Al Root
Farming has been a tough business for AGCO and its peers for a couple of years. Things appear to be stabilizing.
Friday, AGCO reported third-quarter adjusted earnings per share of $1.35 from sales of $2.5 billion. Wall Street was looking for EPS of $1.22 from sales of $2.5 billion.
Full-year EPS guidance was increased to $5 from a prior range of $4.75 to $5. Guidance implies fourth-quarter earnings per share of about $1.89. Wall Street is projecting $1.81.
AGCO stock was up 5.5% in premarket trading at $112, while S&P 500 and Dow Jones Industrial Average futures were up 0.7% and 0.1%, respectively.
A year ago, AGCO reported earnings per share of 68 cents from sales of $2.6 billion. Third-quarter sales fell with farmer incomes squeezed by cost inflation amid lower prices for agricultural commodities. Benchmark corn prices have averaged roughly $4.50 per bushel for the past 12 months, down from closer to $5.50 the prior 12 months.
Corn prices hit about $8 per bushel in 2022, when AGCO generated almost $13 billion in sales. Wall Street expects sales of just under $10 billion for 2025.
AGCO stock traded at nearly $150 a share in early 2022. Coming into Friday trading, shares were at $106.12, up 6% over the past 12 months.
"AGCO delivered another solid quarter of navigating a complex global landscape shaped by challenging farm economics, high interest rates, and cautious capital investment," said CEO Eric Hansotia. "Our continued investments in precision agriculture, autonomous solutions, and sustainable technologies helped maintain demand for our premium brands."
Sales are expected to grow in 2026 for the first time since 2023. Growth would be a good sign that the farm business is getting better.
Write to Al Root at allen.root@dowjones.com
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October 31, 2025 08:12 ET (12:12 GMT)
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