AGCO REPORTS FOURTH QUARTER AND 2025 FULL YEAR RESULTS
Rhea-AI Summary
AGCO (NYSE: AGCO) reported 2025 net sales of $10.1 billion, down 13.5% year-over-year, and fourth-quarter net sales of $2.9 billion (+1.1% vs. Q4 2024). 2025 reported operating margin was 5.9% and adjusted operating margin 7.7%; adjusted Q4 operating margin was 10.1%. Reported 2025 EPS was $9.75 and adjusted EPS $5.28. Cash flow from operations was $988 million with record free cash flow of $740 million. AGCO forecast 2026 net sales of $10.4–$10.7 billion and targeted adjusted EPS of $5.50–$6.00.
Regional trends: North America and South America declined while EME and APA showed modest growth; industry tractor and combine retail sales were lower across major markets.
Positive
- Record free cash flow of $740 million
- Adjusted full-year operating margin of 7.7%
- Q4 adjusted operating margin of 10.1%
- 2026 guidance: $10.4–$10.7 billion net sales range
- Largest-ever North American large-ag market share gains
Negative
- Full-year net sales declined 13.5% to $10.1 billion
- North America full-year net sales down 27.5% year-over-year
- Industry combine retail sales down 27% in 2025
- North America Q4 operating margins remained negative
Key Figures
Market Reality Check
Peers on Argus
AGCO is up 4.41% with strong volume. Peers are mixed: OSK +3.71%, ALG +3.30%, CNH +4.82% higher, while TEX -0.05% and REVG -0.78% are slightly lower, suggesting a company-specific reaction rather than a uniform sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 04 | Trade show exhibit | Positive | +4.4% | Announcement of AGCO brands exhibiting full range of solutions at farm show. |
| Feb 03 | Product/tech debut | Positive | +1.6% | Debut of new Fendt and Massey Ferguson technologies at World Ag Expo. |
| Jan 27 | Community partnership | Positive | -0.1% | AGCO Foundation partnership to support rural economic resilience in Australia. |
| Jan 15 | Earnings call notice | Neutral | +1.0% | Scheduling of Q4 2025 earnings release and conference call on Feb 5, 2026. |
| Jan 13 | Conference announcement | Neutral | +0.0% | Announcement of PTx Winter Conference focused on precision ag innovations. |
Recent news has largely been product- and event-focused with mostly positive price alignment, suggesting investors have been receptive to AGCO’s strategic and branding updates leading into this earnings report.
Over the last month, AGCO issued several announcements centered on technology showcases and conferences, including brand exhibits at major events on Feb 10–14, 2026 and a PTx Winter Conference in January 2026. These were generally innovation- and branding-oriented and drew modestly positive price reactions, with moves up to +4.41%. A partnership announcement on Jan 27, 2026 had a small negative reaction. Compared with today’s full-year results, the prior news flow set a backdrop of innovation and outreach rather than financial updates.
Market Pulse Summary
This announcement highlights AGCO’s ability to sustain margins and cash flow in a challenged ag cycle. 2025 net sales were $10.1 billion, down 13.5%, but adjusted operating margin reached 7.7% and free cash flow was a record $740 million. Adjusted EPS was $5.28, with 2026 EPS targeted at $5.50–$6.00. Investors may monitor how regional demand trends, production discipline, and tariff impacts evolve against this outlook and the stock’s proximity to its $122 52-week high.
Key Terms
non-gaap financial
free cash flow financial
tariffs regulatory
AI-generated analysis. Not financial advice.
- Net sales of
$10.1 billion 13.5% , in 2025 - Full year reported operating margin of
5.9% and adjusted operating margin(1) of7.7% - 2025 full year reported earnings per share of
$9.75 $5.28 - Cash flow provided by operating activities of
$988 million $740 million - 2026 net sales and earnings per share outlook above 2025 levels
"AGCO delivered strong fourth quarter results, achieving an adjusted operating margin(1) of
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
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% , APA7.6% - Full-year reported operating margins and adjusted operating margins(1) were
5.9% and7.7% respectively, in 2025 compared to (1.0)% and8.9% 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 | ||
(10) % | (27) % | |||
(2) % | (22) % | |||
(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
North American industry retail tractor sales were
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended December 31, | 2025 | 2024 | % change | % change | % change | |||||
$ 466.0 | $ 505.6 | (7.8) % | 0.7 % | (8.5) % | ||||||
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 | % change | % change | % change | ||||||
$ 1,665.5 | $ 2,298.3 | (27.5) % | (0.5) % | 0.3 % | (27.3) % | |||||||
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) % | ||||||
(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 American net sales were
Net sales in the South American region were
Net sales in the
Outlook
AGCO's net sales for 2026 are expected to range from
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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.
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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 theU.S. government, including but not limited to tariffs on imported steel and aluminum products, tariffs on certain imports fromChina , tariffs on certain imports fromCanada andMexico , announced trade deal betweenthe 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 outsidethe 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 inUkraine 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, throughoutEurope , which could negatively impact our production inEurope 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.
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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 | 44.9 | 131.0 | |
Loss (gain) on sale of business | (1.5) | 9.5 | |
Income (loss) from operations | 230.7 | (268.8) | |
Interest expense, net | 14.6 | 27.3 | |
Other expense, net | 54.5 | 50.1 | |
Income (loss) before income taxes and equity in net earnings of affiliates | 161.6 | (346.2) | |
Income tax provision (benefit) | 77.3 | (24.2) | |
Income (loss) before equity in net earnings of affiliates | 84.3 | (322.0) | |
Equity in net earnings of affiliates | 8.9 | 8.4 | |
Net income (loss) | 93.2 | (313.6) | |
Net loss attributable to noncontrolling interests | 2.3 | 57.9 | |
Net 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 | $ 0.29 | |
Weighted average number of common and common equivalent shares outstanding: | |||
Basic | 73.8 | 74.5 | |
Diluted | 73.9 | 74.6 | |
See accompanying notes to condensed consolidated financial statements. | |||
AGCO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in millions, except per share data) | |||
Years Ended December 31, | |||
2025 | 2024 | ||
Net sales | $ 10,082.0 | $ 11,661.9 | |
Cost of goods sold | 7,515.2 | 8,762.8 | |
Gross profit | 2,566.8 | 2,899.1 | |
Operating expenses: | |||
Selling, general and administrative expenses | 1,309.3 | 1,397.7 | |
Engineering expenses | 487.7 | 493.0 | |
Amortization of intangibles | 71.1 | 81.0 | |
Impairment charges | 10.0 | 369.5 | |
Restructuring and business optimization expenses | 82.2 | 172.7 | |
Loss on sale of business | 10.8 | 507.3 | |
Income (loss) from operations | 595.7 | (122.1) | |
Interest expense, net | 66.4 | 93.0 | |
Other expense (income), net | (72.7) | 218.5 | |
Income (loss) before income taxes and equity in net earnings of affiliates | 602.0 | (433.6) | |
Income tax provision (benefit) | (77.4) | 98.4 | |
Income (loss) before equity in net earnings of affiliates | 679.4 | (532.0) | |
Equity in net earnings of affiliates | 39.6 | 46.4 | |
Net income (loss) | 719.0 | (485.6) | |
Net loss attributable to noncontrolling interests | 7.5 | 60.8 | |
Net 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 | $ 3.66 | |
Weighted average number of common and common equivalent shares outstanding: | |||
Basic | 74.4 | 74.6 | |
Diluted | 74.5 | 74.7 | |
See accompanying notes to condensed consolidated financial statements. | |||
AGCO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in millions) | |||
Years Ended December 31, | |||
2025 | 2024 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 719.0 | $ (485.6) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 256.5 | 251.2 | |
Amortization of intangibles | 71.1 | 81.0 | |
Stock compensation expense | 28.4 | 18.4 | |
Impairment charges | 10.0 | 369.5 | |
Loss on sale of business | 10.8 | 507.3 | |
Gain on sale of investment in affiliate | (251.9) | — | |
— | 18.5 | ||
Equity in net earnings of affiliates, net of cash received | (20.6) | (29.4) | |
Deferred income tax benefit | (366.5) | (102.7) | |
Other | 35.7 | 32.2 | |
Changes in operating assets and liabilities: | |||
Accounts and notes receivable, net | 231.0 | 59.1 | |
Inventories, net | 237.5 | 308.8 | |
Other current and noncurrent assets | (17.1) | (36.7) | |
Accounts payable | 43.4 | (224.9) | |
Accrued expenses | (114.1) | (190.2) | |
Other current and noncurrent liabilities | 114.9 | 113.4 | |
Total adjustments | 269.1 | 1,175.5 | |
Net cash provided by operating activities | 988.1 | 689.9 | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (247.9) | (393.3) | |
Proceeds from sale of property, plant and equipment | 2.0 | 2.1 | |
Purchase of businesses, net of cash acquired | — | (1,903.7) | |
Proceeds from sale of business | (1.8) | 630.7 | |
Sale of (investments in) unconsolidated affiliates, net | 236.8 | (7.4) | |
Proceeds from cross currency swap contract | — | 22.6 | |
Other | (17.4) | (1.4) | |
Net cash used in investing activities | (28.3) | (1,650.4) | |
Cash flows from financing activities: | |||
Proceeds from indebtedness | 57.0 | 1,875.7 | |
Repayments 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 | — | 8.1 | |
Net cash provided by (used in) financing activities | (729.2) | 1,045.5 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 18.5 | (67.8) | |
Increase in cash, cash equivalents and restricted cash | 249.1 | 17.2 | |
Cash, cash equivalents and restricted cash, beginning of year | 612.7 | 595.5 | |
Cash, cash equivalents and restricted cash, end of year | $ 861.8 | $ 612.7 | |
See 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
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
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
The Company's finance joint ventures in
2. INVENTORIES
Inventories, net at December 31, 2025 and 2024 were as follows (in millions):
December 31, 2025 | December 31, 2024 | ||
Finished goods | $ 1,070.6 | $ 1,187.9 | |
Repair and replacement parts | 824.6 | 754.6 | |
Work in process | 181.9 | 170.0 | |
Raw materials | 632.2 | 618.8 | |
Inventories, net | $ 2,709.3 | $ 2,731.3 |
3. INDEBTEDNESS
Long-term debt consisted of the following at December 31, 2025 and 2024 (in millions):
December 31, 2025 | December 31, 2024 | ||
Credit Facility, expires 2027 | $ — | $ — | |
400.0 | 400.0 | ||
700.0 | 700.0 | ||
703.8 | 622.7 | ||
— | 259.5 | ||
EIB Senior term loan due 2029 | 293.3 | 259.5 | |
EIB Senior term loan due 2030 | 199.4 | 176.4 | |
Senior term loans due between 2025 and 2028 | 97.9 | 152.0 | |
Debt issuance costs | (9.7) | (12.0) | |
2,384.7 | 2,558.1 | ||
Less: | |||
— | (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 | $ 2,233.3 |
As 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
On January 24, 2025, the Company repaid
Senior Term Loans Due Between 2025 and 2028
In August 2025, the Company repaid
4. RESTRUCTURING AND BUSINESS OPTIMIZATION EXPENSES
On 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
As of December 31, 2024, accrued severance and other related costs primarily associated with the Program were approximately
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
5. SEGMENT REPORTING
The Company has four operating segments which are also its reportable segments which consist of the
Three Months Ended December 31, | North America | South America | Pacific/ | Total Segments | Other(1) | Total | ||||||||
2025 | ||||||||||||||
Net sales | $ 466.0 | $ 259.9 | $ 176.8 | $ — | ||||||||||
Cost of goods sold | 378.0 | 213.3 | 1,443.6 | 144.2 | 2,179.1 | — | 2,179.1 | |||||||
Selling, general and administrative expenses | 83.4 | 26.5 | 154.6 | 16.6 | 281.1 | — | 281.1 | |||||||
Engineering expenses | 34.6 | 13.1 | 80.6 | 2.6 | 130.9 | — | 130.9 | |||||||
Income (loss) from operations | $ (30.0) | $ 7.0 | $ 338.7 | $ 13.4 | $ 329.1 | $ — | $ 329.1 | |||||||
2024 | ||||||||||||||
Net sales(2) | $ 505.6 | $ 268.8 | $ 168.3 | $ 74.7 | ||||||||||
Cost of goods sold | 396.9 | 213.6 | 1,388.9 | 131.5 | 2,130.9 | 67.7 | 2,198.6 | |||||||
Selling, general and administrative expenses | 77.0 | 22.5 | 135.8 | 29.2 | 264.5 | 10.1 | 274.6 | |||||||
Engineering expenses | 28.6 | 5.2 | 63.9 | 2.7 | 100.4 | 2.6 | 103.0 | |||||||
Income 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 | |||||||||||
(2) | Of the | |||||||||||
(3) | Of the | |||||||||||
Years Ended December 31, | North America | South America | Pacific/ | Total Segments | Other(1) | Total | ||||||||
2025 | ||||||||||||||
Net sales | $ 564.2 | $ 10,082.0 | $ — | $ 10,082.0 | ||||||||||
Cost of goods sold | 1,303.4 | 901.4 | 4,857.6 | 452.8 | 7,515.2 | — | 7,515.2 | |||||||
Selling, general and administrative expenses | 335.2 | 121.3 | 575.9 | 72.7 | 1,105.1 | — | 1,105.1 | |||||||
Engineering expenses | 138.9 | 41.5 | 296.4 | 10.9 | 487.7 | — | 487.7 | |||||||
Income (loss) from operations | $ (112.0) | $ 51.4 | $ 27.8 | $ 974.0 | $ — | $ 974.0 | ||||||||
2024 | ||||||||||||||
Net sales(2) | $ 626.3 | $ 10,845.4 | $ 816.5 | $ 11,661.9 | ||||||||||
Cost of goods sold | 1,750.1 | 975.3 | 4,913.4 | 494.9 | 8,133.7 | 629.1 | 8,762.8 | |||||||
Selling, general and administrative expenses | 333.8 | 101.0 | 553.8 | 88.7 | 1,077.3 | 90.2 | 1,167.5 | |||||||
Engineering expenses | 130.4 | 45.2 | 283.8 | 11.5 | 470.9 | 22.1 | 493.0 | |||||||
Income from operations(3) | $ 84.0 | $ 87.0 | $ 961.3 | $ 31.2 | $ 75.1 |
(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 | |||||||||||
(2) | Of the | |||||||||||
(3) | Of the | |||||||||||
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 | 2024 | ||||
Segment income from operations | $ 329.1 | $ 316.8 | $ 974.0 | $ 1,163.5 | |||
Other(1) | — | (5.7) | — | 75.1 | |||
Impairment charges | (2.7) | (364.2) | (10.0) | (369.5) | |||
Loss (gain) on sale of business | 1.5 | (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 | |||||||||||
RECONCILIATION OF NON-GAAP MEASURES
This 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
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 | Income | Net Income (Loss)(1) | Net Income | ||||||
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 | 1.38 | |||||
Amortization of PTx Trimble acquired intangibles(3) | 14.4 | 18.8 | 0.26 | 23.9 | 15.0 | 0.20 | |||||
Transaction-related costs(4) | 3.9 | 3.4 | 0.04 | 25.5 | 23.8 | 0.32 | |||||
Impairment charges(5) | 2.7 | 2.6 | 0.04 | 364.2 | 231.5 | 3.10 | |||||
Loss (gain) on sale of business(6) | (1.5) | (1.9) | (0.03) | 9.5 | 9.5 | 0.13 | |||||
— | — | — | — | 18.5 | 0.25 | ||||||
Divestiture-related foreign currency translation release(8) | — | — | — | — | 0.7 | 0.01 | |||||
Discrete 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 | |||||||||||
(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 | |||||||||||
(7) | During the three months ended December 31, 2024, the Company terminated its | |||||||||||
(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 | |||||||||||
(9) | During the three months ended December 31, 2025, the Company's income tax provision included a net tax benefit of | |||||||||||
Years Ended December 31, | |||||||||||
2025 | 2024 | ||||||||||
Income From | Net | Net Income | Income | Net Income | Net Income | ||||||
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 | 1.82 | |||||
Amortization of PTx Trimble acquired intangibles(3) | 60.7 | 46.8 | 0.63 | 48.2 | 30.3 | 0.40 | |||||
Transaction-related costs(4) | 21.6 | 8.3 | 0.11 | 67.7 | 55.0 | 0.74 | |||||
Impairment charges(5) | 10.0 | 9.9 | 0.13 | 369.5 | 236.8 | 3.17 | |||||
Loss on sale of business(6) | 10.8 | 10.8 | 0.14 | 507.3 | 507.3 | 6.80 | |||||
Gain on sale of investment in affiliate(7) | — | (219.2) | (2.93) | — | — | — | |||||
— | — | — | — | 18.5 | 0.25 | ||||||
Divestiture-related foreign currency translation release(9) | — | — | — | — | 0.7 | 0.01 | |||||
Discrete 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 | |||||||||||
(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 | |||||||||||
(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 | |||||||||||
(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 | |||||||||||
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 | 2024 | ||||
Net sales | $ 2,920.2 | $ 2,887.3 | $ 10,082.0 | $ 11,661.9 | |||
Income (loss) from operations | 230.7 | (268.8) | 595.7 | (122.1) | |||
Adjusted income from operations(1) | 295.1 | 285.3 | 781.0 | 1,043.3 | |||
Operating 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 | 2024 | |||
Net cash provided by operating activities | $ 988.1 | $ 689.9 | ||
Less: purchases of property, plant and equipment | (247.9) | (393.3) | ||
Free cash flow(1) | $ 740.2 | $ 296.6 | ||
Adjusted net income(2) | $ 393.0 | $ 559.7 | ||
Free 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 | ||||||||
2025 | 2024 | % change | $ | % | |||||
$ 466.0 | $ 505.6 | (7.8) % | $ 3.3 | 0.7 % | |||||
259.9 | 268.8 | (3.3) % | 16.2 | 6.0 % | |||||
2,017.5 | 1,869.9 | 7.9 % | 161.3 | 8.6 % | |||||
176.8 | 168.3 | 5.1 % | 3.9 | 2.3 % | |||||
Total Segments | 2,920.2 | 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 | |||||||||||
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 | Change due to acquisition | |||||||||||
2025 | 2024 | % change |
$ |
% | $ | % | |||||||
$ 1,665.5 | $ 2,298.3 | (27.5) % | $ (11.2) | (0.5) % | $ 7.7 | 0.3 % | |||||||
1,115.6 | 1,208.5 | (7.7) % | (29.4) | (2.4) % | 5.1 | 0.4 % | |||||||
6,736.7 | 6,712.3 | 0.4 % | 313.6 | 4.7 % | 40.7 | 0.6 % | |||||||
564.2 | 626.3 | (9.9) % | 0.6 | 0.1 % | 5.8 | 0.9 % | |||||||
Total Segments | 10,082.0 | 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 | |||||||||||
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SOURCE AGCO Corporation
FAQ
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