AGCO Q1 revenue off 30%

On May 1, AGCO, parent of Massey-Ferguson and other tractor brands, reported net sales of $2.1 billion for the first quarter ended March 31, 2025, a decrease of 30.0% compared to the first quarter of 2024. Excluding unfavorable foreign currency translation of 2.4%, net sales in the quarter decreased 27.6% compared to the first quarter of 2024.

“We made substantial progress in our cost reduction efforts while reducing inventory by cutting production hours in the quarter by approximately 33% year-over-year. These decisive actions coupled with our focus on driving retail sales allowed us to improve dealer inventory levels in both North and South America,” said Eric Hansotia, AGCO’s chairman, president and CEO.

“We are seeing a mix of positive signs and risks around the world, requiring us to remain agile as we execute our Farmer-First strategy. However, the global agricultural equipment market is volatile due to tariffs and shifting export demand for grain,” said Hansotia.

AGCO’s North American net sales decreased 33.9% in the first three months of 2025 compared to the same period in 2024. The larger industry retail tractor sales in North America decreased 14% during the first three months of 2025, according to AGCO, compared to the first three months of 2024. Sales declines were relatively consistent across the horsepower categories with higher horsepower categories declining more in recent months. The most significant sales declines occurred in high-horsepower tractors, sprayers and combines. 

Outlook

As previously announced, AGCO’s net sales for 2025 are expected to be approximately $9.6 billion, reflecting lower sales volumes and assumed actions to mitigate tariff impacts. These full-year estimates reflect the projected impact of tariffs in place as of May 1, 2025 across the company’s various jurisdictions along with our planned mitigation actions. Changes to the tariffs or other actions in response to them could result in changes to these estimates.