AGCO REPORTS SECOND-QUARTER RESULTS
Rhea-AI Summary
AGCO (NYSE: AGCO) reported second‑quarter 2026 net sales of $2.61 billion, down 1.0% year‑over‑year (down 3.7% in constant currency). Reported EPS was $1.08 versus $4.22 a year ago, while adjusted EPS(1) increased to $1.43 from $1.35.
For the first six months, net sales were $4.95 billion, up 5.7% (0.5% in constant currency), with reported EPS of $1.84 and adjusted EPS(1) of $2.37 versus $1.76 in 2025. North America led regional performance with constant‑currency sales growth of 19.8%, while Latin America declined 25.0%.
AGCO completed $345 million of share repurchases in Q2 and sold its 49% stakes in the AGCO Finance U.S. and Canada joint ventures for about $190 million, recognizing roughly $20 million in other income tied to monetized future earnings.
For full‑year 2026, AGCO targets net sales of $10.1–$10.2 billion, adjusted operating margin of about 7.5%, and adjusted EPS of $5.50–$5.75, assuming current tariff policies and its mitigation actions.
Positive
- Adjusted EPS up year-over-year to $1.43 in Q2 2026 from $1.35
- Six-month net sales growth of 5.7% to $4.95 billion versus 2025
- North America constant-currency sales up 19.8% in Q2 2026
- Share repurchases of $345 million completed in the second quarter
- Sale of 49% AGCO Finance stakes for approximately $190 million
- 2026 guidance net sales $10.1–$10.2 billion, adjusted EPS $5.50–$5.75
Negative
- Q2 net sales decline 1.0% year-over-year to $2.61 billion
- Reported diluted EPS down to $1.08 from $4.22 in Q2 2025
- Latin America constant-currency sales down 25.0% in Q2 2026
- Asia/Pacific/Africa constant-currency sales down 6.4% in Q2 2026
- North America operating margin reported at (5.2)% in the quarter
- Cash and cash equivalents decreased to $573.4 million from $861.8 million at year-end 2025
Market reaction after 2Q26 earnings report: AGCO -7.38%
Following this news, AGCO has declined 7.38%, reflecting a notable negative market reaction. Our momentum scanner has triggered 8 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $107.60.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 09 | Earnings call scheduling | Neutral | -0.4% | Second-quarter earnings call scheduled for July 30 at 10 a.m. ET |
| Jul 08 | Quarterly dividend | Positive | -0.0% | Board declared a regular quarterly dividend of $0.30 per share |
| Jun 30 | Campaign launch | Neutral | +0.3% | Company launched a nationwide farming-family storytelling campaign |
| Jun 02 | Fuel-efficiency advances | Positive | +5.7% | Fuel-efficiency advances reported across three agricultural equipment brands |
| May 29 | Conference presentation | Neutral | -1.4% | CFO scheduled for a fireside chat at an industrials conference |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AGCO's recent news reactions were mixed, with positive responses to fuel-efficiency news but negative or near-flat responses to corporate and scheduling announcements.
Key Terms
non-gaap measures financial
constant currency financial
operating margin financial
ieepa tariff refunds regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Net sales of
$2.6 billion 1.0% year-over-year - Reported earnings per share of
$1.08 $1.43 - Full-year adjusted earnings per share outlook of approximately
$5.50 $5.75
"AGCO's second-quarter results reflect our ongoing emphasis on delivering productivity for farmers while driving greater efficiency throughout the company to further strengthen profitability through the economic cycle. Farmers responded to rising uncertainty around input costs and demand by taking a more cautious approach to equipment purchases," said Eric Hansotia, AGCO's Chairman, President and CEO. "With this significant shift and mixed market dynamics, we continue to take decisive actions to align production with retail demand, manage inventory levels across our dealer network and maintain strong discipline around operating expenses and working capital. At the same time, our teams remained committed to serving farmers, gaining share in key markets, including high-horsepower offerings in
Hansotia continued, "Given weaker-than-expected industry conditions, currency fluctuations and a more cautious outlook for the balance of the year, we are adjusting our full-year outlook. Farmers continue to face pressure from elevated operating costs, uneven crop economics and broader macroeconomic uncertainty, resulting in delayed equipment investments and limited visibility into demand recovery. In response, we remain focused on our cost-reduction efforts, closely managing production schedules and prioritizing cash flow and margin performance. While near-term market conditions are difficult, we are confident in the strategic actions we have taken to strengthen AGCO's competitive position and are committed to executing our Farmer-First strategy, expanding technology adoption and creating long-term value for our shareholders."
Net sales for the first six months of 2026 were approximately
Second Quarter Highlights
- Reported regional sales results(2):
Europe /Middle East ("EME") (2.4)%,North America +19.7% ,Latin America ("LATAM") (17.9)%,Asia/Pacific /Africa ("APA") (1.0)% - Constant currency regional sales results(1)(2)(3): EME (4.7)%,
North America +19.8% , LATAM (25.0)%, APA (6.4)% - Regional operating margin performance: EME
15.0% ,North America (5.2)%, LATAM (8.0)%, APA7.7% - The Company completed
$345 million - On April 30, 2026, the Company completed the sale of its
49% equity interests in the AGCO FinanceU.S . andCanada joint ventures for approximately$190 million $20 million U.S . and Canada AGCO Finance portfolios
(1) See reconciliation of non-GAAP measures in appendix. |
(2) As compared to second quarter 2025. |
(3) Excludes currency translation impact. |
Market Update
Industry Unit Retail Sales | ||||
Tractors | Combines | |||
Six Months Ended June 30, 2026 | Change from Prior Year Period | Change from Prior Year Period | ||
(9) % | (7) % | |||
(11) % | (39) % | |||
3 % | (3) % | |||
(4) Excludes compact tractors. |
(5) Based on Company estimates. |
Hansotia concluded, "As we move into the second half of 2026, farmers around the world have a heightened focus on maximizing net farm income through prioritizing productivity and performance from every acre and machine. Global trade discussions, geopolitical developments and changes in energy and input costs continue to influence farmer confidence and investment activity. Demand for agricultural equipment remains well below historical mid-cycle levels, and retail activity generally reflects producer profitability and replacement requirements. Technology-enabled solutions continue to gain traction as farmers look to improve operating efficiency and adopt more precision agriculture, automation and digital tools. AGCO's focus on innovation, customer success and disciplined execution positions us to navigate the current environment and capitalize on opportunities as agricultural markets strengthen."
North American industry retail tractor sales were
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended June 30, | 2026 | 2025 | % change | % change | % change translation | |||||
$ 471.5 | $ 393.9 | 19.7 % | (0.1) % | 19.8 % | ||||||
LATAM(7) | 271.3 | 330.4 | (17.9) % | 7.1 % | (25.0) % | |||||
EME | 1,732.4 | 1,774.9 | (2.4) % | 2.3 % | (4.7) % | |||||
APA | 134.5 | 135.8 | (1.0) % | 5.4 % | (6.4) % | |||||
Total | $ 2,609.7 | $ 2,635.0 | (1.0) % | 2.7 % | (3.7) % |
Six Months Ended June 30, | 2026 | 2025 | % change | % change | % change translation | |||||
$ 877.9 | $ 763.4 | 15.0 % | 0.5 % | 14.5 % | ||||||
LATAM(7) | 483.0 | 586.4 | (17.6) % | 7.2 % | (24.8) % | |||||
EME | 3,333.2 | 3,105.4 | 7.3 % | 5.8 % | 1.5 % | |||||
APA | 258.5 | 230.3 | 12.2 % | 7.4 % | 4.8 % | |||||
Total | $ 4,952.6 | $ 4,685.5 | 5.7 % | 5.2 % | 0.5 % | |||||
(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 |
Net sales in the North American region increased
Net sales in the
Outlook
AGCO's net sales for 2026 are expected to be from
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AGCO will host a conference call for this earnings announcement at 10 a.m. Eastern Time on Thursday, July 30. 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 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 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. In 2025, theU.S . government implemented a series of tariffs on goods imported intothe United States from various countries, and in many cases these measures resulted in reciprocal tariffs and other actions on goods exported fromthe United States . These tariffs and related actions are complex, continuously evolving and remain highly volatile as trade negotiations and legal challenges proceed. In February 2026, theU.S . Supreme Court ruled that the International Emergency Economic Powers Act ("IEEPA"), which theU.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, theU.S . Court of International Trade ("CIT") orderedU.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 refund process remains subject to CBP review, and the administration has appealed the CIT's refund order to theU.S . Court of Appeals for the Federal Circuit, contesting both the scope of the refund obligation and the reliquidation of finally liquidated entries for importers who have not filed individual lawsuits. It remains uncertain when, or to what extent, such refunds will ultimately be collected. Following theU.S . Supreme Court's ruling, the administration has also imposed tariffs under alternative statutory authorities, the validity of which is also subject to legal challenge. 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 outsidethe 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 conflicts in
Ukraine or theMiddle 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, 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. The AGCO Finance joint ventures with Rabobank, which are wholly owned or 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, facility 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 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) | |||
June 30, 2026 | December 31, 2025 | ||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 573.4 | $ 861.8 | |
Accounts and notes receivable, net | 1,232.1 | 1,079.4 | |
Inventories, net | 3,007.1 | 2,709.3 | |
Other current assets | 525.1 | 545.6 | |
Total current assets | 5,337.7 | 5,196.1 | |
Property, plant and equipment, net | 1,939.9 | 1,996.2 | |
Right-of-use lease assets | 153.0 | 167.3 | |
Investments in affiliates | 490.6 | 609.9 | |
Deferred tax assets | 974.4 | 905.5 | |
Other assets | 455.0 | 481.0 | |
Intangible assets, net | 644.6 | 673.0 | |
Goodwill | 1,883.2 | 1,898.8 | |
Total assets | $ 11,878.4 | $ 11,927.8 | |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY | |||
Current Liabilities: | |||
Borrowings due within one year | $ 546.7 | $ 117.7 | |
Accounts payable | 1,030.8 | 951.0 | |
Accrued expenses | 2,340.1 | 2,538.7 | |
Other current liabilities | 123.6 | 121.7 | |
Total current liabilities | 4,041.2 | 3,729.1 | |
Long-term debt, less current portion and debt issuance costs | 2,180.3 | 2,323.1 | |
Operating lease liabilities | 111.9 | 122.1 | |
Pension and postretirement health care benefits | 167.2 | 169.2 | |
Deferred tax liabilities | 123.0 | 126.5 | |
Other noncurrent liabilities | 881.8 | 885.1 | |
Total liabilities | 7,505.4 | 7,355.1 | |
Redeemable noncontrolling interests | 292.4 | 299.2 | |
Stockholders' Equity: | |||
Preferred stock | — | — | |
Common stock | 0.7 | 0.7 | |
Additional paid-in capital | 10.9 | 0.5 | |
Retained earnings | 5,800.9 | 6,047.2 | |
Accumulated other comprehensive loss | (1,731.9) | (1,774.9) | |
Total stockholders' equity | 4,080.6 | 4,273.5 | |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 11,878.4 | $ 11,927.8 | |
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 June 30, | |||
2026 | 2025 | ||
Net sales | $ 2,609.7 | $ 2,635.0 | |
Cost of goods sold | 1,963.8 | 1,976.4 | |
Gross profit | 645.9 | 658.6 | |
Operating expenses: | |||
Selling, general and administrative expenses | 335.7 | 326.4 | |
Engineering expenses | 141.2 | 117.8 | |
Amortization of intangibles | 17.1 | 15.7 | |
Impairment charges | — | 6.8 | |
Restructuring and business optimization expenses | 11.2 | 15.6 | |
Loss on sale of business | — | 12.3 | |
Income from operations | 140.7 | 164.0 | |
Interest expense, net | 17.0 | 17.8 | |
Other expense, net | 15.5 | 48.9 | |
Income before income taxes and equity in net earnings of affiliates | 108.2 | 97.3 | |
Income tax provision (benefit) | 40.4 | (205.5) | |
Income before equity in net earnings of affiliates | 67.8 | 302.8 | |
Equity in net earnings of affiliates | 7.0 | 11.6 | |
Net income | 74.8 | 314.4 | |
Net loss attributable to noncontrolling interests | 2.4 | 0.4 | |
Net income attributable to AGCO Corporation | $ 77.2 | $ 314.8 | |
Net income per common share attributable to AGCO Corporation: | |||
Basic | $ 1.08 | $ 4.22 | |
Diluted | $ 1.08 | $ 4.22 | |
Cash dividends declared and paid per common share | $ 0.30 | $ 0.29 | |
Weighted average number of common and common equivalent shares outstanding: | |||
Basic | 71.1 | 74.6 | |
Diluted | 71.2 | 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) | |||
Six Months Ended June 30, | |||
2026 | 2025 | ||
Net sales | $ 4,952.6 | $ 4,685.5 | |
Cost of goods sold | 3,725.3 | 3,506.3 | |
Gross profit | 1,227.3 | 1,179.2 | |
Operating expenses: | |||
Selling, general and administrative expenses | 674.8 | 652.2 | |
Engineering expenses | 273.8 | 233.8 | |
Amortization of intangibles | 34.0 | 31.0 | |
Impairment charges | 2.1 | 7.9 | |
Restructuring and business optimization expenses | 21.2 | 28.6 | |
Loss on sale of business | — | 12.3 | |
Income from operations | 221.4 | 213.4 | |
Interest expense, net | 32.2 | 36.3 | |
Other expense, net | 42.0 | 81.2 | |
Income before income taxes and equity in net earnings of affiliates | 147.2 | 95.9 | |
Income tax provision (benefit) | 45.0 | (203.5) | |
Income before equity in net earnings of affiliates | 102.2 | 299.4 | |
Equity in net earnings of affiliates | 25.0 | 23.7 | |
Net income | 127.2 | 323.1 | |
Net loss attributable to noncontrolling interests | 5.0 | 2.2 | |
Net income attributable to AGCO Corporation | $ 132.2 | $ 325.3 | |
Net income per common share attributable to AGCO Corporation | |||
Basic | $ 1.84 | $ 4.36 | |
Diluted | $ 1.84 | $ 4.36 | |
Cash dividends declared and paid per common share | $ 0.59 | $ 0.58 | |
Weighted average number of common and common equivalent shares outstanding: | |||
Basic | 71.8 | 74.6 | |
Diluted | 71.9 | 74.6 | |
See accompanying notes to condensed consolidated financial statements. | |||
AGCO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in millions) | |||
Six Months Ended June 30, | |||
2026 | 2025 | ||
Cash flows from operating activities: | |||
Net income | $ 127.2 | $ 323.1 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation | 133.8 | 124.6 | |
Amortization of intangibles | 34.0 | 31.0 | |
Stock compensation expense | 27.9 | 17.9 | |
Impairment charges | 2.1 | 7.9 | |
Loss on sale of business | — | 12.3 | |
Equity in net earnings of affiliates, net of cash received | (25.0) | (23.1) | |
Deferred income tax benefit | (64.5) | (301.3) | |
Other | (14.0) | 14.0 | |
Changes in operating assets and liabilities: | |||
Accounts and notes receivable, net | (177.7) | 107.5 | |
Inventories, net | (298.8) | (146.5) | |
Other current and noncurrent assets | 43.8 | (70.3) | |
Accounts payable | 114.9 | 176.1 | |
Accrued expenses | (156.5) | (244.5) | |
Other current and noncurrent liabilities | 7.8 | 124.8 | |
Total adjustments | (372.2) | (169.6) | |
Net cash provided by (used in) operating activities | (245.0) | 153.5 | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (101.8) | (90.4) | |
Proceeds from sale of property, plant and equipment | 0.3 | 1.1 | |
Proceeds from sale of business | — | (12.3) | |
Investments in unconsolidated affiliates | (34.7) | (1.2) | |
Proceeds from sale of investments in unconsolidated affiliates | 188.4 | — | |
Other | (15.5) | (5.3) | |
Net cash provided by (used in) investing activities | 36.7 | (108.1) | |
Cash flows from financing activities: | |||
Proceeds from indebtedness | 376.6 | 518.0 | |
Repayments of indebtedness | (56.2) | (367.5) | |
Purchases and retirement of common stock | (347.0) | — | |
Payment of dividends to stockholders | (42.0) | (43.3) | |
Payment of minimum tax withholdings on stock compensation | (7.0) | (9.1) | |
Net cash provided by (used in) financing activities | (75.6) | 98.1 | |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (4.5) | 27.7 | |
Increase (decrease) in cash, cash equivalents and restricted cash | (288.4) | 171.2 | |
Cash, cash equivalents and restricted cash, beginning of period | 861.8 | 612.7 | |
Cash, cash equivalents and restricted cash, end of period | $ 573.4 | $ 783.9 | |
See accompanying notes to condensed consolidated financial statements. | |||
AGCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions)
1. SEGMENT REPORTING
The Company has four operating segments which are also its reportable segments which consist of the
Three Months Ended June 30, | North | Latin |
| Total | ||||||
2026 | ||||||||||
Net sales | $ 471.5 | $ 271.3 | $ 1,732.4 | $ 134.5 | $ 2,609.7 | |||||
Cost of goods sold | 378.9 | 236.0 | 1,242.4 | 106.5 | 1,963.8 | |||||
Selling, general and administrative expenses | 77.1 | 42.1 | 146.5 | 14.8 | 280.5 | |||||
Engineering expenses | 40.0 | 15.0 | 83.3 | 2.9 | 141.2 | |||||
Income (loss) from operations | $ (24.5) | $ (21.8) | $ 260.2 | $ 10.3 | $ 224.2 | |||||
2025 | ||||||||||
Net sales | $ 393.9 | $ 330.4 | $ 1,774.9 | $ 135.8 | $ 2,635.0 | |||||
Cost of goods sold | 305.3 | 265.8 | 1,299.3 | 106.0 | 1,976.4 | |||||
Selling, general and administrative expenses | 78.7 | 31.7 | 140.1 | 17.9 | 268.4 | |||||
Engineering expenses | 35.1 | 6.0 | 74.2 | 2.5 | 117.8 | |||||
Income (loss) from operations | $ (25.2) | $ 26.9 | $ 261.3 | $ 9.4 | $ 272.4 | |||||
Six Months Ended June 30, | North | Latin |
| Total Segments | ||||||
2026 | ||||||||||
Net sales | $ 877.9 | $ 483.0 | $ 3,333.2 | $ 258.5 | $ 4,952.6 | |||||
Cost of goods sold | 717.0 | 439.9 | 2,361.9 | 206.5 | 3,725.3 | |||||
Selling, general and administrative expenses | 159.3 | 78.1 | 288.6 | 32.2 | 558.2 | |||||
Engineering expenses | 77.1 | 27.7 | 163.5 | 5.5 | 273.8 | |||||
Income (loss) from operations | $ (75.5) | $ (62.7) | $ 519.2 | $ 14.3 | $ 395.3 | |||||
2025 | ||||||||||
Net sales | $ 763.4 | $ 586.4 | $ 3,105.4 | $ 230.3 | $ 4,685.5 | |||||
Cost of goods sold | 581.0 | 470.9 | 2,270.1 | 184.3 | 3,506.3 | |||||
Selling, general and administrative expenses | 163.5 | 65.8 | 275.3 | 34.4 | 539.0 | |||||
Engineering expenses | 68.3 | 16.3 | 144.3 | 4.9 | 233.8 | |||||
Income (loss) from operations | $ (49.4) | $ 33.4 | $ 415.7 | $ 6.7 | $ 406.4 | |||||
A reconciliation from the segment information to the consolidated balances for income from operations is set forth below (in millions):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Segment income from operations | $ 224.2 | $ 272.4 | $ 395.3 | $ 406.4 | |||
Impairment charges | — | (6.8) | (2.1) | (7.9) | |||
Loss on sale of business | — | (12.3) | — | (12.3) | |||
Corporate expenses | (38.1) | (47.7) | (89.2) | (95.8) | |||
Amortization of intangibles | (17.1) | (15.7) | (34.0) | (31.0) | |||
Stock compensation expense | (17.1) | (10.3) | (27.4) | (17.4) | |||
Restructuring and business optimization expenses | (11.2) | (15.6) | (21.2) | (28.6) | |||
Consolidated income from operations | $ 140.7 | $ 164.0 | $ 221.4 | $ 213.4 | |||
RECONCILIATION OF NON-GAAP MEASURES
This 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
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 and six months ended June 30, 2026 and 2025 (in millions, except per share data):
Three Months Ended June 30, | |||||||||||
2026 | 2025 | ||||||||||
Income From | Net | Net Income | Income From | Net | Net Income | ||||||
As reported | $ 140.7 | $ 77.2 | $ 1.08 | $ 164.0 | $ 314.8 | $ 4.22 | |||||
Restructuring and business optimization expenses(2) | 11.2 | 8.7 | 0.12 | 15.6 | 11.6 | 0.16 | |||||
Amortization of PTx Trimble acquired intangibles(3) | 14.3 | 11.0 | 0.16 | 13.0 | 7.9 | 0.11 | |||||
Transaction-related costs(4) | 0.1 | — | — | 5.8 | 1.6 | 0.02 | |||||
Impairment charges(5) | — | — | — | 6.8 | 6.8 | 0.09 | |||||
Loss on sale of business(6) | — | — | — | 12.3 | 12.7 | 0.17 | |||||
Divestiture-related foreign currency translation release(7) | 5.3 | 5.3 | 0.07 | — | — | — | |||||
Discrete tax items(8) | — | — | — | — | (255.2) | (3.42) | |||||
As adjusted | $ 171.6 | $ 102.2 | $ 1.43 | $ 217.5 | $ 100.2 | $ 1.35 | |||||
(1) | Net income and net income per share amounts are after tax. | |||||||||||
(2) | The restructuring expenses recorded during the three months ended June 30, 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 June 30, 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 June 30, 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 June 30, 2025 primarily related to the impairment of certain other assets. | |||||||||||
(6) | The loss on sale of business recorded during the three months ended June 30, 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. | |||||||||||
(7) | During the three months ended June 30, 2026, the Company divested its interests in its Canadian 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, net" in the Company's Condensed Consolidated Statements of Operations. | |||||||||||
(8) | During the three months ended June 30, 2025, the Company's income tax provision included a net tax benefit of | |||||||||||
Six Months Ended June 30, | |||||||||||
2026 | 2025 | ||||||||||
Income From | Net | Net Income | Income From | Net | Net Income | ||||||
As reported | $ 221.4 | $ 132.2 | $ 1.84 | $ 213.4 | $ 325.3 | $ 4.36 | |||||
Restructuring and business optimization expenses(2) | 21.2 | 17.1 | 0.24 | 28.6 | 21.3 | 0.29 | |||||
Amortization of PTx Trimble acquired intangibles(3) | 28.7 | 22.1 | 0.31 | 25.8 | 15.5 | 0.21 | |||||
Transaction-related costs(4) | 0.3 | — | — | 12.9 | 3.6 | 0.05 | |||||
Impairment charges(5) | 2.1 | 2.1 | 0.03 | 7.9 | 7.9 | 0.10 | |||||
Loss on sale of business(6) | — | — | — | 12.3 | 12.7 | 0.17 | |||||
Divestiture-related foreign currency translation release(7) | 5.3 | 5.3 | 0.07 | — | — | — | |||||
Discrete tax items(8) | — | (8.5) | (0.12) | — | (255.2) | (3.42) | |||||
As adjusted | $ 279.0 | $ 170.3 | $ 2.37 | $ 300.9 | $ 131.1 | $ 1.76 | |||||
(1) | Net income and net income per share amounts are after tax. | |||||||||||
(2) | The restructuring expenses recorded during the six months ended June 30, 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 six months ended June 30, 2026 related to the Company's divestiture of the majority of its G&P business. The transaction-related costs recorded during the six months ended June 30, 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 six months ended June 30, 2026 and 2025 primarily related to the impairment of certain other assets. | |||||||||||
(6) | The loss on sale of business recorded during the six months ended June 30, 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. | |||||||||||
(7) | During the six months ended June 30, 2026, the Company divested its interests in its Canadian 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, net" in the Company's Condensed Consolidated Statements of Operations. | |||||||||||
(8) | During the six months ended June 30, 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. During the six months ended June 30, 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 and six months ended June 30, 2026 and 2025 (in millions, except margin data):
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Net sales | $ 2,609.7 | $ 2,635.0 | $ 4,952.6 | $ 4,685.5 | ||||
Income from operations | 140.7 | 164.0 | 221.4 | 213.4 | ||||
Adjusted income from operations(1) | $ 171.6 | $ 217.5 | $ 279.0 | $ 300.9 | ||||
Operating margin(2) | 5.4 % | 6.2 % | 4.5 % | 4.6 % | ||||
Adjusted operating margin(2) | 6.6 % | 8.3 % | 5.6 % | 6.4 % | ||||
(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 tables set forth, for the three and six months ended June 30, 2026 and 2025, the impact to net sales of currency translation by geographical segment (in millions, except percentages):
Three Months Ended June 30, | Change due to currency translation | ||||||||
2026 | 2025 | % change | $ | % | |||||
$ 471.5 | $ 393.9 | 19.7 % | $ (0.2) | (0.1) % | |||||
271.3 | 330.4 | (17.9) % | 23.5 | 7.1 % | |||||
1,732.4 | 1,774.9 | (2.4) % | 41.1 | 2.3 % | |||||
134.5 | 135.8 | (1.0) % | 7.3 | 5.4 % | |||||
$ 2,609.7 | $ 2,635.0 | (1.0) % | $ 71.7 | 2.7 % | |||||
(1) | Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in | |||||||||||
Six Months Ended June 30, | Change due to currency translation | ||||||||
2026 | 2025 | % change | $ | % | |||||
$ 877.9 | $ 763.4 | 15.0 % | $ 3.5 | 0.5 % | |||||
483.0 | 586.4 | (17.6) % | 42.0 | 7.2 % | |||||
3,333.2 | 3,105.4 | 7.3 % | 179.7 | 5.8 % | |||||
258.5 | 230.3 | 12.2 % | 17.0 | 7.4 % | |||||
$ 4,952.6 | $ 4,685.5 | 5.7 % | $ 242.2 | 5.2 % | |||||
(1) | Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in | |||||||||||
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SOURCE AGCO Corporation