AGCO Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did AGCO Beat Earnings? Q4 2025 Results
AGCO closed out fiscal 2025 on a stronger-than-expected note, with fourth-quarter adjusted EPS of $2.17 beating the consensus estimate of $1.86 by 16.82% and revenue of $2.92 billion topping expectations by 9.40%, representing a modest 1.1% year-over-year gain. The standout driver was Europe, Middle East, and Africa, where $2.02 billion in regional net sales and a robust 16.8% operating margin, fueled by positive net pricing and favorable mix, provided the lift that more than offset persistent softness in North America, where below-market production volumes and weak industry conditions kept margins in negative territory. On a constant-currency basis, overall sales actually declined 5.3%, a reminder that reported growth leaned heavily on foreign exchange tailwinds. Management also pointed to record free cash flow of $740.20 million as evidence of operational discipline even through a down cycle. Looking to 2026, AGCO guided net sales of $10.40 billion to $10.70 billion and adjusted EPS of $5.50 to $6.00, though the outlook carries tariff-related uncertainty that could shift projections materially.
- Disciplined production planning enabling meaningfully lower company and dealer inventories
- Strong working-capital management supporting record free cash flow at 188% conversion
- Positive net pricing and favorable sales mix in Europe/Middle East
- Global market share gains including largest-ever share gains in North American large ag
- Three high-margin growth levers, cost discipline, and multi-year structural transformation
“AGCO delivered strong fourth quarter results, achieving an adjusted operating margin 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. 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 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. 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.”
AGCO CEO, on the earnings call
Forward Guidance & Outlook
AGCO expects 2026 net sales to range from $10.4 billion to $10.7 billion, above 2025 levels. Adjusted operating margins are projected at 7.5%–8.0%. Production volumes are expected to be relatively flat with cost controls and positive pricing contributing to results. 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. Current farm economics, evolving grain export demand, and elevated input costs are expected to continue pressuring industry demand throughout 2026, especially for larger equipment. Western Europe demand is expected to be slightly ahead of 2025 levels, supported by relatively healthy farm income driven by dairy and livestock producers and an aging fleet.
AGCO YoY Financials
AGCO Revenue by Segment
AGCO Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.