The latest financial reports released by Agco, the parent company of Fendt, Massey Ferguson and Valtra show net revenues of approximately $10.1bn for 2025, a decrease of 13.5% on 2024.
The major factor cited for the reduction in overall revenues was the reluctance of farmers and contractors to invest in new tractors and machinery based on the current uncertainty and low incomes. In North America alone, tractor sales are down over 10% across the board, with larger horsepower tractor segments worse effected.
This resulted in a 27.5% reduction in Agco’s North American sales to $1.66bn compared with $2.29bn during 2024.
Not as severely effected, the western European tractor market was 7% lower in terms of sales, with most markets recording double digit percentage declines with the exception of Spain and Italy, two markets which seen growth.
However, Europe and the Middle East (EME) remained stable with $6.73bn in net sales which is a 0.4% increase on 2024.
Good profits
Despite its lower annual turnover, Agco managed to maintain relatively strong profitability. The profit margin for the whole of 2025 was 7.7%, rising to 10.1% for the fourth quarter alone. Agco believe that this is the result of improved production planning, tighter cost control and reduced dealer stock.
In terms of its outlook for 2026, production volumes are expected to remain relatively flat with net sales expected to range from $10.4 to $10.7bn. Operating margins are projected to range from 7.5% – 8.0%.
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