AGCO (AGCO) 16th Annual Wells Fargo Industrials & Materials Conference summary

Progress on strategic pillars and market share

• Fendt gained market share in both North and South America, supported by the FarmerCore initiative and expanded dealer footprint, now covering over 80% of targeted areas.

• Dealer strategy emphasizes smaller stores and mobile service trucks, reducing breakeven costs and improving customer service, leading to record-high Net Promoter Scores.

• Fendt's rollout and product introductions in North America, South America, and Europe are driving momentum despite industry challenges.

• Fendt revenue in the Americas peaked at $1.4 billion in 2024 but is expected to be below $1 billion this year due to industry contraction.

• Expansion into Argentina announced, targeting large, tech-seeking farmers, complementing existing presence in Brazil.

Distribution and dealer network

• Dealer coverage aims for low to mid-90% over the next several years, with a selective process to maintain brand standards.

• Majority of North American revenue comes from Cat-affiliated dealers, with strong presence from Ziegler and Butler.

• In South America, Fendt complements Valtra in large dealerships, serving different farmer segments alongside Massey Ferguson.

Market dynamics and profitability

• Industry in North America is at 72% of mid-cycle, with large ag segments below average; South America faces similar challenges.

• Fendt is positioned as a premium, high-margin brand, but North American profitability is pressured by tariffs and low factory utilization.

• Recent tariff reductions could improve annual costs by $50 million, but guidance still assumes full tariff impact.

• North American factories are running at 30% utilization, with profitability expected to improve as volumes recover.