AGCO publishes transcript of Q2 2026 earnings call
AGCO•Regional demand trends
Europe demand came in weaker than expected, with Germany softer than anticipated. Dealer inventories fell to about 3.5 months, pressuring sell-in and margins.
Latin America sales fell 25% on a constant-currency basis. Management said it was underproducing versus retail by about 15% exiting the year to clear aged inventories.
North America sales rose about 20% on a constant-currency basis, with pricing around 3.5%. Inventories fell about 6% sequentially, signaling retail-driven share gains.
Capital returns and spending
AGCO repurchased USD 345 million of shares in Q2. The quarterly dividend was set at USD 0.3 per share.
The company also cut 2026 capex to USD 300 million-USD 325 million.
Guidance cut and tariff impact
AGCO lowered its 2026 guidance to net sales of USD 10.1 billion-USD 10.2 billion, adjusted EPS of USD 5.5-USD 5.75, and adjusted operating margin of about 7.5%.
