Dec 31, 2022

AGCO Q4 2022 Earnings Report

AGCO reported record fourth quarter and full year net sales and earnings per share.

Key Takeaways

AGCO reported net sales of $3.9 billion for the fourth quarter of 2022, a 23.6% increase compared to Q4 2021. Reported net income was $4.29 per share, while adjusted net income was $4.47 per share.

Record fourth quarter and full year net sales and earnings per share were achieved.

Full year reported operating margin was 10% and adjusted operating margin was 10.3%.

Full year South American operating margin was 17.6%.

2023 full year net sales are expected to be ~$14 billion and earnings per share of ~$13.50.

Total Revenue
$3.9B
Previous year: $3.2B
+21.8%
EPS
$4.47
Previous year: $3.08
+45.1%
Gross Profit
$941M
Previous year: $683M
+37.8%
Cash and Equivalents
$790M
Previous year: $889M
-11.2%
Free Cash Flow
$1.02B
Previous year: $413M
+145.8%
Total Assets
$10.1B
Previous year: $9.18B
+10.0%

AGCO

AGCO

AGCO Revenue by Geographic Location

Forward Guidance

AGCO expects net sales of approximately $14.0 billion for 2023. Gross and operating margins are projected to improve, and earnings per share are targeted at approximately $13.50.

Positive Outlook

  • Improved sales volumes
  • Improved pricing
  • Gross margin improvement
  • Operating margin improvement
  • Increased engineering and technology investments

Challenges Ahead

  • Negative foreign currency translation
  • Supply chain pressures will persist
  • Challenges throughout the year due to supply chain
  • Global market conditions will remain healthy
  • Cost inflation

Revenue & Expenses

Visualization of income flow from segment revenue to net income