CORRECTED-Agri machinery firm AGCO beats Q2 sales estimates, adjusted EPS rises

Overview

• AGCO Q2 net sales of $2.6 bln beat analyst expectations, per LSEG data

• Adjusted EPS for Q2 beats consensus, reflecting disciplined cost control

• Co announces new $1.0 bln share repurchase program, indicating confidence

Outlook

• AGCO expects full-year 2025 net sales of approximately $9.8 bln

• Company projects full-year EPS between $4.75 and $5.00

• AGCO anticipates adjusted operating margins of approximately 7.5%

• Company says tariffs and mitigation strategies factored into projections

Result Drivers

• PRODUCTION CUTS - AGCO's strong earnings and cash flow were driven by aggressive production cuts and inventory reduction efforts

• COST CONTROL - Operating margins benefited from disciplined cost control and restructuring initiatives

• TRADE UNCERTAINTY - Global trade uncertainty impacted farmer confidence and investment decisions, notably in North America and Europe

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 $112.00, about 4.8% above its July 30 closing price of $106.64

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nPn5snQNma