AGCO Q4 2024 Earnings Report
Key Takeaways
AGCO reported net sales of $2.9 billion for Q4 2024, a decrease of 24.0% compared to Q4 2023. Reported net loss was $(3.42) per share, while adjusted net income was $1.97 per share. The company cut production hours by 33% in the fourth quarter and ended the year with lower company and dealer inventory compared to 2023.
Net sales decreased by 24.0% compared to the fourth quarter of 2023.
Reported a net loss of $(3.42) per share, including impairment charges and restructuring expenses.
Adjusted net income was $1.97 per share, compared to $3.78 per share in Q4 2023.
Adjusted operating margin was 9.9% despite challenging market dynamics.
AGCO
AGCO
AGCO Revenue by Geographic Location
Forward Guidance
AGCO expects net sales for 2025 to be approximately $9.6 billion. Adjusted operating margins are projected to be approximately 7% - 7.5%, and earnings per share are targeted at approximately $4.00 - $4.50.
Positive Outlook
- Increased cost controls
- Moderately lower investments in engineering
- Flat pricing
- Farmer-First strategy
- Ongoing restructuring program
Challenges Ahead
- Lower sales volumes
- Unfavorable foreign currency translation
- Lower production volumes
- Weakening industry demand
- Challenging farm economics
Revenue & Expenses
Visualization of income flow from segment revenue to net income