AGCO Corporation (NYSE: AGCO), a global leader in the design, manufacture, and distribution of agricultural machinery and precision ag technology, announced its financial results for the third quarter ended September 30, 2025. The company reported net sales of $2.5 billion, representing a 4.7% decline compared to the same quarter in 2024.
The third quarter of 2024 had included other revenue of $251.2 million, largely reflecting proceeds from the company’s divestiture of the majority of its Grain & Protein business, as detailed in AGCO’s regional sales tables. On a reported basis, net income stood at $4.09 per share, while adjusted net income(1) came in at $1.35 per share. This compares favorably to the third quarter of 2024, when reported net income was $0.40 per share and adjusted net income(1) was $0.68 per share. Excluding a 3.7% favorable foreign currency translation, net sales declined 8.4% year-over-year.
“AGCO delivered another solid quarter of navigating a complex global landscape shaped by challenging farm economics, high interest rates, and cautious capital investment,” said Eric Hansotia, AGCO’s Chairman, President and CEO. “Our ongoing investments in precision agriculture, autonomous solutions, and sustainable technologies helped maintain demand for our premium brands. At the same time, we have acted decisively through disciplined production cuts, aggressive cost management, and accelerated strategic restructuring initiatives.”
Hansotia further emphasized that AGCO’s diversified global footprint and ‘Farmer-First’ strategy provided resilience amid uneven regional conditions. “While political shifts and trade tensions weighed on sentiment in key markets such as North America, our strong global reach helped mitigate disruptions,” he added. “Our earnings performance and improved cash flow generation reflect the structural changes we’ve made in recent years. We remain focused on advancing productivity for farmers, driving innovation across our portfolio, and delivering value to shareholders — a goal that is reinforced by our previously announced $1 billion share repurchase program, expected to begin this quarter.”
Nine-Month 2025 Performance
For the first nine months of 2025, AGCO reported net sales of approximately $7.2 billion, marking an 18.4% decrease compared to the same period in 2024. Similar to the quarterly comparison, the 2024 period included $741.8 million in other revenue from the divestiture of the Grain & Protein business.
Reported net income for the first nine months of 2025 was $8.45 per share, while adjusted net income(1) stood at $3.11 per share. This compares to a reported net loss of $(2.27) per share and an adjusted net income(1) of $5.53 per share in the same period last year. Excluding a 1.0% favorable currency translation, net sales decreased 19.4% year-over-year.
Hansotia noted that the agricultural environment in 2025 has been defined by a mix of strong global production and economic headwinds. “Near-record global crop output this year has increased inventories and placed downward pressure on commodity prices,” he explained. “While elevated government payments in North America have offered some support, crop margins remain under strain. These dynamics have softened demand for new farm equipment in North America and Europe.”
Despite these headwinds, Hansotia pointed out that farmers continue to prioritize investments in precision agriculture technologies to enhance productivity and efficiency. “In Brazil, sentiment has shown modest improvement due to record soybean yields,” he said. “However, rising input costs, trade frictions, and high interest rates continue to dampen large-equipment purchases. In Europe, regional variability persists — with Western Europe benefiting from favorable yields, while Southern and Eastern regions face challenges from adverse weather. Dairy and livestock producers, meanwhile, are benefiting from strong prices and consistent consumer demand.”
Hansotia concluded that the global agricultural sector is undergoing a structural shift. “While traditional equipment sales are under pressure, we’re witnessing a clear transition toward smarter, more efficient technologies as farmers look to safeguard profitability and manage ongoing volatility,” he said.
Regional Market Trends
North America:
Industry retail tractor sales declined 10% during the first nine months of 2025 compared to the prior year, with the steepest declines observed in higher-horsepower models — particularly in recent months. Combine unit sales dropped 29% year-over-year. Persistent uncertainty around grain exports and elevated input costs continue to weigh on farm investment, particularly for large machinery.
Within this region, AGCO’s net sales fell 32.1% in the third quarter of 2025 compared to 2024, excluding the impact of unfavorable currency translation. Softer market demand and deliberate production cuts contributed to the decrease. The most pronounced declines were seen in high-horsepower tractors, sprayers, and combines. Income from operations fell by $56.4 million, and operating margins remained negative, reflecting lower sales and reduced production volumes.
South America:
Net sales in South America decreased 9.5% year-over-year in the third quarter of 2025, excluding favorable currency impacts. The decline was mainly driven by weaker demand across most product categories. Income from operations decreased by $22.6 million due to lower volumes and modestly negative pricing.
Nevertheless, overall tractor sales in Brazil rose 3% in the first nine months of 2025 compared to 2024, driven by sustained demand for small and mid-size tractors and improved trade conditions. Despite these gains, high financing costs and political uncertainty continue to constrain large-equipment purchases.
Europe/Middle East:
In contrast, the Europe/Middle East region recorded a strong rebound, with net sales increasing 20.3% in the third quarter of 2025 versus 2024, excluding favorable currency effects. The improvement was largely due to a recovery in production levels following extended plant downtime in the prior year. Growth was most evident in high-horsepower and mid-range tractor categories. Income from operations increased by $163.1 million, driven by higher sales and stronger factory utilization.
Across Western Europe, retail tractor sales declined 8% during the first nine months of 2025. Most markets saw double-digit decreases, except Spain, which posted strong growth. While lower income levels are weighing on demand from arable farmers, robust activity among dairy and livestock producers is expected to partially offset the softness.
Asia/Pacific/Africa:
In the Asia/Pacific/Africa region, net sales declined 5.2%, excluding currency impacts, during the third quarter of 2025. Weaker demand across many Asian markets was partially offset by higher sales in Australia and Africa. Despite lower production volumes, income from operations rose slightly by $0.9 million, helped by reduced manufacturing costs.
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