AGCO, the parent company of Fendt, Massey Ferguson and Valtra, reports lower net sales of around US10.1 billion in 2025.
13.5% lower than the US$11.6 billion in 2024, the decrease was mainly due to the reluctance of farms and contractors to invest in new tractors and machines in the current climate of uncertainty and low agricultural incomes.
North American industry retail tractor sales were 10% lower last year, with the most pronounced declines occurring in higher horsepower categories and combine unit sales were 27% lower. This resulted in a 27.5% fall in AGCO’s North American net sales to US$1.66 billion (US$2.29 billion in 2024).
Western Europe industry retail tractor sales were 7% lower with double digit percentage decreases across most markets except Spain and Italy, which saw growth. Overall, though, the EME (Europe and Middle East) region was relatively stable with net sales of US$6.73 billion – 0.4% higher than in 2024.
“Global agricultural markets remained under significant pressure in 2025,” said Eric Hansotia, AGCO’s chairman, president and CEO, adding that the demand for new equipment moderated further across all major markets.
Despite the dip in net sales, tighter cost control, better production planning and less stock at the dealers allowed the company to maintain profitability relatively well. The margin for the whole of 2025 came in at 7.7%, rising to 10.1% in the final three months of the year.
Looking ahead, relatively healthy farm income in 2026, driven primarily by the dairy and livestock producers, as well as an aging fleet are expected to support industry demand slightly ahead of 2025 levels.
The market remains uncertain, is the message, and AGCO expects pressure on industry demand throughout 2026, especially for larger equipment. However, it sees signs of recovery towards the second half of this year and forecasts a slight increase in net sales to US$10.4 billion to US$10.7 billion.
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