AGCO (AGCO) investor relations material

Executive summary

• Net sales for Q2 2026 were $2.61 billion, down 1% year-over-year, with adjusted EPS of $1.43 (up $0.08), while reported EPS dropped to $1.08 from $4.22 due to prior-year tax benefits.

• Six-month net sales rose 5.7% year-over-year to $4.95 billion, but net income dropped to $132.2 million from $325.3 million in the prior year.

• Operating income for Q2 2026 was $140.7 million, down 14% year-over-year, with adjusted operating margin at 6.6% (down 170 bps); reported margin was 5.4% (down 80 bps).

• Market share gains in North America, especially in high-horsepower tractors and with the Fendt brand; modest share gains in South America and mixed results in Europe.

• Dealer inventory levels improved globally, supporting better alignment with retail demand.

Financial highlights

• Q2 2026 gross margin was 24.7%, down 30 bps year-over-year; operating income was $140.7 million, down 14.2% year-over-year.

• Free cash flow for the first half of 2026 was $(347) million, reflecting higher inventory and working capital; full-year FCF target is ~$300 million.

• SG&A expenses increased to $335.7 million (12.9% of sales); engineering expenses rose to $141.2 million.

• Dividend increased to $0.30 per share in Q2 2026; $345 million in share repurchases completed in Q2.

• Capital expenditures for the first half of 2026 were $101.8 million, up from $90.4 million in 2025.

Outlook and guidance

• Full-year 2026 net sales expected between $10.1 billion and $10.2 billion; adjusted EPS guidance: $5.50–$5.75.

• Adjusted operating margin targeted at ~7.5% for 2026; capex projected at $300–$325 million.

• Free cash flow conversion targeted at 75%-100% of adjusted net income.

• Q3 net sales targeted at $2.3–$2.4 billion; Q3 EPS at $0.85–$0.90.

• Production volumes to be managed in line with retail demand; cost controls and pricing discipline emphasized.