AGCO cuts 2026 outlook as high farm costs delay equipment purchases

AGCO lowered its full-year financial outlook after cautious farmers delayed machinery investments amid elevated input costs, uneven crop economics and uncertainty surrounding trade and commodity demand. The agricultural equipment maker reported second-quarter net sales of $2.61 billion, down 1% from a year earlier and 3.7% lower when favorable currency movements were excluded. Adjusted earnings rose to $1.43 per share from $1.35 a year earlier, although the company’s adjusted operating margin narrowed to 6.6% from 8.3%.

The company now expects 2026 sales of $10.1 billion to $10.2 billion, below its previous forecast of $10.5 billion to $10.7 billion. Adjusted earnings are projected at $5.50 to $5.75 per share, while the adjusted operating margin is expected to be about 7.5%. AGCO said it would continue reducing production, controlling expenses and aligning dealer inventories with retail demand as farmers remain under pressure from high fertilizer, energy and other operating costs.

Regional results were sharply divided. North American sales increased 19.8% on a constant-currency basis, supported by stronger shipments of high-horsepower tractors and hay equipment. Sales fell 25% in Latin America, where costly imported fertilizer, financing constraints and weaker farm profitability reduced demand, while Europe and the Middle East declined 4.7%. Industry tractor sales during the first half fell 9% in North America and 11% in Brazil, underscoring the broader slowdown in agricultural machinery investment.