Agricultural machinery maker AGCO misses Q2 estimates on softer industry demand

AGCO

30/07/2026 12:45

Overview
U.S. agricultural machinery maker's Q2 sales fell 1% yr/yr, missing analyst expectations
Adjusted EPS for Q2 missed analyst expectations
Company completed $345 mln in share repurchases during the quarter

Outlook
AGCO sees 2026 net sales between $10.1 bln and $10.2 bln
Company targets 2026 adjusted EPS of $5.50 to $5.75
AGCO projects 2026 adjusted operating margin of about 7.5%

Result Drivers
WEAK INDUSTRY DEMAND - Co said farmers responded to rising input costs and demand uncertainty by delaying equipment purchases, leading to softer industry demand
REGIONAL SALES VARIATION - North America sales rose on higher unit sales of high-horsepower tractors and hay tools, while Latin America and Europe/Middle East saw declines due to softer demand and lower production volumes
COST MANAGEMENT - Co said it is aligning production with retail demand, managing inventory, and maintaining discipline around operating expenses and working capital in response to market conditions

Company press release: ID:nPn1Tp2vya

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$2.61 bln
$2.75 bln (14 Analysts)
Q2 Adjusted EPS
Miss
$1.43
$1.48 (15 Analysts)
Q2 EPS
 
$1.08
 
Q2 Net Income
 
$74.80 mln
 
Q2 Gross Profit
 
$645.90 mln
 
Q2 Operating Income
 
$140.70 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."
Wall Street's median 12-month price target for AGCO Corp is $127.50, about 9.8% above its July 29 closing price of $116.17
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
July 30 - Switzerland's Bucher H1 sales and profit fall on weak demand, restructuring costs
July 29 - Canada's AGI Q2 revenue falls on Commercial segment weakness
July 29 - FMC Q2 adjusted EPS beats estimates, cuts FY outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)