AGCO increases sales in the quarter and revises profit forecast for 2026.

AGCO reported net revenue of US$2,3 billion in the first quarter of 2026, a 14,3% increase compared to the same period in 2025. Excluding the positive effect of currency conversion, growth reached 4,7%. The company also raised its adjusted earnings per share forecast for 2026, now estimated at approximately US$6,00.

Net income was reported at US$0,76 per share in the quarter. Adjusted net income was US$0,94 per share. In the first quarter of 2025, these figures were US$0,14 and US$0,41 per share, respectively. The adjusted operating margin increased from 4,1% to 4,6%.

The company reported positive sales and margin performance during the period, even with agricultural demand considered weak in several markets. According to Eric Hansotia, president and CEO of AGCO, the company outperformed the market, particularly in high-power equipment and precision agriculture.

By region, Europe and the Middle East accounted for the largest share of the result. Net sales totaled US$1,6 billion, a 20,3% increase over the first quarter of 2025. Excluding currency, the increase was 9,0%. The region achieved an operating margin of 16,2%. The result was supported by increased volumes, product mix, and higher production. Germany and the United Kingdom drove growth. Türkiye and France registered a decline.

In North America, net sales reached US$406,4 million, a 10,0% increase. Excluding currency, growth reached 9,0%. The company cited increased unit sales, mainly in high-horsepower tractors, hay equipment, and sprayers. Even so, operating income fell US$26,8 million compared to the same period in 2025. The operating margin remained negative, pressured by input costs related to tariffs.

In Latin America, net sales fell to US$211,7 million. The reported drop was 17,3%. Without the favorable exchange rate effect, the decline reached 30,3%. AGCO attributed the performance to lower industry demand, with sales falling across all product categories. Operating income fell by US$47,4 million, affected by lower sales and negative prices.

In Asia/Pacific/Africa, net revenue totaled US$124,0 million, a 31,2% increase. In constant currency, growth reached 20,9%. The company reported higher sales in Australia and South Africa, partially offsetting declines in most Asian markets. Operating profit increased by US$6,7 million.

The global agricultural machinery market showed mixed signals at the start of 2026. In North America, retail sales of industry tractors fell 8% in the first three months of the year, excluding compact tractors. Combine harvester sales declined 7%. AGCO pointed to greater pressure in higher horsepower categories, amid high input costs, changes in grain export demand, and still restrictive economic fundamentals for producers.

In Brazil, retail sales of tractors from the industry fell 10% year-to-date through March. Sales of combine harvesters declined 38%. The company cited lower demand for larger tractors, partially offset by improvements in small and medium-sized equipment. The country is harvesting near-record crops, but profitability remains pressured by high production costs, mainly imported fertilizers. High financial costs, restricted credit, and political dynamics are also expected to limit demand in 2026.

In Western Europe, retail sales of tractors grew 7% in the quarter. Combine harvester sales fell 5%. AGCO reported expansion in most European markets. Agricultural income in 2025, supported by dairy and livestock farmers, and the aging fleet form the basis for demand in 2026 to be slightly above that recorded in 2025.

The company also announced a change in its financing agreements in the United States and Canada. On April 30, 2026, AGCO signed two agreements to sell its 49% stakes in the joint ventures AGCO Finance LLC and AGCO Finance Canada, Ltd. to Rabobank subsidiaries for approximately US$190 million. The proceeds will be used for share buybacks. The company also reported signing agreements to maintain its offering of financing solutions to producers and dealers.

The board of directors approved an increase in the regular quarterly dividend from $0,29 to $0,30 per share. AGCO also plans to initiate $350 million in share repurchases in the second quarter of 2026.

For the year, AGCO projects net revenue between US$10,5 billion and US$10,7 billion. The adjusted operating margin should be between 7,5% and 8,0%. The company expects production volumes to be relatively stable or slightly lower.