AGCO (AGCO) investor relations material

Executive summary

• Q3 2025 net sales were $2.48–$2.5 billion, down 4.7%–5% year-over-year, mainly due to lower volumes in North America, South America, and APAC, and the divestiture of the Grain & Protein business, partially offset by strong growth in Europe/Middle East.

• Net income attributable to shareholders was $305.7 million ($4.09 per diluted share) for Q3 2025, up significantly year-over-year, driven by higher operating income, a gain on the TAFE affiliate sale, and lower interest expense.

• Strategic transformation included exiting the Grain & Protein business, launching a $1 billion share repurchase program, and focusing on innovation, restructuring, and precision agriculture.

• EAME region led growth, offsetting declines in North America and South America; disciplined production, cost management, and resilient margins supported performance.

• $300 million share repurchase to begin in Q4 2025, funded by $230 million after-tax proceeds from TAFE sale.

Financial highlights

• Q3 2025 net sales: $2.48–$2.5 billion, down 4.7%–5% year-over-year; gross margin improved to 26.1%.

• Q3 2025 adjusted operating margin: 7.5% (up 200 bps year-over-year); reported margin: 6.1%.

• Q3 2025 adjusted EPS was $1.35, up from $0.67–$0.68; reported EPS was $4.09, up from $0.40.

• Free cash flow for nine months: $65 million, a significant improvement from prior year.

• Q3 regional sales: EME up 20%–27.5%, North America down 32%, South America down 8%–10%, APAC down 5%–6%.

Outlook and guidance

• Full-year 2025 net sales expected at $9.8 billion; adjusted EPS forecast at $5.00.

• Adjusted operating margin guidance: 7.5%; free cash flow conversion targeted at 75%-100% of adjusted net income.

• Capital expenditures projected at $300 million.

• Effective tax rate forecasted at 33%-35%.

• Global industry demand expected at 85% of mid-cycle levels; North America large ag forecast down ~30%, Europe down 5%-10%, Brazil flat to up 5%.