AGCO Corporation (NYSE:AGCO) saw its shares surge by 5.03% in pre-market trading Thursday, as the company delivered second-quarter results that beat expectations and lifted its full-year outlook despite industry-wide difficulties.
The agricultural equipment maker reported adjusted earnings of $1.35 per share, well above Wall Street estimates of $1.08. Revenue came in at $2.6 billion, topping forecasts of $2.53 billion, though it marked a decline of 18.8% year-over-year, mainly due to the prior year including $290.5 million in sales from its now-divested Grain & Protein division.
AGCO’s outperformance came in the face of ongoing weakness in the global farm equipment market. The company credited its results to strict cost discipline and inventory reductions at both dealer and company levels through strategic production cuts.
“AGCO achieved solid second-quarter results with deliberate execution in the areas we can control despite a challenging global agricultural environment marked by weak farm economics and delayed purchasing decisions in several parts of the world,” said Eric Hansotia, Chairman, President, and CEO.
Sales performance varied sharply by region. North America led the decline with a 32.9% drop, while Europe/Middle East, South America, and Asia/Pacific/Africa saw smaller decreases of 5.1%, 4.0%, and 5.4%, respectively.
Looking ahead, AGCO lifted its 2025 full-year guidance, now expecting earnings per share between $4.75 and $5.00, up from its previous range and ahead of analyst forecasts of $4.27. The company also raised its revenue target to around $9.8 billion, with adjusted operating margins projected at 7.5%.
Hansotia added that while conventional equipment sales remain soft, “we are seeing a clear shift toward smarter, more efficient solutions as farmers work to protect margins and navigate ongoing volatility.”
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