AGCO raises 2026 outlook after first-quarter sales and earnings climb

AGCO reported higher first-quarter sales and earnings, driven by increased demand for high-horsepower equipment and precision agriculture products. As a result, the company raised its full-year profit outlook and announced a new $350 million share repurchase program.

Net sales increased 14.3% year over year to $2.34 billion for the quarter ended March 31. Adjusted earnings per share rose to $0.94 from $0.41, while reported earnings per share grew to $0.76 from $0.14. Foreign currency translation contributed 9.6 percentage points to revenue growth, with sales up 4.7% on a constant-currency basis.

AGCO raised its 2026 adjusted earnings outlook to approximately $6.00 per share and projected full-year revenue between $10.5 billion and $10.7 billion. The company also increased its quarterly dividend to $0.30 per share from $0.29 and will begin share repurchases in the second quarter, funded by the $190 million sale of its stakes in AGCO Finance joint ventures in the U.S. and Canada to Rabobank subsidiaries.

Chief Executive Eric Hansotia stated that AGCO outperformed the broader agricultural equipment market, especially in high-horsepower tractors and precision agriculture. The company also reported progress in reducing dealer inventories and maintaining production discipline despite challenging farm economics and higher input costs.

Regional performance varied. Sales in Europe and the Middle East rose 20.3% to $1.6 billion, driven by higher volumes in Germany and the United Kingdom. North American sales increased 10% to $406.4 million. Latin American revenue declined 17.3% to $211.7 million due to weaker demand in Brazil, where farmers face high financing and fertilizer costs. Asia-Pacific and Africa sales grew 31.2% to $124 million.

Operating income nearly doubled to $80.7 million from $49.4 million, and adjusted operating margin improved to 4.6% from 4.1%. Europe remained AGCO’s strongest region with a 16.2% operating margin. North America and Latin America reported operating losses due to tariff-related costs and weaker pricing.

The company stated that global agricultural markets remain under pressure from low crop prices, high input costs, and geopolitical uncertainty, including disruptions from conflicts in the Middle East and Ukraine. AGCO also warned that tariffs and trade disputes continue to create uncertainty around manufacturing costs and equipment demand, especially in North America.

Industry retail tractor sales fell 8% in North America and 10% in Brazil during the first quarter, according to company estimates, while Western European tractor sales increased 7%. AGCO noted that demand for smart farming technologies continued to grow as farmers prioritized productivity and efficiency despite cautious spending on new machinery.