AGCO Corp. (NYSE:AGCO) shares traded lower on Friday after the company reported third-quarter 2025 results, with adjusted earnings per share of $1.35, topping the consensus estimate of $1.22, and revenue of $2.48 billion, slightly above expectations of $2.47 billion.
Net sales declined 4.7% year-over-year, reflecting lower volumes and the absence of $251.2 million in revenue from the divested Grain & Protein business in the prior year.
Reported EPS was $4.09 versus $0.40 in the prior-year quarter. Excluding favorable foreign currency translation of 3.7%, net sales decreased 8.4%.
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Regional Results
Europe/Middle East sales rose 27.5% to $1.61 billion, or 20.3% excluding currency translation, driven by stronger demand for high-horsepower and mid-range tractors. Operating margin in the region reached 15.6%.
North American sales declined 32.1% to $383 million, driven by softer demand and reduced production, resulting in negative operating margins.
South American sales declined 8.1% to $322.4 million, with an operating margin of 5.7%, while Asia/Pacific/Africa sales decreased 5.9% to $157 million, with a margin of 4.9%.
AGCO completed the sale of its ownership interest in TAFE for $260 million, generating $230 million in after-tax proceeds. The company plans to initiate $300 million in share repurchases in the fourth quarter, which will be partially funded by the sale proceeds.
CEO Commentary
“AGCO delivered another solid quarter navigating a complex global landscape shaped by challenging farm economics, high interest rates, and cautious capital investment,” said Chairman, President, and CEO Eric Hansotia.
“Our continued investments in precision agriculture, autonomous solutions, and sustainable technologies helped maintain demand for our premium brands, while disciplined production cuts and cost management strengthened our results.”
Hansotia added that near-record global crop production in 2025 has put pressure on commodity prices and constrained farm margins, weakening equipment demand in North America and Europe. However, he noted that farmers continue to invest in precision technologies to improve productivity and profitability.
Outlook
AGCO raised its full-year 2025 adjusted EPS guidance from $4.75–$5.00 to approximately $5.00, above the $4.81 analyst estimate, and reaffirmed its sales outlook of $9.8 billion, slightly below the $9.85 billion consensus.
Adjusted operating margins are expected to be about 7.5%, incorporating current tariff impacts and mitigation strategies.
Price Action: AGCO shares were trading lower by 1.10% to $104.96 at last check Friday.
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