Company Overview - AGCO is a global leader in the design, manufacture, and distribution of agricultural machinery and precision ag technology [2] - The company offers a differentiated brand portfolio including leading brands such as Fendt®, Massey Ferguson®, PTx, and Valtra® [2] - AGCO's full line of equipment and smart farming solutions helps farmers sustainably feed the world [2] - Founded in 1990 and headquartered in Duluth, Georgia, AGCO reported net sales of approximately $11.7 billion in 2024 [2] Upcoming Events - AGCO will participate in the Oppenheimer 20th Annual Industrial Growth Conference on May 6, 2025 [1] - The conference will feature a fireside chat with Damon Audia, Senior Vice President and Chief Financial Officer, at 11:15 a.m. Eastern Time [1] - Investors can access a live webcast of the presentation through the "Events" section of the company's Investor Relations website, which will also be archived for 12 months [1]

Financial Performance - Net sales for the three months ended March 31, 2025, were approximately $2,050.5 million, a decrease of 30.0% compared to $2,928.7 million for the same period in 2024[124] - Income from operations was $49.4 million for the three months ended March 31, 2025, down from $273.6 million in the same period in 2024, primarily due to lower sales volumes and increased restructuring expenses[124] - Gross profit as a percentage of net sales decreased to 25.4% in Q1 2025 from 26.3% in Q1 2024, attributed to lower production volumes[128] - Consolidated net sales of tractors and combines, which comprised approximately 63.7% of total net sales, decreased by 30.2% in Q1 2025 compared to Q1 2024[126] - Net sales in EME decreased by $376.4 million, from $1,706.9 million in Q1 2024 to $1,330.5 million in Q1 2025, primarily due to sales volume declines and unfavorable foreign currency translation[141] - North America net sales decreased by $205.5 million, from $601.1 million in Q1 2024 to $395.6 million in Q1 2025, mainly due to declines in high-horsepower tractors, sprayers, and combines[142] - South America net sales decreased by $43.1 million, from $273.0 million in Q1 2024 to $229.9 million in Q1 2025, primarily due to sales volume declines and unfavorable foreign currency translation[144] - Net sales are expected to moderately decrease in 2025 compared to 2024 due to lower sales volumes and unfavorable currency translation[171] Operating Expenses - SG&A expenses as a percentage of net sales increased to 15.9% in Q1 2025, while the absolute level of SG&A expenses decreased due to lower compensation costs[129] - Engineering expenses as a percentage of net sales rose to 5.7% in Q1 2025, despite a decrease in absolute value due to lower investment[130] - The company recorded restructuring and business optimization expenses of $13.0 million in Q1 2025, significantly higher than $1.0 million in Q1 2024, as part of a program to enhance operational efficiencies[132] Income and Earnings - Equity in net earnings of affiliates was $12.1 million for Q1 2025, down from $16.2 million in Q1 2024, reflecting lower earnings in finance joint ventures[136] - Income (loss) from operations in North America decreased by $48.2 million, resulting in a loss of $19.8 million in Q1 2025 compared to a profit of $28.4 million in Q1 2024[142] - Income from operations in EME fell by $140.7 million, from $295.1 million in Q1 2024 to $154.4 million in Q1 2025, attributed to lower sales and production volumes[141] - Income from operations in South America decreased by $9.9 million, from $12.0 million in Q1 2024 to $2.1 million in Q1 2025, due to lower sales and production volumes[144] Debt and Cash Flow - Interest expense, net increased to $18.5 million in Q1 2025 from $1.9 million in Q1 2024, primarily due to increased debt levels related to the PTx Trimble joint venture[133] - The company's debt to capitalization ratio increased to 42.6% as of March 31, 2025, compared to 40.6% as of December 31, 2024[151] - Cash flows used in operating activities were approximately $212.2 million for Q1 2025, a decrease from $370.0 million in Q1 2024, driven by changes in working capital[162] - Capital expenditures for Q1 2025 were approximately $48.2 million, down from $95.0 million in Q1 2024[164] Shareholder Actions - The Company entered into an accelerated share repurchase agreement to repurchase $22.0 million of shares in November 2024, receiving approximately 228,969 shares[166] - As of March 31, 2025, the remaining amount authorized for share repurchase was approximately $35.0 million, with no expiration date[166] - Cash dividends of $0.29 per common share were declared and paid for both the three months ended March 31, 2025, and 2024[166] Production and Market Conditions - The company experienced a 32.8% decrease in global production hours during Q1 2025 compared to the same period in 2024, in response to lower end market demand[127] - Outstanding guarantees issued to the Argentine finance joint venture amounted to approximately $64.2 million as of March 31, 2025[167] - The total finance portfolio in finance joint ventures was approximately $14.2 billion as of March 31, 2025, including $11.7 billion of retail receivables[168] Risks and Uncertainties - The Company faced significant uncertainty and potential risks due to recent trade policy and tariff actions by the U.S. government[177] - The Company has a substantial amount of indebtedness, which may adversely affect its ability to operate and expand[179]

For the quarter ended March 2025, Agco (AGCO) reported revenue of $2.05 billion, down 30% over the same period last year. EPS came in at $0.41, compared to $2.32 in the year-ago quarter.The reported revenue represents a surprise of +1.46% over the Zacks Consensus Estimate of $2.02 billion. With the consensus EPS estimate being $0.03, the EPS surprise was +1266.67%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectati ...

Financial Data and Key Metrics Changes - AGCO reported net sales of over $2 billion in Q1 2025, down approximately 30% compared to Q1 2024, primarily due to soft demand in the agricultural market and efforts to destock dealer inventories [8][24] - Consolidated operating margins were 2.4% on a reported basis and 4.1% on an adjusted basis, reflecting decremental margins in the low to mid-twenty percent range [9][28] - Free cash flow usage was $260 million, approximately 44% less than Q1 2024, attributed to improved working capital and lower capital expenditures [30] Business Line Data and Key Metrics Changes - Sales in the Europe Middle East segment decreased roughly 23%, with significant declines in high horsepower and mid-range tractors [25] - North American net sales decreased approximately 34%, driven by lower sales of high horsepower tractors, sprayers, and combines [26] - South American net sales decreased approximately 6%, primarily due to lower sales of high horsepower tractors and planters [25][26] Market Data and Key Metrics Changes - Global industry retail sales of farm equipment remained challenged in North America and Europe, with a 17% decrease in Western Europe and a 14% decrease in North America [13][14] - Brazil's industry sales increased by 11%, primarily in smaller tractor categories, indicating a potential recovery in that market [14] - The sentiment in Europe, as measured by the CEMA Index, is on an upward trend, which may help mitigate adverse impacts from U.S. trade policies [10] Company Strategy and Development Direction - AGCO is focusing on three high-margin growth levers: globalization and full-line product rollout of the FENT brand, growing precision ag sales, and accelerating the global parts business [20] - The company aims to improve mid-cycle operating margins to a target of 14% to 15% by 2029 and outgrow the industry by 4% to 5% annually [20] - AGCO continues to invest in smart farming solutions and enhanced digital capabilities to deliver resilient earnings across the agricultural cycle [12] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical uncertainties and trade friction have dampened U.S. farmer sentiment, leading to lower machinery demand [11] - The company expects industry demand in North America to be significantly lower in 2025 compared to 2024, with large ag segment sales projected to decline by 25% to 30% [31] - Despite the challenging environment, AGCO anticipates 2025 to be the bottom of the trough, with adjusted operating margins projected to be 300 to 350 basis points above the last trough in 2016 [36] Other Important Information - AGCO's effective tax rate is anticipated to be approximately 35% for 2025, at the lower end of the previously communicated range [36] - The company plans to maintain its full-year net sales outlook at $9.6 billion, reflecting the market environment and the impact of tariffs [37] - Capital expenditures for 2025 are estimated to be approximately $375 million, down from $393 million in 2024 [38] Q&A Session Summary Question: Performance in Q1 compared to expectations - Management indicated that Q1 performance exceeded expectations due to better pricing and mix, particularly in Europe, and effective cost control actions [41][43] Question: Impact of tariffs on order book - Management acknowledged that tariffs could create a headwind of about $0.30 per share, with order books currently at four to five months depending on the product [42][45] Question: Sustainability of EMEA margins - Management noted that the European market remains stable, with FENT gaining market share, and does not foresee significant erosion in margins [51][53] Question: PTX Trimble performance - PTX Trimble was profitable in Q1, with incremental sales of over $60 million, and management is optimistic about channel readiness and cross-selling opportunities [54][59] Question: Capital allocation strategy - Management is in discussions regarding shareholder concentration and is considering share buybacks as part of their capital allocation strategy [68][70] Question: FENT brand strategy amid tariffs - Management stated that pricing strategies will be evaluated based on total costs incurred across all products, rather than solely on individual products facing tariffs [92]

Financial Data and Key Metrics Changes - AGCO reported net sales of over $2 billion in Q1 2025, down approximately 30% compared to Q1 2024, primarily due to soft demand in the agricultural market and efforts to destock dealer inventories [5][22] - Excluding last year's grain and protein results, sales declined by about 25% [5] - Consolidated operating margins were 2.4% on a reported basis and 4.1% on an adjusted basis, reflecting decremental margins in the low to mid-twenty percent range [6][25] - Free cash flow usage was $260 million, approximately 44% less than Q1 2024, attributed to improved working capital and lower capital expenditures [28] Business Line Data and Key Metrics Changes - The Europe Middle East segment reported sales down roughly 23% compared to Q1 2024, with significant declines in high horsepower and mid-range tractors [23] - North American net sales decreased approximately 34%, with declines in high horsepower tractors, sprayers, and combines [24] - South American net sales decreased approximately 6%, primarily due to lower sales of high horsepower tractors and planters [23][24] - Asia Pacific Africa segment saw a 38% decrease in net sales due to weaker end market demand [25] Market Data and Key Metrics Changes - Global industry retail sales of farm equipment remained challenged in North America and Europe, with a 17% decrease in Western Europe and a 14% decrease in North America [10][11] - Brazil's industry sales increased by 11%, primarily in smaller tractor categories, indicating a potential recovery in that market [11] - The overall sentiment in Europe is on an upward trend, which may help mitigate adverse impacts from U.S. trade policies [7] Company Strategy and Development Direction - AGCO is focusing on three high-margin growth levers: globalization and full-line product rollout of the FENT brand, growing precision ag sales, and accelerating the global parts business [18] - The company aims to improve mid-cycle operating margins to 14% to 15% by 2029 and outgrow the industry by 4% to 5% annually [18] - AGCO continues to invest in smart farming solutions and enhanced digital capabilities to deliver resilient earnings across the agricultural cycle [9] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical uncertainties and trade friction have dampened U.S. farmer sentiment, leading to lower machinery demand [8] - Despite higher net farm income forecasts, margins for U.S. farmers remain tight due to high input costs and reduced export demand [8] - The company expects industry demand to remain soft in 2025, particularly in North America, with large ag segment sales projected to decline by 25% to 30% [29] Other Important Information - AGCO's effective tax rate is anticipated to be approximately 35% for 2025, at the lower end of the previously communicated range [35] - The company plans to maintain its capital spending at approximately $375 million for 2025, down from $393 million in 2024 [36] Q&A Session Summary Question: Performance in Q1 better than expected - Management indicated that operational improvements in pricing and mix, particularly in Europe, contributed to better-than-expected performance [43] Question: Impact of tariffs on order book - Management acknowledged that tariffs could create a headwind of about $0.30 per share, with order books currently at four to five months [45] Question: Sustainability of EMEA margins - Management noted that the European market remains stable, with FENT gaining market share and expected to maintain margins [52] Question: PTX Trimble performance - PTX Trimble was profitable in Q1, with incremental sales of over $60 million, and management is optimistic about channel readiness and cross-selling opportunities [60] Question: Capital allocation strategy - Management is in discussions regarding share buybacks and is focused on representing investor interests following changes in board composition [68]

Core Insights - Agco (AGCO) reported quarterly earnings of $0.41 per share, significantly exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $2.32 per share a year ago, indicating an earnings surprise of 1,266.67% [1] - The company posted revenues of $2.05 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.46%, but down from $2.93 billion year-over-year [2] - Agco shares have declined approximately 9.3% year-to-date, compared to a 5.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $2.43 billion, and for the current fiscal year, it is $3.91 on revenues of $9.53 billion [7] - The estimate revisions trend for Agco is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Manufacturing - Farm Equipment industry, to which Agco belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges ahead [8]

NEWS RELEASE For Immediate Release Thursday, May 1, 2025 INVESTOR CONTACT: MEDIA CONTACT: Greg Peterson Rachel Potts VP, Investor Relations VP, Chief Communications Officer 404-403-6042 678-654-7719 greg.peterson@agcocorp.com rachel.potts@agcocorp.com AGCO REPORTS FIRST-QUARTER RESULTS DULUTH, GA – May 1 – AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, reported net sales of $2.1 billion for the first quarter ended March 3 ...

Financial Performance - Net sales for Q1 2025 were $2,050.5 million, a decrease of 30% compared to Q1 2024[7] - Gross margin for Q1 2025 was 25.4%, an increase of 90 bps compared to Q1 2024[7] - Operating income for Q1 2025 was $49.4 million, an increase of 81.9% compared to Q1 2024[7] - Diluted EPS for Q1 2025 was $0.14, compared to $(2.11) in Q1 2024[7] - Adjusted operating income for Q1 2025 was $83.4 million, an increase of 66.7% compared to Q1 2024[7] - Adjusted operating margin was 4.1%[8] - Diluted adjusted EPS was $0.41[8] - Free cash flow used in Q1 2025 was $260 million, $205 million less than Q1 2024[36] Market Overview and Production - North America tractor industry units are down 14% year-to-date in March 2025 compared to 2024[10] - Brazil tractor industry units are down 46% year-to-date in March 2025 compared to 2024[10] - Western Europe tractor industry units are up 11% year-to-date in March 2025 compared to 2024[10] - Q1 2025 production is down approximately 33% compared to 2024[17]

Core Insights - AGCO reported net sales of $2.1 billion for Q1 2025, a decrease of 30.0% compared to Q1 2024, with reported net income of $0.14 per share and adjusted net income of $0.41 per share [1][9][25] - The company is focusing on cost reduction and inventory management, having cut production hours by approximately 33% year-over-year [2][5] - Global agricultural equipment market remains volatile due to tariffs and shifting export demand for grain, despite some positive signs in farmer sentiment and commodity prices [2][5] Financial Performance - Net sales decreased by 30.0% year-over-year, with adjusted net income per share dropping from $2.32 in Q1 2024 to $0.41 in Q1 2025 [1][9][25] - Income from operations fell significantly, with a reported income of $49.4 million in Q1 2025 compared to $273.6 million in Q1 2024 [25][43] - The company affirmed its full-year guidance, projecting net sales of approximately $9.6 billion for 2025 [17] Regional Sales Performance - North America: Net sales decreased by 34.2%, with tractor sales down 14% and combine sales down 46% [10][13][5] - South America: Net sales decreased by 15.8%, but tractor sales increased by 11% [10][6] - Europe/Middle East: Net sales decreased by 22.1%, with significant declines in major markets [10][15] - Asia/Pacific/Africa: Net sales decreased by 36.0%, primarily due to weaker demand in Australia, Japan, and China [10][16] Market Trends - The agricultural equipment market is experiencing reduced demand due to high input costs and uncertain grain export demand [5][10] - Positive trends include improved farmer sentiment in Europe and rising U.S. corn prices, although these are tempered by ongoing global trade uncertainties [2][5] - Brazil's agricultural sector shows potential for growth, particularly in smaller tractor categories, despite challenges in larger equipment demand [6][5] Operational Adjustments - The company has implemented significant cost reduction measures, including a restructuring program aimed at enhancing operational efficiencies [37][40] - Inventory levels have been managed down, with a focus on improving dealer inventory in North and South America [2][5] - AGCO's operating margins are under pressure, with adjusted operating margins projected to be between 7% and 7.5% for 2025 [17]

TORONTO, April 25, 2025 (GLOBE NEWSWIRE) -- The Alcohol and Gaming Commission of Ontario (AGCO) and Woodbine Entertainment have finalized a settlement agreement following an AGCO investigation into a series of serious equine incidents in the fall of 2024. For purposes of the settlement, Woodbine is not contesting the AGCO findings, but reserves its other rights. The AGCO is committed to ensuring safe horse racing in Ontario. In line with that commitment, Woodbine has agreed to a set of enforceable actions a ...