AGCO (AGCO) 47th Annual Raymond James Institutional Investor Conference summary

Company overview and growth strategy

• Largest pure-play agricultural equipment company with $10B+ in annual revenue and three main brands: Fendt, Valtra, and Massey Ferguson.

• Technology portfolio (PTx) includes Precision Planting and a joint venture with Trimble, targeting $2B in revenue by 2029.

• Strategic focus on expanding Fendt in North and South America, growing the parts business, and leveraging technology.

• Parts business expected to grow from $1.9B to $2.3B by 2029, supported by FarmerCore service model.

• Targeting mid-cycle operating margins of 14%-15% by 2029, up from 7.7% last year.

Regional performance and market dynamics

• Europe accounts for 60% of revenue, with strong, stable margins (around 15%) due to high market share and crop diversity.

• South America offers long-term growth potential, especially in Brazil's Cerrado region, despite current market challenges.

• North America is the lowest market share region but saw record share growth last year, driven by Fendt and Massey Ferguson.

• FarmerCore model enables 85% of service to be performed on-farm, reducing dealer costs and improving customer satisfaction.

• Net Promoter Scores reached all-time highs, reflecting strong dealer and customer engagement.

Industry trends and outlook

• North American large ag market expected to trough in 2026, with stabilization signs and improved dealer inventories.

• European tractor unit sales declining due to farm consolidation, but higher horsepower and technology offset volume declines.

• Fendt's innovation and new product introductions have driven share gains and improved profitability.

• Brazil's market expected to be flat in 2026, with potential stimulus in the second half tied to elections and lower interest rates.

• Market conditions in Brazil can shift rapidly due to currency, commodity prices, and global demand.