AGCO Corporation (AGCO)

AGCO reported third-quarter 2026 net sales of $2.3 billion on 29 October, down 8.6 percent from a year earlier 1. Adjusted earnings per share were $1.05, against $1.35 in the third quarter of 2025 1.

Chief executive Eric Hansotia called it "the weakest global industry demand environment in more than a decade" 1. He said elevated input costs and uncertainty over commodity markets and trade pushed industry demand below the last cyclical trough 1.

Sales split sharply by region 1. Europe and the Middle East fell 19.1 percent, Latin America fell 15.4 percent and North America rose 34.8 percent 1. The company said higher North American unit sales, mostly high-horsepower and mid-range tractors and parts, drove that rise 1.

The company now expects 2026 net sales of $9.8 to $10.0 billion and adjusted earnings per share of about $5.50 1. On 30 July it had expected $10.1 to $10.2 billion and $5.50 to $5.75 7.

Tariffs are the open question 1. North America's operating income included about $13.0 million of IEEPA tariff refunds, which the company says remain subject to customs review and the administration's appeal 1.

AGCO was incorporated in Delaware in 1991 and grew into a maker of tractors and harvesting machines sold through independent dealers 3.

Sales peaked at $14,412.4 million in 2023, with income from operations of $1,700.4 million 3. Farmers were then buying heavily, and the company earned about 12 cents of operating income per dollar of sales (computed) 3.

Two deals reshaped 2024 3. On April 1, 2024, AGCO closed the Trimble farm-technology purchase through the PTx Trimble joint venture, of which it owns 85 percent 3. On July 25, 2024, it agreed to sell most of its Grain & Protein business for $700.0 million 3.

The sale closed on November 1, 2024 to an affiliate of American Industrial Partners, and the company took a loss of $507.3 million on it 3. Impairment charges of $369.5 million, mostly goodwill, also hit that year 3.

Net sales fell to $11,661.9 million in 2024 and income from operations turned to a loss of $122.1 million 3. Weaker demand for farm machinery and the sold business explain the drop from 2023 3.

A feud with TAFE, a shareholder and tractor supplier, ran in parallel 3. On April 26, 2024, AGCO gave notice that it was ending all commercial relationships with TAFE 3.

On June 30, 2025, the two settled their claims, and TAFE took ownership of the Massey Ferguson brand in India, Nepal and Bhutan 6. AGCO completed the sale of its stake in TAFE on September 30, 2025 for $260 million 3.

In 2025, net sales fell 13.5 percent to $10,082.0 million, mostly on lower volumes and the lost Grain & Protein sales 3. Net income attributable to AGCO was $726.5 million, against a loss of $424.8 million in 2024 3.

A $251.9 million gain on the TAFE stake sale helped 2025 earnings 3. Restructuring costs fell from $172.7 million to $82.2 million, and global production hours fell about 12.1 percent as output was cut to match demand 3.

Tractors, parts and other machines

AGCO sells tractors, combine harvesters, hay and forage tools, planters, sprayers, precision farming technology and replacement parts under brands that include Fendt, Massey Ferguson, Valtra and PTx 3.

Tractors were 66 percent of 2025 net sales, replacement parts 19 percent, and the hay, planting, precision and implement group 11 percent 3. Combines and application equipment were 2 percent each 3.

Tractors range from compacts under 40 horsepower to high-horsepower models of 140 to 650 horsepower for large row-crop farms 3.

In the third quarter of 2026, tractors brought in $1,410.9 million of $2,262.5 million in net sales, and replacement parts $505.6 million 2.

Precision farming (PTx)

PTx combines Precision Planting with the PTx Trimble joint venture to sell precision-farming technology that works across mixed fleets, including retrofit kits for machines of almost any brand 3.

In 2025 AGCO launched FarmENGAGE, a digital platform for work plans and fieldwork across brands, and showed more Outrun autonomy products 3. The Outrun autonomous grain cart is in production, tillage is in beta testing and fertilization is in alpha testing 3.

Where it sells and how it is financed

Europe supplied 64 percent of 2025 net sales, North America 17 percent, South America 11 percent and the rest of the world 8 percent 3. AGCO sells through about 2,800 independent dealers and distributors in about 140 countries 3.

Finance joint ventures with Rabobank, in which AGCO holds 49 percent, finance about 50 percent of retail tractor and combine sales where they operate 3.

Plants and people

Main plants stand in Kansas, Minnesota and Mexico; Brazil and Argentina; Germany, France, Italy and Finland; and China 3. The company has about 22,000 employees 3.

Eric Hansotia is Chairman, President and CEO 5. On 5 October 2026 AGCO named Stefan Caspari to lead Fendt, Valtra and product management, and Torsten Dehner stepped down from that role 5.

Rivals and problems

The annual report names Deere and CNH Industrial as the two principal competitors worldwide 3. A patent case brought by Deere against AGCO and Precision Planting ended with a judgment for AGCO that became final in 2025 3.

Demand is the main problem 1. Tractor retail sales in Brazil were 17 percent lower in the first nine months of 2026, and North American tractor sales 9 percent lower 1.

The umbrella, in words

AGCO's four lead brands are Fendt, Massey Ferguson, PTx and Valtra 3. Its subsidiaries file under names such as Fendt GmbH, Valtra OY AB, Precision Planting LLC, AGCO Power Oy and the Sparex parts group 4.

AGCO owns 85 percent of PTx Trimble, a joint venture of the Trimble farm assets 3. It also owns half of GIMA, the French joint venture whose plant is in Beauvais, and 49 percent of the Rabobank finance ventures 3.

The largest holder is TAFE, with 16.3 percent of the common stock in its latest Schedule 13D amendment, a tie of invested ownership 8. Under a 2025 cooperation agreement it agreed to vote with the board's recommendations 6.

AGCO expects 2026 net sales of $9.8 to $10.0 billion, adjusted operating margin of about 7.0 percent and adjusted earnings per share of about $5.50 1.

It says production volumes are planned to align dealer inventory with market demand, and that industry demand is expected to remain below historical mid-cycle levels through the rest of 2026 1.

The estimates reflect tariff policies as of 29 October 2026, and the company says changes to them could affect the outlook 1. The government has appealed the refund order, so the timing and amount of further refunds cannot be predicted by the company 1.

A share repurchase program of up to $1.0 billion, approved on July 9, 2025, has no expiration date 2. In May 2026 the company agreed an accelerated repurchase of $293.0 million of shares 2.

The company says it will keep advancing its Farmer-First strategy and expanding precision agriculture, with retrofit autonomy tools meant to lower farmers' operating costs 1.