AGCO Corporation

Overview

AGCO Corporation is a global leader in agricultural machinery and precision agriculture technologies. Its principal brands include Fendt, Massey Ferguson, PTx, and Valtra. The company manufactures and distributes agricultural equipment and precision-agriculture solutions, supports a network of dealers and distributors, and provides retail and wholesale financing through AGCO Finance joint ventures with Rabobank.

Strategic developments in 2024–2025 include the divestiture of the majority of the Grain & Protein business, formation of the PTx Trimble joint venture (AGCO owns 85% as of April 1, 2024), and the launches of FarmENGAGE (2025) and Outrun autonomous solutions to expand mixed-fleet, retrofit, and autonomous capabilities.

Geographic and distribution reach

• Primary sales channel: independent dealers and distributors
• Global operations: approximately 140 countries
• Dealer network: about 2,800 independent dealers and distributors

Scale and recent financials

• Employees: approximately 22,000 worldwide
• Net sales (2025): $10,082.0 million (down 13.5% versus 2024)
• Net income attributable to AGCO (2025): $726.5 million; diluted EPS: $9.75
• Income from operations (2025): $595.7 million (2024: $(122.1) million)
• Net loss (2024): $(424.8) million; diluted EPS (2024): $(5.69)
• 2024 items referenced: loss on sale of business related to the Grain & Protein divestiture and impairment charges that affected 2024 results and the year-over-year comparison

Financing and capital structure

• AGCO Finance provides retail and wholesale financing through joint ventures with Rabobank, typically structured as 49% AGCO ownership and 51% ownership by Rabobank subsidiaries.
• Rabobank serves as the primary lender for the company’s credit facility and senior term loan.
• The company continues to evaluate financing in the context of regulatory capital requirements and the mixed-fleet financing model.

Products and share of net sales (2025)

• High-horsepower tractors (140–650 hp): 66% (2024: 61%; 2023: 61%)
• Combines (harvesting): 2% (2024: 3%; 2023: 4%)
• Hay tools, forage equipment, planters, implements, and precision agriculture solutions: 11% (2024: 10%; 2023: 12%)
• Replacement parts (spares and service for all products, including legacy lines): 19% (2024: 16%; 2023: 13%)
• Grain storage and related systems: —% in 2025 (divested); 2024: 7%; 2023: 7%
• Other self-propelled and application equipment lines generally appear in the low single-digit percentage ranges

Notes on the product mix

The 2025 mix reflects the divestiture of a majority of the Grain & Protein business, which explains the absence of Grain Storage and Protein Production Systems in 2025. High-horsepower tractors are the dominant revenue driver (66%), with replacement parts and precision-agriculture-related equipment representing meaningful shares of sales.

Strategic initiatives and technology

• PTx Trimble joint venture: formed April 1, 2024; AGCO holds an 85% ownership position. The JV combines Precision Planting and Trimble technologies to deliver mixed-fleet precision-ag solutions.
• FarmENGAGE (launched 2025): a mixed-fleet digital platform for deploying work plans, tracking fieldwork, and collecting test data across machines, interoperable with non-AGCO fleets.
• Outrun autonomous solutions: retrofit autonomy technologies for tillage and fertilization (in beta/alpha testing) that complement the existing autonomous grain cart solution; targets multiple crop-cycle stages and supports Fendt and select non-AGCO machines.

Operational focus and market conditions

• Global demand for agricultural equipment was softer in 2025 compared with 2024, influenced by farm income, financing conditions, crop prices, weather, and geopolitical factors.
• The company is executing a Program announced in 2024 to improve efficiency and reduce costs, including back-office optimization and targeted offshore/outsourcing actions.
• Sustainability and climate-related initiatives include cleaner powertrain options, hybrid and battery-electric development paths, retrofit solutions for mixed-brand fleets, and digital connectivity to optimize yields and reduce inputs.

Key takeaways

• AGCO is a diversified global equipment manufacturer with a heavy focus on high-horsepower tractors and a large after-sales parts business.
• Financing is managed through AGCO Finance joint ventures with Rabobank, typically on a 49/51 ownership basis.
• 2025 results show improved profitability versus a challenging 2024, with net sales of about $10.1 billion and net income of about $726.5 million.
• The company is advancing precision agriculture and autonomous capabilities via the PTx Trimble JV, FarmENGAGE, and Outrun, while continuing restructuring and efficiency efforts.