AGCO : Conference Call Slide Presentation (Q1 26 AGCO Earnings)

Published: 2026-05-05 07:37:12 ET AGCO

Published on 05/05/2026 at 07:37 am EDT

May 5, 2026

First Quarter 2026

Financial and Operational Results

REPORTED

Q1 26

Q1 26 vs.

Q1 25

Financial Summary

NET SALES

$2,342.9

14.3%

GROSS MARGIN

24.8%

(60)bps

OPERATING INCOME

$80.7

63.4%

OPERATING MARGIN

3.4%

100bps

DILUTED EPS

$0.76

$0.62

ADJUSTED Q1 26 Q1 26 vs.

ADJ. OPERATING INCOME*

$107.4

28.8%

ADJ. OPERATING MARGIN*

4.6%

50bps

DILUTED ADJUSTED EPS*

$0.94

$0.53

Q1 25

*Reflects non-GAAP measures. See reconciliations provided in the appendix to this presentation.

**Except per share amounts

Industry Overview

March 2026 Year-to-Date Retail Units

NORTH AMERICA

WESTERN EUROPE(2)

BRAZIL(2)

Tractors(1)

Combines

Tractors

Combines

Tractors

Combines

Industry

(8)%

2026 vs. 2025

Industry

(7)%

2026 vs. 2025

Industry

2026 vs. 2025

Industry

(5)%

2026 vs. 2025

Industry

(10)%

2026 vs. 2025

Industry

(38)%

2026 vs. 2025

(1) Excludes compact tractors

4 (2) Amounts based on Company estimates

Production

AGCO Production Hours

15%

Q1 Q2E Q3E Q4E

Q1 2026 Production

UP 15%

vs. 2025

Projected Full-Year

2026 Production

FLAT TO SLIGHTLY DOWN

vs. 2025

Global Fendt Full-line

FARMER-FIRST

Precision Ag STRATEGY

Global Parts S Services

Three Growth Levers Will Drive Volume and Margin Improvement

14%-15% adjusted operating margin at midcycle by 2029(1)

4%-5% above industry volume growth

75%-100% annual free cash flow

conversion(2)

Adjusted operating margins are adjusted to mid-cycle based on a comparison of the current agricultural equipment industry sales to the industry's 10-year historical average. If industry sales are above the 10-year average, margins are normalized down to mid-cycle using a best-fit line equation. Conversely, in years with sales below the 10-year average, margins are normalized up to midcycle using the same equation. This approach aims to align operating margins with historical patterns, considering the cyclicality of the industry.

Free Cash Flow is a non-GAAP measure and is defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment.

6 Free Cash Flow Conversion is a non-GAAP measure defined as (Cash Flow from Operations less purchases of property, plant and equipment) / Adjusted Net Income.

Embedding AI at AGCO

AI ON THE FARM

Enabling farmers to achieve more with fewer inputs like land, labor, fuel and chemicals.

SymphonyVision uses intelligent cameras to optimize precision application in real time, improving effectiveness and reducing waste.

Connecting machine data, customer needs and AGCO expertise to reduce downtime and strengthen long-term customer relationships.

Product Information Assistant - AI powered value selling.

Improving efficiency, quality, cost and speed.

AI-enabled financial forecasting and market analytics to improve decision-making, reduce costs and accelerate execution.

The Latest Innovation Awards

AGCO Power

CORE80

Powertrain International

Diesel Engine of the Year

2026

PTx Trimble

OutRun | Tillage

AE50

The Davidson Prize 2026

AGCO

Parts Shop

Digital Engineering Awards

Engineering the Change

Prize

Regional Net Sales Results

Q1 2026(1)

18%

NA LATAM EME

APA

$2.3B

68%

Q1 26 vs. Q1 25 Segment Net Sales Excluding Currency Translation*

21%

Q1 2025(1)

NA LATAM EME APA

18%

$2.1B

12%

65%

-30%

EME LATAM APA NA Total Segments

NA - North America LATAM - Latin America EME - Europe/Middle East APA - Asia/Pacific/Africa

* Reflects non-GAAP measures. See reconciliations provided in the appendix to this presentation.

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.

Net Sales, Adjusted Operating Income and Adjusted Operating Margins

Q1 25 to Q1 26 March Year-to-Date

Adj. Op. Income* ($M)

$4.5 16%

$4.0

Net Sales ($B)

$3.5

$3.0

$2.5

$2.0

$1.5

$1.0

$0.5

$2.9B

14%

Adj. Op. Margin*

12%

$2.6B

$2.5B

$2.1B

10.1%

$2.3B

8.3% 7.5%

4.1%

4.6%

10%

$83.4M

4.1%

4.6%

$107.4M

$0.0

Q1 25 Q2 25 Q3 25 Q4 25 Q1 26

Adj Op. Margin*

Mar YTD 25 Mar YTD 26

Adj. Op. Margin*

* Reflects non-GAAP measures. See reconciliations in the appendix to this presentation.

(Use) of Cash ($ Mils)

Free Cash Flow*

FIRST QUARTER SEASONAL INCREASE

Used $455 million in Q1 2026, $195 million more than Q1 2025

Return to normal seasonal working capital build after artificially low production in Q1 2025

Second half of year is strongest for cash flow generation

FREE CASH FLOW CONVERSION FRAMEWORK

Targeting 75% - 100% Free Cash Flow Conversion

Long-term cash generation and conversion objectives unchanged

SHAREHOLDER RETURNS

$350 million in share repurchases to commence in the second quarter of 2026

Increased Quarterly Dividend to $0.30 per share (3.4% increase)

Source of Cash ($ Mils)

Note: Free Cash Flow is a non-GAAP measure and is defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment. Free Cash Flow Conversion is a non-GAAP term defined as (Cash Flow from Operations less purchases of property, plant and equipment) / "Adjusted Net Income".

* See reconciliations provided in the appendix to this presentation.

Q1 FREE CASH FLOW

2025

2026

FULL YEAR FREE

CASH FLOW OUTLOOK

2025

2026E

~$300M

$740M

$(455)M

$(260)M

2026 Market Outlook

Regional Market Outlook - Industry Unit Tractor Sales

NORTH AMERICA(1)

WESTERN EUROPE(2)

BRAZIL(2)

82K

Large Ag Down ~15%

Small Ag

Up 0%-5%

117K

Up 0%-5%

47K

Down

~5%

2025 2026E

(1) Excludes compact tractors

12 (2) Amounts based on Company estimates

2026 Key Assumptions

2026 vs. 2025

Relatively Flat Global Demand (Industry ~86% of Mid-Cycle)

Pricing 2%-3%

+3% Foreign Currency Impact Market Share Gains

Further Dealer Inventory Destocking

Estimated current tariff financial impact and corresponding mitigation actions reflected in outlook

ENGINEERING EXPENSE

ADJUSTED

OPERATING MARGIN

EFFECTIVE TAX RATE

31% - 33%

7.5% - 8%

~5% of Sales

2026 Outlook

75% - 100% Free

Cash Flow Conversion(1)

~$350M

Capex

~$6.00

Adjusted Earnings

Per Share

$10.5B -

$10.7B

Net Sales

(1) Free Cash Flow Conversion is a non-GAAP measure and is defined as (Cash Flow from Operations less

14 purchases of property, plant and equipment) / Adjusted Net Income.

SAVE THE DATE

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October 6 - 7, 2026 | Greater Chicago, IL

Join us for a strategic business update and a

demonstration of being a farmer-focused company

Farmer-First Strategy Update

Field Demonstrations

Contact [email protected] for more details

Appendix

Non-GAAP to GAAP Reconciliation

In Millions, Except Percentages

NET SALES

Three Months Ended March 31,

% change from

Change due to currency

translation

Change excluding

currency translation

2026

2025 2025

North America

406.4

$ 369.5

10.0%

1.0%

9.0%

Latin America(1)

211.7

256.0

(17.3%)

13.0%

(30.3)%

Europe/Middle East

1,600.8

1,330.5

20.3%

11.3%

9.0%

Asia/Pacific/Africa

124.0

94.5

31.2%

10.3%

20.9%

Total Segments

$ 2,342.9

$ 2,050.5

14.3%

9.6%

4.7%

(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

17 America. Segment information for all prior periods presented has been retrospectively adjusted to reflect this change.

Non-GAAP to GAAP Reconciliation

In Millions, Except Per Share Amounts

INCOME FROM OPERATIONS

NET INCOME

NET INCOME PER SHARE

Three Months Ended March 31,

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

$ 80.7

$ 55.0

$ 0.76

$ 49.4

$ 10.5

$ 0.14

Restructuring and business optimization expenses

10.0

8.4

0.12

13.0

9.7

0.13

Amortization of PTx Trimble acquired intangibles

14.4

11.1

0.15

12.8

7.6

0.10

Transaction-related costs

0.2

7.1

2.0

0.03

Impairment charges

2.1

0.03

1.1

0.01

Discrete tax items

(8.5)

(0.12)

As adjusted

$ 107.4

$ 68.1

$ 0.94

$ 83.4

$ 30.9

$ 0.41

18 (1) Net income and net income per share amounts are after tax.

Non-GAAP to GAAP Reconciliation

In Millions, Except Percentages

OPERATING MARGIN

Three Months Ended

2026 2025

Net sales

Mar 31,

$ 2,342.9

Dec 31,

$ 2,920.2

Sep 30,

$ 2,476.3

Jun 30,

$ 2,635.0

Mar 31,

$ 2,050.5

Income from operations

80.7

230.7

151.6

164.0

49.4

Adjusted income from operations(1)

$ 107.4

$ 295.1

$ 185.0

$ 217.5

$ 83.4

Operating margin(2)

3.4 %

7.9 %

6.1 %

6.2 %

2.4 %

Adjusted operating margin(2)

4.6 %

10.1 %

7.5 %

8.3 %

4.1 %

Refer to the previous table for the reconciliation of income from operations to adjusted income from operations.

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

19 income from operations divided by net sales.

Non-GAAP to GAAP Reconciliation

In Millions

FREE CASH FLOW

Three Months Ended March 31,

Year Ended December

31,

2026

2025

Net cash provided by (used in) operating activities

(410.4)

(212.2)

988.1

Less: purchases of property, plant and equipment

(44.6)

(48.2)

(247.9)

Free Cash Flow

(455.0)

(260.4)

$ 740.2

20 Note: Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment.

Disclaimer

AGCO Corporation published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 11:36 UTC.