Moody’s upgrades Agnico Eagle’s rating to A3 on debt reduction
DULUTH, GA - On Thursday, AGCO Corporation (NYSE:AGCO) reported better-than-expected second-quarter results and raised its full-year outlook despite challenging market conditions.
The agricultural equipment manufacturer’s shares jumped 5.03% in ore-market trading after the release.
The global agricultural machinery maker posted adjusted earnings of $1.35 per share, significantly exceeding analyst expectations of $1.08. Revenue came in at $2.6 billion, surpassing the consensus estimate of $2.53 billion, though still representing an 18.8% decline compared to the same period last year. The prior year quarter included $290.5 million in revenue from the company’s divested Grain & Protein business.
AGCO’s strong performance amid industry headwinds was driven by disciplined cost control and progress in reducing dealer and company inventories through aggressive production cuts. The stock’s significant rise reflects investor confidence in the company’s operational execution despite a challenging global agricultural environment.
"AGCO achieved solid second-quarter results with deliberate execution in the areas we can control despite a challenging global agricultural environment marked by weak farm economics and delayed purchasing decisions in several parts of the world," said Eric Hansotia, Chairman, President and CEO.
Regional performance varied considerably, with North America experiencing the steepest sales decline at 32.9% YoY, while Europe/Middle East, South America, and Asia/Pacific/Africa regions saw more modest decreases of 5.1%, 4.0%, and 5.4% respectively.
The company raised its full-year 2025 outlook, now projecting earnings per share between $4.75 and $5.00, up from previous guidance and above the analyst consensus of $4.27. AGCO also increased its revenue forecast to approximately $9.8 billion, with adjusted operating margins projected at 7.5%.
Hansotia noted that while traditional equipment sales remain under pressure, "we are seeing a clear shift toward smarter, more efficient solutions as farmers work to protect margins and navigate ongoing volatility."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.