AGCO Corp. (NYSE:AGCO) on Thursday posted a fourth-quarter earnings beat and issued an upbeat 2026 outlook, signaling resilience despite softer underlying demand as currency tailwinds, margin discipline and record free cash flow helped offset a prolonged global farm equipment slowdown.
“2025 reflects a meaningful progress year that we’ve made in transferring AGCO into a more resilient, better-positioned company. We’re executing with discipline and focus on what we can control in a pretty volatile market,” Eric Hansotia, AGCO’s Chairman, President, and CEO, said in the earnings call.
Fourth Quarter Results
AGCO reported fourth-quarter 2025 net sales of $2.92 billion, a 1.1% increase from the prior year and above the $2.67 billion analyst estimate. Excluding a 6.4% favorable currency impact, net sales declined 5.3% year over year.
Reported net income for the quarter was $1.30 per share. Adjusted earnings were $2.17 per share, exceeding the $1.86 analyst estimate and up from $1.97 per share in the fourth quarter of 2024.
The company reported a 7.9% operating margin and a 10.1% adjusted operating margin, versus (9.3)% and 9.9% a year earlier.
In Europe and the Middle East, net sales rose 7.9% to $2.02 billion, with an operating margin of 16.8%. North America net sales declined 7.8% to $466 million, with …