Key Takeaways
- AGCO Corporation (Profile) reports net sales fell 30% year-over-year to $2.05 billion as global agricultural equipment markets softened.
- Adjusted net income per share declined to $0.41, from $2.32 in Q1 2024.
- Production was reduced by 33% to lower dealer inventories and align output with softer market demand.
- Regional sales declines were broad-based, with North America (-34%), EME (-22%), South America (-16%), and APA (-36%) all impacted.
- 2025 full-year sales outlook maintained at $9.6 billion, with adjusted EPS targeted between $4.00 and $4.50.
AGCO Q1 2025 Financial Summary
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Net Sales | $2.05 billion | $2.93 billion | -30.0% |
| Reported Net Income per Share | $0.14 | $2.25 | -$2.11 |
| Adjusted Net Income per Share | $0.41 | $2.32 | -$1.91 |
| North America Net Sales | $396 million | $601 million | -34.2% |
| South America Net Sales | $230 million | $273 million | -15.8% |
| EME Net Sales | $1.33 billion | $1.71 billion | -22.1% |
| APA Net Sales | $95 million | $148 million | -36.0% |
CEO Statement
“AGCO performed well in the first quarter, which better positions us to navigate global trade uncertainties and continued weak industry demand,” said Eric Hansotia, Chairman, President and CEO. “Our actions to reduce production and improve inventory levels in key markets like North and South America are paying off.”
Hansotia added that while positive trends are emerging in some areas, risks related to tariffs, global trade, and crop demand continue to weigh on agricultural machinery markets.
Regional Performance For AGCO
North America
- Sales declined 33.9% excluding FX and acquisition impacts, due to soft industry demand and reduced production.
- Largest declines seen in high-horsepower tractors, sprayers, and combines.
- Regional operating margin was -5.0%.
South America
- Sales fell 6.1% excluding FX and acquisition impacts, driven by reduced demand for larger equipment.
- Income from operations fell by $9.9 million.
Europe/Middle East (EME)
- Sales dropped 23.0% excluding FX and acquisition impacts, with largest declines in France, UK, and Germany.
- Operating income down $140.7 million.
Asia Pacific/Africa (APA)
- Sales fell 38.0% excluding FX and acquisition impacts, affected by weaker demand in Australia, Japan, and China.
- Operating income fell by $11.8 million.
AGCO Market Overview
| Market | Tractor Sales Change | Combine Sales Change |
|---|---|---|
| North America | -14% | -46% |
| Brazil | +11% | -4% |
| Western Europe | -17% | -34% |
AGCO noted that weak farmer sentiment, uncertain grain export demand, and volatile crop producer economics continue to weigh on equipment purchases, particularly for higher horsepower models.
2025 Outlook For AGCO Corporation
| Outlook Metric | 2025 Forecast |
|---|---|
| Net Sales | ~$9.6 billion |
| Adjusted Operating Margin | 7% – 7.5% |
| Adjusted EPS | $4.00 – $4.50 |
AGCO said it will continue to focus on cost management and aligning production with demand, while remaining vigilant about the evolving tariff environment. The company’s outlook assumes current tariff conditions as of May 2025, though further changes could affect guidance.
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