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Jun 30
AGCO Q2 2025 Earnings Report
AGCO reported a decrease in net sales and adjusted earnings per share for the second quarter of 2025, while achieving strong year-to-date free cash flow and raising its full-year outlook.
Key Takeaways
AGCO reported second-quarter net sales of $2.6 billion, an 18.8% decrease year-over-year, with reported EPS of $4.22 and adjusted EPS of $1.35. Despite a challenging global agricultural environment, the company achieved solid results through disciplined cost control, restructuring initiatives, and aggressive production cuts to reduce inventory. Strong cash flow generation was a highlight, and the full-year net sales and adjusted EPS outlook was raised.
Net sales for the second quarter of 2025 were $2.6 billion, an 18.8% decrease compared to the second quarter of 2024.
Reported earnings per share were $4.22, and adjusted earnings per share were $1.35 for the quarter.
Operating margins benefited from disciplined cost control and continued implementation of restructuring initiatives.
AGCO raised its full-year 2025 net sales outlook to approximately $9.8 billion and adjusted operating margins to approximately 7.5%, with full-year EPS targeted between $4.75 and $5.00.
AGCO
AGCO
AGCO Revenue by Geographic Location
Revenue by Geographic Location
North America Revenue
CapyFin.comSouth America Revenue
CapyFin.comEurope/Middle East Revenue
CapyFin.comAsia/Pacific/Africa Revenue
CapyFin.com Forward Guidance
AGCO has raised its full-year 2025 outlook, expecting net sales of approximately $9.8 billion and adjusted operating margins of approximately 7.5%. Full-year earnings per share are now targeted between $4.75 and $5.00, incorporating expected tariff impacts and mitigation strategies.
Positive Outlook
- Raised full-year 2025 net sales outlook to approximately $9.8 billion.
- Projected adjusted operating margins of approximately 7.5% for the full year.
- Full-year earnings per share targeted between $4.75 and $5.00.
- Lower production volumes are expected to be partially offset by cost controls.
- Stable engineering expenses are anticipated to contribute positively.
Challenges Ahead
- Challenging farm economics in the first half of 2025 have dampened demand.
- Declining commodity prices and rising input costs are impacting U.S. farmer sentiment.
- Uncertainty surrounding trade negotiations is impacting farmer confidence and investment decisions.
- Demand for larger equipment in Brazil has yet to show meaningful improvement.
- Demand in Western Europe is expected to remain soft due to lower income levels for arable farmers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income