Agco Earnings: European Exposure Provides Stability Amid Tariff Uncertainty

Agco reported first-quarter sales of $2.1 billion, adjusted EBIT of $83 million (4.1% margin), and adjusted EPS of $0.41, reflecting ongoing difficulties in global agriculture markets. However, aggressive cost-cutting measures and stronger performance in its core European market allowed for modest profitability when the company had expected to break even. This outperformance, combined with lower anticipated foreign currency impact, is of sufficient magnitude to offset the company’s anticipated headwinds from tariffs. As a result, the company maintained its 2025 guidance for approximately $9.6 billion in sales and adjusted EPS from $4.00-$4.50 per share. We are maintaining our outlook for 2025 and fair value estimate of $140.