- Record Revenue & Core Earnings Achieved $410 million in revenue (13% YoY) and $183 million in core earnings (10th consecutive record).
- Outstanding Business Volume Growth Total outstanding business volume reached $33.4 billion, driven by $3.8 billion in net new volume (2025).
- Infrastructure Finance Expansion Infrastructure finance line grew $2.8 billion in net new business, reflecting strong sector demand.
- Capital Allocation & Shareholder Returns Returned $78 million to shareholders via dividends and repurchases, with a 7% dividend increase.
- Strong Capital Position Tier 1 capital ratio of 13.3%, core capital of $1.7 billion, and $204 million capital increase exceeding statutory requirements by 66%.
Business Volume and Segment Performance
The company's diversified business model drove broad-based net volume growth in every segment, with the Farm & Ranch segment accounting for nearly all of the net growth. The Corporate AgFinance segment saw a net growth of $63 million, and the infrastructure finance line of business had a net growth of $2.8 billion. As Zachary Carpenter, President and Chief Operating Officer, noted, "Our team delivered another outstanding year of business volume activity, with activity accelerating in the fourth quarter and carrying over into 2026."
Capital Position and Credit Quality
Farmer Mac's strong capital position and robust asset quality metrics position it to capitalize on growth opportunities and navigate the current volatility and uncertainty in the agricultural cycle. The company's Tier 1 capital ratio was 13.3% as of December 31, 2025, and its core capital increased by $204 million in 2025 to $1.7 billion, exceeding its statutory requirement by $678 million or 66%. The company experienced $32.9 million of provision for credit loss expense in 2025, primarily related to certain individually significant credit deteriorations in its Corporate AgFinance and Broadband Infrastructure portfolios.
Valuation and Outlook
With a Price-to-Tangible Book Value (P/TBV) of 1.17, the stock appears reasonably valued. The Dividend Yield is 3.86%, providing a relatively stable source of return. Analysts estimate next year's revenue growth at 10.3%, driven by the company's diversified business model and strong capital position. As the company continues to deliver growth and consistent results, its robust capital position and disciplined risk management are likely to support future growth.