AGCO and TAFE conclude commercial partnership with $260m share buyback
AGCO Corp has agreed with TAFE to resolve all outstanding disputes and matters related to their commercial relationship.
The 2025 result is 13.5% lower than the US$11.6 billion in 2024, a drop the company says was mainly due to the reluctance of farms and contractors to invest in new tractors and machines in the recent climate of uncertainty and low commodity prices.
In North America, overall retail tractor sales were 10% lower than 2024, especially in higher horsepower categories, and combine unit sales were 27% lower. This saw a 27.5% fall in AGCO’s North American net sales to US$1.66 billion, compared to US$2.29 billion in 2024.
Western Europe industry retail tractor sales were 7% lower, with double digit percentage drops across most markets, except Spain and Italy. Overall though, the Europe and Middle East region was stable with net sales of US$6.73 billion, around 0.4% higher than in 2024.
Despite the drop in net sales, tighter cost controls, better production planning and less stock at the dealers allowed the company to maintain profitability, with a margin for the 2025 year at 7.7%, rising to 10.1% in the final three months of the year.
“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.
“In 2026, we will remain dedicated to advancing our Farmer‑First strategy,” Hansotia said. “Our innovation pipeline remains robust with a full slate of new product introductions designed to help make farmers more productive and profitable. These actions will help balance the effects of low levels of farm profitability and persistent trade‑related uncertainty, while positioning the company to deliver improved performance in 2026.”
The market remains uncertain, with AGCO expecting pressure on industry demand throughout 2026, especially for larger equipment. However, it also sees signals of recovery towards the second half of this year, forecasting a slight increase in net sales to US$10.4 billion to US$10.7 billion.
