Agco Corporation · NYSE:AGCO
Agco — Q2 2025 Earnings Presentation
22 slides from Agco's earnings presentation, Jul 31, 2025
Slide 1: Second Quarter 2025 Financial and Operational Results
SECOND QUARTER 2025 Financial and Operational Results July 31, 2025
Slide 2: Safe Harbor
SAFE HARBOR Forward-looking statements in this presentation, including statements about our strategic plans and initiatives as well as their financial impacts, demand, product development, and capital expenditure plans and timing of those plans, and our expectations with respect to the costs and ben
Slide 3: Financial Summary
Q2 25 vs. YTD 25 vs. REPORTED Q2 25 YTD 25 Q2 24 YTD 24 NET SALES $2,635.0 (18.8)% $4,685.5 (24.1)% GROSS MARGIN 25.0% (80)bps 25.2% (80)bps OPERATING INCOME $164.0 167.9% $213.4 569.0% OPERATING MARGIN 6.2% 1,360bps 4.6% 410bps FINANCIAL DILUTED EPS $4.22 $9.14 $4.36 $7.03 SUMMARY Q2 25 vs. YTD 25
Slide 4: Industry Overview
INDUSTRY OVERVIEW June 2025 Year-to-Date Retail Units NORTH AMERICA WESTERN EUROPE(2) BRAZIL(2) Tractors(1) Combines Tractors Combines Tractors Combines Industry Industry Industry Industry Industry Industry (13)% (33)% (12)% (8)% 6% (9)% 2025 vs. 2024 2025 vs. 2024 2025 vs. 2024 2025 vs. 2024 2025 v
Slide 5: Production
Q3 2023 EARNINGS RELEASE PRODUCTION AGCO Production Hours Q2 2025 Production DOWN ~16% vs. 2024 -16% -33% Projected Full-Year 2025 Production Q1 Q2 Q3E Q4E DOWN 15% - 20% 2024 Production 2025 Production Plan vs. 2024 5 *Production hours related to the divested Grain & Protein business have been excl
Slide 6: 3 Growth Levers Will Drive Volume and Margin Improvement
3 GROWTH LEVERS WILL DRIVE VOLUME AND MARGIN IMPROVEMENT Global Fendt Full-line 14%-15% adjusted operating margin at mid-cycle by 2029(1) FARMER- FIRST Global 4%-5% above industry volume growth Precision Ag STRATEGY Parts & Services 75%-100% annual Free Cash Flow conversion(2) (1) Adjusted operating
Slide 7: AGCO Innovations
AGCO INNOVATIONS PTx OutRun Fendt 620 Vario • World’s only autonomous harvesting solution • DLG PowerMix Test: Best-in-class fuel efficiency • 2025 World Changing Ideas Award from Fast • Lowest diesel consumption in 165–240 hp class Company • VarioDrive + Fendt iD = unmatched efficiency • Retrofit k
Slide 8: Save the Date
SAVE THE DATE AGCO 2025 Tech Event September 30 – October 1, 2025 Join us for a strategic business update Fendt factory, Marktoberdorf, Germany and the value of being the most farmer-focused company Farmer-First Strategy Update Contact greg.peterson@agcocorp.com for more details Manufacturing Tour F
Slide 9: Regional Net Sales Results
REGIONAL NET SALES RESULTS Q2 25 vs. Q2 24 Net Sales Excluding Currency Translation* Q2 2025 16% NA (5)% (6)% (11)% (15)% SA 12% (32)% APA $2.6B 5% EME SA APA NA Total EME 67% Segments YTD 25 vs. YTD 24 Net Sales Excluding Currency Translation Q2 2024(1) and Acquisition of a Business* 21% NA SA APA
Slide 10: Net Sales, Adjusted Operating Income and Adjusted Operating Margins
NET SALES, ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING MARGINS Q2 24(1) to Q2 25 June Year-to-Date(1) $4.0 16% $3.5 $3.2B 14% $614.2M $2.9B Adj. Op. Income* ($M) $3.0 12% $2.6B $2.6B Net Sales ($B) Adj. Op. Margin* $2.5 10% 10.3% $2.1 $2.0 9.9% 8% 8.3% $300.9M $1.5 6% 9.9% $1.0 5.5% 4% 6.4% 4.1
Slide 11: Free Cash Flow
Q3 2023 EARNINGS RELEASE JUNE YTD FREE CASH FLOW FREE CASH FLOW* 2024 2025 Source / (Use) of Cash $63M ($ Mils) $(328)M SECOND HALF OF YEAR SEASONALLY STRONGER ▪ Generated $63 million in free cash flow through June YTD 2025 ▪ Strong first half cash flow generation aided by working capital actions Ta
Slide 12: 2025 Market Outlook
2025 MARKET OUTLOOK Regional Market Outlook – Industry Unit Tractor Sales NORTH AMERICA(1) WESTERN EUROPE(2) BRAZIL(2) 125K 92K Large Ag Down 5-10% Down 25-30% 47K Up 0-5% Small Ag Down ~5% 2024 2025E 2024 2025E 2024 2025E (1) Excludes compact tractors (2) Amounts based on Company estimates 12
Slide 13: 2025 Key Assumptions
2025 KEY ASSUMPTIONS: 2025 SALES vs. 2024 ENGINEERING EXPENSE Softening Demand ~Flat vs. 2024 (Industry ~85% of Mid-Cycle) Pricing ~+1% ADJUSTED Grain & Protein Divested Nov. 1, 2024 OPERATING MARGIN (Net Sales ~$815M in 2024) ~7.5% +2% Foreign Currency Impact (was 0%) Market Share Gains EFFECTIVE T
Slide 14: 2025 Outlook
2025 OUTLOOK 2023 OUTLOOK $4.75 – 75% - 100% ~$9.8B $5.00 ~$350M Free Cash Flow Net Sales Capex Adjusted Earnings Conversion(1) Per Share 14 (1) Free Cash Flow Conversion is a non-GAAP measure and is defined as (Cash Flow from Operations less purchases of property, plant and equipment) / Adjusted Ne
Slide 15: Appendix
APPENDIX 15
Slide 16: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions FREE CASH FLOW Six Months Ended June 30, Year Ended 2025 2024 December 31, 2024 Net cash provided by (used in) operating activities $ 153.5 $ (134.5) $ 689.9 Less: purchases of property plant and equipment (90.4) (193.0) (393.3) Free Cash Flow $ 63.1 $ (32
Slide 17: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages NET SALES Change due to currency Three Months Ended June 30, translation Change excluding currency % change from 2025 2024 2024 % % North America $ 420.9 $ 627.2 (32.9)% (0.7)% (32.2)% South America 303.4 315.9 (4.0)% 0.7% (4.7)% Europe
Slide 18: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages NET SALES Change excluding currency Change due to Change due to and acquisition of a Six Months Ended June 30, currency translation acquisition of a business business % change from 2025 2024 2024 % % % North America $ 816.5 $ 1,228.3 (3
Slide 19: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Per Share Amounts INCOME (LOSS) FROM OPERATIONS NET INCOME (LOSS) NET INCOME (LOSS) PER SHARE Three Months Ended June 30, 2025 2024 Income Net Income Income From Net Income (Loss) From Net Income (Loss) Per Operations Net Income(1) Per Share(1) Ope
Slide 20: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Per Share Amounts INCOME FROM OPERATIONS NET INCOME (LOSS) NET INCOME (LOSS) PER SHARE Six Months Ended June 30, 2025 2024 Net Income Income From Net Income Income From Net Income (Loss) Per Operations Net Income(1) Per Share(1) Operations (Loss)(1
Slide 21: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages OPERATING MARGIN Three Months Ended 2025 2024 Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Net Sales $ 2,635.0 $ 2,050.5 $ 2,887.3 $ 2,599.3 $ 3,246.6 Income (Loss) from Operations 164.0 49.4 (268.8) 114.8 (241.7) Adjusted income from operat
Slide 22: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages OPERATING MARGIN Six Months Ended June 30, 2025 2024 Net Sales $ 4,685.5 $ 6,175.3 Income from Operations 213.4 31.9 Adjusted income from operations(1) $ 300.9 $ 614.2 Operating margin(2) 4.6 % 0.5 % Adjusted operating margin(2) 6.4 % 9