AGCO REPORTS THIRD-QUARTER RESULTS
AGCO CORP /DE (AGCO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 NEWS RELEASE For Immediate Release Thursday, October 29, 2026 INVESTOR CONTACT: MEDIA CONTACT: Greg Peterson Rachel Potts VP, Investor Relations VP, Chief Communications Officer 404-403-6042 678-654-7719 greg.peterson@agcocorp.com rachel.potts@agcocorp.com AGCO REPOR
How this was made
The 30-second read
Why it matters
The earnings miss and flat guidance are likely to weigh on AGCO's stock price, with investors reassessing demand outlook in key regions.
Market read
The report signals continued softness in global agricultural equipment demand, which may influence sector sentiment and related commodity markets.
What to watch
Currency‑neutral sales were slightly better, and the company’s cost discipline could protect margins despite lower revenue.
AGCO reports third-quarter net sales of $2.3 billion, down 8.6% year-over-year, reported earnings per share of $0.75 and adjusted earnings per share of $1.05.
Third-quarter sales, operating income, reported EPS and adjusted EPS declined year-over-year, led by lower EME and LATAM demand, while North America and APA grew. The company maintained its full-year adjusted EPS outlook of approximately $5.50 and returned $403.7 million to shareholders through share repurchases in the first nine months.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $2.26B | – | (8.6)% |
| Net sales, three months ended September 30, 2026, excluding currency translationnon-GAAP | $2.26B | – | (8.7)% |
| Gross profit, three months ended September 30, 2026GAAP | $565.4M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $303.8M | – | – |
| Engineering expenses, three months ended September 30, 2026GAAP | $121.9M | – | – |
| Amortization of intangibles, three months ended September 30, 2026GAAP | $17.1M | – | – |
| Restructuring and business optimization expenses, three months ended September 30, 2026GAAP | $6.5M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $116.1M | – | – |
| Adjusted income from operations, three months ended September 30, 2026non-GAAP | $137M | – | – |
| Operating margin, three months ended September 30, 2026GAAP | 5.1 % | – | – |
| Adjusted operating margin, three months ended September 30, 2026non-GAAP | 6.1 % | – | – |
| Net income attributable to AGCO Corporation, three months ended September 30, 2026GAAP | $51.7M | – | – |
| Diluted net income per common share attributable to AGCO Corporation, three months ended September 30, 2026GAAP | $0.75 | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $72.9M | – | – |
| Adjusted net income per share, three months ended September 30, 2026non-GAAP | $1.05 | – | – |
| Net sales, nine months ended September 30, 2026GAAP | $7.22B | – | 0.7% |
| Net sales, nine months ended September 30, 2026, excluding currency translationnon-GAAP | $7.22B | – | (2.7)% |
| Gross profit, nine months ended September 30, 2026GAAP | $1.79B | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | $337.5M | – | – |
| Adjusted income from operations, nine months ended September 30, 2026non-GAAP | $416M | – | – |
| Operating margin, nine months ended September 30, 2026GAAP | 4.7 % | – | – |
| Adjusted operating margin, nine months ended September 30, 2026non-GAAP | 5.8 % | – | – |
| Net income attributable to AGCO Corporation, nine months ended September 30, 2026GAAP | $183.9M | – | – |
| Diluted net income per common share attributable to AGCO Corporation, nine months ended September 30, 2026GAAP | $2.59 | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $243.2M | – | – |
| Adjusted net income per share, nine months ended September 30, 2026non-GAAP | $3.42 | – | – |
| Net cash provided by (used in) operating activities, nine months ended September 30, 2026GAAP | −$218.4M | – | – |
| Purchases of property, plant and equipment, nine months ended September 30, 2026GAAP | −$162.2M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $415.1M | – | – |
| Borrowings due within one year, September 30, 2026GAAP | $536.1M | – | – |
| Long-term debt, less current portion and debt issuance costs, September 30, 2026GAAP | $2.14B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America, three months ended September 30, 2026Higher unit sales across most equipment categories, particularly high-horsepower and mid-range tractors and parts, supported the increase in sales. Income from operations was $13.8 million compared to a loss from operations of $42.0 million, primarily due to higher sales and production volumes and approximately $13.0 million of certain IEEPA tariff refunds recognized during the period. | $485.3M | – | 34.8% |
| Latin America, three months ended September 30, 2026Softer industry demand resulted in lower sales. Income from operations was $13.0 million lower compared to the same period in 2025, primarily due to significantly lower sales and production volumes. | $292.3M | – | (15.4)% |
| Europe/Middle East, three months ended September 30, 2026Sales declines were primarily driven by weaker industry demand, with the most pronounced decreases in Germany, France, Italy and Spain. Income from operations was $115.1 million lower, primarily due to significantly lower sales and production levels. | $1.31B | – | (19.1)% |
| Asia/Pacific/Africa, three months ended September 30, 2026Higher sales in Australia were partially offset by lower sales across many of the Asian and African markets. Income from operations was $17.2 million higher, primarily due to higher sales and a favorable product mix. | $178.8M | – | 13.8% |
2026 outlook
- Revenue$9.8 to $10.0 billion
- NoteAdjusted operating margins are projected to be about 7.0%.
- Note2026 adjusted earnings per share is targeted at approximately $5.50.
- NoteProduction volumes are planned to align dealer inventory with market demand.
- NoteThese estimates reflect tariff policies as of October 29, 2026, together with AGCO’s established mitigation actions and sourcing strategies.
Capital returns
- Purchases and retirement of common stock of $(403.7) million for the nine months ended September 30, 2026.
- Cash dividends declared and paid per common share of $0.30 for the three months ended September 30, 2026.
- Cash dividends declared and paid per common share of $0.89 for the nine months ended September 30, 2026.
- Payment of dividends to stockholders of $(62.7) million for the nine months ended September 30, 2026.
What drove it
- North American net sales increased 35.1% excluding unfavorable currency translation, supported by higher unit sales across most equipment categories, particularly high-horsepower and mid-range tractors and parts.
- EME net sales decreased 18.1% excluding unfavorable currency translation as industry demand weakened, particularly in Germany, France, Italy and Spain.
- LATAM net sales decreased 19.1% excluding favorable currency translation because of softer industry demand.
- APA net sales increased 9.2% excluding favorable currency translation, led by higher sales in Australia.
- North America industry retail tractor sales were 9% lower and combine unit sales were 10% lower in the first nine months of 2026 compared with the same period in 2025.
- Brazil industry retail tractor sales were 17% lower in the first nine months of 2026 compared with the same period in 2025.
Concerns
- Lower farm income and uncertainty across global agricultural markets continued to weigh on farmer sentiment, with conditions softening further in EME and Latin America.
- The company expects industry demand to remain below historical mid-cycle levels through the remainder of 2026 in North America.
- Industry demand is expected to remain challenged for the remainder of 2026 in Western Europe.
- Higher interest rates, constrained credit conditions and soft farm economics pressured Brazilian farm profitability and delayed equipment purchases.
- Refunds of IEEPA tariffs received remain subject to CBP review and the outcome of the administration’s appeal, and AGCO could be required to repay some or all amounts received.
- Changes to tariff policies or related responses could affect 2026 projections.
What to watch
- Achievement of 2026 net sales guidance of $9.8 to $10.0 billion and adjusted operating margin guidance of about 7.0%.
- Progress toward the 2026 adjusted earnings per share target of approximately $5.50.
- Dealer inventory alignment with market demand and the effect of planned production volumes.
- EME and LATAM demand trends, including farmer sentiment and crop economics.
- The timing, amount and ultimate retention of additional IEEPA tariff refunds.
- Operating cash flow following $(218.4) million of cash used in operating activities during the first nine months and inventory of $3,005.0 million at September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $415.1 million at September 30, 2026, compared to $861.8 million at December 31, 2025.
- Accounts and notes receivable, net were $1,231.1 million at September 30, 2026, compared to $1,079.4 million at December 31, 2025.
- Inventories, net were $3,005.0 million at September 30, 2026, compared to $2,709.3 million at December 31, 2025.
- Borrowings due within one year were $536.1 million and long-term debt, less current portion and debt issuance costs was $2,140.7 million at September 30, 2026.
- Net cash used in operating activities was $(218.4) million for the nine months ended September 30, 2026, compared to net cash provided by operating activities of $224.5 million in 2025.
- Net cash used in financing activities was $(198.6) million for the nine months ended September 30, 2026.
Analysis
AGCO reported third-quarter net sales of $2,262.5 million, down 8.6% from $2,476.3 million in the third quarter of 2025. Currency translation was favorable by 0.1%, and net sales decreased 8.7% excluding currency translation. The sales decline was concentrated in EME, where sales fell 19.1%, and LATAM, where sales fell 15.4%. North America grew 34.8% and APA grew 13.8%, partly offsetting the declines in AGCO’s larger EME business.
Profitability declined with volume. Gross profit was $565.4 million versus $646.5 million, income from operations was $116.1 million versus $151.6 million, and operating margin was 5.1 % versus 6.1 %. Adjusted income from operations was $137.0 million versus $185.0 million, while adjusted operating margin was 6.1 % versus 7.5 %. GAAP diluted EPS was $0.75, compared with $4.09, with the prior-year period including a $219.2 million gain on sale of investment in affiliate in the non-GAAP reconciliation. Adjusted EPS declined to $1.05 from $1.35.
Regional operating performance reflected the demand divergence. North America generated income from operations of $13.8 million after a $42.0 million loss in the prior-year quarter, supported by sales and production volumes and approximately $13.0 million of IEEPA tariff refunds. EME income from operations declined by $115.1 million on materially lower sales and production, while LATAM income from operations was $13.0 million lower. APA income from operations increased by $17.2 million on higher sales and favorable product mix.
For the first nine months, reported net sales increased 0.7% to $7,215.1 million, but declined 2.7% excluding currency translation. Operating cash flow was negative $(218.4) million, compared with positive $224.5 million in the prior-year period, while inventories increased to $3,005.0 million from $2,709.3 million at December 31, 2025. AGCO used $(403.7) million for purchases and retirement of common stock and paid $(62.7) million of dividends in the first nine months.
The company forecast 2026 net sales of $9.8 to $10.0 billion, adjusted operating margin of about 7.0%, and adjusted EPS of approximately $5.50. Management said production volumes are planned to align dealer inventory with market demand, and its outlook reflects tariff policies as of October 29, 2026 and established mitigation actions and sourcing strategies. The release identifies continued weak farm income, constrained credit conditions, evolving tariff policy and soft demand in EME and LATAM as central operating constraints through the remainder of 2026.
Management, verbatim
AGCO delivered resilient third-quarter results in what is the weakest global industry demand environment in more than a decade.
Eric Hansotia, Chairman, President and CEO
While elevated input costs and uncertainty around commodity markets and the trade environment pushed industry demand below the last cyclical trough, we aligned production with demand, managed dealer inventories and maintained cost discipline.
Eric Hansotia, Chairman, President and CEO
The long-term fundamentals supporting global agriculture remain intact, driven by rising food demand and the need for greater on-farm productivity.
Eric Hansotia, Chairman, President and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported metrics were not provided.
- Gross margin for the third quarter and first nine months was not reported.
- Free cash flow was not reported.
- Forward guidance for gross margin, operating expenses and tax rate was not provided.
- A quantitative GAAP reconciliation for forward-looking adjusted operating margin and adjusted EPS guidance was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
AGCO's Q3 results were released via an SEC Form 8‑K filing, providing the first public disclosure of the quarter's performance.
Ticker impact
AGCO disclosed Q3 net sales of $2.3B, down 8.6% YoY, and provided full-year adjusted EPS outlook of $5.50.
likely pressure as the market prices in the sales decline and modest outlook
The earnings release shows an 8.6% revenue drop and unchanged guidance, which typically triggers a sell‑off in the short term.
Market effects
Agricultural equipment sector may see broader weakness as demand remains soft.
North America sales surged, but Europe/Middle East and Latin America fell, highlighting regional divergence.
Global farm equipment demand outlook stays cautious, potentially affecting related commodity and input cost narratives.
Counterpoint
If the company can accelerate its precision‑ag and autonomous solutions rollout, the sales dip may be temporary.
Key entities
- ExecutiveEric Hansotia
Chairman, President and CEO of AGCO, provided commentary on the results.
