AGCO Reports 2024 Earnings
*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
DULUTH, Ga. — AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, reported net sales of $2.9 billion for the fourth quarter of 2024, a decrease of 24.0% compared to the fourth quarter of 2023.
Reported net loss was $(3.42) per share for the quarter, which includes impairment charges and restructuring and business optimization expenses, and adjusted net income was $1.97 per share. These results compare to reported net income of $4.53 per share and adjusted net income of $3.78 per share, for the fourth quarter of 2023. Excluding unfavorable currency translation impacts of 1.8%, net sales in the quarter decreased 22.2% compared to the fourth quarter of 2023.
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 net loss 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 was $7.50 per share. These results compare to reported net income of $15.63 per share and adjusted net income 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.
“AGCO delivered strong fourth quarter results with an adjusted operating margin of 9.9%, even with challenging market dynamics and aggressive production cuts,” said Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer. “We cut our production hours 33% in the fourth quarter and ended the year with lower company and dealer inventory compared to 2023. Our full-year adjusted operating margin performance of 8.9% is by far our best performance in an industry downturn. The strong performance in 2024, driven by our three high-margin growth levers and intense focus on cost controls, underscores the ongoing structural transformation at AGCO as we deliver more resilient and higher earnings across the cycle.”
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.”
North America: 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.
Source: AgriMarketing.com