Duluth, Georgia – October 29, 2026 -- AGCO reported third-quarter 2026 net sales of $2.3 billion, down 8.6% year-over-year, as weak demand in Europe/Middle East and Latin America outweighed a 35.1% constant-currency sales jump in North America. Excluding a 0.1% favorable currency effect, sales declined 8.7%.
Reported earnings were $0.75 per share, against $4.09 in the third quarter of 2025. Adjusted earnings fell to $1.05 per share from $1.35.
AGCO targets $5.50 adjusted EPS on $9.8-$10.0 billion in 2026 sales
The company projects adjusted operating margin of about 7.0%. It plans to align production volumes with dealer inventory and market demand, supported by pricing discipline and cost controls. The outlook reflects tariff policies as of October 29, 2026, and AGCO warned that any policy changes could affect the projections.
Europe/Middle East sales drop 18.1% as operating income falls $115.1 million
Constant-currency sales in the region declined 18.1%, with the steepest decreases in Germany, France, Italy and Spain. Operating income fell $115.1 million, mainly on significantly lower sales and production levels. Segment operating margin was 10.5%. Western Europe industry retail tractor sales fell 9% in the quarter and 1% for the first nine months. AGCO expects demand to stay challenged through the rest of 2026.
North America returns to profit with $13.8 million operating income
The region swung from a $42.0 million operating loss a year earlier. Higher unit sales, particularly of high-horsepower and mid-range tractors and parts, drove the gain. About $13.0 million of IEEPA tariff refunds also contributed. Operating margin was 2.8%. Industry retail tractor sales in North America fell 9% in the first nine months and combine unit sales fell 10%. AGCO expects demand to remain below historical mid-cycle levels through year-end.
Latin America sales fall 19.1% as Brazil tractor market contracts 17%
Operating income in the region was $13.0 million lower, and operating margin was 2.5%. Brazil industry retail tractor sales dropped 17% in the first nine months, led by weaker demand for larger equipment. Higher interest rates, constrained credit and soft farm economics delayed purchases.
Asia/Pacific/Africa grows 9.2% at a 13.9% operating margin
Higher sales in Australia were partly offset by declines across many Asian and African markets. Operating income rose $17.2 million on higher sales and favorable product mix.
Nine-month sales reach $7.2 billion, up 0.7%
Excluding 3.4% favorable currency translation, nine-month sales decreased 2.7%. Adjusted earnings reached $3.42 per share versus $3.11 a year earlier, while reported earnings fell to $2.59 from $8.45.
CEO Eric Hansotia described the quarter as taking place in the "weakest global industry demand environment in more than a decade." He said AGCO aligned production with demand, managed dealer inventories and held cost discipline. He added that the company's PTx technology lets farmers add automation and autonomy to existing equipment across virtually any brand.