AGCO Corp. (NYSE:AGCO) shares traded lower Thursday after the agricultural equipment maker reported second-quarter 2026 results that missed analyst expectations and lowered its full-year outlook.
Adjusted EPS of $1.43 missed the $1.48 estimate, while sales of $2.610 billion fell short of the $2.753 billion estimate. Revenue declined 1% year over year and fell 3.7% excluding a favorable currency impact.
Earnings And Margins
GAAP diluted EPS dropped to $1.08 from $4.22, while adjusted EPS increased to $1.43. Net income attributable to AGCO fell to $77.2 million from $314.8 million.
Gross margin contracted 30 basis points to 24.7%. Operating income declined 14.2% to $140.7 million, while adjusted operating income fell 21.1% to $171.6 million.
Adjusted operating margin narrowed 170 basis points to 6.6%.
Regional Performance
North American sales rose 19.7% to $471.5 million, driven by higher high-horsepower tractor and hay-tool volumes. The region posted a $24.5 million operating loss as higher tariff costs were partly offset by about $22 million of IEEPA tariff refunds.
Latin American sales fell 17.9% to $271.3 million. Europe/Middle East sales declined 2.4% to $1.732 billion, while Asia/Pacific/Africa sales decreased 1% to $134.5 million.
Second-quarter production hours fell 1%, and full-year production is expected to be slightly lower.
Finance Transaction And Cash Flow
AGCO sold its 49% interests in its U.S. and Canada finance joint ventures for about $190 million and recognized approximately $20 million of future earnings at closing.
First-half operating cash outflow was $245 million, while free cash flow was negative $347 million. AGCO ended June with $573.4 million in cash and about $2.73 billion in debt.
Lowered 2026 Outlook
AGCO lowered its 2026 adjusted EPS outlook to $5.50-$5.75 from $6, below the $6.10 estimate.
It cut its sales forecast to $10.1 billion-$10.2 billion from $10.5 billion-$10.7 billion, below the $10.587 billion estimate.
The company maintained its roughly $300 million free-cash-flow target and expects capital spending of $300 million-$325 million.
GCO Stock Price Activity: AGCO shares were down 2.02% at $38.29 on Thursday, according to Benzinga Pro data.
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