What is Agco's gross profit margin?

What is Agco's latest dividend and current dividend yield?

What is the market's earnings forecast for Agco next quarter?

What factors drove the changes in Agco's revenue and profit?

What guidance did Agco's management provide for the next earnings period?

What is the revenue and EPS growth rate for Agco year over year?

What were the key takeaways from Agco’s earnings call?

What were the key takeaways from Agco's earnings call?

- **Record Performance**: 2025 adjusted operating margin 7.7%, highest at cycle trough. Q4 margin 10.1% vs. 9.9% YoY. 
- **Strategic Expansion**: PTx dealer network doubled to 70, 14 new products launched. Fendt gains North America large ag share. 
- **Cost Efficiency**: $65M savings in 2025, targeting $40-60M more in 2026. $740M free cash flow, up $440M YoY. 
- **2026 Outlook**: $5.50-6 EPS, 7.5-8% margin. Europe up modestly, North America large ag down 15% YoY. 
- **Tariff Headwinds**: $65M incremental tariff cost in 2026, offset by 2-3% pricing. 
- **Innovation Lead**: PTx 2025 revenue $860M, 2026 flat to up. AeroTube and Symphony Vision Duo driving retrofit demand.

**【CEO Summary Section】**
- **Q4 2025 Financials**: Adjusted operating margin of 10.1% on $2.9B net sales, up 1% YoY. Full-year adjusted EPS of $5.28 on $10.1B sales, down 13.5% YoY (7% excluding divested Grain & Protein). 
- **Strategic Initiatives**: PTx brand introduced 14 new products, expanding dealer network to 70 global PTx elite dealers. Fendt gained large ag market share in North America. 
- **Cost Efficiency**: $65M bottom-line savings in 2025, targeting $40-60M more in 2026. $250M share repurchases in Q4 under $1B buyback program. 
- **2026 Outlook**: Global industry demand flat, targeting $10.4-10.7B net sales and $5.50-6 EPS. Europe expected to grow modestly, North America large ag down 15% YoY. 

**【CFO Financial Commentary】**
- **Regional Performance**: Europe/Middle East income up $57M YoY, operating margins near 17%. North America income down $33M YoY due to lower sales and factory underabsorption. 
- **Free Cash Flow**: Record $740M in 2025, up $440M YoY. 2026 targeting 75-100% free cash flow conversion. 
- **2026 Guidance**: Adjusted operating margin 7.5-8%, effective tax rate 32-34%. Capital expenditures ~$350M. 

**【Q&A Highlights】**
- **Inventory Management**: North America dealer inventories at 7 months (target 6), underproducing ~10% in 1H26 to normalize. 
- **Pricing & Tariffs**: 2-3% pricing to offset material inflation and tariffs, $65M incremental tariff headwind in 2026. 
- **Europe Strength**: Fleet aging (~peak age) driving demand, 3% pricing in Q4. 
- **PTx Growth**: 2025 revenue ~$860M, 2026 flat to modestly up. AeroTube and Symphony Vision Duo key innovations. 
- **Tariff Impact**: $105-110M total tariffs in 2026, $65M incremental YoY headwind. India tariff changes minimal impact.

AGCO Corporation (AGCO) Q4 2025 Earnings Call Transcript

- **Resilient Earnings in Challenging Environment**: Adjusted operating margin of 7.5% (up 200bps YoY) despite global industry headwinds.
- **Strategic Repositioning Paying Dividends**: $1 billion share buyback program announced, reflecting confidence in transformed business model.
- **Precision Ag Growth Engine**: PTx platform on track to $2 billion in revenue, with Phase 1 of FarmENGAGE launched.
- **North America Recovery Hinges on Trade and Policy**: 2026 outlook for large ag down 30%, but China trade agreement and government support could accelerate recovery.
- **Tariff Mitigation Progress**: Net tariff impact of $0.45 per share for 2025, with 2026 impact expected to be less than 1% of sales.

**【CEO Summary Section】**
- **Strong Q3 Performance**: Net sales of $2.5 billion, down 5% YoY, but up 6% excluding the divested Grain & Protein business. Europe, Middle East (EME) sales grew 20%, driven by higher production and demand for high-horsepower tractors.
- **Regional Mix and Margins**: Global operating margins were 6.1% (7.5% adjusted), with EME margins approaching 16% due to higher volumes. North America margins remained negative due to underproduction and dealer inventory destocking.
- **Strategic Initiatives**: 
  - **PTx Business**: $900 million platform with plans to reach $2 billion in Precision Ag revenue. Phase 1 of FarmENGAGE launched, enabling mixed fleet digital solutions.
  - **Project Reimagine**: Expected to reduce costs by $175-$200 million through automation and standardization.
  - **Share Repurchase Program**: $1 billion authorized, with $300 million to begin in Q4.
- **Production Cuts**: North America production down 70% YoY to reduce dealer inventories from 9 to 8 months (still above target of 6 months). Europe production up 6% YoY due to favorable comparisons.
- **2026 Outlook**: Global industry demand expected to be flat, with North America large ag down 30%, Europe modestly up, and South America flat to +5%.

**【CFO Financial Commentary】**
- **Net Sales**: $2.5 billion (Q3), $9.8 billion (full year guidance). Adjusted operating margin 7.5%, up 200bps YoY due to EME performance.
- **Free Cash Flow**: $65 million year-to-date, targeting 75-100% of adjusted net income for the year. Capital expenditures reduced to $300 million.
- **Earnings Guidance**: Full-year EPS of $5, reflecting strong execution and cost control. Effective tax rate revised to 33-35%.
- **Tariff Impact**: Net tariff cost of ~$0.45 per share for 2025, partially offset by pricing actions. 2026 impact expected to be less than 1% of sales.

**【Q&A Key Highlights】**
- **Europe Performance**: Outperformed expectations with strong volumes and margins. Dealer inventories below target, positioning for 2026 recovery.
- **China Trade Agreement**: Viewed as net positive for North America, but impact on farmer sentiment and equipment demand will take time to materialize.
- **North America Dealer Inventory**: Progress made (8 months from 9), but full rightsizing to 6 months requires 2026 industry recovery. Production cuts expected to continue in Q4 (over 50% reduction).
- **Tariff and Pricing Dynamics**: South America and Europe saw increased competitive pricing, limiting margin expansion. North America tariffs centralized costs, but global pricing actions offset ~$0.45 per share impact.
- **Precision Ag Growth**: PTx business on track to meet 2025 forecasts, with 90%+ of AGCO machines sold with Trimble technology. Retrofit market less cyclical, down ~1/3 of whole goods decline.


AGCO Corporation (AGCO) Q3 2025 Earnings Call Transcript

- **Revenue Decline**: Q2 net sales down 19% YoY ($2.6B), driven by North America (-32%) and Europe (-12%). Brazil tractor sales +6% signals recovery.
- **Share Buyback**: $1B buyback program announced post-TAFE resolution, prioritizing shareholder returns.
- **2025 Outlook**: Updated EPS guidance $4.75-$5 (prev $4-$4.50), driven by $390M free cash flow improvement and 2% FX tailwind.
- **Strategic Growth**: Fendt globalization ($1.7B by 2029), Precision Ag ($2B by 2029), and Global Parts ($2.3B by 2029) to fuel mid-cycle 14%-15% margins.
- **Tariff Impact**: $0.45 EPS headwind from tariffs, partially offset by pricing actions. EU 15% tractor tariff expected to weigh on North America margins.

**【CEO Summary Section】**
- **Revenue Performance**: Q2 net sales of $2.6 billion (-19% YoY, -11% excluding divested Grain & Protein business), driven by softness in North America (-32%) and Western Europe (-12%). Brazil showed early recovery with +6% tractor sales.
- **Operating Margins**: Adjusted operating margin of 8.3% (vs. 10.3% Q2 2024), supported by strong decremental margins (mid-teens) despite 16% production hour reduction.
- **Inventory Management**: Dealer inventory reductions progress: Europe at 4 months (target), South America at 3 months (target), North America at 9 months (6-month target).
- **2026 Outlook**: Farmer sentiment indicators suggest modest demand growth in all regions, with AGCO's data model forecasting industry trough in 2025.
- **Strategic Initiatives**: $1 billion share buyback program announced post-TAFE resolution; Fendt globalization (targeting $1.7B by 2029), Precision Ag ($2B by 2029), and Global Parts ($2.3B by 2029) growth levers.

**【CFO Financial Commentary】**
- **Q2 Results**: GAAP net income $132 million, Non-GAAP EPS $1.08 (vs. $0.95 consensus). Free cash flow $63 million (vs. -$330M YoY), up $390M YoY due to working capital improvements.
- **2025 Outlook**: Updated net sales guidance $9.8B (prev $9.6B), EPS $4.75-$5 (prev $4-$4.50). Operating margin 7.5%, free cash flow conversion 75%-100% of adjusted net income.
- **Tariff Impact**: $0.45 EPS headwind from tariffs, partially offset by pricing actions (parts, PTx, equipment). EU 15% tariff on U.S. tractors expected to weigh on North America margins.
- **Capital Allocation**: Priorities: reinvest in business, repay debt, return capital to shareholders via buybacks.

**【Q&A Highlights】**
- **Operating Margin Cadence**: Q3 margin ~7.5%, Q4 >9% to achieve full-year 7.5% target. North America expected to remain in loss (~10%-11%) due to underproduction.
- **2026 Demand Drivers**: FarmerCore digital tools (e-commerce, AI chatbots) boosting parts sales (+3% Q2). Fleet aging and tech adoption (PTx OutRun autonomous grain cart) driving equipment replacement.
- **Precision Ag Growth**: PTx business hitting forecasts, +10 innovations YTD. Dealer channel sign-ups growing, with Fendt compatibility for OutRun kit launching in 2026.
- **TAFE Resolution**: $260M cash inflow from TAFE settlement; unlocks $1B buyback program, shifting capital return preference from variable dividends to buybacks.
- **Production Hours**: Full-year factory production hours down 15%-20% vs. 2024, with North America underproduction continuing to reduce dealer inventories.

AGCO Corporation (AGCO) Q2 2025 Earnings Call Transcript

- **Q1 2025 Results**: Net sales $2.0B (-30% YoY), adjusted margin 4.1%, with Europe showing resilience vs. US trade policy headwinds.
- **Tariff Impact**: $0.30 EPS headwind, partially mitigated by pricing and cost cuts. North America production under demand to reduce dealer inventory (8.5 months vs. 6-month target).
- **Growth Drivers**: Fendt brand targeting $1.7B in North/South America, Precision Ag ($2B global), and parts ($2.3B global). Brazil industry up 0-5% YoY.
- **2025 Outlook**: Industry at 85% mid-cycle, production down 15-20%, trough expected in 2025 with mid-cycle margins of 14-15% by 2029.
- **Key Risks**: Dealer inventory levels, geopolitical uncertainty, and trade policy volatility.


**【CEO Summary Section】**
- Q1 2025 net sales reached $2.0 billion, down 30% YoY, driven by soft demand and dealer destocking. Excluding Grain & Protein, sales declined 25%.
- Adjusted operating margin was 4.1%, with decremental margins in the low to mid-20% range despite 33% reduction in production hours.
- Europe's CEMA index shows improving sentiment, while US farmers face tight margins due to high input costs and trade policy uncertainty.
- Key growth levers: Fendt brand expansion (targeting $1.7B in North/South America), Precision Ag ($2B global sales), and parts business ($2.3B global sales).
- 2025 outlook: Industry demand at 85% of mid-cycle, with production hours down 15-20% YoY. 2025 seen as trough, with mid-cycle margins of 14-15% by 2029.

**【CFO Financial Commentary】**
- Q1 2025 regional sales: Europe/Middle East (-23%), South America (-6%), North America (-34%), Asia Pacific/Africa (-38%).
- Adjusted operating margin declined 550bps to 4.1%, due to factory underabsorption and discounts.
- Free cash flow usage of $260M, 44% lower than Q1 2024, with full-year target of 75-100% conversion of adjusted net income.
- 2025 guidance: Net sales $9.6B, EPS $4-4.50, effective tax rate 35%. Q2 EPS expected $1.0-1.10.

**【Q&A Key Takeaways】**
- Tariffs: $0.30 EPS headwind, partially offset by pricing actions and cost mitigation. North America production under demand to reduce dealer inventory (8.5 months vs. 6-month target).
- Fendt performance: Gaining share in Europe, with 90% take rate of Trimble technology on AGCO products.
- PTx Trimble: Q1 revenue $60M, profitable with channel expansion to AGCO dealers.
- Share buybacks: Discussions with large shareholder progressing, but no timeline for resolution.
- Brazil: Industry up 0-5% YoY, soybean yields and trade policy driving optimism despite large equipment demand lag.

**【Risk & Opportunity】**
- Risks: Geopolitical uncertainty, trade policy volatility, dealer inventory levels (North America at 8.5 months vs. target 6 months).
- Opportunities: Fendt brand growth, Precision Ag adoption, and parts business expansion. Europe's stability offsets US weakness.


AGCO (AGCO)-1 May 25-2025 Q1 Earnings call transcript

- **Resilient Margins in Downturn:** 8.9% full-year adjusted operating margin vs. industry decline, with North America leading the charge. 
- **$2B Precision Ag Target:** PTx Trimble JV on track despite 2024 impairment, with 1,000 dealers and 95% acre coverage. 
- **Aggressive Production Cuts:** 2025 production down 15-20%, Q1 underproduction at 35-40% to tackle 9-month dealer inventory. 
- **Farmer Sentiment Improving:** Corn price rally and Brazil rate cuts support 2025 demand, with back-half growth potential. 
- **Parts Business Expansion:** $2.3B target by 2029, driven by 50%+ take rates on smart sprayer nozzles. 


**【CEO Summary Section】**
- AGCO reported a strong 9.9% adjusted operating margin in Q4 2024, with full-year margin of 8.9%, outperforming the industry in a challenging North American market. 
- Key strategic initiatives include the PTx Trimble joint venture ($2B Precision Ag sales target by 2029), Fendt brand globalization ($1.7B in North/South America by 2029), and parts business expansion ($2.3B by 2029). 
- 2025 production hours expected to drop 15-20% YoY, with Q1 underproduction at 35-40% to reduce dealer inventory (currently 9 months in North America vs. 6-month target). 
- Farmer sentiment improving in 2025, with corn price rally and lower interest rates in Brazil supporting demand. 

**【CFO Financial Commentary】**
- Q4 2024 net sales down 24% YoY, driven by -39% in North America and -24% in South America. Europe/Middle East sales down 17% despite Fendt market share gains. 
- Adjusted operating margin of 9.9% (Q4 2023: 10.7%), with Europe leading at 11% and North America under pressure due to production cuts. 
- 2025 guidance: $9.6B net sales, $4-4.50 EPS, 7-7.5% adjusted operating margin. Free cash flow target 75-100% of adjusted net income. 
- $350M goodwill impairment charge for PTx Trimble JV due to industry weakness, but long-term Precision Ag growth strategy remains intact. 

**【Q&A Key Questions】**
- **Profitability by Region (Q1 2025):** North America expected to be negative margin, Europe ~10%, South America slightly negative, Asia-Pacific low single-digit. 
- **Inventory Progression:** South America to reduce production in Q2, North America needs 2025 farmer sentiment improvement to cut inventory from 9 to 6 months. 
- **PTx Trimble Outlook:** 2025 sales flat vs. 2024, but margin improvement expected as CNH last-time buys decline. 
- **Tariff Impact:** Minimal direct impact, but U.S.-EU retaliatory tariffs could affect outlook. 
- **Precision Ag Growth:** Symphony Vision targeted spray system deliveries Q1 2025, with 1,000 PTx dealers and 95% acre coverage. 


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