AGCO Q4 sales rise 1.1%, adjusted EPS beats

Overview

• Agricultural machinery maker's Q4 net sales rose 1.1% yr/yr despite industry pressures

• 2025 adjusted EPS beat analyst expectations

• Company anticipates improved performance in 2026

Outlook

• AGCO expects 2026 net sales between $10.4 bln and $10.7 bln

• Company projects 2026 adjusted operating margins of 7.5% - 8.0%

• AGCO targets 2026 earnings per share of $5.50 to $6.00

Result Drivers

• CURRENCY IMPACT - Excluding favorable currency translation impacts of 6.4%, net sales in Q4 decreased 5.3% compared to Q4 2024

• MARKET SHARE GAINS - AGCO grew global market share, including largest-ever share gains in North American large ag

• INVENTORY MANAGEMENT - Disciplined production planning led to lower company and dealer inventories

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

• Wall Street's median 12-month price target for AGCO Corp is $117.00, about 3.8% below its February 4 closing price of $121.68

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn5ZYCNfa

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