AGCO's top-line performance remains under pressure, with operating margins contracting to 3.4% in 2026Q1 as the firm struggles to scale fixed costs against declining demand.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 10.37B | 10.08B | 11.66B | 14.41B | 12.65B | 11.14B | 9.15B | 9.04B | 9.35B | 8.31B | 7.41B | 7.47B | 9.72B | 10.79B | 9.96B | 8.77B | 6.9B | 6.63B | 8.42B | 6.83B | 5.43B | 5.45B | 5.27B | 3.5B | 2.92B | 2.54B | 2.34B | 2.41B | 2.94B | 3.22B | 2.32B |
| Revenue Growth % | -3.8% | -13.55% | -19.08% | 13.92% | 13.58% | 21.73% | 1.2% | -3.32% | 12.59% | 12.09% | -0.76% | -23.21% | -9.86% | 8.28% | 13.55% | 27.21% | 4.01% | -21.3% | 23.38% | 25.63% | -0.27% | 3.35% | 50.87% | 19.59% | 15% | 8.79% | -3.2% | -17.95% | -8.78% | 39.13% | 9.06% |
| Cost of Goods Sold | 7.79B | 7.59B | 8.82B | 10.67B | 9.7B | 8.63B | 7.16B | 7.12B | 7.42B | 6.6B | 5.95B | 5.95B | 7.7B | 8.44B | 7.89B | 7.02B | 5.65B | 5.56B | 6.94B | 5.66B | 4.52B | 4.65B | 4.44B | 2.88B | 2.39B | 2.11B | 1.96B | 2.06B | 2.4B | 2.56B | 1.85B |
| COGS % of Revenue | - | 75.25% | 75.61% | 74.07% | 76.64% | 77.48% | 78.23% | 78.73% | 79.32% | 79.44% | 80.25% | 79.64% | 79.16% | 78.27% | 79.18% | 80.07% | 81.97% | 83.82% | 82.43% | 82.88% | 83.24% | 85.4% | 84.2% | 82.36% | 81.8% | 82.89% | 83.88% | 85.23% | 81.73% | 79.32% | 79.71% |
| Gross Profit | 2.58B | 2.5B | 2.84B | 3.74B | 2.96B | 2.51B | 1.99B | 1.92B | 1.93B | 1.71B | 1.46B | 1.52B | 2.03B | 2.34B | 2.07B | 1.75B | 1.24B | 1.07B | 1.48B | 1.17B | 910.9M | 795.4M | 833.4M | 616.4M | 531.8M | 434.8M | 376.6M | 356.4M | 537.3M | 666.8M | 470.3M |
| Gross Margin % | 24.91% | 24.75% | 24.39% | 25.93% | 23.36% | 22.52% | 21.77% | 21.27% | 20.68% | 20.56% | 19.75% | 20.36% | 20.84% | 21.73% | 20.82% | 19.93% | 18.03% | 16.18% | 17.57% | 17.12% | 16.76% | 14.6% | 15.8% | 17.64% | 18.2% | 17.11% | 16.12% | 14.77% | 18.27% | 20.68% | 20.29% |
| Gross Profit Growth % | - | -12.27% | -23.89% | 26.47% | 17.83% | 25.93% | 3.57% | -0.58% | 13.24% | 16.73% | -3.76% | -24.98% | -13.52% | 13% | 18.58% | 40.65% | 15.92% | -27.56% | 26.66% | 28.33% | 14.52% | -4.56% | 35.2% | 15.91% | 22.31% | 15.45% | 5.67% | -33.67% | -19.42% | 41.78% | -11.73% |
| Operating Expenses | 1.71B | 1.8B | 1.87B | 2B | 1.63B | 1.49B | 1.36B | 1.39B | 1.42B | 1.28B | 1.16B | 1.13B | 1.33B | 1.44B | 1.36B | 1.14B | 911.7M | 822M | 915.4M | 780.6M | 669.6M | 520.7M | 509.8M | 405.3M | 385.1M | 325.1M | 310.8M | 298.7M | 366.8M | 329.5M | 243.3M |
| OpEx % of Revenue | - | 17.82% | 16.01% | 13.9% | 12.91% | 13.42% | 14.85% | 15.37% | 15.15% | 15.41% | 15.71% | 15.19% | 13.7% | 13.37% | 13.63% | 13.05% | 13.22% | 12.4% | 10.87% | 11.43% | 12.32% | 9.55% | 9.67% | 11.6% | 13.18% | 12.79% | 13.3% | 12.38% | 12.47% | 10.22% | 10.5% |
| Selling, General & Admin | 1.32B | 1.31B | 1.37B | 1.45B | 1.19B | 1.09B | 1.02B | 1.05B | 1.06B | 956.9M | 867.9M | 852.3M | 995.4M | 1.09B | 1.04B | 869.3M | 692.1M | 630.1M | 720.9M | 625.7M | 541.7M | 520.7M | 509.8M | 403M | 383.7M | 306.6M | 273.8M | 274.2M | 326.8M | 329.5M | 243.3M |
| SG&A % of Revenue | - | 12.99% | 11.79% | 10.09% | 9.4% | 9.77% | 11.1% | 11.57% | 11.36% | 11.52% | 11.71% | 11.41% | 10.24% | 10.09% | 10.45% | 9.91% | 10.04% | 9.5% | 8.56% | 9.16% | 9.97% | 9.55% | 9.67% | 11.53% | 13.13% | 12.06% | 11.72% | 11.36% | 11.11% | 10.22% | 10.5% |
| Research & Development | 371.7M | 487.7M | 493M | 548.8M | 444.2M | 405.8M | 342.6M | 343.4M | 355.2M | 323.1M | 296.1M | 282.2M | 337M | 353.4M | 317.1M | 275.6M | 219.6M | 191.9M | 194.5M | 154.9M | 127.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 4.84% | 4.23% | 3.81% | 3.51% | 3.64% | 3.74% | 3.8% | 3.8% | 3.89% | 4% | 3.78% | 3.47% | 3.28% | 3.18% | 3.14% | 3.18% | 2.89% | 2.31% | 2.27% | 2.35% | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.3M | 1.4M | 18.5M | 37M | 24.5M | 40M | 0 | 0 |
| Operating Income | 711.3M | 698.7M | 977.2M | 1.73B | 1.32B | 1.01B | 633.1M | 533.6M | 517.1M | 427.8M | 299.3M | 386M | 694.3M | 901.4M | 715.6M | 604M | 331.7M | 250.6M | 565.2M | 388.4M | 241.3M | 274.7M | 323.6M | 183.5M | 104M | 96.7M | 65.8M | 57.7M | 170.5M | 337.3M | 227M |
| Operating Margin % | 6.86% | 6.93% | 8.38% | 12.03% | 10.45% | 9.1% | 6.92% | 5.9% | 5.53% | 5.15% | 4.04% | 5.17% | 7.14% | 8.36% | 7.18% | 6.88% | 4.81% | 3.78% | 6.71% | 5.69% | 4.44% | 5.04% | 6.14% | 5.25% | 3.56% | 3.8% | 2.82% | 2.39% | 5.8% | 10.46% | 9.79% |
| Operating Income Growth % | - | -28.5% | -43.65% | 31.23% | 30.37% | 60.12% | 18.65% | 3.19% | 20.87% | 42.93% | -22.46% | -44.4% | -22.98% | 25.96% | 18.48% | 82.09% | 32.36% | -55.66% | 45.52% | 60.96% | -12.16% | -15.11% | 76.35% | 76.44% | 7.55% | 46.96% | 14.04% | -66.16% | -49.45% | 48.59% | -15.74% |
| EBITDA | 963.1M | 1.03B | 1.31B | 2.02B | 1.59B | 1.3B | 905.1M | 805.6M | 807M | 707.6M | 573.9M | 646.1M | 974.7M | 1.16B | 945.5M | 777.5M | 486M | 398.2M | 711.7M | 521.9M | 356.8M | 380.6M | 423.7M | 249.4M | 156.3M | 167.1M | 135.5M | 134.5M | 250.2M | 409.3M | 280.5M |
| EBITDA Margin % | 9.28% | 10.18% | 11.23% | 14.04% | 12.58% | 11.63% | 9.89% | 8.91% | 8.63% | 8.52% | 7.74% | 8.65% | 10.02% | 10.76% | 9.49% | 8.86% | 7.05% | 6.01% | 8.45% | 7.64% | 6.56% | 6.98% | 8.03% | 7.14% | 5.35% | 6.57% | 5.8% | 5.57% | 8.51% | 12.69% | 12.1% |
| EBITDA Growth % | -10.66% | -21.62% | -35.31% | 27.21% | 22.83% | 43.13% | 12.35% | -0.17% | 14.05% | 23.3% | -11.17% | -33.71% | -16.03% | 22.77% | 21.61% | 59.98% | 22.05% | -44.05% | 36.37% | 46.27% | -6.25% | -10.17% | 69.89% | 59.56% | -6.46% | 23.32% | 0.74% | -46.24% | -38.87% | 45.92% | -8% |
| D&A (Non-Cash Add-back) | 251.8M | 327.6M | 332.2M | 289.9M | 269.6M | 281.8M | 272M | 272M | 289.9M | 279.8M | 274.6M | 260.1M | 280.4M | 259.4M | 229.9M | 173.5M | 154.3M | 147.6M | 146.5M | 133.5M | 115.5M | 105.9M | 100.1M | 65.9M | 52.3M | 70.4M | 69.7M | 76.8M | 79.7M | 72M | 53.5M |
| EBIT | 651.7M | 668.4M | -273.6M | 1.4B | 1.15B | 969.7M | 586.9M | 289.9M | 415.9M | 335.9M | 268.3M | 343M | 610.9M | 881.4M | 678.5M | 617.7M | 338.9M | 219.5M | 579.1M | 377.8M | 52.2M | 256.1M | 316.7M | 211.1M | 146.7M | 109.7M | 65.8M | 65.1M | 195.7M | 337.3M | 227M |
| Net Interest Income | -47.7M | -66.4M | -93.7M | -4.6M | -13M | -6.7M | -15M | -19.9M | -47.5M | -42.7M | -50.1M | -44.9M | -58.4M | -58M | -57.6M | -27.9M | -33.3M | -43.3M | -33.2M | -24.1M | -55.2M | -80M | -77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 66.3M | 64.2M | 33M | 18.7M | 9.9M | 8.9M | 8.1M | 9.4M | 13.3M | 18.7M | 13.5M | 20.8M | 20.1M | 28.8M | 30.7M | 22.4M | 34.2M | 26.4M | 16.2M | 16M | 15.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 62.9M | 66.4M | 160M | 68.8M | 46M | 25.4M | 24.9M | 28.8M | 55.6M | 52.1M | 63.4M | 63.6M | 71.9M | 78.8M | 77.7M | 56.7M | 64M | 65.7M | 67.4M | 50.5M | 71.4M | 96M | 92.3M | 60M | 57.4M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 300K | -57.1M | -1.36B | -332.6M | -150.3M | -3.8M | -25.6M | -230M | -122.5M | -104.9M | -46.9M | -49.5M | -102.4M | -50.6M | -61.3M | 5.9M | -7.1M | -58.4M | -14.7M | -30.7M | -232.7M | -92M | -99.2M | -85.2M | -78.2M | -82M | -79.7M | -79.4M | -82.4M | -91.6M | -55.4M |
| Pretax Income | 669.9M | 641.6M | -387.2M | 1.4B | 1.17B | 1.01B | 607.5M | 303.6M | 394.6M | 322.9M | 252.4M | 336.5M | 591.9M | 850.8M | 654.3M | 609.9M | 324.6M | 192.2M | 550.5M | 357.7M | 8.6M | 182.7M | 224.4M | 98.3M | 25.8M | 14.7M | -13.9M | -32.2M | 74.3M | 245.7M | 171.6M |
| Pretax Margin % | 6.46% | 6.36% | -3.32% | 9.73% | 9.26% | 9.07% | 6.64% | 3.36% | 4.22% | 3.89% | 3.41% | 4.51% | 6.09% | 7.89% | 6.57% | 6.95% | 4.71% | 2.9% | 6.53% | 5.24% | 0.16% | 3.35% | 4.26% | 2.81% | 0.88% | 0.58% | -0.6% | -1.33% | 2.53% | 7.62% | 7.4% |
| Income Tax | -74.8M | -77.4M | 98.4M | 230.4M | 296.6M | 108.4M | 187.7M | 180.8M | 110.9M | 133.6M | 92.2M | 72.5M | 187.7M | 258.5M | 137.9M | 24.6M | 104.4M | 56.5M | 164.6M | 111.4M | 73.5M | 151.1M | 86.2M | 41.3M | 99.8M | 1.9M | -7.6M | -10.2M | 27.5M | 87.5M | 60M |
| Effective Tax Rate % | -11.17% | -12.06% | -25.41% | 16.44% | 25.32% | 10.73% | 30.9% | 59.55% | 28.1% | 41.38% | 36.53% | 21.55% | 31.71% | 30.38% | 21.08% | 4.03% | 32.16% | 29.4% | 29.9% | 31.14% | 854.65% | 82.7% | 38.41% | 42.01% | 386.82% | 12.93% | 54.68% | 31.68% | 37.01% | 35.61% | 34.97% |
| Net Income | 771M | 726.5M | -424.8M | 1.17B | 889.6M | 897M | 427.1M | 125.2M | 285.5M | 186.4M | 160.1M | 266.4M | 410.4M | 597.2M | 522.1M | 583.3M | 220.5M | 135.7M | 385.9M | 246.3M | -64.9M | 31.6M | 158.8M | 74.4M | -84.4M | 22.6M | 3.5M | -11.5M | 60.6M | 168.7M | 125.9M |
| Net Margin % | 7.43% | 7.21% | -3.64% | 8.13% | 7.03% | 8.05% | 4.67% | 1.38% | 3.05% | 2.24% | 2.16% | 3.57% | 4.22% | 5.54% | 5.24% | 6.65% | 3.2% | 2.05% | 4.58% | 3.61% | -1.19% | 0.58% | 3.01% | 2.13% | -2.89% | 0.89% | 0.15% | -0.48% | 2.06% | 5.23% | 5.43% |
| Net Income Growth % | 232.41% | 271.02% | -136.26% | 31.68% | -0.83% | 110.02% | 241.13% | -56.15% | 53.17% | 16.43% | -39.9% | -35.09% | -31.28% | 14.38% | -10.49% | 164.54% | 62.49% | -64.84% | 56.68% | 479.51% | -305.38% | -80.1% | 113.44% | 188.15% | -473.45% | 545.71% | 130.43% | -118.98% | -64.08% | 34% | -2.48% |
| Net Income (Continuing) | 765.3M | 719M | -485.6M | 1.17B | 874.7M | 901.5M | 419.8M | 122.8M | 283.7M | 189.3M | 160.2M | 264M | 404.2M | 592.3M | 516.4M | 585.3M | 220.2M | 135.7M | 385.9M | 246.3M | -64.9M | 31.6M | 138.2M | 74.4M | -60.3M | 22.6M | 3.5M | -11.5M | 60.6M | 170.8M | 129.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 295.5M | 299.2M | 300.1M | 100K | 200K | 27.9M | 38M | 53.2M | 60.6M | 65.7M | 61.1M | 45M | 48.4M | 34.6M | 33.3M | 36M | 800K | 7.6M | 5.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.61 | 9.75 | -5.69 | 15.64 | 11.88 | 11.85 | 5.65 | 1.04 | 3.58 | 2.32 | 1.96 | 3.06 | 4.36 | 6.01 | 5.30 | 5.95 | 2.29 | 1.44 | 4.09 | 2.55 | -0.71 | 0.35 | 1.71 | 0.98 | -1.14 | 0.31 | 0.06 | -0.20 | 0.99 | 2.71 | 2.20 |
| EPS Growth % | 232.52% | 271.35% | -136.38% | 31.65% | 0.25% | 109.73% | 443.27% | -70.95% | 54.31% | 18.37% | -35.95% | -29.82% | -27.45% | 13.4% | -10.92% | 159.83% | 59.03% | -64.79% | 60.39% | 459.15% | -302.86% | -79.53% | 74.49% | 185.96% | -467.74% | 416.67% | 130% | -120.2% | -63.47% | 23.18% | -4.35% |
| EPS (Basic) | - | 9.76 | -5.69 | 15.66 | 11.92 | 11.93 | 5.69 | 1.05 | 3.62 | 2.34 | 1.97 | 3.06 | 4.39 | 6.14 | 5.38 | 6.10 | 2.38 | 1.47 | 4.36 | 2.69 | -0.71 | 0.35 | 1.84 | 0.99 | -1.14 | 0.31 | 0.06 | -0.20 | 1.01 | 2.79 | 2.28 |
| Diluted Shares Outstanding | 72.7M | 74.5M | 74.7M | 74.9M | 74.9M | 75.7M | 75.6M | 77M | 79.7M | 80.2M | 81.7M | 87.1M | 94.2M | 99.4M | 98.6M | 98.1M | 96.4M | 94.1M | 97.7M | 96.6M | 90.8M | 90.7M | 95.6M | 75.8M | 74.2M | 68.5M | 59.7M | 58.7M | 61.2M | 62.1M | 57.44M |
| Basic Shares Outstanding | 72.5M | 74.4M | 74.6M | 74.8M | 74.6M | 75.2M | 75M | 76.2M | 78.8M | 79.5M | 81.4M | 87M | 93.4M | 97.3M | 97.1M | 95.6M | 92.8M | 92.2M | 91.7M | 91.5M | 90.8M | 90.4M | 86.2M | 75.2M | 74.2M | 66.9M | 59.2M | 58.7M | 59.7M | 60.4M | 55.19M |
| Dividend Payout Ratio | - | 11.91% | - | 39.05% | 45.45% | 39.97% | 11.24% | 38.34% | 16.5% | 23.87% | 26.55% | 15.77% | 9.94% | 6.51% | - | - | - | - | - | - | - | - | - | - | - | 2.21% | 71.43% | - | 3.96% | 1.48% | 1.75% |
Cyclical Revenue Contraction
As reported in recent financial filings, AGCO's revenue trajectory has shifted into a contractionary phase, evidenced by a 14.3% year-over-year growth rate in 2026Q1 that follows a series of significant quarterly declines, suggesting the agricultural equipment replacement cycle is currently experiencing a pronounced and challenging downturn.
The volatility in top-line performance reflects the sensitivity of the firm's regional segments to fluctuating net farm income and equipment replacement cycles. Investors should monitor whether the recent revenue stabilization is a durable inflection point or merely a temporary pause in a broader multi-quarter destocking trend.
Based on the provided income statement data, AGCO's gross margin has hovered near 24.8% in 2026Q1, reflecting the inherent difficulty in maintaining pricing power while navigating a period of reduced demand and potential inventory-related discounting across its primary European and North American agricultural machinery markets.
The compression of operating margins to 3.4% in the most recent quarter highlights the firm's high fixed-cost sensitivity during periods of lower manufacturing absorption. This suggests that without a meaningful recovery in volume, the company may struggle to return to the double-digit operating margins seen in previous cycles.
According to the latest quarterly figures, AGCO's operating income of $80.7 million indicates significant deleveraging, as the firm's inability to scale SG&A expenses efficiently against declining gross profit suggests that the current cost structure remains heavily burdened by fixed manufacturing overheads during this cyclical revenue contraction.
The lack of operating leverage appears to be a direct consequence of the current equipment demand environment, which forces the company to absorb higher per-unit costs. Analysts should investigate whether management's current expense discipline is sufficient to protect the bottom line if the revenue contraction persists through the fiscal year.
As evidenced by the wide variance in net income, ranging from a $367.1 million loss in 2024Q2 to a $314.8 million profit in 2025Q2, AGCO's reported earnings quality appears heavily impacted by non-operating items and significant quarterly fluctuations that warrant careful scrutiny by fundamental investors.
The inconsistency in net income suggests that investors should focus on normalized operating metrics rather than headline EPS, which may be distorted by one-time charges or tax anomalies. The presence of stock-based compensation, while relatively modest, adds another layer of complexity to assessing the true cash-generative capacity of the business.
Based on the reported figures, a critical challenge to the bullish narrative is the potential for sustained margin compression, as the company's 6.93% operating margin remains significantly below the levels required to compete effectively with higher-margin peers like John Deere in a high-interest rate environment.
Short-term risks include the possibility that dealer inventory levels remain elevated, necessitating further retail delivery incentives that would erode gross margins. The market may be underestimating the difficulty of transitioning to a software-led revenue model while the core hardware business faces such persistent cyclical headwinds.
Quick answers to the most common questions about buying AGCO stock.
For fiscal year 2025, AGCO Corporation (AGCO) reported total revenue of $10.08B. This represents a 335.0% increase compared to $2.32B in 1996.
AGCO Corporation (AGCO) is profitable, generating $726.5M in net income for the fiscal year ending 2025 with a net profit margin of 7.2%.
AGCO Corporation (AGCO) reported an operating income of $698.7M, resulting in an operating profit margin of 6.9%. This margin reflects the operational efficiency of the business before interest and taxes.
AGCO Corporation (AGCO) generated $2.50B in gross profit for the year, representing a gross profit margin of 24.8%. This demonstrates the company's core pricing power and production efficiency.