AGCO reports fourth quarter and 2024 full year results

• Net sales of $11.7 billion, down 19.1%, in 2024
• Full year reported operating margin of (1.0)% and adjusted operating margin⁽¹⁾ of 8.9%
• 2024 full year reported earnings per share of $(5.69) and adjusted earnings per share⁽¹⁾ of $7.50
• Reaffirms 2025 Outlook – Net sales of approximately $9.6 billion and earnings per share of $4.00 - $4.50

Net sales for the full year of 2024 were approximately $11.7 billion, which is a decrease of 19.1% compared to 2023. For the full year, reported netloss was $(5.69) per share, which includes the loss on sale of the Grain & Protein business, impairment charges and restructuring and business optimization expenses, and adjusted net income⁽¹⁾ was $7.50 per share. These results compare to reported net income of $15.63 per share and adjusted net income⁽¹⁾ of $15.55 per share in 2023. Excluding unfavorable currency translation impacts of 0.6%, net sales for the full year decreased 18.5% compared to 2023.

Hansotia continued, "In 2025, we will continue to execute our Farmer-First strategy strengthened by the portfolio moves and aggressive cost control actions, including our ongoing restructuring program. We expect these efforts to dampen the impact of further weakening industry demand, helping deliver adjusted operating margins well above levels achieved during prior industry troughs. We will continue our investments in premium technology, smart farming solutions and enhanced digital capabilities to support our Farmer-First strategy to better position the company for success when the industry recovers while helping to sustainably feed the world."

• Reported fourth-quarter regional sales results⁽²⁾: Europe/Middle East ("EME") (16.7)%, North America (38.7)%, South America (31.6)%, Asia/Pacific/Africa ("APA") (26.2)%
• Constant currency fourth-quarter regional sales results^(1)(2)(3): EME (15.8)%, North America (37.7)%, South America (22.4)%, APA (26.3)%
• Fourth quarter regional operating margin performance: EME 14.4%, North America 0.7%, South America 10.8%, APA 3.0%
• Full-year reported operating margins and adjusted operating margins⁽¹⁾ were (1.0)% and 8.9% respectively, in 2024 compared to 11.8% and 12.0% in 2023

⁽¹⁾ See reconciliation of non-GAAP measures in appendix.

⁽²⁾ As compared to fourth quarter 2023.

⁽³⁾ Excludes currency translation impact.

⁽⁴⁾ Excludes compact tractors.

⁽⁵⁾ Based on Company estimates.

Hansotia concluded, "Global agricultural markets face both challenges and opportunities. U.S. net cash farm income remains strong for livestockfocused farms, while crop-focused farms are experiencing declines due to fluctuating prices for corn, soybeans, and wheat and relatively elevated input costs. Brazil's record soybean production and delayed corn planting highlight both growth potential and risks. Geopolitical instability, coupled with weather-related disruptions in major producing regions like Russia and Ukraine, continue to impact global wheat supplies, adding uncertainty to the market. Demand for new equipment has softened further in most global markets, particularly as lower farm income persists for crop producers. We continue to expect increased adoption of precision technology, but challenging farm economics are resulting in weak global industry demand across most equipment categories."

North American industry retail tractor sales decreased 13% during 2024 compared to the previous year. Sales declines were relatively consistent across the horsepower categories with higher horsepower categories declining more in recent months. Combine unit sales were down 22% in 2024 compared to 2023. Lower projected farm income and a refreshed fleet is expected to pressure industry demand in 2025, resulting in weaker North American industry sales compared to 2024, particularly in larger equipment.

Brazil industry retail tractor sales decreased 4% during 2024 compared to the previous year. Farm acreage in Brazil increased only modestly in 2024 after five years of more significant growth. Lower commodity prices, rising farmer debt, and reduced demand from China created caution among Brazilian farmers. Industry demand in Brazil is expected to remain flat in 2025, due to mixed market dynamics.

In Western Europe, industry retail tractor sales decreased 6% during 2024 compared to the previous year with more significant declines in Scandinavia, the United Kingdom and Italy. Industry demand is expected to remain soft in 2025 as lower income levels pressure demand from arable farmers, while healthy demand from dairy and livestock producers is expected to mitigate some of the decline.

⁽⁶⁾ See footnotes for additional disclosures.

⁽⁷⁾ Note: The regional net sales for the three months ended December 31, 2024 and year ended December 31, 2024 include the results of the Company's Grain & Protein business which was divested on November 1, 2024.

North American net sales decreased 24.7% for the full year of 2024 compared to 2023, excluding the impact of unfavorable currency translation and favorable impact of an acquisition. Softer industry sales and lower end-market demand contributed to lower sales. The most significant sales declines occurred in the high-horsepower and mid-range tractor categories, as well as hay tools. Income from operations for the full year of 2024 decreased $283.5 million compared to 2023 and operating margins were 6.2%. The decrease resulted from lower sales and production volumes, as well as increased discounts.

Net sales in AGCO's South American region decreased 38.6% for the full year of 2024 compared to 2023, excluding the impact of unfavorable currency translation and favorable impact of an acquisition. Softer industry retail sales and under-production of retail demand drove most of the decrease. Lower sales of high-horsepower tractors, combines and planters accounted for most of the decline. Income from operations for the full year of 2024 decreased by $282.0 million compared to 2023. This decrease was primarily a result of lower sales and production volumes as well as negative pricing.

Europe/Middle East region net sales decreased 10.9% for the full year of 2024 compared to 2023, excluding the impact of favorable currency translation and favorable impact of an acquisition. Lower sales across most of the European markets were partially offset by growth in Spain and Turkey. Declines were largest in mid-range and high-horsepower tractors and hay equipment. Income from operations decreased $174.9 million for the full year of 2024 compared to 2023. This decrease was primarily a result of lower sales and production volumes.

Net sales in the Asia/Pacific/Africa region decreased 24.0%, excluding the impact of unfavorable currency translation and favorable impact of an acquisition, during the full year of 2024 compared to 2023 due to weaker end market demand and lower production volumes. Lower sales in China, Australia and Africa drove most of the decline. Income from operations decreased $44.6 million for the full year of 2024 compared to 2023 primarily due to lower sales volumes.