AGCO (AGCO) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 were $2.61 billion, down 1% year-over-year; adjusted EPS was $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, mainly due to lower sales, higher tariffs, and increased SG&A and engineering expenses.

• Market share gains were achieved in North America, especially in high-horsepower tractors, and Fendt brand momentum continued.

• Precision ag and autonomy solutions expanded, with strong feedback for new products and AI-enabled technologies.

Financial highlights

• Q2 net sales: $2.61 billion, down 1% year-over-year; constant currency net sales down 4%.

• Adjusted EPS: $1.43, up $0.08 year-over-year; reported EPS: $1.08, down from $4.22.

• Operating income: $140.7 million, down 14% year-over-year; reported margin 5.4%.

• Free cash flow use YTD: $347 million vs. positive $63 million in 2025, due to higher inventory and working capital.

• Share repurchases: $345 million in Q2; quarterly dividend declared at $0.30 per share.

Outlook and guidance

• Full-year 2026 net sales expected between $10.1–$10.2 billion.

• Adjusted EPS guidance: $5.50–$5.75.

• Adjusted operating margin targeted at 7.5% for 2026.

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

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