AGCO Q2 2025 Sales Drop 18.8% Amid Ag Slowdown

Duluth, Georgia - AGCO Corporation., an agricultural equipment manufacturer, has reported net sales of $2.6 billion for the second quarter ended June 30, 2025, reflecting an 18.8% year-over-year decline.

For the first six months of 2025, AGCO reported net sales of approximately $4.7 billion, down 24.1% year-over-year. The prior year’s results included $490.6 million in revenue from the Grain & Protein business divestiture. Excluding favorable currency translation of 0.7%, sales fell 24.8% year-over-year.

Declining commodity prices and higher input costs have weighed heavily on U.S. farmer sentiment. In Brazil, erratic weather and price volatility have prompted caution, with farmers opting to maintain current equipment. In Europe, regulatory pressures and weather-related disruptions are increasing demand for sustainable, adaptive ag technologies.

Mr. Eric Hansotia, Chairman, President, and CEO of AGCO, said, “Strong earnings and cash flow reflect our progress in reducing inventories through aggressive production cuts. Disciplined cost control and ongoing restructuring efforts have helped sustain our margins. Interest in precision ag and sustainable technologies continues to support demand for our premium brands. We’re staying focused on operational agility, supply chain resilience, and our Farmer-First strategy.”

North America: Net sales dropped 32.2% in Q2 2025, excluding currency impacts. High-horsepower tractors, sprayers, and hay equipment saw the sharpest declines. Operating income fell by $58.3 million, with margins at -5.3%, largely due to reduced sales and production.

South America: Sales declined 4.7%, driven by dealer inventory reductions and lower demand for mid-range equipment. However, operating income increased by $17.4 million due to a stronger product mix and factory efficiency improvements.

Europe/Middle East: Net sales were down 11.2%, despite growth in Eastern Europe and Scandinavia. Western Europe saw declines in combines and high-horsepower tractors. Operating income dropped $34.3 million due to lower sales, production cuts, and higher warranty costs.

Asia/Pacific/Africa: Sales in the region fell 5.9%, led by weak demand in Australia, China, and Japan. Operating income declined $1.0 million year-over-year due to softer sales and lower production volumes.

AGCO sees long-term growth potential in precision farming solutions, which offer efficiency without major capital investment.

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