AGCO Corp.

Farm & Heavy Construction Machinery • Industrials • Duluth, GA, United States • AGCO (NYQ)

770 813 9200 4205 River Green Parkway, Duluth, GA 30096-2568, United States

Quarter: Q3 2025 Reported: July 31, 2025 Sentiment: Neutral

AGCO Corporation manufactures and distributes agricultural equipment and replacement parts worldwide. It offers horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses. The company also provides grain storage bins and related drying and handling equipment systems; seed-processing systems; swine and poultry feed storage and delivery; ventilation and watering systems; and egg production systems and broiler production equipment. In addition, it offers round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners for harvesting and packaging vegetative feeds used in cattle, dairy, horse, and renewable fuel industries. Further, the company provides implements, including disc harrows leveling seed beds and mixing chemicals with the soils; heavy tillage to break up soil and mix crop residue into topsoil; field cultivators that prepare smooth seed bed and destroy weeds; drills for small grain seeding; planters and other planting equipment; and loaders. Additionally, it offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, such as self-propelled, three- and four-wheeled vehicles, and related equipment for liquid and dry fertilizers and crop protection chemicals, and for after crops emerge from the ground, as well as produces diesel engines, gears, and generating sets. The company markets its products under the Fendt, Massey Ferguson, PTx, and Valtra brands through a network of independent dealers and distributors. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia.

Analysis Summary

AGCO's Q2 2025 disclosure primarily outlined its approach to financial reporting and key strategic initiatives rather than specific performance metrics. The company emphasized its use of non-GAAP adjustments to provide enhanced visibility into its core business operations, excluding volatile or non-recurring items. These adjustments include restructuring and business optimization expenses, amortization related to PTx Trimble acquired intangibles, impairment charges, transaction costs associated with the PTx Trimble joint venture and G&P divestiture, loss on sale of the G&P business, and discrete tax items. This methodology aims to present a clearer picture of recurring profitability and operational efficiency.

Strategically, the period was marked by two significant developments: the formation of the PTx Trimble joint venture, signaling a focus on precision agriculture technology, and the divestiture of the majority of its Grain & Protein (G&P) business, indicating a portfolio streamlining effort. These moves are expected to reshape AGCO's operational footprint and future growth trajectory. Management's commentary highlighted a historical focus on free cash flow generation to reduce indebtedness and for other corporate purposes, viewing it as a comprehensive measure of cash generation.

While specific forward guidance numbers were not provided, the company's commitment to transparent non-GAAP reporting suggests an effort to manage investor expectations and highlight the underlying health of the business. The competitive positioning and market trends were not explicitly discussed in this filing. Risk factors implicitly include the ongoing costs and potential disruptions from restructuring activities, the financial impact of impairment charges and losses on asset sales, and the inherent difficulty in reliably predicting future non-GAAP financial measures due to various uncertainties.

Key Highlights

• AGCO reported Q2 2025 financial results, emphasizing non-GAAP adjustments.
• Formation of the PTx Trimble joint venture was a key strategic initiative.
• Divestiture of the majority of the Grain & Protein (G&P) business was completed.
• Non-GAAP adjustments include restructuring, amortization of PTx Trimble intangibles, impairment charges, and transaction costs.
• Company aims to provide greater visibility into recurring core business performance.
• Management historically focuses on free cash flow generation.
• Specific financial performance metrics (revenue, earnings, EPS) were not detailed in this document.

Financial Metrics

eps

revenue

guidance

net income

Stock Performance (90 Days)

Data through Dec 26, 2025

Layoff Events

Earnings Calls

Positive Signals

• Strategic focus on core business through non-GAAP reporting.
• Formation of PTx Trimble joint venture for future growth.
• Divestiture of G&P business to streamline portfolio.
• Commitment to transparency in financial reporting practices.
• Management's emphasis on free cash flow generation.

Risks & Concerns

— Ongoing restructuring and business optimization expenses.
— Potential for future impairment charges.
— Financial impact of loss on sale of G&P business.
— Difficulty in reliably predicting forward-looking non-GAAP financial measures.
— Impact of acquisition-related amortization on reported earnings.