*Full year reported operating margin of (1.0)% and adjusted operating margin(1) of 8.9%

*2024 full year reported earnings per share of $(5.69) and adjusted earnings per share(1) of $7.50

*Reaffirms 2025 Outlook – Net sales of approximately $9.6 billion and earnings per share of $4.00 – $4.50

DULUTH, Ga. — AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, reported net sales of $2.9 billion for the fourth quarter of 2024, a decrease of 24.0% compared to the fourth quarter of 2023.

Reported net loss was $(3.42) per share for the quarter, which includes impairment charges and restructuring and business optimization expenses, and adjusted net income was $1.97 per share. These results compare to reported net income of $4.53 per share and adjusted net income of $3.78 per share, for the fourth quarter of 2023. Excluding unfavorable currency translation impacts of 1.8%, net sales in the quarter decreased 22.2% compared to the fourth quarter of 2023.

Net sales for the full year of 2024 were approximately $11.7 billion, which is a decrease of 19.1% compared to 2023. For the full year, reported net loss was $(5.69) per share, which includes the loss on sale of the Grain & Protein business, impairment charges and restructuring and business optimization expenses, and adjusted net income was $7.50 per share. These results compare to reported net income of $15.63 per share and adjusted net income of $15.55 per share in 2023. Excluding unfavorable currency translation impacts of 0.6%, net sales for the full year decreased 18.5% compared to 2023.

“AGCO delivered strong fourth quarter results with an adjusted operating margin of 9.9%, even with challenging market dynamics and aggressive production cuts,” said Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer. “We cut our production hours 33% in the fourth quarter and ended the year with lower company and dealer inventory compared to 2023. Our full-year adjusted operating margin performance of 8.9% is by far our best performance in an industry downturn. The strong performance in 2024, driven by our three high-margin growth levers and intense focus on cost controls, underscores the ongoing structural transformation at AGCO as we deliver more resilient and higher earnings across the cycle.”

Hansotia continued, “In 2025, we will continue to execute our Farmer-First strategy strengthened by the portfolio moves and aggressive cost control actions, including our ongoing restructuring program. We expect these efforts to dampen the impact of further weakening industry demand, helping deliver adjusted operating margins well above levels achieved during prior industry troughs. We will continue our investments in premium technology, smart farming solutions and enhanced digital capabilities to support our Farmer-First strategy to better position the company for success when the industry recovers while helping to sustainably feed the world.”

North America: North American net sales decreased 24.7% for the full year of 2024 compared to 2023, excluding the impact of unfavorable currency translation and favorable impact of an acquisition. Softer industry sales and lower end-market demand contributed to lower sales. The most significant sales declines occurred in the high-horsepower and mid-range tractor categories, as well as hay tools. Income from operations for the full year of 2024 decreased $283.5 million compared to 2023 and operating margins were 6.2%. The decrease resulted from lower sales and production volumes, as well as increased discounts.

Source:

Operating income (continuing operations): Our consolidated operating income from continuing operations for the 2024 fiscal year was $461,000 compared to operating income of $1,531,000 for the 2023 fiscal year. Our Agricultural Products segment had an operating loss of $1,510,000, and our Modular Buildings segment had operating income of $1,971,000.

Net income (loss) per share (continuing operations): Loss per basic and diluted share from continuing operations for the 2024 fiscal year was $(0.02), compared to net income of $0.15 per share for the 2023 fiscal year.

Consolidated net income (continuing and discontinued operations): Consolidated net income for the 2024 fiscal year was $307,000 compared to net income of $267,000 in the 2023 fiscal year.

Marc McConnell, Chairman, President and CEO of Art’s Way states, “Fiscal 2024 was a year of considerable challenges and transition at Art’s Way, yet one that demonstrated the benefits of our diversification strategy. Amid a significant down cycle in the farm equipment industry, we experienced a reduction in demand along with our industry peers. Meanwhile we benefited greatly from the tremendous growth and operational performance in our Modular Buildings segment. We responded to challenges in our Agricultural Products segment by focusing closely on cost reductions, reducing debt, and improving cashflow while maintaining our emphasis on quality, innovation, and customer experience. We are confident these measures position the company for improving markets in the future and are pleased to report that our current debt level represents a historical low.

Going forward we have meaningful reason for optimism in both business segments for 2025 and beyond. There are positive indications in the dairy and livestock markets that could drive demand for our products serving those markets. We also carry positive momentum into the new year in our Modular Buildings segment that we believe we can sustain. On a consolidated basis we anticipate that solid demand, reduced overhead expenses, improved liquidity and reduced interest expense from debt reduction will result in improved profitability and cashflow in fiscal 2025.”

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