 and 2024 primarily related to the Company's divestiture of the majority of its G&P business and the formation of the PTx Trimble joint venture.(5)The impairment charges recorded during the year ended December 31, 2025 primarily related to the impairment of certain other assets. The impairment charges recorded during the year ended December 31, 2024 primarily related to the impairment of goodwill related to the Company's North America segment, certain other assets and an investment in affiliate.(6)The loss on sale of business recorded during the year ended December 31, 2025 related to the finalization of the preliminary working capital and other adjustments related to the sale of the majority of the Company's G&P business, partially offset by a gain related to an immaterial divestiture. During the year ended December 31, 2024, the Company completed the divestiture of the majority of its G&P Business and recorded a loss on sale of business of $507.3 million.(7)The gain on sale of investment in affiliate recorded during the year ended December 31, 2025 related to the sale of the Company's ownership interest in Tractors and Farm Equipment Limited ("TAFE"). Foreign currency translation impacts since the inception of the investment in affiliate previously recognized within "Accumulated other comprehensive loss" were recorded within "Other expense (income), net" in the Company's Condensed Consolidated Statement of Operations.(8)During the year ended December 31, 2024, the Company terminated its U.S. qualified defined benefit plan and the settlement resulted in the recognition of approximately $18.5 million in "Other expense (income), net" within the Company's Condensed Consolidated Statements of Operations representing the amounts previously recognized in "Accumulated other comprehensive loss."(9)During the year ended December 31, 2024, the Company divested its interests in its Irish finance joint venture. Foreign currency translation impacts since inception of the finance joint venture previously recognized within "Accumulated other comprehensive loss" were recorded within "Other expense (income), net" in the Company's Condensed Consolidated Statements of Operations.(10)During the year ended December 31, 2025, the Company's income tax provision included a net tax benefit of $261.8 million related to a legal entity reorganization.The following is a reconciliation of adjusted operating margin for the three months and years ended December 31, 2025 and 2024 (in millions):
Three Months Ended December 31,
Years Ended December 31,
2025
2024
2025
2024Net sales$ 2,920.2
$ 2,887.3
$ 10,082.0
$ 11,661.9
Income (loss) from operations230.7
(268.8)
595.7
(122.1)Adjusted income from operations(1)295.1
285.3
781.0
1,043.3Operating margin(2)7.9 %
(9.3) %
5.9 %
(1.0) %Adjusted operating margin(2)10.1 %
9.9 %
7.7 %
8.9 %
(1)Refer to the previous table for the reconciliation of income (loss) from operations to adjusted income from operations.(2)Operating margin is defined as the ratio of income (loss) from operations divided by net sales. Adjusted operating margin is defined as the ratio of adjusted income from operations divided by net sales.The following is a reconciliation of net cash provided by operating activities to free cash flow and free cash flow conversion for the years ended December 31, 2025 and 2024 (in millions):
Years Ended December 31,
2025
2024Net cash provided by operating activities
$ 988.1
$ 689.9Less: purchases of property, plant and equipment
(247.9)
(393.3)Free cash flow(1)
$ 740.2
$ 296.6
Adjusted net income(2)
$ 393.0
$ 559.7Free cash flow conversion(3)
188.3 %
53.0 %
(1)Free cash flow is defined as net cash provided by operating activities less purchases of property, plant and equipment.(2)Refer to the previous table for the reconciliation of net income (loss) attributable to AGCO to adjusted net income.(3)Free cash flow conversion is defined as net cash provided by operating activities less purchases of property, plant and equipment divided by adjusted net income.The Company does not provide a quantitative reconciliation of forward-looking, non-GAAP financial measures to the most directly comparable GAAP financial measure because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have a significant impact on such calculations and providing them may imply a degree of precision that would be confusing or potentially misleading.The following table sets forth, for the three months ended December 31, 2025 and 2024, the impact to net sales of currency translation by geographical segment (in millions, except percentages):
Three Months Ended December 31,
Change due to currency
translation
2025
2024
% change
from 2024
$
%North America$ 466.0
$ 505.6
(7.8) %
$ 3.3
0.7 %South America259.9
268.8
(3.3) %
16.2
6.0 %Europe/Middle East2,017.5
1,869.9
7.9 %
161.3
8.6 %Asia/Pacific/Africa176.8
168.3
5.1 %
3.9
2.3 %Total Segments2,920.2
2,812.6
3.8 %
184.7
6.6 %Other(1)—
74.7
(100.0) %
—
— %
$ 2,920.2
$ 2,887.3
1.1 %
$ 184.7
6.4 %
(1)"Other" represents the results for the three months ended December 31, 2024 for the majority of the Company's Grain & Protein ("G&P") business which was divested on November 1, 2024. Of the $74.7 million of the net sales of the divested G&P business recast to "Other", $41.2 million, $13.2 million, $12.9 million and $7.4 million were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments, respectively.The following table sets forth, for the years ended December 31, 2025 and 2024, the impact to net sales of currency translation and a recent acquisition by geographical segment (in millions, except percentages):
Years Ended December 31,
Change due to
currency translation
Change due to acquisition
of a business
2025
2024
% change
from 2024
$
%
$
%North America$ 1,665.5
$ 2,298.3
(27.5) %
$ (11.2)
(0.5) %
$ 7.7
0.3 %South America1,115.6
1,208.5
(7.7) %
(29.4)
(2.4) %
5.1
0.4 %Europe/Middle East6,736.7
6,712.3
0.4 %
313.6
4.7 %
40.7
0.6 %Asia/Pacific/Africa564.2
626.3
(9.9) %
0.6
0.1 %
5.8
0.9 %Total Segments10,082.0
10,845.4
(7.0) %
273.6
2.5 %
59.3
0.5 %Other(1)—
816.5
(100.0) %
—
— %
—
— %
$ 10,082.0
$ 11,661.9
(13.5) %
$ 273.6
2.3 %
$ 59.3
0.5 %
(1)"Other" represents the results for the year ended December 31, 2024 for the majority of the Company's G&P business which was divested on November 1, 2024. Of the $816.5 million of the net sales of the divested G&P business recast to "Other", $552.0 million, $107.4 million, $100.6 million and $56.5 million were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments, respectively.
View original content to download multimedia:https://www.prnewswire.com/news-releases/agco-reports-fourth-quarter-and-2025-full-year-results-302679627.htmlSOURCE AGCO Corporation
Original: AGCO REPORTS FOURTH QUARTER AND 2025 FULL YEAR RESULTS
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