AGCO Corporation Reports FY 2024 Results

Duluth, Georgia - AGCO Corporation., an agricultural machinery manufacturer, reported Q4 2024 net sales of $2.9 billion, down 24% from Q4 2023. Full-year 2024 net sales were about $11.7 billion, a 19.1% decline compared to Q4 2023.

Mr. Eric Hansotia, Chairman, President and Chief Executive Officer at AGCO Corporation, said, “AGCO delivered strong fourth quarter results with an adjusted operating margin of 9.9%, even with challenging market dynamics and aggressive production cuts. We cut our production hours 33% in the fourth quarter and ended the year with lower company and dealer inventory compared to 2023. Our full-year adjusted operating margin performance of 8.9% is by far our best performance in an industry downturn. Demand for new equipment has softened further in most global markets, particularly as lower farm income persists for crop producers.”

In 2024, North American retail tractor sales fell 13% compared to 2023, with declines across all horsepower categories and sharper drops in higher horsepower segments toward year-end. Combine sales decreased by 22% year-over-year. Looking ahead to 2025, lower projected farm income and an updated equipment fleet are expected to further weaken industry demand, particularly for larger machinery.

In 2024, Brazil's retail tractor sales dropped 4% compared to 2023. Farm acreage grew modestly after several years of stronger expansion. Lower commodity prices, increasing farmer debt, and weaker demand from China contributed to cautious buying behavior. Industry demand in Brazil is expected to remain steady in 2025 amid mixed market conditions.

Western Europe saw a 6% decline in retail tractor sales in 2024 compared to 2023, with sharper drops in Scandinavia, the UK, and Italy. In 2025, demand is expected to stay weak due to lower income levels affecting arable farmers, although steady demand from dairy and livestock producers may offset some of the decline.