AGCO CORP /DE

Previous wording

The recent announcements of significant trade policy and tariff actions by the U.S. government, including but not limited to tariffs on imported steel and aluminum products, multiple tariffs on certain imports from China, tariffs on certain imports from Canada and Mexico, announced trade deal between the United States and European Union of baseline tariffs on certain imports from the European Union, and baseline tariffs on most imports from most other countries, are creating significant uncertainty and potential risks for our business. These announcements in some cases were followed by delays and changes in implementation, and the ultimate tariff structures are unclear at the current time. Depending upon which countries are impacted, increases in tariffs can increase both the costs of the inputs that we use in manufacturing products and increase the after-tariff sales prices of the products that we sell. The impacts of the tariffs may be partially mitigated as a majority of our sales and manufacturing takes place outside the United States. Additionally, these tariffs will increase the cost of certain raw materials and components, impacting our cost of goods sold. While we are actively exploring opportunities to mitigate these increased costs, there can be no guarantee that we will be able to fully offset the impact of these tariffs. Furthermore, the imposition of retaliatory tariffs from other countries on our exported products could negatively affect our sales and marketplace access in those countries. Moreover, the uncertainty of the tariff changes and any future trade policy changes has adversely impacted, and is expected to continue to adversely impact, our sales.

Current wording

The recent announcements of significant trade policy and tariff actions by the U.S. government, including but not limited to tariffs on imported steel and aluminum products, tariffs on certain imports from China, tariffs on certain imports from Canada and Mexico, announced trade deal between the United States and European Union of baseline tariffs on certain imports from the European Union, and baseline tariffs on most imports from most other countries, continue to create significant uncertainty and potential risks for our business. These announcements in some cases were followed by delays and changes in implementation, and the ultimate tariff structures are unclear at the current time. Depending on the countries affected, increases in tariffs have raised the costs of inputs used in manufacturing our products, which in turn has impacted our cost of goods sold. Additionally, higher tariffs may lead to increased after-tariff sales prices for the products we sell. The impacts of the tariffs may be partially mitigated as a majority of our sales and manufacturing takes place outside the United States. While we are actively exploring opportunities to mitigate these increased costs, there can be no guarantee that we will be able to fully offset the impact of these tariffs. Furthermore, the imposition of retaliatory tariffs from other countries on our exported products could negatively affect our sales and marketplace access in those countries. Moreover, the uncertainty of the tariff changes and any future trade policy changes has adversely impacted, and is expected to continue to adversely impact, our sales.

Previous wording

Net income (loss) attributable to AGCO Corporation for the three months ended June 30, 2025, was $314.8 million, or $4.22 per diluted share, compared to $(367.1) million or $(4.92) per diluted share, for the three months ended June 30, 2024. Net income (loss) attributable to AGCO Corporation for the six months ended June 30, 2025, was $325.3 million, or $4.36 per diluted share, compared to $(199.1) million or $(2.67) per diluted share, for the six months ended June 30, 2024.

Current wording

Net income attributable to AGCO Corporation for the three months ended September 30, 2025, was $305.7 million, or $4.09 per diluted share, compared to $30.0 million or $0.40 per diluted share, for the three months ended September 30, 2024. Net income (loss) attributable to AGCO Corporation for the nine months ended September 30, 2025, was $631.0 million, or $8.45 per diluted share, compared to $(169.1) million or $(2.27) per diluted share, for the nine months ended September 30, 2024.

Previous wording

Net sales during the three months ended June 30, 2025 were approximately $2,635.0 million, or 18.8% lower than the three months ended June 30, 2024, primarily due to lower sales volumes resulting from softer industry sales reflecting lower end market demand and the divestiture of the majority of the Company's G&P business on November 1, 2024, partially offset by favorable currency impacts. Income (loss) from operations was $164.0 million for the three months ended June 30, 2025 compared to $(241.7) million in the three months ended June 30, 2024. The increase in income from operations during 2025 was primarily the result of decreases in engineering expenses, restructuring and business optimization expenses and selling, general and administrative expenses (“SG&A expenses”) primarily related to lower compensation and transaction costs, partially offset by lower sales and production volumes reflecting weak industry conditions and higher warranty costs. Additionally, as of June 30, 2024, the Company classified its G&P business as held for sale and recorded a loss of $494.6 million during the three months ended June 30, 2024.

Current wording

Net sales during the three months ended September 30, 2025 were approximately $2,476.3 million, or 4.7% lower than the three months ended September 30, 2024, primarily due to lower sales volumes resulting from softer industry sales reflecting lower end market demand in the North America, South America and Asia/Pacific/Africa regions and the divestiture of the majority of the Company's G&P business on November 1, 2024, partially offset by higher sales volumes in the Europe/Middle East region and favorable currency impacts. Income from operations was $151.6 million for the three months ended September 30, 2025 compared to $114.8 million in the three months ended September 30, 2024. The increase in income from operations during 2025 was primarily the result of higher sales and production volumes in the Europe/Middle East region, decreases in restructuring and business optimization expenses and selling, general and administrative expenses (“SG&A expenses”) primarily related to lower compensation and transaction costs, partially offset by higher amortization expense. Additionally, as of June 30, 2024, the Company classified its G&P business as held for sale and recorded a loss of $3.2 million during the three months ended September 30, 2024.

Previous wording

Net sales during the six months ended June 30, 2025 were approximately $4,685.5 million, or 24.1% lower than the six months ended June 30, 2024, primarily due to lower sales volumes resulting from softer industry sales reflecting lower end market demand and the divestiture of the majority of the Company's G&P business on November 1, 2024, partially offset by favorable currency impacts. Income from operations was $213.4 million for the six months ended June 30, 2025 compared to $31.9 million in the six months ended June 30, 2024. The increase in income from operations during 2025 was primarily the result of decreases in engineering expenses and SG&A expenses primarily related to lower compensation and transaction costs, partially offset by lower sales and production volumes reflecting weak industry conditions. Additionally, as of June 30, 2024, the Company classified its G&P business as held for sale and recorded a loss of $494.6 million during the six months ended June 30, 2024.

Current wording

September 30, 2025 compared to $146.7 million in the nine months ended September 30, 2024. As of June 30, 2024, the Company classified its G&P business as held for sale and recorded a loss of $497.8 million during the nine months ended September 30, 2024. Additionally, the increase in income from operations during 2025 was the result of decreases in engineering expenses and SG&A expenses primarily related to lower compensation and transaction costs, partially offset by lower sales and production volumes reflecting weak industry conditions.

Previous wording

We estimate that worldwide average price increases (decreases) were approximately 0.1% and (1.9)% for the three months ended June 30, 2025 and 2024, respectively, and 0.0% and (0.6)% for the six months ended June 30, 2025 and 2024, respectively. Consolidated net sales of tractors and combines, which comprised approximately 68.0% and 66.1% of our net sales for the three and six months ended June 30, 2025, decreased approximately 10.3% and 19.9% compared to the same periods in 2024. Unit sales of tractors and combines decreased approximately 7.2% and 12.2% during the three and six months ended June 30, 2025 compared to the same periods in 2024. The primary driver of the decrease in unit sales was lower sales of tractors and combines. The difference between the unit sales change and the change in net sales was primarily the result of sales mix changes.

Current wording

We estimate that worldwide average price increases (decreases) were approximately 1.4% and (1.2)% for the three months ended September 30, 2025 and 2024, respectively, and 0.4% and (0.8)% for the nine months ended September 30, 2025 and 2024, respectively. Consolidated net sales of tractors and combines, which comprised approximately 68.6% and 67.0% of our net sales for the three and nine months ended September 30, 2025, increased (decreased) approximately 13.5% and (10.6)% compared to the same periods in 2024. Unit sales of tractors and combines increased (decreased) approximately 6.2% and (6.7)% during the three and nine months ended September 30, 2025 compared to the same periods in 2024. The primary driver of the change in unit sales was due to changes in end market demand. The difference between the unit sales change and the change in net sales was primarily the result of sales mix changes and foreign currency translation.

Previous wording

Overall, global production hours, excluding hours related to the Company's G&P business which was divested on November 1, 2024, decreased approximately 15.6% and 24.4% during the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, reflecting our response to lower end market demand.

Current wording

Overall, global production hours, excluding hours related to the Company's G&P business which was divested on November 1, 2024, increased (decreased) approximately 5.9% and (16.6)% during the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, reflecting our response to end market demand and extended plant shutdowns in the Europe/Middle East region in the third quarter of 2024.

Previous wording

Gross profit as a percentage of net sales decreased during the three and six months ended June 30, 2025 compared to the same periods in 2024, primarily due to lower production volumes.

Current wording

Gross profit as a percentage of net sales increased during the three and nine months ended September 30, 2025 compared to the same periods in 2024, primarily due to lower manufacturing costs.

Previous wording

SG&A expenses, as a percentage of net sales, were higher during the three and six months ended June 30, 2025 compared to the same periods in 2024 as net sales decreased at a faster rate than SG&A expenses. The absolute level of SG&A expenses decreased during the three and six months ended June 30, 2025 due to lower compensation costs and lower transaction costs related to the divestiture of the majority of the Company's G&P business and the PTx Trimble joint venture transaction. We recorded $10.3 million and $17.4 million of stock compensation expense within SG&A expenses during the three and six months ended June 30, 2025, respectively, compared to $7.4 million and $15.4 million during the same periods in 2024.

Current wording

SG&A expenses, as a percentage of net sales, were higher during the three and nine months ended September 30, 2025 compared to the same periods in 2024 as net sales decreased at a faster rate than SG&A expenses. The absolute level of SG&A expenses decreased during the three and nine months ended September 30, 2025 due to lower compensation costs and lower transaction costs related to the divestiture of the majority of the Company's G&P business and the PTx Trimble joint venture transaction. We recorded $6.9 million and $24.3 million of stock compensation expense within SG&A expenses during the three and nine months ended September 30, 2025, respectively, compared to $5.0 million and $20.4 million during the same periods in 2024.

Previous wording

Engineering expenses, as a percentage of net sales, were higher during the three and six months ended June 30, 2025 compared to the same periods in 2024 as net sales decreased at a faster rate than engineering expenses. The absolute value of engineering expenses decreased during the three and six months ended June 30, 2025 primarily due to lower investment, partially offset by increased engineering expenses related to the PTx Trimble joint venture.

Current wording

Engineering expenses, as a percentage of net sales, were higher during the three and nine months ended September 30, 2025 compared to the same periods in 2024 as net sales decreased at a faster rate than engineering expenses. The absolute value of engineering expenses were flat during the three months ended September 30, 2025. The absolute value of engineering expenses decreased during the nine months ended September 30, 2025 primarily due to lower investment, partially offset by increased engineering expenses related to the PTx Trimble joint venture.

Previous wording

We recorded impairment charges of $6.8 million and $7.9 million during the three and six months ended June 30, 2025, respectively, compared to $5.1 million recorded during the three and six months ended June 30, 2024, related to the impairment of certain other assets.

Current wording

We recorded impairment charges of $(0.6) million and $7.3 million during the three and nine months ended September 30, 2025, respectively, compared to $0.2 million and $5.3 million recorded during the three and nine months ended September 30, 2024, related to the impairment of certain other assets.

Previous wording

We recorded restructuring and business optimization expenses of $15.6 million and $28.6 million during the three and six months ended June 30, 2025, respectively, compared to $30.2 million and $31.2 million during the same periods in 2024. The Company is focused on operational efficiencies to build a more resilient business. On June 24, 2024, the Company announced a restructuring program (the “Program”) in response to increased weakening demand in the agriculture industry. The initial phase of the Program is focused on further reducing structural costs, streamlining the Company’s workforce and enhancing global efficiencies related to changing the Company’s operating model for certain corporate and back-office functions and better leveraging technology and global centers of excellence. The Company estimates that it will incur charges for one-time termination benefits of approximately $150.0 million to $200.0 million in connection with this phase of the Program, primarily consisting of cash charges related to severance payments, employees benefits and related costs. The Company incurred the majority of charges in 2024 and expects to incur the remaining charges in 2025. The restructuring expenses recorded during the three and six months ended June 30, 2025 and 2024 primarily related to severance, business optimization and other related costs associated with the Company's Program. Refer to Note 10 of our Condensed Consolidated Financial Statements for further information.

Current wording

We recorded restructuring and business optimization expenses of $8.7 million and $37.3 million during the three and nine months ended September 30, 2025, respectively, compared to $10.5 million and $41.7 million during the same periods in 2024. On June 24, 2024, the Company announced a restructuring program (the “Program”) in response to increased weakening demand in the agriculture industry. The Company estimates that it will incur charges for one-time termination benefits of approximately $150.0 million to $200.0 million in connection with the initial phase of the Program, primarily consisting of cash charges related to severance payments, employees benefits and related costs. The Company incurred the majority of charges in 2024 and expects to incur the remaining charges in 2025. The restructuring expenses recorded during the three and nine months ended September 30, 2025 and 2024 primarily related to severance, business optimization and other related costs associated with the Company's Program. Refer to Note 10 of our Condensed Consolidated Financial Statements for further information.

Previous wording

We recorded a loss on sale of business of $12.3 million during the three and six months ended June 30, 2025 related to the finalization of the preliminary working capital and other adjustments related to the sale of the majority of the Company's G&P business. As of June 30, 2024, the Company classified its G&P business as held for sale and recorded a loss of

Current wording

We recorded a loss on sale of business of $12.3 million during the nine months ended September 30, 2025 related to the finalization of the preliminary working capital and other adjustments related to the sale of the majority of the Company's G&P business. As of June 30, 2024, the Company classified its G&P business as held for sale and recorded a loss of

Previous wording

Interest expense, net was $17.8 million for the three months ended June 30, 2025, compared to $29.9 million for the comparable period in 2024, resulting primarily from a decrease in interest expense resulting from the Company's repayment of the Term Loan Facility on November 1, 2024. Interest expense, net was $36.3 million for the six months ended June 30, 2025, compared to $31.8 million for the comparable period in 2024, resulting primarily from lower interest income. Refer to “Liquidity and Capital Resources” for further information on our available funding.

Current wording

Interest expense, net was $15.5 million for the three months ended September 30, 2025, compared to $33.9 million for the comparable period in 2024, resulting primarily from a decrease in interest expense resulting from the Company's repayment of the Term Loan Facility on November 1, 2024. Interest expense, net was $51.8 million for the nine months ended September 30, 2025, compared to $65.7 million for the comparable period in 2024, resulting primarily from a decrease in interest expense resulting from the Company's repayment of the Term Loan Facility on November 1, 2024, partially offset by lower interest income. Refer to “Liquidity and Capital Resources” for further information on our available funding.

Previous wording

Other expense, net was $48.9 million and $81.2 million for the three and six months ended June 30, 2025, respectively, compared to $65.3 million and $116.1 million for the comparable periods in 2024. The decreases were driven by a decrease in foreign currency exchange losses which were approximately $28.6 million and $42.2 million, respectively, for the three and six months ended June 30, 2025, compared to $26.7 million and $49.6 million for the comparable periods in 2024. Losses on sales of receivables, primarily related to our accounts receivable sales agreements with our finance joint ventures in North America, Europe and Brazil and included in “Other expense, net,” were approximately $19.8 million and $38.7 million, respectively, for the three and six months ended June 30, 2025, compared to $35.9 million and $63.8 million for the comparable periods in 2024. During the six months ended June 30, 2024, the Company recorded the final business interruption insurance recovery related to the 2022 cyber attack of $5.0 million.

Current wording

Other expense (income), net was $(208.4) million and $(127.2) million for the three and nine months ended September 30, 2025, respectively, compared to $52.3 million and $168.4 million for the comparable periods in 2024. During the three and nine months ended September 30, 2025, the Company recorded a gain of $251.9 million on the sale of an investment in affiliate related to the sale of the Company’s ownership interest in Tractors and Farm Equipment Limited (“TAFE”) within “Other expense (income), net.” Refer to Note 20 of our Condensed Consolidated Financial Statements for further information. Foreign currency exchange losses were approximately $18.4 million and $60.6 million, respectively, for the three and nine months ended September 30, 2025, compared to $24.7 million and $74.3 million for the comparable periods in 2024. Losses on sales of receivables, primarily related to our accounts receivable sales agreements with our finance joint ventures in North America, Europe and Brazil and included in “Other expense (income), net,” were approximately $21.9 million and $60.6 million, respectively, for the three and nine months ended September 30, 2025, compared to $28.4 million and $92.2 million for the comparable periods in 2024. During the nine months ended September 30, 2024, the Company recorded the final business interruption insurance recovery related to the 2022 cyber attack of $5.0 million.

Previous wording

We recorded an income tax provision (benefit) of $(205.5) million and $(203.5) million for the three and six months ended June 30, 2025, respectively, compared to $41.6 million and $110.7 million for the three and six months ended June 30, 2024. Our effective tax rate varies from period to period due to the mix of taxable income and losses in the various tax jurisdictions in which we operate. During the three and six months ended June 30, 2025, the Company’s income tax provision included a net tax benefit of $255.2 million related to a legal entity reorganization. Based on a favorable tax ruling in Brazil regarding the taxability of certain state value added tax incentive benefits, the Company recorded a $31.7 million reduction in the provision for income taxes during the three and six months ended June 30, 2024.

Current wording

We recorded an income tax provision (benefit) of $48.8 million and $(154.7) million for the three and nine months ended September 30, 2025, respectively, compared to $11.9 million and $122.6 million for the three and nine months ended September 30, 2024. Our effective tax rate varies from period to period due to the mix of taxable income and losses in the various tax jurisdictions in which we operate. During the three and nine months ended September 30, 2025, the Company’s income tax provision included a net tax benefit of $4.7 million and $259.9 million, respectively, related to a legal entity reorganization. Based on a favorable tax ruling in Brazil regarding the taxability of certain state value added tax incentive benefits, the Company recorded a $31.7 million reduction in the provision for income taxes during the nine months ended September 30, 2024.

Previous wording

Equity in net earnings of affiliates, which is primarily comprised of income from our AGCO Finance joint ventures, was $11.6 million and $23.7 million for the three months and six ended June 30, 2025 compared to $9.6 million and $25.8 million for the three and six months ended June 30, 2024.

Current wording

Equity in net earnings of affiliates, which is primarily comprised of income from our AGCO Finance joint ventures, was $7.0 million and $30.7 million for the three months and nine ended September 30, 2025, respectively, compared to $12.2 million and $38.0 million for the three and nine months ended September 30, 2024.

Previous wording

The Company recorded a net loss attributable to noncontrolling interests of $0.4 million and $2.2 million during the three and six months ended June 30, 2025, respectively, compared to $1.8 million recorded during the three and six months ended June 30, 2024. The net loss primarily relates to the noncontrolling interests of the PTx Trimble joint venture held by Trimble, which owns a 15% interest in the joint venture.

Current wording

The Company recorded a net loss attributable to noncontrolling interests of $3.0 million and $5.2 million during the three and nine months ended September 30, 2025, respectively, compared to $1.1 million and $2.9 million recorded during the three and nine months ended September 30, 2024. The net loss primarily relates to the noncontrolling interests of the PTx Trimble joint venture held by Trimble, which owns a 15% interest in the joint venture.

Previous wording

The following tables set forth, for the three and six months ended June 30, 2025, the impact to net sales of currency translation by geographical segment (in millions, except percentages):

Current wording

The following tables set forth, for the three and nine months ended September 30, 2025, the impact to net sales of currency translation by geographical segment (in millions, except percentages):

Previous wording

(1) “Other” represents the results for the six months ended June 30, 2024 for the majority of the Company’s G&P business which was divested on November 1, 2024. The results of the G&P business through the date of the divestiture were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments.

Current wording

(1) “Other” represents the results for the nine months ended September 30, 2024 for the majority of the Company’s G&P business which was divested on November 1, 2024. The results of the G&P business through the date of the divestiture were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments.

Previous wording

Net sales in EME decreased in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to sales volume declines, most significantly in high-horsepower and mid-range tractors and combines, partially offset by favorable foreign currency translation. Income from operations decreased by $175.0 million in the six months ended June 30, 2025 compared to the six months ended June 30, 2024 as a result of lower sales and production volumes and higher warranty costs.

Current wording

Net sales in EME increased in the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to sales volume increases, most significantly in high-horsepower tractors and mid-range tractors and favorable foreign currency translation. Income from operations increased by $163.1 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as a result of higher sales and production volumes.

Previous wording

Net sales in EME decreased in the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to sales volume declines, most significantly in high-horsepower tractors and combines, partially offset by favorable foreign currency translation. Income from operations decreased by $34.3 million in the three months ended June 30, 2025 compared to the three months ended June 30, 2024 as a result of lower sales and production volumes and higher warranty costs.

Current wording

Net sales in EME decreased in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to sales volume declines, most significantly in high-horsepower tractors and combines, partially offset by favorable foreign currency translation. Income from operations decreased by $11.9 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 as a result of lower sales and production volumes and higher warranty costs.

Previous wording

Net sales in North America decreased in the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to sales volume declines, most significantly in high-horsepower tractors, sprayers and hay tools. Income (loss) from operations decreased by $58.3 million in the three months ended June 30, 2025 compared to the three months ended June 30, 2024 as a result of lower sales and production volumes.

Current wording

Net sales in North America decreased in the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to sales volume declines, most significantly in high-horsepower tractors, sprayers and combines. Income (loss) from operations decreased by $56.4 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as a result of lower sales and production volumes.

Previous wording

Net sales in North America decreased in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to sales volume declines, most significantly in high-horsepower tractors, sprayers and hay tools. Income (loss) from operations decreased by $106.5 million in the six months ended June 30, 2025 compared to the six months ended June 30, 2024 as a result of lower sales and production volumes.

Current wording

Net sales in North America decreased in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to sales volume declines, most significantly in high-horsepower tractors, sprayers and hay tools. Income (loss) from operations decreased by $162.9 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 as a result of lower sales and production volumes.

Previous wording

Net sales decreased in South America in the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to sales declines, most significantly in tractors, sprayers and implements, and negative pricing impacts. Income from operations increased $17.4 million in the three months ended June 30, 2025 compared to the three months ended June 30, 2024, as a result of improved product mix and lower manufacturing costs, partially offset by negative pricing impacts.

Current wording

Net sales decreased in South America in the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to sales declines, most significantly in tractors and implements, and negative pricing impacts. Income from operations decreased $22.6 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024, as a result of lower sales and production volumes and negative pricing impacts.

Previous wording

Net sales decreased in South America in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to sales declines, most significantly in tractors and implements, negative pricing impacts and unfavorable foreign currency translation. Income from operations increased $7.5 million in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, as a result of improved product mix and lower manufacturing costs, partially offset by negative pricing impacts.

Current wording

Net sales decreased in South America in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to sales declines, most significantly in tractors and implements, negative pricing impacts and unfavorable foreign currency translation. Income from operations decreased $15.1 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, as a result of lower sales and negative pricing impacts, partially offset by lower manufacturing costs.

Previous wording

Net sales decreased in APA in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to sales volume declines, most significantly in high horse power tractors and sprayers. Income from operations decreased $12.8 million in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to lower sales and production volumes.

Current wording

Net sales decreased in APA in the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to sales volume declines, most significantly in hay tools. Income from operations increased $0.9 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to lower manufacturing costs, partially offset by lower sales volume.

Previous wording

Net sales decreased in APA in the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to sales volume declines, most significantly in hay tools and sprayers. Income from operations decreased $1.0 million in the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to lower sales and production volumes.

Current wording

Net sales decreased in APA in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to sales volume declines, most significantly in high-horsepower tractors, hay tools and sprayers. Income from operations decreased $11.9 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to lower sales and production volumes.

Previous wording

(1) The amounts above are gross of debt issuance costs of an aggregate amount of approximately $11.0 million.

Current wording

(1) The amounts above are gross of debt issuance costs of an aggregate amount of approximately $10.4 million.

Previous wording

The Company has a credit facility providing for a $1.25 billion multi-currency unsecured revolving credit facility (“Credit Facility”) that matures on December 19, 2027. In May 2025, the Company amended the Credit Facility with respect to the net leverage ratio financial covenant requirements for the remainder of 2025 and in the event of a future material acquisition. As of June 30, 2025, the Company had $375.0 million in outstanding borrowings under the revolving credit facility and had the ability to borrow $875.0 million.

Current wording

The Company has a credit facility providing for a $1.25 billion multi-currency unsecured revolving credit facility (“Credit Facility”) that matures on December 19, 2027. In May 2025, the Company amended the Credit Facility with respect to the net leverage ratio financial covenant requirements for the remainder of 2025 and in the event of a future material acquisition. As of September 30, 2025, the Company had $350.0 million in outstanding borrowings under the revolving credit facility and had the ability to borrow $900.0 million.

Previous wording

In addition, the Company has an uncommitted revolving credit facility that allows the Company to borrow up to €200.0 million (or approximately $234.3 million as of June 30, 2025). The credit facility expires on December 31, 2026. As of June 30, 2025, the Company had no outstanding borrowings under the revolving credit facility.

Current wording

In addition, the Company has an uncommitted revolving credit facility that allows the Company to borrow up to €200.0 million (or approximately $234.7 million as of September 30, 2025). The credit facility expires on December 31, 2026. As of September 30, 2025, the Company had no outstanding borrowings under the revolving credit facility.

Previous wording

The Company had redeemable noncontrolling interests of $304.3 million as of June 30, 2025 resulting from the PTx Trimble joint venture transaction, which may require the use of cash in certain instances, beginning in 2027. Refer to Note 2 of our Condensed Consolidated Financial Statements for further information.

Current wording

The Company had redeemable noncontrolling interests of $301.3 million as of September 30, 2025 resulting from the PTx Trimble joint venture transaction, which may require the use of cash in certain instances, beginning in 2027. Refer to Note 2 of our Condensed Consolidated Financial Statements for further information.

Previous wording

Our debt to capitalization ratio, which is total indebtedness divided by the sum of total indebtedness, excluding short-term borrowings due within one year, and stockholders’ equity, was 40.4% and 40.6% at June 30, 2025 and December 31, 2024, respectively.

Current wording

Our debt to capitalization ratio, which is total indebtedness divided by the sum of total indebtedness, excluding short-term borrowings due within one year, and stockholders’ equity, was 37.8% and 40.6% at September 30, 2025 and December 31, 2024, respectively.

Previous wording

(a) Includes amounts due from non-guarantor subsidiaries of $2,649.5 million and $2,189.6 million as of June 30, 2025 and December 31, 2024, respectively.

Current wording

(a) Includes amounts due from non-guarantor subsidiaries of $2,509.8 million and $2,189.6 million as of September 30, 2025 and December 31, 2024, respectively.

Previous wording

(b) Includes amounts due from non-guarantor subsidiaries of $107.1 million and $729.0 million as of June 30, 2025 and December 31, 2024, respectively.

Current wording

(b) Includes amounts due from non-guarantor subsidiaries of $107.3 million and $729.0 million as of September 30, 2025 and December 31, 2024, respectively.

Previous wording

(c) Includes amounts due to non-guarantor subsidiaries of $2,185.8 million and $1,972.8 million as of June 30, 2025 and December 31, 2024, respectively.

Current wording

(c) Includes amounts due to non-guarantor subsidiaries of $2,000.1 million and $1,972.8 million as of September 30, 2025 and December 31, 2024, respectively.

Previous wording

(d) Includes amounts due to non-guarantor subsidiaries of $1,561.3 million and $1,706.5 million as of June 30, 2025 and December 31, 2024, respectively.

Current wording

(d) Includes amounts due to non-guarantor subsidiaries of $1,557.2 million and $1,706.5 million as of September 30, 2025 and December 31, 2024, respectively.

Previous wording

(a) Includes intercompany revenues generated from non-guarantor subsidiaries of $2,338.4 million.

Current wording

(a) Includes intercompany revenues generated from non-guarantor subsidiaries of $3,554.3 million.

Previous wording

(a) Includes amounts due from non-guarantor subsidiaries of $2,313.2 million and $1,895.5 million as of June 30, 2025 and December 31, 2024, respectively.

Current wording

(a) Includes amounts due from non-guarantor subsidiaries of $2,127.5 million and $1,895.5 million as of September 30, 2025 and December 31, 2024, respectively.

Previous wording

(b) Includes amounts due from non-guarantor subsidiaries of $102.5 million and $729.0 million as of June 30, 2025 and December 31, 2024, respectively.

Current wording

(b) Includes amounts due from non-guarantor subsidiaries of $102.7 million and $729.0 million as of September 30, 2025 and December 31, 2024, respectively.

Previous wording

(c) Includes amounts due to non-guarantor subsidiaries of $2,066.0 million and $1,863.9 million as of June 30, 2025 and December 31, 2024, respectively.

Current wording

(c) Includes amounts due to non-guarantor subsidiaries of $1,848.6 million and $1,863.9 million as of September 30, 2025 and December 31, 2024, respectively.