- Net sales of $10.1 billion, down 13.5%, in 2025
- Full year reported operating margin of 5.9% and adjusted operating margin(1) of 7.7%
- 2025 full year reported earnings per share of $9.75 and adjusted earnings per share(1) of $5.28
- Cash flow provided by operating activities of $988 million and record free cash flow(1) of $740 million
- 2026 net sales and earnings per share outlook above 2025 levels
“AGCO delivered strong fourth quarter results, achieving an adjusted operating margin(1) of 10.1% reflecting the team’s ability to deliver despite ongoing pressures on farm income and global trade dynamics that influenced overall industry activity,” said Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer. “Even in
this environment, we grew global market share, including our largest-ever share gains in North American large ag. At the same time, we applied disciplined production planning, enabling us to finish 2025 with meaningfully lower
company and dealer inventories compared to prior-year levels. Our full-year adjusted operating margin(1) of 7.7% was nearly double the performance recorded at the bottom of the last cycle. Strong working-capital management also supported record free cash flow, representing approximately 188% free cash flow conversion(1). These strong results in today’s industry landscape demonstrate the continued resilience of AGCO’s earnings profile, driven by our three high-margin growth levers, continued cost discipline and the benefits of our multi-year structural transformation.”
Hansotia continued, “In 2026, we will remain dedicated to advancing our Farmer-First strategy. Our innovation pipeline remains robust with a full slate of new product introductions designed to help make farmers more productive and profitable. This level of innovation, coupled with our ongoing cost-reduction initiatives, demonstrates the strength of our execution. These actions will help balance the effects of low levels of farm profitability and persistent trade-related uncertainty, while positioning the company to deliver improved performance in 2026. We are well prepared to accelerate growth when demand strengthens and solidify our role as the trusted partner for industry-leading, smart farming solutions.”
Net sales for the full year of 2025 were approximately $10.1 billion, which is a decrease of 13.5% compared to 2024. Fiscal year 2024 included other revenue of $816.5 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 full year, reported net income was $9.75 per share and adjusted net income(1) was $5.28 per share. These results compare to reported net loss of $(5.69) per share and adjusted net income(1) of $7.50 per share in 2024. Excluding favorable currency translation impacts of 2.3%, net sales for the full year decreased 15.8% compared to 2024.
Highlights
- Reported fourth-quarter regional sales results(2): Europe/Middle East (“EME”) +7.9%, North America (7.8)%, South America (3.3)%, Asia/Pacific/Africa (“APA”) +5.1%
- Constant currency fourth-quarter regional sales results(1)(2)(3): EME (0.7)%, North America (8.5)%, South America (9.3)%, APA +2.8%
- Fourth quarter regional operating margin performance: EME 16.8%, North America (6.4)%, South America 2.7%, APA 7.6%
- Full-year reported operating margins and adjusted operating
(1) See reconciliation of non-GAAP measures in appendix.
(2) As compared to fourth quarter 2024.
(3) Excludes currency translation impact.
Market Update
Industry Unit Retail Sales
| Tractors | Combines | |
Year ended December 31, 2025 | Change from Prior Year | Change from Prior Year |
| North America(4) | (10) % | (27) Prozent |
| Brazil(5) | (2) % | (22) % |
| Western Europe(5) | (7) % | (5) % |
(4) Excludes compact tractors.
(5) Based on Company estimates.
Hansotia concluded, “Global agricultural markets remained under significant pressure in 2025. Crop-focused producers operated with tighter margins as corn, soybean and wheat prices stayed near breakeven levels amid ample global supplies and evolving trade dynamics. In the U.S., record corn production further influenced grain pricing and placed added pressure on farm profitability. Livestock producers benefited from firmer pricing and improved cash receipts during 2025, contributing to a more encouraging backdrop in that sector. Overall sentiment among crop producers remained measured as input costs stayed elevated and government programs played a larger role in supporting income. As a result, demand for new equipment moderated further across all major markets, aligned with current farm economics and global trade conditions. We continue to expect increasing adoption of precision and smart-farming technologies over time, though today’s environment is contributing to softer demand across many equipment categories.”
North American industry retail tractor sales were 10% lower during 2025 compared to the previous year with the most pronounced declines occurring in higher horsepower categories — particularly in recent months. Combine unit sales were 27% lower in 2025 compared to 2024. Current farm economics, evolving grain export demand and elevated input costs are expected to continue to pressure industry demand throughout 2026, especially for larger equipment.
Brazil industry retail tractor sales were 2% lower during 2025 compared to the previous year reflecting softer demand for larger tractors, partially offset by improved demand for smaller and mid-size tractors. While crop production remained healthy and certain trade developments provided opportunities for farmers, demand for larger equipment has not yet shown renewed growth. High financing costs, tight credit and broader political dynamics are expected to continue to constrain demand in 2026.
Western Europe industry retail tractor sales were 7% lower during 2025 compared to the previous year with double digit percentage decreases across most markets except Spain and Italy, which saw growth. Relatively healthy farm income in 2026, driven primarily by the dairy and livestock producers, as well as an aging fleet are expected to support industry demand slightly ahead of 2025 levels.
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended December 31, | 2025 | 2024 | % change from 2024 | % change from 2024 | % change excluding | |
| North America | $ 466.0 | 505.6 | (7.8) | 0.7 | (8.5) | |
| South America | $ 259.9 | 268.8 | (3.3) | 6.0 | (9.3) | |
| EME (Europe/Middle East) | $ 2,017.5 | 1,869.9 | 7.9 | 8.6 | (0.7) | |
| APA (Asia/Pacific/Africa) | $ 176.8 | 168.3 | 5.1 | 2.3 | 2.8 | |
| Total Segments | $ 2,920.2 | 2,812.6 | 3.8 | 6.6 | (2.8) | |
| Other(7) | $ 74.7 | (100.0) | (100.0) | |||
$ 2,920.2 | $ 2,887.3 | 1.1 | 6.4 | (5.3) | ||
Years Ended December 31, | 2025 | 2024 | % change from 2024 | % change from 2024(6) | % change from 2024 due to acquisition of a business((6) | % change excluding currency translation and acquisition of a business |
North America | $ 1,665.5 | $ 2,298.3 | (27.5) | (0.5) | 0.3 | (27.3) |
| South America | $ 1,115.6 | $ 1,208.5 | (7.7) | (2.4) | 0.4 | (5.7) |
| EME (Europe/Middle East) | $ 6,736.7 | $ 6,712.3 | 0.4 | 4.7 | 0.6 | (4.9) |
| APA (Asia/Pacific/Africa) | $ 564.2 | $ 626.3 | (9.9) | 0.1 | 0.9 | (4.9) |
Total Segments | $ 10,082.0 | $ 10,845.4 | (7.0) | 2.5 | 0.5 | (10.0) |
| Other(7) | $ 816.5 | (100.0) | (100.0) | |||
| $ 10,082.0 | $ 11,661.9 | (13.5) | 2.3 | 0.5 | (16.3) |
(6) See footnotes for additional disclosures.
(7) “Other” represents the results for the three months and year ended December 31, 2024 for the majority of the Company’s Grain & Protein (“G&P”) business which was divested on November 1, 2024. The results of the G&P business through the date of the divestiture were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments.
North America
North American net sales were 8.5% lower during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding the impact of favorable currency translation. Softer industry sales and production levels below end market demand contributed to lower sales. The most significant sales declines occurred in sprayers and midrange tractors. Income from operations for the fourth quarter of 2025 was $33.1 million lower compared to the same period in 2024 and operating margins remained negative. This decrease was primarily a result of lower sales and production volumes.
South America
Net sales in the South American region were 9.3% lower during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding the impact of favorable currency translation. Industry demand was more moderate with lower sales in tractors and implements, partially offset by growth in combines. Income from operations for the fourth quarter of 2025 was $20.5 million lower compared to the same period in 2024. This decrease was primarily a result of lower sales and higher engineering expenses.
EME (Europe/Middle East)
Europe/Middle East net sales were 0.7% lower during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding the impact of favorable currency translation. Lower sales across most of the Western European markets were partially offset by growth in Germany and the U.K. Lower sales in tractors were partially offset by growth in hay tools. Income from operations increased $57.4 million in the fourth quarter of 2025 compared to the same period in 2024. This increase was primarily a result of positive net pricing and a favorable sales mix.
APA (Asia/Pacific/Africa)
Net sales in the Asia/Pacific/Africa region increased 2.8% during the fourth quarter of 2025 compared to the fourth quarter of 2024, excluding favorable currency translation impacts. Higher sales in Australia were partially offset by lower sales across most of the Asian markets. Income from operations increased $8.5 million in the fourth quarter of 2025 compared to the same period in 2024 primarily due to lower selling, general and administrative (“SG&A expenses”).
Outlook 2026
AGCO’s net sales for 2026 are expected to range from $10.4 to $10.7 billion. Adjusted operating margins are projected to range from 7.5% - 8.0%. Production volumes are expected to be relatively flat with cost controls and positive pricing contributing to results. Based on these assumptions, 2026 earnings per share are targeted at approximately $5.50 to $6.00. These estimates incorporate the expected impact of tariffs in effect as of February 5, 2026, along with AGCO’s mitigation strategies. Any changes to tariff policies or related responses could affect these projections.
