AGCO Third-Quarter Sales Fall 8.6% as Europe Weakens; Company Sets Full-Year Adjusted EPS Near $5.50

AGCO's third-quarter sales fell 8.6% to $2.3 billion as a slump in European and Latin American farm equipment demand outweighed a sharp rebound in North America, and the company targeted full-year adjusted earnings of about $5.50 a share, according to the earnings release it filed with an 8-K on Thursday.

The tractor and farm machinery maker reported net income of $0.75 a share and adjusted net income of $1.05 a share for the quarter ended Sept. 30. A year earlier, it earned $4.09 a share on a reported basis, a figure lifted by a gain on the sale of its stake in Tractors and Farm Equipment Limited, and $1.35 on an adjusted basis.

"AGCO delivered resilient third-quarter results in what is the weakest global industry demand environment in more than a decade," Chairman, President and CEO Eric Hansotia said in the release. He said elevated input costs and uncertainty around commodity markets and trade "pushed industry demand below the last cyclical trough."

Europe drags, North America rebounds

Sales in Europe/Middle East, AGCO's largest region, dropped 19.1% to $1.31 billion, with the steepest declines in Germany, France, Italy and Spain. Income from operations there fell by $115.1 million from a year earlier, mainly because of much lower sales and production.

Latin America sales fell 15.4% to $292.3 million on softer industry demand.

North America moved the other way. Sales jumped 34.8% to $485.3 million on higher unit sales of high-horsepower and mid-range tractors and parts. The region swung to operating income of $13.8 million from a loss of $42.0 million, helped by about $13.0 million of tariff refunds tied to the International Emergency Economic Powers Act, the company said.

Asia/Pacific/Africa sales rose 13.8% to $178.8 million, led by Australia.

A weak market backdrop

AGCO estimated that North American industry retail tractor sales, excluding compact tractors, fell 9% in the first nine months of 2026, with combines down 10%. Brazil tractor sales were down 17% and combines 38%, while Western Europe tractor sales slipped 1% for nine months but fell 9% in the third quarter.

Hansotia said lower farm income and uncertainty "continued to weigh on farmer sentiment, with conditions softening further in EME and Latin America."

The 2026 outlook

AGCO expects 2026 net sales of $9.8 billion to $10.0 billion and an adjusted operating margin of about 7.0%. It said the estimates reflect tariff policies as of Oct. 29 and that changes to those policies could affect the projections.

For the first nine months, net sales rose 0.7% to about $7.2 billion, while adjusted earnings rose to $3.42 a share from $3.11.

Returning cash

AGCO spent $403.7 million repurchasing common stock in the first nine months of 2026, compared with none a year earlier, according to its cash flow statement. It paid a quarterly dividend of $0.30 a share, up from $0.29, and diluted shares outstanding fell to 69.5 million from 74.7 million.

The company scheduled a conference call for 10 a.m. ET on Thursday.

Sources

1. AGCO Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0000880266-26-000075)

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