AGCO Corporation (AGCO)

In the past six months, AGCO's stock price has been influenced by its financial performance. On February 5, 2026, AGCO reported strong fourth-quarter 2025 results, with revenues exceeding expectations, leading to a pre-market stock increase. Despite positive Q4 results, full-year 2025 net sales decreased by 13.5% compared to 2024 due to soft demand. Management anticipates headwinds in North America and outlined incremental tariff costs. AGCO projects 2026 net sales between $10.4 billion and $10.7 billion and adjusted EPS of $5.50-$6.00, focusing on inventory management and market share expansion.

Demand for AGCO Corp. products and services exhibits seasonality, driven by planting and harvesting seasons. Retail sales by dealers to farmers are highly seasonal, with a time lag between AGCO's sale to dealers and the dealer's sale to retail customers, particularly in North America. AGCO actively works to reduce the effect of seasonal demands on its manufacturing operations and minimize inventory investment. Strong harvests and weak commodity prices in 2025 led AGCO to expect further underproduction in 2026 to reduce dealer inventories.

AGCO Corporation is a global leader in agricultural solutions and machinery, founded in 1990 and headquartered in Duluth, Georgia. The company operates within the Industrials sector, focusing on the Farm & Heavy Construction Machinery industry, and is committed to sustainable farming through smart technology. AGCO's product line includes tractors, combines, and various implements, offered under brands like Challenger, Fendt, GSI, Massey Ferguson, Precision Planting, and Valtra. The company also provides replacement parts and financing through a joint venture. Precision agriculture initiatives are organized under the PTx umbrella.

AGCO Corporation has a dominant global presence, serving customers in over 140 countries with manufacturing facilities, distribution centers, and a vast dealer network. While operating globally, sales are significantly skewed towards Europe and the Middle East, which accounted for 50%-60% of sales and an even larger share of operating profits in the past. In 2024, North America contributed approximately 40% of net sales, Europe/Middle East/Africa 38%, and South America roughly 17%. AGCO is actively working to increase its presence in the North and South American markets.

AGCO has focused on strengthening its brand reputation through its "Farmer-First" strategy, emphasizing innovation, sustainability, and customer support. In 2024, AGCO achieved its safest year on record and launched its global AGSAFE program. The company is a leader in precision agriculture, increasing its investment in engineering and R&D. A significant milestone was the agreement to acquire an 85% interest in Trimble's agricultural assets, forming the PTx Trimble joint venture. New products like the Fendt 600 Vario and Massey Ferguson 9S Series tractors were featured at the 2024 Farm Progress Show. The "FarmerCore" initiative and the FarmENGAGE digital platform aim to improve accessibility and service for farmers.

AGCO Corp.'s ownership is primarily held by institutional investors, accounting for approximately 57.60% of the stock. Insiders own about 0.76%, while public companies and individual investors hold 41.64%. As of April 2025, institutional investors owned approximately 97.80% of AGCO’s stock, with TAFE holding a significant 16.3% long-term equity stake. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., and Price T Rowe Associates Inc.