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1. Company Snapshot

1.a. Company Description

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide.It offers horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses.The company also provides grain storage bins and related drying and handling equipment systems; seed-processing systems; swine and poultry feed storage and delivery; ventilation and watering systems; and egg production systems and broiler production equipment.


In addition, it offers round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners for harvesting and packaging vegetative feeds used in the beef cattle, dairy, horse, and renewable fuel industries.Further, the company provides implements, including disc harrows leveling seed beds and mixing chemicals with the soils; heavy tillage to break up soil and mix crop residue into topsoil; field cultivators that prepare smooth seed bed and destroy weeds; drills for small grain seeding; planters and other planting equipment; and loaders.Additionally, it offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, such as self-propelled, three- and four-wheeled vehicles, and related equipment for liquid and dry fertilizers and crop protection chemicals, and for after crops emerge from the ground, as well as produces diesel engines, gears, and generating sets.


The company markets its products under the Challenger, Fendt, GSI, Massey Ferguson, and Valtra brands through a network of independent dealers and distributors.AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia.

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1.b. Last Insights on AGCO

Breaking News: AGCO Corporation recently reported a decline in its shares. On April 15, 2026, the shares fell 6.0% to $115.27. This drop occurs within a 52-week range. The GF Score of 80 indicates a certain level of performance. No recent earnings release information is available. Analysts have mixed views but no recent recommendation is available from them. Some investors may view this as a buying opportunity while others may be cautious. Further analysis is needed to determine the stock's potential.

1.c. Company Highlights

2. AGCO Corporation Delivers Strong Q4, Positions for 2026 Growth

AGCO Corporation closed 2025 with a strong fourth quarter, delivering an adjusted operating margin of 10.1% and net sales of $2.9 billion, up 1% year-over-year or nearly 4% excluding the grain and protein divestiture. The company's adjusted earnings per share were $5.28 for the full year, on sales of $10.1 billion, reflecting a 13.5% decrease versus 2024, or 7% excluding the divested business. The actual EPS for Q4 came out at $2.17, beating estimates of $1.85.

Publication Date: Feb -15

📋 Highlights
  • 2025 Adjusted Operating Margin:: AGCO achieved 10.1% in Q4 with net sales of $2.9 billion, up 1% YoY (4% excluding divestitures).
  • Record Free Cash Flow:: Generated $740 million in 2025, supported by $250 million in share repurchases under its $1 billion capital return program.
  • Production Hours Adjustment:: 2025 production hours fell 12% YoY, primarily due to North America, with 2026 expected to be flat.
  • 2026 Guidance:: Anticipates net sales of $10.4–10.7 billion and adjusted EPS of $5.50–6.00, with $40–60 million in incremental savings.
  • Regional Sales Trends:: 2025 saw 9% decline in North America, 9% in South America, but 3% growth in Asia-Pacific/Africa.

Regional Sales Performance

Regional net sales performance for the fourth quarter showed Europe, Middle East sales were 1% lower than 2024, South America net sales were 9% lower, North American net sales were down 9%, and Asia Pacific Africa net sales were up 3%. The company's production hours for 2025 were down 12% versus 2024, with North America accounting for the largest portion of the adjustment.

Cash Flow and Capital Allocation

The company generated record free cash flow of $740 million in 2025. AGCO also announced $250 million of share repurchases in the fourth quarter, part of its $1 billion capital return program. The company's capital allocation priorities remain consistent, focusing on reinvesting in the business, maintaining an investment-grade credit profile, considering acquisitions, and returning capital to shareholders.

Outlook for 2026

For 2026, AGCO expects production hours to be broadly flat year-over-year. The company forecasts large ag industry sales in North America to decline by approximately 15% from 2025's low levels, while Western European tractor volumes are expected to increase modestly. Brazil's crop environment remains constructive, with relatively flat demand expected for 2026. AGCO Corporation expects to achieve adjusted operating margins between 7.5% and 8%, with an effective tax rate of 32% to 34% for 2026.

Valuation Metrics

With a P/E Ratio of 14.27 and an EV/EBITDA of 13.52, the market seems to have priced in a reasonable growth trajectory for AGCO Corporation. Analysts estimate next year's revenue growth at 5.6%, which is slightly above the expected industry growth. The company's commitment to innovation and its farmer-first strategy position it well for growth when demand recovers.

Precision Ag Technology

The company is poised to continue serving farmers and investors better as demand strengthens, driven by its focus on precision ag technology and strategic ambitions in agriculture machinery. With its PTX brand, AGCO introduced 14 new products across the crop cycle, expanding its retrofit precision ag portfolio. The PTX team hit their numbers, finishing the year at $860 million, and is expected to be flat to modestly up in 2026.

3. NewsRoom

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AGCO Corp (AGCO) Shares Fall 6.0% -- What GF Score of 80 Tells Investors

Apr -15

Source: gurufocus.com

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AGCO Announces First-Quarter 2026 Earnings Release and Conference Call

Apr -14

Source: prnewswire.com

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AGCO vs. DE: Which Stock Is the Better Value Option?

Apr -08

Source: zacks.com

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AGCO Honors America's Farmers at the "Great American Agriculture Celebration" in Washington, D.C.

Mar -27

Source: prnewswire.com

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Deere vs. AGCO Corp: Which Farm Equipment Stock Is the Better Buy Now?

Mar -18

Source: zacks.com

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AGCO Corporation (AGCO) Presents at Bank of America Global Industrials Conference 2026 Transcript

Mar -17

Source: seekingalpha.com

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AGCO Parts Shop B2B Digital Technology Team Wins 2026 Digital Engineering Award

Mar -16

Source: prnewswire.com

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AGCO to Present at the Bank of America Global Industrials Conference 2026

Mar -12

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.08%)

6. Segments

Tractors

Expected Growth: 2%

AGCO's tractor segment growth is driven by increasing global demand for agricultural machinery, driven by population growth, urbanization, and government initiatives to enhance agricultural productivity. Additionally, the company's focus on precision agriculture, digitalization, and sustainability features in its tractors resonates with farmers, contributing to the 2% growth.

Combines, Application Equipment and Other Machinery

Expected Growth: 1%

AGCO's Combines, Application Equipment, and Other Machinery segment growth is driven by increasing global demand for agricultural products, adoption of precision farming and technology, and rising replacement demand for aging machinery fleets. Additionally, expansion in emerging markets, strategic acquisitions, and investments in product innovation and digitalization are contributing to the segment's growth.

Replacement Parts

Expected Growth: 3%

AGCO Corporation's Replacement Parts segment growth is driven by increasing farm mechanization, rising crop prices, and government subsidies for agricultural development. Additionally, the company's expanding distribution network, strategic acquisitions, and focus on precision agriculture solutions contribute to the growth.

Grain Storage and Protein Production Systems

Expected Growth: 4%

Strong demand for grain storage and protein production systems driven by increasing global food demand, population growth, and rising protein consumption. AGCO's innovative solutions, such as its GSI grain storage and Futtertec protein production systems, cater to this demand, resulting in 4% growth.

7. Detailed Products

Tractors

AGCO's tractors are designed for agricultural and farming purposes, offering a range of horsepower and features to suit different farming needs.

Combines

AGCO's combines are designed for harvesting crops such as wheat, corn, and soybeans, offering advanced technology and high-capacity harvesting.

Hay Tools

AGCO's hay tools include balers, mower-conditioners, and tedders, designed for efficient hay harvesting and processing.

Forage Equipment

AGCO's forage equipment includes forage harvesters, choppers, and wrappers, designed for harvesting and processing forage crops.

Application Equipment

AGCO's application equipment includes sprayers, spreaders, and tenders, designed for efficient and precise application of fertilizers, pesticides, and seeds.

Grain Storage and Handling

AGCO's grain storage and handling solutions include grain bins, dryers, and handling equipment, designed for efficient grain storage and management.

Precision Farming Technology

AGCO's precision farming technology includes guidance systems, yield monitoring, and data analytics, designed to optimize crop yields and reduce waste.

8. AGCO Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

AGCO Corporation's products are specialized and customized, making it difficult for substitutes to enter the market. However, the increasing trend of electrification and autonomous farming may pose a threat in the long run.

Bargaining Power Of Customers

AGCO Corporation's customers are largely fragmented and lack bargaining power. The company's strong brand reputation and wide distribution network also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

AGCO Corporation's suppliers have some bargaining power due to the specialized nature of their products. However, the company's large scale of operations and diversified supply chain mitigate this risk.

Threat Of New Entrants

The agricultural equipment industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to challenge AGCO Corporation's market position.

Intensity Of Rivalry

The agricultural equipment industry is highly competitive, with several established players competing for market share. AGCO Corporation faces intense rivalry from companies like John Deere, CNH Industrial, and Kubota.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.02%
Debt Cost 5.43%
Equity Weight 76.98%
Equity Cost 10.60%
WACC 9.41%
Leverage 29.91%

11. Quality Control: AGCO Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mueller Industries

A-Score: 6.4/10

Value: 4.3

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 9.0

Volatility: 8.0

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REV Group

A-Score: 6.1/10

Value: 3.8

Growth: 8.2

Quality: 6.3

Yield: 4.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

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PACCAR

A-Score: 6.0/10

Value: 4.1

Growth: 6.7

Quality: 5.0

Yield: 8.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Oshkosh

A-Score: 5.9/10

Value: 7.1

Growth: 6.8

Quality: 6.0

Yield: 3.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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AGCO

A-Score: 4.7/10

Value: 5.2

Growth: 2.9

Quality: 4.2

Yield: 4.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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Terex

A-Score: 4.3/10

Value: 5.2

Growth: 5.7

Quality: 5.5

Yield: 2.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

115.27$

Current Price

115.27$

Potential

-0.00%

Expected Cash-Flows