From transformation to industry leadership and disciplined execution

The transformation we launched in recent years to reposition our portfolio, fuel innovation and enhance operational efficiency is largely responsible for this position. We moved our portfolio toward high-margin, high-growth businesses, exiting the majority of our Grain and Protein business, which lacked alignment with our core machine and technology products and distribution strategy. In its first full year of operation, PTx advanced AGCO’s precision agriculture technology and innovation flywheel through the combined offerings from Precision Planting, PTx Trimble and six other smaller tech acquisitions. The goal is clear: deliver precision ag solutions across the crop cycle, regardless of brand. Farmers can upgrade the mixed-fleet equipment they already own through our retrofit tech or benefit from the solutions on new machines through our Original Equipment Manufacturer relationships. Both enable higher yields with fewer inputs. In 2025, PTx introduced 14 new products that provide solutions for every season, expanding the industry’s most comprehensive retrofit precision portfolio. We are focused on solutions that are AI-driven and automate an increasing number of tasks to make our equipment simpler, more intuitive and easier to operate. One standout was the launch of PTx FarmENGAGE, our mixed-fleet, cloud-based data platform designed for farmers to manage every aspect of their operation. The platform integrates machine connectivity, agronomic insights and task management across brands and platforms. Helping us get these products to market and an important driver of our growth goal to reach $2 billion in precision ag revenue by 2029 is the expansion of our PTx distribution network. We ended the year with more than 70 global PTx Elite dealers that sell both Precision Planting and PTx Trimble products – more than double the number at the start of the year. As we develop new equipment and software, we are also evolving how we deliver distribution and service to better meet farmers where they are. First launched in 2024, FarmerCore is AGCO’s unique approach to distribution that increases the focus on bringing the business to the farmer, supported by digital tools that make it easier for farmers to engage, transact and manage service online. More than two-thirds of our dealers in North America now operate with more than 50% on-farm capacity, marking a meaningful structural shift in how service is delivered to our farmers. As dealers continue to scale their investments in service truck capacity, we expect to see margin durability, better customer satisfaction rates and faster market share growth. This is how farmers want to be served. 

Continuing Fendt’s journey of innovation and expansion 

Unlocking the full, global potential of our premium Fendt brand is another of AGCO’s primary growth levers. In 2025, Fendt delivered a standout year of market performance in almost every region. We had our largest gains in North American large ag for Fendt and Massey Ferguson combined, demonstrating the strength of these differentiated portfolios and the power of our team of experts and dealers. In South America, we announced plans to enter the promising Argentinian market. These gains underscore how Fendt has significantly grown its reach to approximately 80% dealer coverage in the Americas over the past five years. Fendt expanded its suite of solutions in 2025, launching five new machines and 17 additional product innovations, which continue to be recognized as best in class. At AGRITECHNICA, the world’s leading trade fair for agricultural technology, Fendt models received Tractor of the Year honors, three Farm Machine 2026 awards and recognition for solutions that enable mixed-fleet and forage farmers to be more productive, profitable and sustainable. Plus, Fendt debuted the Fendt Xaver GT, an autonomous robotic field system that delivers precise crop care with minimal soil impact and without an operator. Award-winning solutions coupled with continued market expansion put us on track to achieve $1.7 billion in Fendt sales in North and South America by 2029, while maintaining our industry-leading position in Western Europe. 

A portfolio balanced by other strong brands 

Valtra and Massey Ferguson are also delivering for farmers. In an industry first, the sixth generation Valtra S Series won all three major design awards in one year: the Good Design Award, the iF DESIGN AWARD, and the prestigious Red Dot Best of the Best Award. Valtra’s G Series Continuous Variable Transmission Active model also took home the Tractor of the Year 2026 trophy in the Utility category. The brand’s continued focus on innovation shines with products like the Valtra Coach Talking Tractor concept. Going to market in 2026, this smart, voice- and text-enabled AI assistant is designed to make farming easier, more intuitive and more data-driven. This is a real breakthrough for farmers. For generations, Massey Ferguson has earned the loyalty of farmers seeking a straightforward and dependable tractor. The new Massey Ferguson 5M series was honored with a Red Dot Award for Product Design. That momentum continues through strategic partnerships that strengthen our core offerings. Our new supplier partnership with SDF refreshed our Massey Ferguson offerings with a streamlined portfolio of low- to mid-range horsepower tractors, strengthening our global position in this sector. 

An industry-leading global parts business

Expanding our parts business is another central pillar of AGCO’s growth strategy, delivering higher margins with less volatility, strong alignment with FarmerCore capabilities and an enhanced customer experience that builds farmer loyalty. By improving the aftersales experience for customers, we ensure equipment is field-ready and farmers receive proactive support. AI-enabled alerts help dealers identify issues early and act to improve farmers’ uptime. These same tools allow dealers to anticipate demand for specific parts, enabling better forecasting that increases parts sales while reducing overall inventory levels. Together, these capabilities support industry-leading fill rates that help keep equipment running when farmers need it most. E-commerce is playing an increasingly important role in our parts business, with online orders averaging 25% larger than traditional transactions. We remain on course to grow E-commerce to 25% of parts sales and are targeting $2.3 billion in overall net part sales by 2029. Achieving this growth requires a robust distribution infrastructure. In 2025 we broke ground on a new Europe & Middle East Parts Distribution Center in France and expanded our West Coast parts distribution system in the U.S.; both will be operational in 2026. That same focus on proximity and availability extends to remanufactured components. In South America, our new Remanufacturing Center of Excellence in Brazil brings remanned transmissions closer to the customer. 

Built to deliver even in challenging conditions

While 2026 may bring a modest recovery of the ag market in some regions, it remains critically important to focus on managing things we can control. Strides we have taken to become a more resilient, higher-performing organization will continue. Those initiatives, coupled with the pillars of our growth strategy, put us on course to achieve our target of adjusted operating margins of 14% – 15% at mid-cycle while also growing 4 – 5% faster than the industry. When market conditions improve, and they will, AGCO is well positioned to grow value for farmers and all our stakeholders. Leading the way will be an exceptionally disciplined and committed team of AGCO employees, who have proven they can transform and perform in challenging conditions. I am convinced the next decade will be the most innovative in ag history – one in which AGCO is proud to lead the way for our farmers. 

Sincerely,
Eric P. Hansotia
Chairman, President and Chief Executive Officer