Key Takeaways
- AGCO reported net sales of $2.9 billion for Q4 2024, a 24.0% decrease compared to Q4 2023.
- The company’s reported net loss was $(3.42) per share, including impairment charges and restructuring expenses, while adjusted net income was $1.97 per share.
- Full-year 2024 net sales were approximately $11.7 billion, down 19.1% from 2023.
- AGCO implemented aggressive production cuts, reducing production hours by 33% in Q4.
- The company continues to execute its Farmer-First strategy and invest in precision agriculture and digital solutions to enhance long-term resilience.
AGCO’s Q4 2024 Performance Overview
AGCO Corporation (Profile), a global leader in agricultural machinery and precision ag technology, reported net sales of $2.9 billion for the fourth quarter of 2024. This marks a 24.0% decline compared to the fourth quarter of 2023. The company reported a net loss of $(3.42) per share for the quarter, including impairment charges and restructuring costs, while adjusted net income stood at $1.97 per share.
Excluding the impact of unfavorable currency translation (1.8%), net sales declined 22.2% year-over-year.
Full-Year 2024 Financial Performance
For the full year, AGCO’s net sales reached $11.7 billion, reflecting a 19.1% decrease compared to 2023. The reported net loss for 2024 was $(5.69) per share, incorporating losses from the sale of the Grain & Protein business and restructuring expenses. Adjusted net income for the year stood at $7.50 per share.
Compared to 2023, where AGCO reported net income of $15.63 per share and adjusted net income of $15.55 per share, 2024 saw significant market challenges, including softer demand for new equipment and geopolitical uncertainties impacting global supply chains.
AGCO’s Strategic Response to Market Challenges
Eric Hansotia, AGCO’s Chairman, President, and CEO, stated, “AGCO delivered strong fourth-quarter results with an adjusted operating margin of 9.9%, despite challenging market dynamics and aggressive production cuts. Our full-year adjusted operating margin of 8.9% represents our best performance in an industry downturn.”
Hansotia highlighted that AGCO reduced production hours by 33% in Q4 2024 and ended the year with lower company and dealer inventories. He emphasized the company’s ongoing structural transformation and commitment to driving higher earnings resilience across industry cycles.
Looking ahead, Hansotia noted, “In 2025, we will continue to execute our Farmer-First strategy, bolstered by strategic portfolio moves and aggressive cost controls. These efforts aim to mitigate the impact of weakening industry demand while positioning AGCO for success when the market recovers.”
Regional Performance in Q4 2024
AGCO Regional Sales and Operating Margins
Region | Sales Change (%) | Operating Margin (%) |
---|---|---|
Europe/Middle East (EME) | -16.7% (-15.8% in constant currency) | 14.4% |
North America | -38.7% (-37.7% in constant currency) | 0.7% |
South America | -31.6% (-22.4% in constant currency) | 10.8% |
Asia/Pacific/Africa (APA) | -26.2% (-26.3% in constant currency) | 3.0% |
Market Trends and 2025 Outlook
Hansotia commented on the broader agricultural market, stating that U.S. net cash farm income remains strong for livestock producers, but crop-focused farms are under pressure due to fluctuating commodity prices and elevated input costs. Geopolitical instability and climate-related disruptions in major producing regions such as Russia and Ukraine are adding to global market uncertainty.
Key industry trends observed in 2024 include:
- North America: Retail tractor sales declined 13%, with higher-horsepower categories experiencing steeper declines. Combine unit sales were down 22%.
- Brazil: Retail tractor sales decreased 4%, with lower commodity prices and rising farmer debt affecting market sentiment.
- Western Europe: Industry tractor sales declined 6%, with significant reductions in demand across Scandinavia, the UK, and Italy.
For 2025, AGCO expects net sales of approximately $9.6 billion, reflecting lower sales volumes and flat pricing. Adjusted operating margins are projected at 7% – 7.5%, driven by aggressive cost control measures and strategic restructuring efforts.
Hansotia concluded, “Despite current industry pressures, we are committed to strengthening our digital and precision ag capabilities, positioning AGCO for long-term success while supporting global food production.”
Read the entire financial results here.
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