AGCO reported net sales of $2.5 billion for the third quarter ended September 30, 2025, a decrease of 4.7% compared to the third quarter of 2024. The third quarter of 2024 included other revenue of $251.2 million which represents revenue from the Company's divestiture of the majority of its Grain & Protein business as shown in the regional net sales table. Reported net income was $4.09 per share for the quarter and adjusted net income⁽¹⁾ was $1.35 per share. These results compare to reported net income of $0.40 per share and adjusted net income⁽¹⁾ of $0.68 per share for the third quarter of 2024. Excluding favorable foreign currency translation of 3.7%, net sales in the quarter decreased 8.4% compared to the third quarter of 2024.

"AGCO delivered another solid quarter of navigating a complex global landscape shaped by challenging farm economics, high interest rates, and cautious capital investment," said Eric Hansotia, AGCO's Chairman, President and CEO. "Our continued investments in precision agriculture, autonomous solutions and sustainable technologies helped maintain demand for our premium brands. At the same time, we have responded decisively with disciplined production cuts, aggressive cost management, and accelerated strategic restructuring initiatives."

Hansotia continued, "While political shifts and global trade tensions weighed on farmer sentiment especially in North America, AGCO's diversified global footprint and Farmer-First strategy helped mitigate regional disruptions. Our strong earnings and improved cash flow generation reflect the structural changes we have made. We remain focused on improving productivity for farmers, driving growth across our portfolio and delivering value for our shareholders which has been enhanced with the previously announced $1 billion share repurchase program, expected to commence this quarter."

Net sales for the first nine months of 2025 were approximately $7.2 billion, a decrease of 18.4% compared to the same period in 2024. The first nine months of 2024 included other revenue of $741.8 million which represents revenue from the Company's divestiture of the majority of its Grain & Protein business as shown in the regional net sales table. For the first nine months of 2025, reported net income was $8.45 per share and adjusted net income⁽¹⁾ was $3.11 per share. These results compare to reported net loss of $(2.27) per share and adjusted net income⁽¹⁾ of $5.53 per share for the same period in 2024. Excluding favorable foreign currency translation of 1.0%, net sales in the first nine months of 2025 decreased 19.4% compared to the same period in 2024.

Third Quarter Highlights

• Reported regional sales results⁽²⁾: Europe/Middle East ("EME") +27.5%, North America (32.1)%, South America (8.1)%, Asia/Pacific/Africa ("APA") (5.9)%
• Constant currency regional sales results^(1)(2)(3): EME +20.3%, North America (32.1)%, South America (9.5)%, APA (5.2)%
• Regional operating margin performance: EME 15.6%, North America (10.5)%, South America 5.7%, APA 4.9%
• Completed the sale of AGCO's ownership interest in TAFE for $260 million (after-tax proceeds of $230 million)
• The Company plans to initiate $300 million in share repurchases in the fourth quarter of 2025, utilizing the $230 million of after-tax proceeds from the TAFE ownership sale

Market Update

Hansotia concluded, "Near-record global crop production in 2025 has increased inventories and pressured commodity prices. While elevated government payments in North America are supporting farm income, crop margins remain constrained. These economic challenges have weakened demand for farm equipment in North America and Europe. Still, farmers continue to invest in precision technologies to boost productivity and profitability. In Brazil, sentiment is improving largely due to record soybean yields, though rising input costs, recent trade tensions, high interest rates and political uncertainty are dampening purchasing activity. In Europe, confidence varies by region, with Western farmers benefiting from favorable yields, while Southern and Eastern areas have been impacted by adverse weather. Dairy and livestock producers have benefited from strong prices and steady demand. While traditional equipment sales remain under pressure, we see a clear transition toward smarter, more efficient solutions as farmers seek to protect margins and manage ongoing volatility."

North American industry retail tractor sales declined 10% in the first nine months of 2025 compared to the same period in 2024 with the steepest drops occurring in higher horsepower categories — particularly in recent months. Combine unit sales fell 29% year-over-year during the same period. Ongoing uncertainty around grain export demand and elevated input costs are expected to continue weighing on industry demand throughout 2025, especially for larger equipment.

Brazil industry retail tractor sales rose 3% in the first nine months of 2025 compared to the same period in 2024, driven primarily by demand for smaller and mid-size tractors coupled with favorable trade dynamics. Despite record soybean harvests and potential trade benefits, demand for larger equipment has yet to show meaningful improvement. High financing costs and political uncertainty are expected to continue to constrain demand in 2025.

Western Europe industry retail tractor sales declined 8% during the first nine months of 2025 compared to the same period in 2024 with double digit percentage decreases across most markets except Spain, which saw strong growth. Demand is expected to remain soft throughout the remainder of the year, as lower income levels weigh on arable farmers. However, steady demand from dairy and livestock producers is expected to partially offset the overall decline.

Regional Results

AGCO  Regional Net Sales (in millions)

North America

Net sales in the North American region decreased 32.1% during the third quarter of 2025 compared to the third quarter of 2024, excluding the impact of unfavorable currency translation. Softer industry sales and under-production of end-market demand contributed to lower sales. The most significant sales declines occurred in high-horsepower tractors, sprayers and combines. Income from operations for the third quarter of 2025 decreased $56.4 million compared to the same period in 2024 and operating margins remained negative. The decrease was primarily a result of lower sales and production volumes.

South America

South American net sales decreased 9.5% during the third quarter of 2025 compared to the third quarter of 2024, excluding the impact of favorable currency translation. Weaker industry demand drove most of the decrease with lower sales across the majority of the product categories. Income from operations for the third quarter of 2025 decreased $22.6 million compared to the same period in 2024. This decrease was primarily a result of lower sales and production levels and the impact of modestly negative pricing.

Europe/Middle East

Net sales in the Europe/Middle East region increased 20.3% during the third quarter of 2025 compared to the third quarter of 2024, excluding the impact of favorable currency translation. This reflects a recovery in production levels and corresponding sales following extended plant downtime last year. Increases were largest in high-horsepower and mid-range tractors. Income from operations increased $163.1 million in the third quarter of 2025 compared to the same period in 2024. This increase was primarily a result of significantly higher sales and production volumes.

Asia/Pacific/Africa

Asia/Pacific/Africa region net sales decreased 5.2%, excluding unfavorable currency translation impacts, during the third quarter of 2025 compared to the third quarter of 2024 due to weaker end market demand and lower production volumes. Lower sales across most of the Asian markets were partially offset by higher sales in Australia and Africa. Income from operations increased $0.9 million in the third quarter of 2025 compared to the same period in 2024 primarily due to lower manufacturing costs, partially offset by lower sales volume.

Outlook

AGCO expects full-year 2025 net sales of approximately $9.8 billion. Adjusted operating margins are projected to be approximately 7.5%. Lower production volumes are expected to be partially offset by cost controls and stable engineering expenses. Based on these assumptions, full-year earnings per share are targeted at approximately $5.00. These estimates incorporate the expected impact of tariffs in effect as of October 31, 2025, along with AGCO's mitigation strategies. Any changes to tariff policies or related responses could affect these projections.