AGCO (AGCO) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales were $2.92B, up 1.1% YoY; full-year net sales reached $10.1B, down 13.5% due to the Grain & Protein divestiture.

• Q4 adjusted operating margin was 10.1%; full-year adjusted operating margin was 7.7%, with adjusted EPS of $5.28.

• Record free cash flow of $740M in 2025, up $440M YoY, with free cash flow conversion at 188%.

• Gained record global market share, all-time high Net Promoter Score, and significant patent filings.

• Inventory levels at company and dealer locations were meaningfully reduced by year-end.

Financial highlights

• Q4 net sales: $2.9B; full-year sales: $10.1B, down 13.5% YoY.

• Q4 adjusted operating margin: 10.1%; full-year margin: 7.7%.

• Adjusted EPS: $5.28; 2026 guidance: $5.50–$6.00.

• Free cash flow: $740M in 2025; free cash flow conversion at 188%; target 75%-100% in 2026.

• $250M share repurchase in Q4; $87M in dividends paid for 2025.

Outlook and guidance

• 2026 net sales expected at $10.4B–$10.7B; adjusted EPS $5.50–$6.00.

• Adjusted operating margin guidance: 7.5%–8% for 2026; effective tax rate expected at 32%–34%.

• Capex planned at ~$350M for 2026; free cash flow conversion targeted at 75%–100%.

• Global industry demand expected flat YoY; North America large ag sales forecast down 15%, Europe modestly up, Brazil flat.

• $40M–$60M incremental cost savings targeted in 2026.