AGCO, the US machinery giant behind Massey Ferguson, Valtra and Fendt, has reported a 14% increase in sales for the first quarter (Q1) of 2026.
According to AGCO, favourable currency exchange boosted sales figures by 9.6%. Excluding this, net sales in the quarter increased by 4.7%.
AGCO chair, president and chief executive, Eric Hansotia, said the company’s “healthy” results reflected “disciplined execution in a demanding agricultural market and dynamic global environment”.
He said: “We outpaced the market, particularly in high-horsepower equipment and precision agriculture, underscoring the strength of our differentiated portfolio and farmer-first approach.
“We stayed focused on supporting customers while maintaining operational flexibility with continued production alignment delivering further progress on dealer and company inventories.
“We achieved near-record first-quarter margins in Europe and continued to grow market share in high-horsepower offerings in North America.”
The chief executive stated that as AGRO progresses through 2026, it will “navigate ongoing subdued demand and deliver improved performance as market fundamentals recover while keeping farmers at the centre of everything we do.”
“Developments in the Middle East increased volatility across global energy, logistics and input markets, resulting in higher fuel, fertiliser and transportation costs that reinforced the importance of operational efficiency,” Hansotia advised.
“While demand for new equipment remains measured across many markets, it has largely aligned with current farm economics.”
Hansotia concluded by saying “smart farming technologies continues to advance as farmers emphasise productivity, efficiency and returns on invested capital.”
Financial results
The company plans to initiate $350 million in share repurchases in Q2 2026.
AGCO’s board of directors approved an increase in the company’s regular quarterly dividend to $0.30 per share, up from $0.29 per share.
The company also announced the “strategic evolution” of its long-standing AGCO Finance US and Canada joint ventures to “better align with evolving market dynamics and increasing regulatory and compliance requirements”.
The new framework will “optimise regulatory capital efficiency and capital deployment while strengthening AGCO’s strategic partnership with Rabobank and its commitment to providing competitive financing solutions to farmers and dealers.”
On April 30, AGCO executed two purchase agreements with wholly owned subsidiaries of Rabobank to sell its 49% equity interests in the joint ventures in the US and Canada, for approximately $190 million.
Regional performance
Europe
Net sales in the Europe/Middle East region increased 9.0% during Q1 2026, driven by growth in both Germany and the UK.
Compared to Q1 2025, the rise in sales resulted from “increased unit volumes”, which included dealer inventory de-stocking.
Operating income surged by over $104 million compared to Q1 2025, with growth in high-horsepower tractor sales driving most of this increase.
Western European industry retail tractor sales were 7% higher during Q1 2026 compared to the same period in 2025, with growth attributed to most of the region.
AGCO predicts farm income levels in 2025, supported mainly by dairy and livestock producers, together with an ageing equipment fleet, to provide a foundation for this year’s demand to remain “modestly above 2025 levels”.
North America
Tractor sales were 8% lower in Q1 compared to the same period in 2025 in the region.
Combine unit sales were 7% lower year-over-year during
the same period.
Despite this, net sales rose by 9%, this was led by sales increases in “high-horsepower tractors, hay tools and sprayers”.
AGCO expects evolving grain export demand and elevated input costs to continue to put pressure on industry demand throughout 2026, particularly for larger equipment.
The region continues to record negative operating margins due to higher tarriff-related input costs, with income falling €26.8 million compared to the same period in 2025.
Latin America
Net sales in the region were down 30.3% as “softer industry demand” hit all product categories.
Income from operations for Q1 2026 was $47.4 million lower in comparison to Q1 2025.
Brazilian retail tractor sales were 10% lower in the first three months of 2026 compared to the same period in 2025, reflecting
“softer demand for larger tractors partially offset by improved demand for smaller and mid-size equipment.”
AGCO said Brazil is producing “near record crops, but profitability is under pressure due to high production costs, particularly for imported fertiliser”.
“Demand for larger equipment has not yet shown renewed growth,” it added.
The company said high financing costs, tight credit and broader political dynamics are expected to continue to constrain Brazilian demand in 2026.
Asia, Pacific and Africa
The region had net sales increase by 20.9% during Q1 2026.
In Australia and South Africa, higher sales were “partially offset” by lower sales across most of the Asian markets.
Operational income in the region increased by $6.7 million, with this attributed to higher levels of sales and production volumes.
Outlook
AGCO is forecasting its net sales for 2026 to range from $10.5-$10.7 billion.
The company raised its 2026 adjusted earnings per share at approximately $6.00.
AGCO said “continued emphasis on pricing discipline, cost management and operational alignment” will enable its adjusted operating margins to range from 7.5%-8.0%.
It projects production volumes to remain “relatively flat to slightly lower”, with cost controls and positive pricing contributing to performance.
The company’s outlook cautioned that these projections are based on tariff policies as of May 5 and that any changes to trade policy could affect these projections.