AGCO (AGCO) Citi’s 2026 Global TMT Conference summary

Strategy and portfolio

• Five- to six-year strategy aims to be the most farmer-focused; premium Fendt expanded beyond Europe into North and South America.

• Six technology acquisitions built capabilities in autonomy and precision ag, especially retrofit; Grain & Protein was sold as the lowest-growth, lowest-margin business, and the TAFE relationship was exited.

• FarmerCore shifted dealer service toward farms: 65% of work is now on-farm, rising to 75% at leading dealers; on-farm dealers score 4.5 points higher in NPS and gain 1.5 points more market share.

• Project Reimagine removed $200M from roughly $1B of overhead through offshoring, outsourcing and automation.

Capital allocation

• Capital allocation remains balanced: invest in the business and engineering, maintain an investment-grade balance sheet, pursue targeted technology opportunities and return capital to shareholders.

• Q2 share repurchases totaled $345M, including $50M of TAFE participation; exiting TAFE provides added operational flexibility without changing financial discipline.

• M&A focus is technology that advances precision ag or strengthens data and software; acquisition and buyback decisions will be paced against cash generation, liquidity, operating needs, leverage and opportunity value.

Precision ag and growth targets

• Differentiators are broad coverage across the crop cycle, open mixed-fleet compatibility and retrofit upgrades that add capability to existing equipment.

• PTx launched 14 products last year and plans 12 more this year; talent retention and innovation were rated highly, while the weaker industry has constrained scale and returns.

• PTx targets $2B revenue by 2029; drivers are market recovery, product maturation and dealer-channel penetration. North America at mid-cycle would lift the current roughly $900M run-rate to $1.1B-$1.2B through market recovery alone; projections assume markets return to 100% of mid-cycle levels.

• Elite tech dealers numbered in the high 80s; target is 120 by year-end, covering ~60% of the market, with 90% coverage expected in another one to two years.