AGCO reports $2.6 billion in quarterly net sales

AGCO, Duluth, Georgia, reported net sales of $2.6 billion for the second quarter ended June 30, 2026, a decrease of 1% compared to the second quarter of 2025.

Reported net income was $1.08 per share for the quarter and adjusted net income was $1.43 per share. These results compare to reported net income of $4.22 per share and adjusted net income of $1.35 per share for the second quarter of 2025. Excluding favorable foreign currency translation of 2.7%, net sales in the quarter decreased 3.7% compared to the second quarter of 2025.

“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 North America, advancing our precision agriculture initiatives and improving the quality and efficiency of our operations.”

Net sales for the first six months of 2026 were approximately $5 billion, an increase of 5.7% compared to the same period in 2025. For the first six months of 2026, reported net income was $1.84 per share and adjusted net income was $2.37 per share. These results compare to reported net income of $4.36 per share and adjusted net income⁽¹⁾ of $1.76 per share for the same period in 2025. Excluding favorable foreign currency translation of 5.2%, net sales in the first six months of 2026 increased 0.5% compared to the same period in 2025.

Second quarter highlights

• Reported regional sales results: Europe/Middle East (“EME”) (2.4)%, North America +19.7%, Latin America (“LATAM”) (17.9)%, Asia/Pacific/Africa (“APA”) (1)%
• Constant currency regional sales results^(1)(2)(3): EME (4.7)%, North America +19.8%, LATAM (25)%, APA (6.4)%
• Regional operating margin performance: EME 15.0%, North America (5.2)%, LATAM (8)%, APA 7.7%
• The company completed $345 million of share repurchases in the second quarter
• On April 30, 2026, the company completed the sale of its 49% equity interests in the AGCO Finance U.S. and Canada joint ventures for approximately $190 million. Approximately $20 million of the total consideration was recognized in “Other expense, net” during the quarter representing future earnings that were effectively monetized and recognized upon closing, resulting in upfront recognition of the estimated income associated with the run-off of the U.S. and Canada AGCO Finance portfolios

“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,” Hansotia said. “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.”

North America

Net sales in the North American region increased 19.8% during the second quarter of 2026 compared to the second quarter of 2025, excluding the impact of unfavorable currency translation. Higher unit sales compared to the prior year supported the increase in sales.

The most significant sales increases occurred in high-horsepower tractors and hay tools. Loss from operations for the second quarter of 2026 was approximately flat compared to the same period in 2025, primarily due to higher tariff-related costs, partially offset by the benefit of approximately $22 million of certain IEEPA tariff refunds recognized during the period.

Outlook

AGCO’s net sales for 2026 are expected to be from $10.1 to $10.2 billion. Adjusted operating margins are projected to be about 7.5% reflecting continued emphasis on pricing discipline, cost management and operational alignment.

Production volumes are planned to align dealer inventory with market demand, while cost controls and positive pricing continue to support performance. Based on these assumptions, 2026 earnings per share are targeted between $5.50 and $5.75. These estimates reflect tariff policies as of July 30, together with AGCO’s established mitigation actions and sourcing strategies. Any changes to tariff policies or related responses could affect these projections.

For more information: https://hpj.com/category/machinery/