AGCO REPORTS THIRD-QUARTER RESULTS
DULUTH, Ga., Oct. 29, 2026 /PRNewswire/ -- AGCO (NYSE: AGCO) reported net sales of $2.3 billion for the third quarter ended September 30, 2026, a decrease of 8.6% compared to the third quarter of 2025. Reported net income was $0.75 per share for the quarter and adjusted net income (1) was $1.05 per share. These results compare to reported net income of $4.09 per share and adjusted net income (1) of $1.35 per share for the third quarter of 2025. Excluding favorable foreign currency translation of 0.1%, net sales in the quarter decreased 8.7% compared to the third quarter of 2025.
"AGCO delivered resilient third-quarter results in what is the weakest global industry demand environment in more than a decade," said Eric Hansotia, AGCO's Chairman, President and CEO. "While elevated input costs and uncertainty around commodity markets and the trade environment pushed industry demand below the last cyclical trough, we aligned production with demand, managed dealer inventories and maintained cost discipline. We also advanced our Farmer-First strategy by strengthening the market position of our premium brands and expanding precision agriculture solutions that help farmers automate tasks, address labor constraints and get more from their equipment."
Hansotia continued, "Lower farm income and uncertainty across global agricultural markets continued to weigh on farmer sentiment, with conditions softening further in EME and Latin America. We remain focused on what we can control: helping farmers improve their economics while strengthening our cost structure. Our fuel-efficient tractors, AI-enabled targeted spraying systems and autonomous solutions are designed to lower operating costs and improve returns for farmers. These actions are helping us navigate current conditions and position AGCO for the recovery."
Net sales for the first nine months of 2026 were approximately $7.2 billion, an increase of 0.7% compared to the same period in 2025. For the first nine months of 2026, reported net income was $2.59 per share and adjusted net income (1) was $3.42 per share. These results compare to reported net income of $8.45 per share and adjusted net income (1) of $3.11 per share for the same period in 2025. Excluding favorable foreign currency translation of 3.4%, net sales in the first nine months of 2026 decreased 2.7% compared to the same period in 2025.
Third Quarter Highlights
(1) See reconciliation of non-GAAP measures in appendix.
(2) As compared to third quarter 2025.
(3) Excludes currency translation impact.
Hansotia concluded, "The long-term fundamentals supporting global agriculture remain intact, driven by rising food demand and the need for greater on-farm productivity. Through PTx, farmers can add automation, autonomy and other advanced capabilities to existing equipment across virtually any brand, gaining the benefits of the latest technology without purchasing an entirely new machine. Together with our premium equipment brands, this differentiated strategy positions AGCO to create value through the cycle and capture growth as market conditions improve."
Market Update
Industry Unit Retail Sales
Tractors
Combines
Nine Months Ended September 30, 2026
Change from
Prior Year Period
Change from
Prior Year Period
North America (4)
(9) %
(10) %
Brazil (5)
(17) %
(38) %
Western Europe (5)
(1) %
(2) %
(4) Excludes compact tractors.
(5) Based on Company estimates.
North American industry retail tractor sales were 9% lower in the first nine months of 2026 compared to the same period in 2025 with the largest change occurring in higher-horsepower categories. Combine unit sales were 10% lower year-over-year during the same period. Commodity prices and evolving conditions surrounding trade and export demand continued to influence farm profitability. As a result, farmers remained cautious with spending, and industry demand is expected to remain below historical mid-cycle levels through the remainder of 2026.
Brazil industry retail tractor sales were 17% lower in the first nine months of 2026 compared to the same period in 2025 reflecting reduced demand for larger equipment. Farm profitability remained under pressure due to higher interest rates, constrained credit conditions and soft farm economics. Broader economic and policy uncertainty weighed on farmer confidence and led to delayed equipment purchases.
Western Europe industry retail tractor sales were 1% lower during the first nine months of 2026 compared to the same period in 2025 with the third quarter down 9% compared to the third quarter of 2025. Spain, Germany, France and Italy showed the largest third quarter declines. Hot and dry weather across portions of Western Europe created yield variability and weighed on farmer sentiment in the third quarter. While relatively healthy livestock and dairy economics and an aging equipment fleet continue to support replacement demand, softer crop economics, elevated input costs and economic developments have constrained equipment purchasing activity. As a result, industry demand is expected to remain challenged for the remainder of 2026.
Regional Results
AGCO Regional Net Sales (in millions)
Three Months Ended September 30,
2026
2025
% change
from 2025
% change
from 2025
due to
currency
translation (6)
% change
excluding
currency
translation
North America
$ 485.3
$ 359.9
34.8 %
(0.3) %
35.1 %
LATAM (7)
292.3
345.5
(15.4) %
3.7 %
(19.1) %
EME
1,306.1
1,613.8
(19.1) %
(1.0) %
(18.1) %
APA
178.8
157.1
13.8 %
4.6 %
9.2 %
Total
$ 2,262.5
$ 2,476.3
(8.6) %
0.1 %
(8.7) %
Nine Months Ended September 30,
2026
2025
% change
from 2025
% change
from 2025
due to
currency
translation (6)
% change
excluding
currency
translation
North America
$ 1,363.2
$ 1,123.3
21.4 %
0.2 %
21.2 %
LATAM (7)
775.3
931.9
(16.8) %
5.9 %
(22.7) %
EME
4,639.3
4,719.2
(1.7) %
3.5 %
(5.2) %
APA
437.3
387.4
12.9 %
6.3 %
6.6 %
Total
$ 7,215.1
$ 7,161.8
0.7 %
3.4 %
(2.7) %
(6) See reconciliation of non-GAAP measures in appendix.
(7) Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change.
North America
North American region net sales increased 35.1% during the third quarter of 2026 compared to the third quarter of 2025, excluding the impact of unfavorable currency translation. Higher unit sales across most equipment categories, particularly high-horsepower and mid-range tractors and parts, supported the increase in sales. Income from operations for the third quarter of 2026 was $13.8 million compared to a loss from operations of $42.0 million in the same period in 2025, primarily due to higher sales and production volumes and the benefit of approximately $13.0 million of certain IEEPA tariff refunds recognized during the period.
Latin America
Net sales in the Latin America region decreased 19.1% during the third quarter of 2026 compared to the third quarter of 2025, excluding the impact of favorable currency translation. Softer industry demand resulted in lower sales. Income from operations for the third quarter of 2026 was $13.0 million lower compared to the same period in 2025. This decrease was primarily the result of significantly lower sales and production volumes.
Europe/Middle East
Net sales in the Europe/Middle East region decreased 18.1% during the third quarter of 2026 compared to the third quarter of 2025, excluding the impact of unfavorable currency translation. Sales declines were primarily driven by weaker industry demand, with the most pronounced decreases in Germany, France, Italy and Spain. Income from operations in the third quarter of 2026 was $115.1 million lower compared to the same period in 2025, primarily due to significantly lower sales and production levels.
Asia/Pacific/Africa
Asia/Pacific/Africa region net sales increased 9.2% during the third quarter of 2026 compared to the third quarter of 2025, excluding favorable currency translation impacts. Higher sales in Australia were partially offset by lower sales across many of the Asian and African markets. Income from operations in the third quarter of 2026 was $17.2 million higher compared to the same period in 2025, primarily due to higher sales and a favorable product mix.
Outlook
AGCO's net sales for 2026 are expected to be from $9.8 to $10.0 billion. Adjusted operating margins are projected to be about 7.0% reflecting continued emphasis on pricing discipline, cost management and operational alignment. Production volumes are planned to align dealer inventory with market demand, while cost controls and positive pricing continue to support performance. Based on these assumptions, 2026 adjusted earnings per share is targeted at approximately $5.50. These estimates reflect tariff policies as of October 29, 2026, together with AGCO's established mitigation actions and sourcing strategies. Any changes to tariff policies or related responses could affect these projections.
* * * * *
AGCO will host a conference call for this earnings announcement at 10 a.m. Eastern Time on Thursday, October 29. The Company will refer to slides on its conference call. Interested persons can access the conference call and slide presentation via AGCO's website at www.agcocorp.com under the "Investors" section. The webcast will also be archived immediately afterward for 12 months. A copy of this press release will be available on AGCO's website for at least 12 months following the call.
* * * * *
Safe Harbor Statement
Statements that are not historical facts, including the projections of earnings per share, production levels, sales, industry demand, market conditions, commodity prices, currency translation, farm income levels, margin levels, strategy, investments in product and technology development, new product introductions, restructuring and other cost reduction initiatives, production volumes, tax rates and general economic conditions, are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. The following are among the factors that could cause actual results to differ materially from the results discussed in or implied by the forward-looking statements.
Further information concerning these and other factors is included in AGCO's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2025, and subsequent Form 10-Qs. AGCO disclaims any obligation to update any forward-looking statements except as required by law.
* * * * *
About AGCO
AGCO (NYSE: AGCO) is a global leader in agricultural machinery and precision agriculture technologies. Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt™, Massey Ferguson™, PTx™ and Valtra™. AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world. For more information, visit www.agcocorp.com.
# # # # #
AGCO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in millions)
September 30, 2026
December 31, 2025
ASSETS
Current Assets:
Cash and cash equivalents
$ 415.1
$ 861.8
Accounts and notes receivable, net
1,231.1
1,079.4
Inventories, net
3,005.0
2,709.3
Other current assets
540.8
545.6
Total current assets
5,192.0
5,196.1
Property, plant and equipment, net
1,931.0
1,996.2
Right-of-use lease assets
157.3
167.3
Investments in affiliates
497.3
609.9
Deferred tax assets
1,001.9
905.5
Other assets
458.5
481.0
Intangible assets, net
627.3
673.0
Goodwill
1,881.1
1,898.8
Total assets
$ 11,746.4
$ 11,927.8
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
Current Liabilities:
Borrowings due within one year
$ 536.1
$ 117.7
Accounts payable
1,018.5
951.0
Accrued expenses
2,266.4
2,538.7
Other current liabilities
120.0
121.7
Total current liabilities
3,941.0
3,729.1
Long-term debt, less current portion and debt issuance costs
2,140.7
2,323.1
Operating lease liabilities
128.0
122.1
Pension and postretirement health care benefits
166.8
169.2
Deferred tax liabilities
123.6
126.5
Other noncurrent liabilities
890.7
885.1
Total liabilities
7,390.8
7,355.1
Redeemable noncontrolling interests
290.4
299.2
Stockholders' Equity:
Preferred stock
—
—
Common stock
0.7
0.7
Additional paid-in capital
1.3
0.5
Retained earnings
5,790.3
6,047.2
Accumulated other comprehensive loss
(1,727.1)
(1,774.9)
Total stockholders' equity
4,065.2
4,273.5
Total liabilities, redeemable noncontrolling interests and stockholders' equity
$ 11,746.4
$ 11,927.8
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in millions, except per share data)
Three Months Ended September 30,
2026
2025
Net sales
$ 2,262.5
$ 2,476.3
Cost of goods sold
1,697.1
1,829.8
Gross profit
565.4
646.5
Operating expenses:
Selling, general and administrative expenses
303.8
340.8
Engineering expenses
121.9
123.0
Amortization of intangibles
17.1
23.0
Impairment charges
—
(0.6)
Restructuring and business optimization expenses
6.5
8.7
Income from operations
116.1
151.6
Interest expense, net
14.7
15.5
Other expense (income), net
33.3
(208.4)
Income before income taxes and equity in net earnings of affiliates
68.1
344.5
Income tax provision
25.2
48.8
Income before equity in net earnings of affiliates
42.9
295.7
Equity in net earnings of affiliates
7.1
7.0
Net income
50.0
302.7
Net loss attributable to noncontrolling interests
1.7
3.0
Net income attributable to AGCO Corporation
$ 51.7
$ 305.7
Net income per common share attributable to AGCO Corporation:
Basic
$ 0.75
$ 4.10
Diluted
$ 0.75
$ 4.09
Cash dividends declared and paid per common share
$ 0.30
$ 0.29
Weighted average number of common and common equivalent shares outstanding:
Basic
69.4
74.6
Diluted
69.5
74.7
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in millions, except per share data)
Nine Months Ended September 30,
2026
2025
Net sales
$ 7,215.1
$ 7,161.8
Cost of goods sold
5,422.4
5,336.1
Gross profit
1,792.7
1,825.7
Operating expenses:
Selling, general and administrative expenses
978.6
993.0
Engineering expenses
395.7
356.8
Amortization of intangibles
51.1
54.0
Impairment charges
2.1
7.3
Restructuring and business optimization expenses
27.7
37.3
Loss on sale of business
—
12.3
Income from operations
337.5
365.0
Interest expense, net
46.9
51.8
Other expense (income), net
75.3
(127.2)
Income before income taxes and equity in net earnings of affiliates
215.3
440.4
Income tax provision (benefit)
70.2
(154.7)
Income before equity in net earnings of affiliates
145.1
595.1
Equity in net earnings of affiliates
32.1
30.7
Net income
177.2
625.8
Net loss attributable to noncontrolling interests
6.7
5.2
Net income attributable to AGCO Corporation
$ 183.9
$ 631.0
Net income per common share attributable to AGCO Corporation
Basic
$ 2.59
$ 8.46
Diluted
$ 2.59
$ 8.45
Cash dividends declared and paid per common share
$ 0.89
$ 0.87
Weighted average number of common and common equivalent shares outstanding:
Basic
71.0
74.6
Diluted
71.1
74.7
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in millions)
Nine Months Ended September 30,
2026
2025
Cash flows from operating activities:
Net income
$ 177.2
$ 625.8
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation
198.9
187.3
Amortization of intangibles
51.1
54.0
Stock compensation expense
34.6
25.0
Impairment charges
2.1
7.3
Loss on sale of business
—
12.3
Gain on sale of investment in affiliate
—
(251.9)
Equity in net earnings of affiliates, net of cash received
(32.1)
(30.0)
Deferred income tax benefit
(96.5)
(348.8)
Other
3.5
23.4
Changes in operating assets and liabilities:
Accounts and notes receivable, net
(181.3)
81.1
Inventories, net
(302.4)
(113.4)
Other current and noncurrent assets
19.7
(29.2)
Accounts payable
103.1
98.6
Accrued expenses
(225.3)
(241.4)
Other current and noncurrent liabilities
29.0
124.4
Total adjustments
(395.6)
(401.3)
Net cash provided by (used in) operating activities
(218.4)
224.5
Cash flows from investing activities:
Purchases of property, plant and equipment
(162.2)
(159.3)
Proceeds from sale of property, plant and equipment
0.3
1.7
Proceeds from sale of business
—
(12.3)
Investments in unconsolidated affiliates
(35.0)
(1.2)
Proceeds from sale of investments in unconsolidated affiliates
188.4
260.0
Other
(15.7)
(7.7)
Net cash provided by (used in) investing activities
(24.2)
81.2
Cash flows from financing activities:
Proceeds from indebtedness
344.6
481.6
Repayments of indebtedness
(69.1)
(458.0)
Purchases and retirement of common stock
(403.7)
—
Payment of dividends to stockholders
(62.7)
(64.9)
Payment of minimum tax withholdings on stock compensation
(7.7)
(11.4)
Net cash used in financing activities
(198.6)
(52.7)
Effects of exchange rate changes on cash, cash equivalents and restricted cash
(5.5)
18.4
Increase (decrease) in cash, cash equivalents and restricted cash
(446.7)
271.4
Cash, cash equivalents and restricted cash, beginning of period
861.8
612.7
Cash, cash equivalents and restricted cash, end of period
$ 415.1
$ 884.1
See accompanying notes to condensed consolidated financial statements.
AGCO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions)
1. SEGMENT REPORTING
The Company has four operating segments which are also its reportable segments which consist of the North America, Latin America, Europe/Middle East and Asia/Pacific/Africa regions. Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change. The Company's reportable segments are geography based and distribute a full range of agricultural machinery and precision agriculture technology. The Company's Chief Operating Decision Maker ("CODM"), Eric P. Hansotia, Chairman of the Board, President and Chief Executive Officer, evaluates segment performance primarily based on income from operations. The CODM utilizes income from operations to evaluate each segment's performance including the allocation of resources. Sales for each segment are based on the location of the third-party customer. The Company's selling, general and administrative expenses and engineering expenses are generally charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income (loss) from operations for one segment may not be comparable to another segment. Segment results for the three and nine months ended September 30, 2026 and 2025 based on the Company's reportable segments are as follows (in millions):
Three Months Ended September 30,
North
America
Latin
America
Europe/Middle
East
Asia/Pacific/
Africa
Total
Segments
2026
Net sales
$ 485.3
$ 292.3
$ 1,306.1
$ 178.8
$ 2,262.5
Cost of goods sold
360.8
239.4
960.8
136.1
1,697.1
Selling, general and administrative expenses
77.5
31.7
136.1
14.8
260.1
Engineering expenses
33.2
13.8
71.9
3.0
121.9
Income from operations
$ 13.8
$ 7.4
$ 137.3
$ 24.9
$ 183.4
2025
Net sales
$ 359.9
$ 345.5
$ 1,613.8
$ 157.1
$ 2,476.3
Cost of goods sold
283.5
278.1
1,143.9
124.3
1,829.8
Selling, general and administrative expenses
82.4
34.9
146.0
21.7
285.0
Engineering expenses
36.0
12.1
71.5
3.4
123.0
Income (loss) from operations
$ (42.0)
$ 20.4
$ 252.4
$ 7.7
$ 238.5
Nine Months Ended September 30,
North
America
Latin
America
Europe/Middle
East
Asia/Pacific/
Africa
Total
Segments
2026
Net sales
$ 1,363.2
$ 775.3
$ 4,639.3
$ 437.3
$ 7,215.1
Cost of goods sold
1,077.8
679.3
3,322.7
342.6
5,422.4
Selling, general and administrative expenses
236.8
109.8
424.7
47.0
818.3
Engineering expenses
110.3
41.5
235.4
8.5
395.7
Income (loss) from operations
$ (61.7)
$ (55.3)
$ 656.5
$ 39.2
$ 578.7
2025
Net sales
$ 1,123.3
$ 931.9
$ 4,719.2
$ 387.4
$ 7,161.8
Cost of goods sold
864.5
749.0
3,414.0
308.6
5,336.1
Selling, general and administrative expenses
245.9
100.7
421.3
56.1
824.0
Engineering expenses
104.3
28.4
215.8
8.3
356.8
Income (loss) from operations
$ (91.4)
$ 53.8
$ 668.1
$ 14.4
$ 644.9
A reconciliation from the segment information to the consolidated balances for income from operations is set forth below (in millions):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
Segment income from operations
$ 183.4
$ 238.5
$ 578.7
$ 644.9
Impairment charges
—
0.6
(2.1)
(7.3)
Loss on sale of business
—
—
—
(12.3)
Corporate expenses
(37.2)
(48.9)
(126.4)
(144.7)
Amortization of intangibles
(17.1)
(23.0)
(51.1)
(54.0)
Stock compensation expense
(6.5)
(6.9)
(33.9)
(24.3)
Restructuring and business optimization expenses
(6.5)
(8.7)
(27.7)
(37.3)
Consolidated income from operations
$ 116.1
$ 151.6
$ 337.5
$ 365.0
RECONCILIATION OF NON-GAAP MEASURES
This earnings release discloses adjusted income from operations, adjusted operating margin, adjusted net income, adjusted net income per share and net sales on a constant currency basis, each of which excludes amounts that are typically included in the most directly comparable measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). A reconciliation of each of those measures to the most directly comparable GAAP measure is included below.
The following is a reconciliation of reported income from operations, net income attributable to AGCO and net income per share attributable to AGCO to adjusted income from operations, adjusted net income and adjusted net income per share for the three and nine months ended September 30, 2026 and 2025 (in millions, except per share data):
Three Months Ended September 30,
2026
2025
Income From
Operations
Net
Income (1)
Net Income
Per Share (1)
Income From
Operations
Net
Income (1)
Net Income
Per Share (1)
As reported
$ 116.1
$ 51.7
$ 0.75
$ 151.6
$ 305.7
$ 4.09
Restructuring and business optimization expenses (2)
6.5
6.1
0.08
8.7
6.4
0.08
Amortization of PTx Trimble acquired intangibles (3)
14.4
11.1
0.16
20.5
12.5
0.16
Transaction-related costs (4)
—
—
—
4.8
1.3
0.02
Impairment charges (5)
—
—
—
(0.6)
(0.6)
(0.01)
Gain on sale of investment in affiliate (6)
—
—
—
—
(219.2)
(2.93)
Discrete tax items (7)
—
4.0
0.06
—
(4.7)
(0.06)
As adjusted
$ 137.0
$ 72.9
$ 1.05
$ 185.0
$ 101.4
$ 1.35
(1)
Net income and net income per share amounts are after tax.
(2)
The restructuring expenses recorded during the three months ended September 30, 2026 and 2025 related primarily to severance, business optimization and other related costs associated with the Company's restructuring program.
(3)
Amortization of intangibles related to intangibles acquired as part of the Company's acquisition of PTx Trimble.
(4)
The transaction-related costs recorded during the three months ended September 30, 2025 related to the Company's divestiture of the majority of its Grain & Protein ("G&P") business.
(5)
The impairment charges recorded during the three months ended September 30, 2025 primarily related to the impairment of certain other assets.
(6)
The gain on sale of investment in affiliate recorded during the three months ended September 30, 2025 related to the sale of the Company's ownership interest in Tractors and Farm Equipment Limited ("TAFE"). Foreign currency translation impacts since the inception of the investment in affiliate previously recognized within "Accumulated other comprehensive loss" were recorded within "Other expense (income), net" in the Company's Condensed Consolidated Statement of Operations.
(7)
During the three months ended September 30, 2026 and 2025, the Company's income tax provision included a $4.0 million net tax expense related to the refinement of estimated state tax benefits previously recognized in connection with the 2025 legal entity reorganization and a $4.7 million net tax benefit related to a legal entity reorganization, respectively.
Nine Months Ended September 30,
2026
2025
Income From
Operations
Net
Income (1)
Net Income
Per Share (1)
Income From
Operations
Net
Income (1)
Net Income
Per Share (1)
As reported
$ 337.5
$ 183.9
$ 2.59
$ 365.0
$ 631.0
$ 8.45
Restructuring and business optimization expenses (2)
27.7
23.2
0.32
37.3
27.7
0.37
Amortization of PTx Trimble acquired intangibles (3)
43.1
33.2
0.47
46.3
28.0
0.37
Transaction-related costs (4)
0.3
—
—
17.7
4.9
0.07
Impairment charges (5)
2.1
2.1
0.03
7.3
7.3
0.09
Loss on sale of business (6)
—
—
—
12.3
12.7
0.17
Divestiture-related foreign currency translation release (7)
5.3
5.3
0.07
—
—
—
Gain on sale of investment in affiliate (8)
—
—
—
—
(219.2)
(2.93)
Discrete tax items (9)
—
(4.5)
(0.06)
—
(259.9)
(3.48)
As adjusted
$ 416.0
$ 243.2
$ 3.42
$ 485.9
$ 232.5
$ 3.11
(1)
Net income and net income per share amounts are after tax.
(2)
The restructuring expenses recorded during the nine months ended September 30, 2026 and 2025 related primarily to severance, business optimization and other related costs associated with the Company's restructuring program.
(3)
Amortization of intangibles related to intangibles acquired as part of the Company's acquisition of PTx Trimble.
(4)
The transaction-related costs recorded during the nine months ended September 30, 2026 related to the Company's divestiture of the majority of its G&P business. The transaction-related costs recorded during the nine months ended September 30, 2025 related to the Company's divestiture of the majority of its G&P business and the formation of the PTx Trimble joint venture.
(5)
The impairment charges recorded during the nine months ended September 30, 2026 and 2025 primarily related to the impairment of certain other assets.
(6)
The loss on sale of business recorded during the nine months ended September 30, 2025 related to the finalization of the preliminary working capital and other adjustments related to the sale of the majority of the Company's G&P business.
(7)
During the nine months ended September 30, 2026, the Company divested its interests in its Canadian finance joint venture. Foreign currency translation impacts since inception of the finance joint venture previously recognized within "Accumulated other comprehensive loss" were recorded within "Other expense (income), net" in the Company's Condensed Consolidated Statements of Operations.
(8)
The gain on sale of investment in affiliate recorded during the nine months ended September 30, 2025 related to the sale of the Company's ownership interest in TAFE. Foreign currency translation impacts since the inception of the investment in affiliate previously recognized within "Accumulated other comprehensive loss" were recorded within "Other expense (income), net" in the Company's Condensed Consolidated Statement of Operations.
(9)
During the nine months ended September 30, 2026, the Company received a refund resulting from a favorable resolution related to a prior settlement under the Brazilian government's "Litigation Zero" tax amnesty program. During the nine months ended September 30, 2026 and 2025, the Company's income tax provision included a $4.0 million net tax expense related to the refinement of estimated state tax benefits previously recognized in connection with the 2025 legal entity reorganization and a $259.9 million net tax benefit related to a legal entity reorganization, respectively.
The following is a reconciliation of adjusted operating margin for the three and nine months ended September 30, 2026 and 2025 (in millions, except margin data):
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Net sales
$ 2,262.5
$ 2,476.3
$ 7,215.1
$ 7,161.8
Income from operations
116.1
151.6
337.5
365.0
Adjusted income from operations (1)
$ 137.0
$ 185.0
$ 416.0
$ 485.9
Operating margin (2)
5.1 %
6.1 %
4.7 %
5.1 %
Adjusted operating margin (2)
6.1 %
7.5 %
5.8 %
6.8 %
(1)
Refer to the previous table for the reconciliation of income from operations to adjusted income from operations.
(2)
Operating margin is defined as the ratio of income from operations divided by net sales. Adjusted operating margin is defined as the ratio of adjusted income from operations divided by net sales.
The Company does not provide a quantitative reconciliation of forward-looking, non-GAAP financial measures to the most directly comparable GAAP financial measure because it is difficult to reliably predict or estimate the relevant components without unreasonable effort due to future uncertainties that may potentially have a significant impact on such calculations and providing them may imply a degree of precision that would be confusing or potentially misleading.
The following tables set forth, for the three and nine months ended September 30, 2026 and 2025, the impact to net sales of currency translation by geographical segment (in millions, except percentages):
Three Months Ended September 30,
Change due to currency
translation
2026
2025
% change
from 2025
$
%
North America
$ 485.3
$ 359.9
34.8 %
$ (1.1)
(0.3) %
Latin America (1)
292.3
345.5
(15.4) %
12.8
3.7 %
Europe/Middle East
1,306.1
1,613.8
(19.1) %
(16.2)
(1.0) %
Asia/Pacific/Africa
178.8
157.1
13.8 %
7.3
4.6 %
$ 2,262.5
$ 2,476.3
(8.6) %
$ 2.8
0.1 %
(1)
Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change.
Nine Months Ended September 30,
Change due to currency
translation
2026
2025
% change
from 2025
$
%
North America
$ 1,363.2
$ 1,123.3
21.4 %
$ 2.4
0.2 %
Latin America (1)
775.3
931.9
(16.8) %
54.8
5.9 %
Europe/Middle East
4,639.3
4,719.2
(1.7) %
163.5
3.5 %
Asia/Pacific/Africa
437.3
387.4
12.9 %
24.3
6.3 %
$ 7,215.1
$ 7,161.8
0.7 %
$ 245.0
3.4 %
(1)
Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America. As a result, the Company's Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change.
SOURCE AGCO Corporation