AGCO REPORTS FOURTH QUARTER AND 2025 FULL YEAR RESULTS

About this update from Agco Corporation

DULUTH, Ga. , Feb. 5, 2026 /PRNewswire/ -- AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, reported net sales of $2.9 billion for the fourth quarter of 2025, an increase of 1.1% compared to the fourth quarter of 2024. The fourth quarter of 2024 included other revenue of $74.7 million which represents revenue from the Company's divestiture of the majority of its Grain & Protein business as shown in the regional net sales table. Reported net income was $1.30 per share for the quarter and adjusted net income (1) was $2.17 per share. These results compare to reported net loss of $(3.42) per share and adjusted net income (1)  of $1.97 per share for the fourth quarter of 2024. Excluding favorable currency translation impacts of 6.4%, net sales in the quarter decreased 5.3% compared to the fourth quarter of 2024. "AGCO delivered strong fourth quarter results, achieving an adjusted operating margin (1) of 10.1% reflecting the team's ability to deliver despite ongoing pressures on farm income and global trade dynamics that influenced overall industry activity," said Eric Hansotia, AGCO's Chairman, President and Chief Executive Officer. "Even in this environment, we grew global market share, including our largest‑ever share gains in North American large ag. At the same time, we applied disciplined production planning, enabling us to finish 2025 with meaningfully lower company and dealer inventories compared to prior‑year levels. Our full‑year adjusted operating margin (1) of 7.7% was nearly double the performance recorded at the bottom of the last cycle. Strong working-capital management also supported record free cash flow, representing approximately 188% free cash flow conversion (1) . These strong results in today's industry landscape demonstrate the continued resilience of AGCO's earnings profile, driven by our three high‑margin growth levers, continued cost discipline and the benefits of our multi‑year structural transformation." Hansotia continued, "In 2026, we will remain dedicated to advancing our Farmer‑First strategy. Our innovation pipeline remains robust with a full slate of new product introductions designed to help make farmers more productive and profitable. This level of innovation, coupled with our ongoing cost‑reduction initiatives, demonstrates the strength of our execution. These actions will help balance the effects of low levels of farm profitability and persistent trade‑related uncertainty, while positioning the company to deliver improved performance in 2026. We are well prepared to accelerate growth when demand strengthens and solidify our role as the trusted partner for industry-leading, smart farming solutions." Net sales for the full year of 2025 were approximately $10.1 billion, which is a decrease of 13.5% compared to 2024. Fiscal year 2024 included other revenue of $816.5 million which represents revenue from the Company's divestiture of the majority of its Grain & Protein business as shown in the regional net sales table. For the full year, reported net income was $9.75 per share and adjusted net income (1)  was $5.28 per share. These results compare to reported net loss of $(5.69) per share and adjusted net income (1)  of $7.50 per share in 2024. Excluding favorable currency translation impacts of 2.3%, net sales for the full year decreased 15.8% compared to 2024. H ighlights Market Update Hansotia concluded, "Global agricultural markets remained under significant pressure in 2025. Crop‑focused producers operated with tighter margins as corn, soybean and wheat prices stayed near breakeven levels amid ample global supplies and evolving trade dynamics. In the U.S., record corn production further influenced grain pricing and placed added pressure on farm profitability. Livestock producers benefited from firmer pricing and improved cash receipts during 2025, contributing to a more encouraging backdrop in that sector. Overall sentiment among crop producers remained measured as input costs stayed elevated and government programs played a larger role in supporting income. As a result, demand for new equipment moderated further across all major markets, aligned with current farm economics and global trade conditions. We continue to expect increasing adoption of precision and smart‑farming technologies over time, though today's environment is contributing to softer demand across many equipment categories." North American industry retail tractor sales were 10% lower during 2025 compared to the previous year with the most pronounced declines occurring in higher horsepower categories — particularly in recent months. Combine unit sales were 27% lower in 2025 compared to 2024. Current farm economics, evolving grain export demand and elevated input costs are expected to continue to pressure industry demand throughout 2026, especially for larger equipment. Brazil industry retail tractor sales were 2% lower during 2025 compared to the previous year reflecting softer demand for larger tractors, partially offset by improved demand for smaller and mid-size tractors. While crop production remained healthy and certain trade developments provided opportunities for farmers, demand for larger equipment has not yet shown renewed growth. High financing costs, tight credit and broader political dynamics are expected to continue to constrain demand in 2026. Western Europe industry retail tractor sales were 7% lower during 2025 compared to the previous year with double digit percentage decreases across most markets except Spain and Italy, which saw growth. Relatively healthy farm income in 2026, driven primarily by the dairy and livestock producers, as well as an aging fleet are expected to support industry demand slightly ahead of 2025 levels. Regional Results AGCO   Regional Net Sales (in millions)   North America North American net sales were 8.5% lower during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding the impact of favorable currency translation. Softer industry sales and production levels below end market demand contributed to lower sales. The most significant sales declines occurred in sprayers and mid-range tractors. Income from operations for the fourth quarter of 2025 was $33.1 million lower compared to the same period in 2024 and operating margins remained negative. This decrease was primarily a result of lower sales and production volumes. South America Net sales in the South American region were 9.3% lower during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding the impact of favorable currency translation. Industry demand was more moderate with lower sales in tractors and implements, partially offset by growth in combines. Income from operations for the fourth quarter of 2025 was $20.5 million lower compared to the same period in 2024. This decrease was primarily a result of lower sales and higher engineering expenses. Europe/Middle East Europe/Middle East net sales were 0.7% lower during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding the impact of favorable currency translation. Lower sales across most of the Western European markets were partially offset by growth in Germany and the U.K. Lower sales in tractors were partially offset by growth in hay tools. Income from operations increased $57.4 million in the fourth quarter of 2025 compared to the same period in 2024. This increase was primarily a result of positive net pricing and a favorable sales mix. Asia/Pacific/Africa Net sales in the Asia/Pacific/Africa region increased 2.8% during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding favorable currency translation impacts. Higher sales in Australia were partially offset by lower sales across most of the Asian markets. Income from operations increased $8.5 million in the fourth quarter of 2025 compared to the same period in 2024 primarily due to lower selling, general and administrative ("SG&A expenses"). Outlook AGCO's net sales for 2026 are expected to range from $10.4 to $10.7 billion. Adjusted operating margins are projected to range from 7.5% - 8.0%. Production volumes are expected to be relatively flat with cost controls and positive pricing contributing to results. Based on these assumptions, 2026 earnings per share are targeted at approximately $5.50 to $6.00. These estimates incorporate the expected impact of tariffs in effect as of February 5, 2026, along with AGCO's mitigation strategies. Any changes to tariff policies or related responses could affect these projections. * * * * * AGCO will host a conference call with respect to this earnings announcement at 10 a.m. Eastern Time on Thursday, February 5. The Company will refer to slides on its conference call. Interested persons can access the conference call and slide presentation via AGCO's website at w ww.agcocorp.com  under the "Investors" Section. A replay of the conference call will be available approximately two hours after the conclusion of the conference call for 12 months following the call. A copy of this press release will be available on AGCO's website for at least 12 months following the call. * * * * * Safe Harbor Statement Statements that are not historical facts, including the projections of earnings per share, production levels, sales, industry demand, market conditions, commodity prices, currency translation, farm income levels, margin levels, strategy, investments in product and technology development, new product introductions, restructuring and other cost reduction initiatives, production volumes, tax rates and general economic conditions, are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. The following are among the factors that could cause actual results to differ materially from the results discussed in or implied by the forward-looking statements. Further information concerning these and other factors is included in AGCO's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2024 and subsequent Form 10-Qs. AGCO disclaims any obligation to update any forward-looking statements except as required by law. * * * * * About AGCO AGCO (NYSE: AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.       AGCO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited, in millions, except share amounts, per share data) 1. ACCOUNTS RECEIVABLE SALES AGREEMENTS The Company has accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. The cash received from receivables sold under these accounts receivable sales agreements that remain outstanding as of December 31, 2025 and 2024 was approximately $2.1 billion and $2.3 billion, respectively. In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world. The cash received from trade receivables sold under factoring arrangements that remain outstanding as of December 31, 2025 and 2024 was approximately $270.5 million and $220.5 million, respectively. Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within "Other expense (income), net" in the Company's Condensed Consolidated Statements of Operations, were approximately $29.7 million and $90.3 million, respectively, during the three months and year ended December 31, 2025. Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within "Other expense (income), net" in the Company's Condensed Consolidated Statements of Operations, were approximately $26.0 million and $118.2 million, respectively, during the three months and year ended December 31, 2024. The Company's finance joint ventures in Europe, Brazil and Australia also provide wholesale financing directly to the Company's dealers. As of December 31, 2025 and 2024, these finance joint ventures had approximately $107.5 million and $139.2 million, respectively, of outstanding accounts receivable associated with these arrangements. 2. INVENTORIES Inventories, net at December 31, 2025 and 2024 were as follows (in millions): 3. INDEBTEDNESS Long-term debt consisted of the following at December 31, 2025 and 2024 (in millions): 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 $56.1 million and $90.4 million, respectively. 1.002%  European Investment Bank ( " EIB " ) Senior Term Loan Due 2025 On January 24, 2025, the Company repaid €250.0 million (or approximately $262.3 million) upon maturity of the EIB Senior term loan due 2025. Senior Term Loans Due Between 2025 and 2028 In August 2025, the Company repaid €63.0 million (or approximately $72.8 million) upon maturity of the Senior term loans due 2025. 4. RESTRUCTURING AND BUSINESS OPTIMIZATION 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 $150.0 million to $200.0 million in connection with the initial phase of the Program, primarily consisting of cash charges related to severance payments, employees benefits and related costs. The Company incurred a substantial portion of the charges by the end of fiscal year 2025. As of December 31, 2024, accrued severance and other related costs primarily associated with the Program were approximately $136.2 million. During the three months and year ended December 31, 2025, the Company recorded $40.3 million and $46.2 million of severance and other related costs, net of reversals, primarily associated with the Program, and paid approximately $10.8 million and $111.2 million, respectively, of severance costs. The accrued severance and other related costs were $82.8 million as of December 31, 2025, inclusive of approximately $11.6 million of foreign currency translation impacts. Business optimization expenses primarily relate to professional services costs incurred as part of the restructuring program aimed at reducing structural costs, enhancing global efficiencies by changing the Company's operating model for certain corporate and back-office functions. During the three months and year ended December 31, 2025, the Company recognized approximately $4.6 million and $36.0 million, respectively, of business optimization expenses. 5. SEGMENT REPORTING The Company has four operating segments which are also its reportable segments which consist of the North America, South America, Europe/Middle East and Asia/Pacific/Africa regions. The Company's reportable segments are geography based and distribute a full range of agricultural machinery and precision agriculture technology. The Company's Chief Operating Decision Maker ("CODM"), Eric P. Hansotia, Chairman of the Board, President and Chief Executive Officer, evaluates segment performance primarily based on income from operations. The CODM utilizes income from operations to evaluate each segment's performance including the allocation of resources. Sales for each segment are based on the location of the third-party customer. The Company's selling, general and administrative expenses and engineering expenses are charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income (loss) from operations for one segment may not be comparable to another segment. Segment results for the three months and years ended December 31, 2025 and 2024 based on the Company's reportable segments are as follows (in millions): 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 $ 1,869.9 $ 168.3 $ 2,812.6 $ 74.7 $ 2,887.3 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   A reconciliation from the segment information to the consolidated balances for income (loss) from operations is set forth below (in millions): 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 U.S. generally accepted accounting principles ("GAAP"). The net sales for the three months ended December 31, 2025 were not adjusted to exclude a recent acquisition as the acquisition occurred in the second quarter of 2024. A reconciliation of each of those measures to the most directly comparable GAAP measure is included below. The following is a reconciliation of reported income (loss) from operations, net income (loss) attributable to AGCO and net income (loss) per share attributable to AGCO to adjusted income from operations, adjusted net income and adjusted net income per share for the three months and years ended December 31, 2025 and 2024 (in millions, except per share data):   The following is a reconciliation of adjusted operating margin for the three months and years ended December 31, 2025 and 2024 (in millions): 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): 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): 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):   View original content to download multimedia: https://www.prnewswire.com/news-releases/agco-reports-fourth-quarter-and-2025-full-year-results-302679627.html

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