Quick Facts / Company Snapshot
- Company Name: AGCO Corporation
- Headquarters: 4205 River Green Parkway, Duluth, Georgia, USA
- Global Employees: Approximately 24,000
- 2024 Net Sales: $11.7 billion
- 2024 Reported Net Loss Attributable to AGCO: $(424.8) million
- 2024 Adjusted Net Income: $559.7 million
- 2024 Adjusted Operating Margin: 8.9%
- Free Cash Flow (2024): $297 million
- Research & Development Spend (2024): $493 million
- Independent Dealers: Approximately 2,700
- Global Presence: Sales in approximately 140 countries
- Core Brands: Fendt, Massey Ferguson, Valtra, PTx
- CEO: Eric P. Hansotia
- Total Assets: $11,190.6 million
- Long-Term Debt: $2,233.3 million
- Stock Symbol: AGCO (New York Stock Exchange)
Company Overview
AGCO Corporation stands as a global leader in the design, manufacture, and distribution of agricultural machinery and precision agriculture technology. The company operates as a pure-play farm equipment manufacturer, dedicating its entire operational focus to providing solutions that enable farmer productivity, profitability, and sustainability. AGCO delivers value to farmers and Original Equipment Manufacturer (OEM) customers through a differentiated brand portfolio that includes some of the most recognized names in the industry, such as Fendt, Massey Ferguson, PTx, and Valtra.
The company’s mission is centered on a “Farmer First” strategy, which drives its innovation and operational decisions. AGCO provides a full line of equipment, smart farming solutions, and services designed to help farmers sustainably feed the world. The distribution network is extensive, comprising approximately 2,700 independent dealers and distributors located in roughly 140 countries. Additionally, the company offers retail and wholesale financing through finance joint ventures with Rabobank, enhancing its ability to support dealers and end-users.
In 2024, AGCO underwent a significant transformation to structurally change its business and build a foundation for a more resilient and profitable company . This transformation involved major portfolio shifts, including the largest agricultural technology deal in its history to create the PTx Trimble joint venture and the divestiture of the majority of its Grain & Protein business . These strategic moves position AGCO to focus on high-growth, high-margin opportunities in agricultural equipment and precision agriculture technology.
Business Segments and Revenue Breakup %
AGCO manages its business through four reportable segments based on geographical regions. Each segment distributes a full range of agricultural machinery and precision agriculture technology. The costs associated with selling, general and administrative expenses, as well as engineering expenses, are charged to each segment based on the region and division where the expenses are incurred.
Europe/Middle East (EME)
This region is the largest contributor to AGCO’s revenue. It includes significant markets such as Germany, France, the United Kingdom, and Scandinavia.
- 2024 Net Sales: $6,812.9 million
- Percentage of Total Sales: Approximately 58.4% (Calculated from total sales of $11,661.9M)
- Operational Scope: The segment saw a decrease in sales primarily due to volume declines in mid-range and high-horsepower tractors and hay tools.
North America
This segment covers the United States, Canada, and Mexico. It is a critical market for high-horsepower equipment and precision technology.
- 2024 Net Sales: $2,850.3 million
- Percentage of Total Sales: Approximately 24.4%
- Operational Scope: Sales decreased in 2024 due to volume declines, significantly in mid-range and high-horsepower tractors and hay tools.
South America
Focused on markets like Brazil and Argentina, this segment is vital for grain and protein production equipment and large agricultural machinery.
- 2024 Net Sales: $1,315.9 million
- Percentage of Total Sales: Approximately 11.3%
- Operational Scope: The region experienced sales volume declines, most significantly in tractors, combines, and implements, alongside unfavorable foreign currency translation impacts.
Asia/Pacific/Africa (APA)
This segment includes markets in Asia, Australia, New Zealand, and Africa.
- 2024 Net Sales: $682.8 million
- Percentage of Total Sales: Approximately 5.9%
- Operational Scope: Sales decreased due to lower volumes of high-horsepower tractors, hay tools, and grain and protein products.
History and Evolution
AGCO was incorporated in Delaware in 1991. The company has grown through a series of strategic acquisitions and organic growth to become a global powerhouse.
- Formation: AGCO was formed to design, manufacture, and distribute agricultural machinery.
- Brand Acquisition: The company acquired the Massey Ferguson trademark, which has been in existence since 1952, formed from the merger of Massey-Harris (established in the 1890s) and Ferguson (established in the 1930s).
- Valtra Acquisition: The Valtra trademark, a derivative of the Valmet trademark existing since 1951, was also identified as a key indefinite-lived asset.
- Precision Planting: In 2017, AGCO purchased Precision Planting to enhance its precision agricultural technology offerings.
- 2024 Transformation: 2024 marked a transformational year. AGCO closed the acquisition of the agricultural assets and technologies of Trimble on April 1, 2024, forming the PTx Trimble joint venture. Simultaneously, on November 1, 2024, the company completed the sale of the majority of its Grain & Protein business to American Industrial Partners.
Products and Services with Revenue Breakup %
AGCO’s product portfolio is diverse, catering to various stages of the crop cycle and different farming needs.
Tractors
Tractors are the core of AGCO’s machinery lineup, ranging from compact models to high-horsepower units for large-scale farming.
- 2024 Net Sales Contribution: 61%
- Types: High horsepower (140-650 HP), Utility/Mid-range (40-130 HP), and Compact (under 40 HP) .
Replacement Parts
The sale of replacement parts is a high-margin, resilient part of the business that continues to grow.
- 2024 Net Sales Contribution: 16% (Note: Table indicates 16% for Replacement Parts).
- Strategic Goal: AGCO aims to grow the parts business to approximately $2.3 billion by 2029.
Hay Tools, Forage Equipment, Planters, Implements & Other
This category includes balers, planters, tillage equipment, and loaders.
- 2024 Net Sales Contribution: 10%
- Equipment: Round and rectangular balers, self-propelled windrowers, disc mowers, planters, disc harrows, and field cultivators .
Grain Storage and Protein Production Systems
Note: The majority of this business was divested in November 2024.
- 2024 Net Sales Contribution: 7%
- Products: Grain storage bins, drying and handling systems, egg and broiler production systems, and swine production equipment.
Combines
Harvesting equipment remains a key component of the product line.
- 2024 Net Sales Contribution: 3%
- Usage: Harvesting grain crops such as corn, wheat, soybeans, and rice.
Application Equipment
- 2024 Net Sales Contribution: 3%
- Products: Self-propelled vehicles for applying liquid and dry fertilizers and crop protection chemicals.
Brand Portfolio with Revenue %
AGCO operates a multi-brand strategy to target different market segments and regions.
Fendt
Fendt is the premium brand, designed for the most demanding farmers. It has evolved from a European tractor business into a global, full-line brand.
- Performance: Sales in North and South America grew from $300 million in 2020 to over **$1 billion in 2024**.
- Goal: Target sales of $1.7 billion by 2029.
- Expansion: Product line now includes planters, sprayers, combines, and hay equipment.
Massey Ferguson
A global brand with a heritage dating back over a century, offering a full range of agricultural machinery.
- Status: A primary product line with an indefinite-lived trademark.
Valtra
Known for reliability and versatility, Valtra has a strong presence in Europe and South America.
- Status: Identified as an indefinite-lived asset with origins in the Valmet brand.
PTx
The newly formed precision agriculture brand, combining Precision Planting and the PTx Trimble joint venture.
- Goal: Expect to grow precision ag sales to $2 billion by 2029.
- Offering: Mixed-fleet, precision ag technologies and solutions.
Geographical Presence and Region-Wise Revenue %
AGCO has a massive global footprint, with manufacturing, sales, and distribution spanning the globe.
Europe/Middle East (EME)
- Dealers: Approximately 755 independent dealers and distributors.
- Net Sales Share: 55% of total net sales in 2024.
- Key Markets: Germany ($1,733.3M), France ($1,383.5M).
North America
- Dealers: Approximately 1,215 independent dealers and distributors.
- Net Sales Share: 24% of total net sales in 2024.
- Key Markets: United States ($2,228.9M).
South America
- Dealers: Approximately 325 independent dealers and distributors.
- Net Sales Share: 11% of total net sales in 2024.
- Key Markets: Brazil ($963.7M).
Asia/Pacific/Africa (APA)
- Dealers: Approximately 405 independent dealers and distributors.
- Net Sales Share: 10% of total net sales in 2024.
- Key Markets: Australia and New Zealand ($315.3M), Asia ($258.9M), Africa ($108.6M).
Financial Performance Analysis
2024 was a year of significant transition and market correction for AGCO. Following a record year in 2023, the company faced a cyclical downturn in the agricultural equipment industry.
- Net Sales Trend: Sales dropped to $11,662 million in 2024 from $14,412 million in 2023 and $12,651 million in 2022 . This represented a 19.1% decrease compared to 2023.
- Currency Impact: Excluding unfavorable currency translation impacts of 0.6%, net sales decreased approximately 18.5%.
- Adjusted Operating Income Trend: Declined to $1,043 million in 2024 from $1,732 million in 2023 and $1,308 million in 2022 .
- Earnings Per Share: Adjusted EPS fell to $7.50 in 2024, compared to $15.55 in 2023 and $12.42 in 2022 .
Profit and Loss Analysis
The 2024 profit and loss statement reflects the impact of lower sales volumes, strategic divestitures, and restructuring costs.
- Net Sales: $11,661.9 million.
- Cost of Goods Sold: $8,762.8 million (75.1% of net sales).
- Gross Profit: $2,899.1 million (24.9% of net sales).
- Selling, General and Administrative Expenses: $1,397.7 million.
- Engineering Expenses: $493.0 million.
- Loss on Sale of Business: $507.3 million, primarily related to the Grain & Protein divestiture.
- Restructuring Expenses: $172.7 million.
- Impairment Charges: $369.5 million, related to PTx Trimble goodwill impairment.
- Income (Loss) From Operations: A loss of $(122.1) million.
- Interest Expense, Net: $93.0 million, increasing due to debt related to the PTx Trimble financing.
- Net Loss Attributable to AGCO: $(424.8) million.
- Adjusted Operating Margin: Despite the downturn, the company delivered an adjusted operating margin of 8.9%, noted as the fourth-best in AGCO’s history .
Balance Sheet Analysis
AGCO’s balance sheet in 2024 reflects the acquisition of PTx Trimble and the divestiture of the Grain & Protein business.
- Total Assets: $11,190.6 million, down from $11,421.2 million in 2023.
- Cash and Cash Equivalents: $612.7 million.
- Inventories: $2,731.3 million, significantly reduced from $3,440.7 million in 2023 as part of destocking efforts.
- Goodwill: Increased to $1,820.4 million from $1,333.4 million, largely due to the PTx Trimble acquisition.
- Total Liabilities: $7,147.7 million.
- Long-Term Debt: Increased to $2,233.3 million from $1,377.2 million in 2023, reflecting financing for strategic initiatives.
- Stockholders’ Equity: $3,742.8 million.
- Redeemable Noncontrolling Interests: $300.1 million, resulting from the PTx Trimble joint venture.
Cash Flow Analysis
Cash flow generation remained positive despite the reported net loss, driven by working capital management.
- Net Cash Provided by Operating Activities: $689.9 million.
- Net Cash Used in Investing Activities: $(1,650.4) million, primarily due to the purchase of businesses (PTx Trimble) costing $(1,903.7) million, offset by proceeds from the sale of business of $630.7 million.
- Net Cash Provided by Financing Activities: $1,045.5 million, primarily from proceeds from indebtedness of $1,875.7 million.
- Free Cash Flow: $297 million (Calculated as Net cash provided by operating activities less capital expenditures).
- Capital Expenditures: $393.3 million for purchases of property, plant, and equipment.
Management Discussion & Analysis (MD&A)
Management described 2024 as a “transformational year” characterized by significant structural changes to build a more resilient business.
- Operating Environment: The industry experienced a sharp decline in demand in 2024 after peaking in 2023. This correction was driven by decreases in commodity prices and farm income.
- Strategic Actions: AGCO closed the largest ag technology deal in its history (PTx Trimble) and divested the Grain & Protein business to focus on high-margin agricultural equipment and precision ag tech .
- Cost Control: Faced with weaker demand, the company reduced production hours by 28% and downsized the salaried workforce by approximately 6%.
- Future Projections: Management raised the 2029 target adjusted operating margin to a 14%-15% range at mid-cycle, reflecting confidence in the structural improvements.
- Outlook for 2025: Global industry demand is expected to be moderately lower. Net sales are expected to moderately decrease due to lower volumes and flat pricing.
Board of Directors and Leadership Team
Board of Directors
- Eric P. Hansotia: Chairman, President & CEO
- Michael C. Arnold: Lead Director, Former President/CEO Ryerson Inc.
- Sondra L. Barbour: Former EVP, Lockheed Martin Corporation
- Suzanne P. Clark: President/CEO, U.S. Chamber of Commerce
- Bob De Lange: Group President, Caterpillar Inc.
- Zhanna Golodryga: EVP, Phillips 66 (Appointed April 1, 2025)
- George E. Minnich: Retiring effective 2025 Annual Meeting
- Niels Pörksen: Chairman/CEO, Südzucker AG
- David Sagehorn: Former EVP/CFO, Oshkosh Corporation
- Mallika Srinivasan: Chairman/MD, TAFE (Not standing for reelection)
- Matthew Tsien: Former EVP/CTO, General Motors
Leadership Team
- Eric P. Hansotia: Chairman, President & CEO
- Damon Audia: Senior VP, Chief Financial Officer
- Roger N. Batkin: Senior VP, General Counsel, Chief ESG Officer
- Kelvin Bennett: Senior VP, Engineering
- Stefan Caspari: Senior VP, Customer Success and Business Effectiveness
- Torsten Dehner: Senior VP, General Manager Fendt/Valtra
- Luís Felli: Senior VP, General Manager Massey Ferguson
- Ivory Harris: Senior VP, Chief Human Resources Officer
- Tim Millwood: Senior VP, Chief Supply Chain Officer
- Viren Shah: Senior VP, Chief Digital & Information Officer
Subsidiaries, Associates, Joint Ventures and Revenue %
- PTx Trimble: A joint venture formed on April 1, 2024. AGCO owns an 85% interest, and Trimble owns a 15% interest. It is consolidated in AGCO’s financial statements.
- AGCO Finance Joint Ventures: AGCO owns a 49% interest in these finance joint ventures, with the remaining interest owned by Rabobank. These entities provide retail and wholesale financing in the US, Canada, Europe, Brazil, Argentina, and Australia.
- GIMA: A manufacturing joint venture in France where AGCO owns a 50% interest.
- CP GSI Machinery Co Ltd: A manufacturing joint venture in China.
- Other Affiliates: Includes investments in farm equipment manufacturers and precision agriculture technology providers.
Physical Properties (Offices, Plants, Factories, etc.)
AGCO operates manufacturing locations globally to serve its markets efficiently.
North America Manufacturing
- Hesston, Kansas
- Jackson, Minnesota
- Beloit, Kansas
- Queretaro, Mexico
South America Manufacturing
- Canoas, Brazil
- Santa Rosa, Brazil
- Ibiruba, Brazil
- Mogi das Cruzes, Brazil
- General Rodriguez, Argentina
Europe/Middle East Manufacturing
- Marktoberdorf, Germany
- Beauvais, France (Includes GIMA JV)
- Suolahti, Finland
- Breganze, Italy
- Baeumenheim, Germany
- Feucht, Germany
- Hohenmölsen, Germany
- Linnavuori, Finland
- Wolfenbüttel, Germany
Asia/Pacific/Africa Manufacturing
- Changzhou, China
- Yanzhou, China
Corporate Offices
- Headquarters: Duluth, Georgia
- Administrative Offices: Tremont, Illinois; Westminster, Colorado; Budapest, Hungary; Neuhausen, Switzerland; Stoneleigh, United Kingdom; Bengaluru, India.
Segment-Wise Performance
Europe/Middle East (EME)
- Operating Income (2024): $925.7 million
- Performance: Operating income decreased by $174.9 million compared to 2023 due to lower sales and production volumes.
North America
- Operating Income (2024): $175.8 million
- Performance: Operating income decreased significantly by $283.5 million compared to 2023, driven by lower sales and production volumes.
South America
- Operating Income (2024): $104.4 million
- Performance: Operating income decreased by $282.0 million compared to 2023, resulting from lower volumes and negative pricing impacts.
Asia/Pacific/Africa (APA)
- Operating Income (2024): $32.7 million
- Performance: Operating income decreased by $44.6 million compared to 2023.
Founders
AGCO Corporation was formed in 1991. The company’s history involves the aggregation of several heritage brands. Specifically, the Massey Ferguson brand was formed from the merger of Massey-Harris (established in the 1890s) and Ferguson (established in the 1930s). The Valtra brand derives from the Valmet trademark, which has existed since 1951.
Shareholding Pattern
As of March 7, 2025, the following are the beneficial owners of more than 5% of the company’s common stock:
- Mallika Srinivasan / Tractors and Farm Equipment Limited (TAFE): 16.3% (12,173,865 shares)
- The Vanguard Group: 10.1% (7,565,114 shares)
- T. Rowe Price Associates, Inc.: 8.7% (6,512,528 shares)
- BlackRock, Inc.: 8.4% (6,253,576 shares)
- Executive Officers and Directors (Group): 16.9% ownership collectively
Investments and Capital Expenditure Plans
AGCO is heavily investing in technology and infrastructure to drive its strategic transformation.
- Research & Development: The company spent $493 million on R&D in 2024.
- Capital Expenditures: In 2024, AGCO invested $393.3 million in property, plant, and equipment.
- Major Acquisition: The purchase of an 85% interest in the PTx Trimble joint venture involved a total purchase consideration of $1,910.0 million.
- Strategic Focus: Investments are targeted at expanding the Fendt full-line product offering and advancing precision agriculture technologies.
Future Strategy
AGCO’s future strategy is built on three high-margin growth levers:
- Globalization of Fendt: Transforming Fendt from a European tractor business into a global, full-line premium brand. The goal is to achieve $1.7 billion in Fendt sales in North and South America by 2029.
- Precision Agriculture (PTx): Leveraging the PTx Trimble joint venture to lead in mixed-fleet precision ag solutions. The target is to grow precision ag sales to $2 billion by 2029.
- Global Parts Growth: Expanding the parts business through e-commerce and improved fill rates. The objective is to grow parts net sales to approximately $2.3 billion by 2029.
Additionally, the FarmerCore initiative aims to revolutionize distribution by bringing the business directly to the farmer, emphasizing mobile and on-farm solutions.
Competitive Landscape
AGCO operates in a highly competitive industry. Key competitors and related entities mentioned in the company’s reports include:
- Deere & Company: Explicitly named in the context of patent litigation involving Precision Planting.
- Tractors and Farm Equipment Limited (TAFE): A major shareholder and supplier with whom AGCO has recently terminated commercial relationships and is currently in litigation.
- Trimble: A partner in the PTx Trimble joint venture, but also a provider of technology in the broader market.
Key Strengths
- Brand Power: A portfolio of strong, distinct brands like Fendt and Massey Ferguson that cater to different market segments.
- Global Scale: The largest pure-play farm equipment manufacturer with presence in 140 countries.
- Precision Ag Leadership: The “retrofit-first” mindset and the PTx Trimble JV position AGCO uniquely to serve mixed fleets.
- Resilient Parts Business: A high-margin parts business that continues to grow and provides stability through cycles.
- Operational Efficiency: Demonstrated by achieving an 8.9% adjusted operating margin even during a significant industry downturn in 2024.
Key Challenges and Risks
- Cyclical Industry: Financial results depend entirely on the agricultural industry, which is affected by commodity prices, farm income, and weather.
- Acquisition Integration: The integration of the PTx Trimble joint venture involves risks, including realizing anticipated benefits and managing increased indebtedness.
- Dealer Network Dependence: Performance relies on the financial and operational capabilities of independent dealers.
- Supply Chain and Inflation: The company is subject to risks related to supplier failure, inflation in component costs, and potential energy shortages in Europe.
- Geopolitical and Trade Risks: Exposure to tariffs, trade restrictions, and conflicts, such as the situation in Ukraine, can impact operations.
- Legal Disputes: Ongoing litigation with TAFE following the termination of commercial agreements presents legal and relational challenges.
- Cybersecurity: The company has been subject to cyberattacks in the past (May 2022) and faces ongoing risks of ransomware and data breaches.
Conclusion and Strategic Outlook
AGCO Corporation is navigating a pivotal moment in its history. By boldly restructuring its portfolio in 2024—divesting the Grain & Protein business and acquiring a majority stake in a major precision ag venture—AGCO has sharpened its focus on its most profitable and high-growth segments. Despite facing a cyclical downturn in 2024 that impacted sales and profitability, the company demonstrated resilience through disciplined cost management and strategic execution.
Looking ahead, AGCO’s strategy is clear: elevate the Fendt brand globally, dominate the mixed-fleet precision agriculture market with PTx, and expand its high-margin parts business. With a target of achieving 14-15% adjusted operating margins at mid-cycle by 2029, AGCO is positioning itself not just as a machinery manufacturer, but as a comprehensive provider of smart farming solutions that prioritize the farmer’s profitability and sustainability.
Official Site: https://www.agcocorp.com
FAQ Section
1. What are AGCO Corporation’s core brands? AGCO’s core brands are Fendt, Massey Ferguson, Valtra, and PTx. These brands offer a full line of agricultural equipment and precision technology solutions to farmers worldwide.
2. What was AGCO’s revenue in 2024? In 2024, AGCO reported net sales of $11.7 billion, which represented a decrease of 19.1% compared to the previous year due to softer industry demand.
3. What represents AGCO’s largest business segment? The Europe/Middle East (EME) region is AGCO’s largest business segment, contributing approximately 58% of the company’s total net sales in 2024.
4. What is the PTx Trimble joint venture? PTx Trimble is a joint venture formed in April 2024, in which AGCO owns an 85% interest. It combines AGCO’s Precision Planting business with Trimble’s agricultural assets to create a leading mixed-fleet precision agriculture platform.
5. Who is the CEO of AGCO Corporation? Eric P. Hansotia serves as the Chairman, President, and Chief Executive Officer of AGCO Corporation.
6. What major divestiture did AGCO complete in 2024? On November 1, 2024, AGCO completed the sale of the majority of its Grain & Protein business to focus on its core agricultural equipment and precision agriculture technology businesses.
7. Does AGCO pay dividends? Yes, AGCO pays dividends. In 2024, the company declared and paid cash dividends totaling $3.66 per common share.
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
