AGCO Cuts Full-Year Outlook After Sales Decline Widens

The Tip Desk · October 30, 2026 · 3 min read

Third-quarter net sales fell 8.6% to $2.3 billion and the company now targets adjusted earnings of about $5.50 a share.

AGCO (AGCO), the agricultural equipment maker, reported net sales of $2.3 billion for the third quarter ended September 30, 2026, down 8.6% from a year earlier, a sharper decline than the 1.0% year-over-year drop in the second quarter.

Reported earnings were $0.75 a share and adjusted earnings $1.05 a share, compared with $4.09 reported and $1.35 adjusted in the third quarter of 2025. Excluding favorable foreign-currency translation of 0.1%, sales decreased 8.7%.

Chairman, President and CEO Eric Hansotia said the company delivered results in what he described as the weakest global industry demand environment in more than a decade, with elevated input costs and uncertainty around commodity markets and the trade environment pushing industry demand below the last cyclical trough. He said AGCO aligned production with demand, managed dealer inventories and maintained cost discipline.

The company cut its full-year adjusted earnings outlook to approximately $5.50 a share from the $5.50–$5.75 range given after the second quarter. It expects 2026 net sales of $9.8 billion to $10.0 billion and adjusted operating margins of about 7.0%. Those estimates reflect tariff policies as of October 29, 2026, together with established mitigation actions and sourcing strategies; the company said changes to tariff policies or related responses could affect the projections.

Europe/Middle East remained the largest region and the main drag. Net sales there declined 19.1% to $1,306.1 million, a much larger drop than the 2.4% decline in the second quarter; constant-currency sales fell 18.1%. Income from operations was $115.1 million lower than a year earlier on significantly lower sales and production. The company said declines were driven by weaker industry demand, with the most pronounced decreases in Germany, France, Italy and Spain. Regional operating margin was 10.5%.

Latin America net sales fell 15.4% to $292.3 million, a smaller drop than the 17.9% decline in the second quarter; constant-currency sales fell 19.1%. Income from operations was $13.0 million lower than a year earlier on significantly lower sales and production volumes. Operating margin was 2.5%. Effective January 1, 2026, Mexico operations moved from North America to a renamed Latin America segment, with prior periods restated.

North America was the offset. Net sales rose 34.8% to $485.3 million, accelerating from a 19.7% increase in the second quarter; constant-currency growth was 35.1%. The company said higher unit sales across most equipment categories, particularly high-horsepower and mid-range tractors and parts, supported the increase. Income from operations was $13.8 million, compared with a $42.0 million operating loss a year earlier, primarily due to higher sales and production volumes and about $13.0 million of certain IEEPA tariff refunds. Operating margin was 2.8%.

Asia/Pacific/Africa net sales rose 13.8% to $178.8 million after a 1.0% decline in the second quarter; constant-currency sales rose 9.2%. Income from operations was $17.2 million higher than a year earlier on higher sales and a favorable product mix. Operating margin was 13.9%.

Industry retail tractor sales in the first nine months of 2026 were 9% lower in North America and 17% lower in Brazil, with Western Europe 1% lower. The company said North American industry demand is expected to remain below historical mid-cycle levels through the remainder of 2026, and that Western Europe demand is expected to remain challenged.

Hansotia said lower farm income and uncertainty across global agricultural markets continued to weigh on farmer sentiment, with conditions softening further in Europe/Middle East and Latin America. He said the company is advancing its Farmer-First strategy by strengthening premium brands and expanding precision agriculture solutions.