AGCO

AGCO is a global farm-machinery leader (Fendt, Massey Ferguson, Valtra, plus the PTx precision-ag platform) selling through ~2,800 dealers in ~140 countries. FY2025 was a clean year that follows a messy one. Reported net income was $726.5M, or $9.75 diluted EPS, versus a $424.8M loss (-$5.69) in 2024 — but the swing is almost entirely about one-time items, not a demand recovery: 2024 absorbed a $369.5M impairment and a $507.3M loss on the divestiture of most of the Grain & Protein business, whereas 2025 carried only $10M of impairment and a $10.8M loss on sale. So the +271% net-income and +588% operating-income growth are optical; the real story is that AGCO earned a solid 5.9% operating margin and $9.75 in EPS even as net sales fell 13.5% to $10.1B.

That revenue decline is the crux. Sales dropped from a $14.4B peak in FY2023 on softer end-market demand plus the G&P divestiture — the agricultural cycle is clearly in a downturn, and management warns its results 'depend entirely upon the agricultural industry' (farm income, commodity/protein prices, weather). On top of that, U.S. trade policy and tariffs on steel/aluminum and imports create 'significant uncertainty,' raising input costs, though AGCO notes most of its sales and manufacturing are outside the U.S., which partially mitigates the hit.