Key Takeaways:
- AGCO reported fourth-quarter 2025 net sales of $2.9 billion, up 1.1% year over year.
- Reported net income was $1.30 per share in Q4 2025, compared with a net loss in Q4 2024.
- Full-year 2025 net sales declined 13.5% to approximately $10.1 billion.
- Adjusted operating margin reached 10.1% in the fourth quarter and 7.7% for the full year.
- The company expects 2026 net sales between $10.4 billion and $10.7 billion.
AGCO Fourth Quarter 2025 Financial Performance
AGCO (NYSE: AGCO) reported net sales of $2.9 billion for the fourth quarter of 2025, representing a 1.1% increase compared to the same period in 2024. Reported results for the prior year included $74.7 million in other revenue related to the divestiture of the majority of the company’s Grain & Protein business. Excluding favorable currency translation impacts of 6.4%, fourth-quarter net sales declined 5.3% year over year.
AGOC's reported net income for the quarter was $1.30 per share, while adjusted net income was $2.17 per share. This compares to a reported net loss of $(3.42) per share and adjusted net income of $1.97 per share in the fourth quarter of 2024. Adjusted operating margin for the quarter reached 10.1%.
“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,” said Eric Hansotia, Chairman, President and Chief Executive Officer of AGCO.
AGCO Full-Year 2025 Results and Market Context
For the full year 2025, AGCO reported net sales of approximately $10.1 billion, a decrease of 13.5% compared to 2024. Fiscal year 2024 results included $816.5 million of other revenue related to the Grain & Protein divestiture. Reported net income for 2025 was $9.75 per share, while adjusted net income was $5.28 per share, compared with a reported net loss of $(5.69) per share and adjusted net income of $7.50 per share in 2024.
Full-year reported operating margin was 5.9%, while adjusted operating margin was 7.7%, compared with (1.0)% and 8.9%, respectively, in the prior year. According to the company, working capital discipline supported record free cash flow generation during 2025.
Hansotia noted, “Strong working-capital management also supported record free cash flow, representing approximately 188% free cash flow conversion.”
Regional Performance and Industry Conditions
Regional Sales Trends
Fourth-quarter regional sales showed varied performance. Reported sales increased 7.9% in Europe/Middle East and 5.1% in Asia/Pacific/Africa, while North America and South America declined 7.8% and 3.3%, respectively. On a constant-currency basis, Europe/Middle East declined 0.7%, while Asia/Pacific/Africa increased 2.8%.
Industry Market Update
Global agricultural markets remained under pressure in 2025 due to tight crop producer margins, elevated input costs, and evolving trade dynamics. North American tractor and combine sales declined 10% and 27%, respectively, during the year, while Brazil and Western Europe also experienced lower equipment demand.
AGCO Outlook for 2026
AGCO expects 2026 net sales to range between $10.4 billion and $10.7 billion, with adjusted operating margins projected at 7.5% to 8.0%. Earnings per share are targeted at approximately $5.50 to $6.00, based on current tariff policies and mitigation strategies.
Read the entire financial results.
