AGCO CORP /DE

Previous wording

Our operations are subject to the cyclical and seasonal nature of the agricultural industry. Sales of our equipment are affected by, among other things, changes in farm income, farm land values and debt levels, financing costs, acreage planted, crop yields, weather conditions, the demand for agricultural commodities, commodity and protein prices, agricultural product demand and general economic conditions and government policies, tariffs and subsidies. We sell our equipment, precision agriculture technology and replacement parts to our independent dealers, distributors and other customers. A large majority of our sales are to independent dealers and distributors that sell our products to end users. To the extent practicable, we attempt to sell products to our dealers and distributors on a level basis throughout the year to reduce the effect of seasonal demands on our manufacturing operations and to minimize our investment in inventories. However, retail sales by dealers to farmers are highly seasonal and are a function of the timing of the planting and harvesting seasons. In certain markets, particularly in North America, there is often a time lag, which varies based on the timing and level of retail demand, between our sale of the equipment to the dealer and the dealer’s sale to a retail customer.

Current wording

Our operations are subject to the cyclical and seasonal nature of the agricultural industry. Sales of our equipment are affected by, among other things, changes in farm income, farm land values and debt levels, financing costs, acreage planted, crop yields, weather conditions, the demand for agricultural commodities, commodity and protein prices, agricultural product demand and general economic conditions and government policies, tariffs and subsidies. We sell our equipment, precision agriculture technology and replacement parts to our independent dealers, distributors and other customers. A large majority of our sales are to independent dealers and distributors that sell our products to end users. To the extent practicable, we attempt to sell products to our dealers and distributors on a level basis throughout the year to reduce the effect of seasonal demands on our manufacturing operations and to minimize our investment in inventories. However, retail sales by dealers to farmers are highly seasonal and are a function of the timing of the planting and harvesting seasons. In certain markets, there is often a time lag, which varies based on the timing and level of retail demand, between our sale of the equipment to the dealer and the dealer’s sale to a retail customer.

Previous wording

In 2025, the U.S. government implemented a series of tariffs on goods imported into the United States from various countries, and in many cases these measures resulted in reciprocal tariffs and other actions on goods exported from the United States. These tariffs and related actions are complex, continuously evolving and remain highly volatile as trade negotiations and legal challenges proceed. In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”), which the U.S. government had relied on to impose certain tariffs, does not authorize the administration to impose such tariffs. Following that decision, on March 4, 2026, the U.S. Court of International Trade (“CIT”) ordered U.S. Customs and Border Protection (“CBP”) to process refunds of tariffs imposed under IEEPA, and on March 27, 2026, the CIT issued an amended order expanding the scope of entries subject to reliquidation. On April 20, 2026, the Consolidated Administration and Processing of Entries system opened for the first phase of refund filings. We have submitted certain refund claims under this initial phase; however, these claims remain subject to CBP review, and we cannot predict the timing, amount or ultimate collectability of any refunds to which we may be entitled. The IEEPA tariffs refund process remains subject to CBP review, and the administration has appealed the CIT's refund order to the U.S. Court of Appeals for the Federal Circuit, contesting both the scope of the refund obligation and the reliquidation of finally liquidated entries for importers who have not filed individual lawsuits. It remains uncertain when, or to what extent, such refunds will ultimately be collected. Following the U.S. Supreme Court’s ruling, the administration has also imposed tariffs under alternative statutory authorities, the validity of which is also subject to legal challenge. As a result, the timing and extent of any refunds, the structure and scope of any new tariffs and the overall tariff framework remain uncertain and could create significant risks for our business. Depending on the countries affected, increases in tariffs have raised, and may continue to raise, the costs of inputs used in manufacturing our products, which in turn has impacted, and may further impact, our cost of goods sold. In addition, higher tariffs may lead to increased after‑tariff sales prices for the products we sell. Additionally, the economic uncertainty caused by the tariffs may result in customers delaying planned purchases of products and services. While impacts of the tariffs may be partially mitigated by the fact that a majority of our sales and manufacturing takes place outside the United States, there can be no guarantee that we will be able to fully offset the impact of existing or future tariffs through pricing, sourcing changes or other measures. Furthermore, retaliatory tariffs imposed by other countries on our exported products could negatively affect our…

Excerpt shortened here; the source contains the full paragraph.

Current wording

In 2025, the U.S. government implemented a series of tariffs on goods imported into the United States from various countries, and in many cases these measures resulted in reciprocal tariffs and other actions on goods exported from the United States. These tariffs and related actions are complex, continuously evolving and remain highly volatile as trade negotiations and legal challenges proceed. In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”), which the U.S. government had relied on to impose certain tariffs, does not authorize the administration to impose such tariffs. Following that decision, on March 4, 2026, the U.S. Court of International Trade (“CIT”) ordered U.S. Customs and Border Protection (“CBP”) to process refunds of tariffs imposed under IEEPA, and on March 27, 2026, the CIT issued an amended order expanding the scope of entries subject to reliquidation. On April 20, 2026, the Consolidated Administration and Processing of Entries (“CAPE”) system opened for the first phase of refund filings, and on June 29, 2026, CBP expanded CAPE to accept additional categories of entries. We have submitted refund claims under both phases and, as of the date of this report, have received refunds with respect to a portion of those claims. Certain other entries remain subject to refund procedures that CBP has not yet defined. Refunds received remain subject to CBP review and to the outcome of the administration’s appeal described below, and we could be required to repay some or all of the amounts received. The administration has appealed the CIT's refund order to the U.S. Court of Appeals for the Federal Circuit, contesting both the scope of the refund obligation and the reliquidation of finally liquidated entries for importers who have not filed individual lawsuits. Accordingly, we cannot predict the timing or amount of any additional refunds, or whether refunds already received will ultimately be retained. Following the U.S. Supreme Court’s ruling, the administration has also imposed tariffs under alternative statutory authorities, the validity of which is also subject to legal challenge. As a result, the timing and extent of any refunds, the structure and scope of any new tariffs and the overall tariff framework remain uncertain and could create significant risks for our business. Depending on the countries affected, increases in tariffs have raised, and may continue to raise, the costs of inputs used in manufacturing our products, which in turn has impacted, and may further impact, our cost of goods sold. In addition, higher tariffs may lead to increased after‑tariff sales prices for the products we sell. Additionally, the economic uncertainty caused by the tariffs may result in customers delaying planned purchases of products and services. While impacts of the tariffs may be partially mitigated by the fact that a majority of our sales and manufacturing takes place outside the United Stat…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

We depend on suppliers for components, parts and raw materials for our products, and any failure by our suppliers to provide products as needed, or by us to promptly address supplier issues, will adversely impact our ability to timely and efficiently manufacture and sell products. We cannot predict or control the impact of the conflicts in Ukraine or the Middle East on our business. These conflicts have already driven increased volatility across global energy, logistics and input markets, leading to higher fuel, fertilizer, transportation and input costs, as well as general uncertainty for farmers. In addition, the potential of future natural gas shortages in Europe, as well as predicted overall shortages in other energy sources, could also negatively impact our production and that of our supply chain in the future. There can be no assurance that there will not be future disruptions.

Current wording

We depend on suppliers for components, parts and raw materials for our products, and any failure by our suppliers to provide products as needed, or by us to promptly address supplier issues, will adversely impact our ability to timely and efficiently manufacture and sell products. We cannot predict or control the impact of the conflicts in Ukraine or the Middle East on our business. These conflicts have already driven increased volatility across global energy, logistics and input markets, leading to higher fuel, fertilizer, transportation and input costs, as well as general uncertainty for farmers. In addition, the potential of future natural gas shortages in Europe, as well as predicted overall shortages in other energy sources including diesel fuel, could also negatively impact our production and that of our supply chain in the future. There can be no assurance that there will not be future disruptions.

Previous wording

Net income attributable to AGCO Corporation for the three months ended June 30, 2026, was $77.2 million, or $1.08 per diluted share, compared to $314.8 million, or $4.22 per diluted share, for the three months ended June 30, 2025. Net income attributable to AGCO Corporation for the six months ended June 30, 2026, was $132.2 million, or $1.84 per diluted share, compared to $325.3 million, or $4.36 per diluted share, for the six months ended June 30, 2025.

Current wording

Net income attributable to AGCO Corporation for the three months ended September 30, 2026, was $51.7 million, or $0.75 per diluted share, compared to $305.7 million, or $4.09 per diluted share, for the three months ended September 30, 2025. Net income attributable to AGCO Corporation for the nine months ended September 30, 2026, was $183.9 million, or $2.59 per diluted share, compared to $631.0 million, or $8.45 per diluted share, for the nine months ended September 30, 2025.

Previous wording

Net sales during the three months ended June 30, 2026 were approximately $2,609.7 million, or 1.0% lower than the three months ended June 30, 2025, primarily due to lower sales volumes in the Europe/Middle East, Latin America and Asia/Pacific/Africa regions, most significantly in tractors and implements, partially offset by higher sales volumes in the North America region, most significantly in high-horsepower tractors and hay tools, and favorable currency translation. Income from operations was $140.7 million for the three months ended June 30, 2026 compared to $164.0 million in the three months ended June 30, 2025. The decrease in income from operations during 2026 was primarily the result of lower sales and production volumes, higher tariff-related costs, selling, general and administrative expenses (“SG&A expenses”) and engineering expenses, partially offset by the benefit of certain IEEPA tariff refunds recognized during the period.

Current wording

Net sales during the three months ended September 30, 2026 were approximately $2,262.5 million, or 8.6% lower than the three months ended September 30, 2025, primarily due to lower sales volumes in the Europe/Middle East and Latin America regions, most significantly in tractors, partially offset by higher sales volumes in the North America and Asia/Pacific/Africa regions, most significantly in high-horsepower tractors and hay tools. Income from operations was $116.1 million for the three months ended September 30, 2026 compared to $151.6 million in the three months ended September 30, 2025. The decrease in income from operations during 2026 was primarily the result of lower sales and production volumes, partially offset by lower selling, general and administrative expenses (“SG&A expenses”) and the benefit of certain IEEPA tariff refunds recognized during the period.

Previous wording

Net sales during the six months ended June 30, 2026 were approximately $4,952.6 million, or 5.7% higher than the six months ended June 30, 2025, primarily due to higher sales volumes in the North America, Europe/Middle East and Asia/Pacific/Africa regions, most significantly in high-horsepower tractors, and favorable currency translation, partially offset by lower sales volumes in Latin America, most significantly in tractors, implements and combines. Income from operations was $221.4 million for the six months ended June 30, 2026 compared to $213.4 million in the six months ended June 30, 2025. The increase in income from operations during 2026 was primarily the result of higher sales and production volumes, partially offset by higher tariff-related costs, SG&A expenses and engineering expenses.

Current wording

Net sales during the nine months ended September 30, 2026 were approximately $7,215.1 million, or 0.7% higher than the nine months ended September 30, 2025, primarily due to favorable currency translation and higher sales volumes in the North America and Asia/Pacific/Africa regions, most significantly in high-horsepower tractors and hay tools, partially offset by lower sales volumes in the Europe/Middle East and Latin America regions, most significantly in tractors, implements and combines. Income from operations was $337.5 million for the nine months ended September 30, 2026 compared to $365.0 million in the nine months ended September 30, 2025. The decrease in income from operations during 2026 was primarily the result of lower sales and production volumes, higher tariff-related costs and engineering expenses, partially offset by lower SG&A expenses and the benefit of certain IEEPA tariff refunds recognized during the period.

Previous wording

We estimate that worldwide average price increases were approximately 2.2% and 0.1% for the three months ended June 30, 2026 and 2025, respectively, and 1.9% and 0.0% for the six months ended June 30, 2026 and 2025, respectively. Consolidated net sales of tractors and combines, which comprised approximately 67.7% and 67.4% of our net sales for the three and six months ended June 30, 2026, respectively, increased (decreased) approximately (1.5)% and 7.7% compared to the same periods in 2025.

Current wording

We estimate that worldwide average price increases were approximately 0.3% and 1.4% for the three months ended September 30, 2026 and 2025, respectively, and 1.3% and 0.4% for the nine months ended September 30, 2026 and 2025, respectively. Consolidated net sales of tractors and combines, which comprised approximately 64.5% and 66.5% of our net sales for the three and nine months ended September 30, 2026, respectively, decreased approximately 14.0% and remained consistent with the corresponding prior-year periods.

Previous wording

Overall, global production hours increased (decreased) approximately (1.0)% and 6.2% during the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, reflecting our response to end market demand.

Current wording

Overall, global production hours decreased approximately 19.4% and 2.3% during the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, reflecting our response to end market demand.

Previous wording

Gross profit as a percentage of net sales decreased during the three months ended June 30, 2026 compared to the same period in 2025, primarily due to lower production volumes. Gross profit as a percentage of net sales decreased during the six months ended June 30, 2026 compared to the same period in 2025, primarily due to higher manufacturing costs, including increased tariff-related costs.

Current wording

Gross profit as a percentage of net sales decreased during the three and nine months ended September 30, 2026 compared to the same periods in 2025, primarily due to lower production volumes and higher manufacturing costs, including increased tariff-related costs.

Previous wording

SG&A expenses, as a percentage of net sales, were higher during the three months ended June 30, 2026 compared to the same period in 2025 as net sales decreased at a faster rate than SG&A expenses. SG&A expenses, as a percentage of net sales, were lower during the six months ended June 30, 2026 compared to the same period in 2025 as net sales increased at a faster rate than SG&A expenses. The absolute level of SG&A expenses increased during the three and six months ended June 30, 2026 primarily due to foreign currency translation. We recorded $17.1 million and $27.4 million of stock compensation expense within SG&A expenses during the three and six months ended June 30, 2026, respectively, compared to $10.3 million and $17.4 million during the same periods in 2025.

Current wording

SG&A expenses, as a percentage of net sales, were lower during the three months ended September 30, 2026 compared to the same period in 2025 as SG&A expenses fluctuated at a faster rate than net sales declined. SG&A expenses, as a percentage of net sales, were lower during the nine months ended September 30, 2026 compared to the same period in 2025 as SG&A expenses decreased despite a modest increase in net sales. The absolute level of SG&A expenses decreased during the three and nine months ended September 30, 2026 primarily due to cost reduction efforts and lower compensation costs. We recorded $6.5 million and $33.9 million of stock compensation expense within SG&A expenses during the three and nine months ended September 30, 2026, respectively, compared to $6.9 million and $24.3 million during the same periods in 2025.

Previous wording

Engineering expenses, as a percentage of net sales, were higher during the three and six months ended June 30, 2026 compared to the same periods in 2025 as net sales fluctuated at a slower rate than engineering expenses. The absolute value of engineering expenses increased during the three and six months ended June 30, 2026 driven by an increase in product innovation and other technology investments.

Current wording

Engineering expenses remained relatively consistent during the three months ended September 30, 2026 and increased during the nine months ended September 30, 2026 driven by an increase in product innovation and other technology investments.

Previous wording

No impairment charges were recorded during the three months ended June 30, 2026, and impairment charges of $2.1 million were recorded during the six months ended June 30, 2026, compared to $6.8 million and $7.9 million recorded during the three and six months ended June 30, 2025, respectively, related to the impairment of certain other assets.

Current wording

No impairment charges were recorded during the three months ended September 30, 2026, and impairment charges of $2.1 million were recorded during the nine months ended September 30, 2026, compared to $(0.6) million and $7.3 million recorded during the three and nine months ended September 30, 2025, respectively, related to the impairment of certain other assets.

Previous wording

We recorded restructuring and business optimization expenses of $11.2 million and $21.2 million during the three and six months ended June 30, 2026, respectively, compared to $15.6 million and $28.6 million during the same periods in 2025. The Company announced a restructuring program (the “Program”) in response to increased weakening demand in the agriculture industry in 2024. The Company incurred a substantial portion of the charges by the end of fiscal year 2025. The restructuring expenses recorded during the three and six months ended June 30, 2026 and 2025 primarily related to severance, business optimization and other related costs associated with the Company's Program. Refer to Note 8 of our Condensed Consolidated Financial Statements for further information.

Current wording

We recorded restructuring and business optimization expenses of $6.5 million and $27.7 million during the three and nine months ended September 30, 2026, respectively, compared to $8.7 million and $37.3 million during the same periods in 2025. The Company announced a restructuring program (the “Program”) in response to increased weakening demand in the agriculture industry in 2024. The Company incurred a substantial portion of the charges by the end of fiscal year 2025. The restructuring expenses recorded during the three and nine months ended September 30, 2026 and 2025 primarily related to severance, business optimization and other related costs associated with the Company's Program. Refer to Note 8 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 Grain & Protein business.

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 Grain & Protein business.

Previous wording

Interest expense, net was $17.0 million and $32.2 million for the three and six months ended June 30, 2026, respectively, compared to $17.8 million and $36.3 million for the comparable periods in 2025, resulting primarily from a decrease in interest expense related to lower borrowings on the Company's Credit Facility. Refer to “Liquidity and Capital Resources” for further information on our available funding.

Current wording

Interest expense, net was $14.7 million and $46.9 million for the three and nine months ended September 30, 2026, respectively, compared to $15.5 million and $51.8 million for the comparable periods in 2025, resulting primarily from a decrease in interest expense related to lower borrowings on the Company's Credit Facility. Refer to “Liquidity and Capital Resources” for further information on our available funding.

Previous wording

Other expense, net was $15.5 million and $42.0 million for the three and six months ended June 30, 2026, respectively, compared to $48.9 million and $81.2 million for the comparable periods in 2025. The decrease was primarily driven by a decrease in foreign currency exchange losses which were approximately $6.8 million and $12.0 million for the three and six months ended June 30, 2026, compared to $28.6 million and $42.2 million for the comparable periods in 2025. On April 30, 2026, the Company executed an Interests Purchase Agreement and Share Purchase Agreement (collectively the “Agreements”) with wholly owned subsidiaries of Rabobank to sell its 49% equity interests in the joint ventures in the U.S. and Canada, AGCO Finance LLC and AGCO Finance Canada, Ltd. (collectively the “North America AGCO Finance joint ventures”), respectively, for aggregate consideration of approximately $188.4 million. In connection with the Agreements, the Company entered into Financing Framework Agreements with wholly owned subsidiaries of Rabobank, which establish the commercial terms governing the future provision of financing solutions to dealers and farmers for those markets. Approximately $20.0 million of the total consideration, representing the estimated future net earnings associated with the run-off of the North America AGCO Finance portfolios existing as of the transaction date, was recognized in “Other expense, net” during the three and six months ended June 30, 2026. 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 $21.1 million and $39.7 million, for the three and six months ended June 30, 2026, compared to $19.8 million and $38.7 million for the comparable periods in 2025.

Current wording

Other expense (income), net was $33.3 million and $75.3 million for the three and nine months ended September 30, 2026, respectively, compared to $(208.4) million and $(127.2) million for the comparable periods in 2025. Foreign currency exchange losses were approximately $7.4 million and $19.4 million for the three and nine months ended September 30, 2026, compared to $18.4 million and $60.6 million for the comparable periods in 2025. On April 30, 2026, the Company executed an Interests Purchase Agreement and Share Purchase Agreement (collectively the “Agreements”) with wholly owned subsidiaries of Rabobank to sell its 49% equity interests in the joint ventures in the U.S. and Canada, AGCO Finance LLC and AGCO Finance Canada, Ltd. (collectively the “North America AGCO Finance joint ventures”), respectively, for aggregate consideration of approximately $188.4 million. In connection with the Agreements, the Company entered into Financing Framework Agreements with wholly owned subsidiaries of Rabobank, which establish the commercial terms governing the future provision of financing solutions to dealers and farmers for those markets. Approximately $20.0 million of the total consideration, representing the estimated future net earnings associated with the run-off of the North America AGCO Finance portfolios existing as of the transaction date, was recognized in “Other expense (income), net” during the nine months ended September 30, 2026. 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 $20.5 million and $60.2 million, for the three and nine months ended September 30, 2026, respectively, compared to $21.9 million and $60.6 million for the comparable periods in 2025. 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.”

Previous wording

We recorded an income tax provision (benefit) of $40.4 million and $45.0 million for the three and six months ended June 30, 2026, respectively, compared to $(205.5) million and $(203.5) million for the three and six months ended June 30, 2025. 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.

Current wording

We recorded an income tax provision (benefit) of $25.2 million and $70.2 million for the three and nine months ended September 30, 2026, respectively, compared to $48.8 million and $(154.7) million for the three and nine months ended September 30, 2025. 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. Our effective tax rates for the three and nine months ended September 30, 2026, were higher than the comparable periods in 2025, primarily due to tax benefits recognized in 2025 associated with a legal entity reorganization. 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.

Previous wording

Equity in net earnings of affiliates, which is primarily comprised of income from our AGCO Finance joint ventures, was $7.0 million and $25.0 million for the three and six months ended June 30, 2026, respectively, compared to $11.6 million and $23.7 million for the three and six months ended June 30, 2025.

Current wording

Equity in net earnings of affiliates, which is primarily comprised of income from our AGCO Finance joint ventures, was $7.1 million and $32.1 million for the three and nine months ended September 30, 2026, respectively, compared to $7.0 million and $30.7 million for the three and nine months ended September 30, 2025.

Previous wording

The Company recorded a net loss attributable to noncontrolling interests of $2.4 million and $5.0 million during the three and six months ended June 30, 2026, respectively, compared to $0.4 million and $2.2 million recorded during the three and six months ended June 30, 2025. 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 $1.7 million and $6.7 million during the three and nine months ended September 30, 2026, respectively, compared to $3.0 million and $5.2 million recorded during the three and nine months ended September 30, 2025. 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

Net sales in EME decreased in the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to sales volume decreases, most significantly in high-horsepower and mid-range tractors, partially offset by favorable foreign currency translation. Income from operations for the three months ended June 30, 2026 was approximately flat compared to the three months ended June 30, 2025, despite lower sales.

Current wording

Net sales in EME decreased in the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to sales volume decreases, most significantly in high-horsepower tractors, and unfavorable foreign currency translation. Income from operations decreased $115.1 million in the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to lower sales and production volumes.

Previous wording

Net sales decreased in APA in the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to sales volume decreases, most significantly in high-horsepower and mid-range tractors, partially offset by favorable foreign currency translation. Despite lower sales, income from operations for the three months ended June 30, 2026 was approximately flat compared to the three months ended June 30, 2025.

Current wording

Net sales in EME decreased in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to sales volume decreases, most significantly in high-horsepower and mid-range tractors, partially offset by favorable foreign currency translation. Income from operations decreased $11.6 million in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily as a result of lower sales and production volumes and higher engineering expenses, partially offset by favorable product mix.

Previous wording

Net sales in North America increased in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to sales volume increases, most significantly in high-horsepower tractors and hay tools. Loss from operations increased $26.1 million in the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to higher tariff-related costs partially offset by higher sales and production volumes.

Current wording

Net sales in North America increased in the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to sales volume increases, most significantly in high-horsepower and mid-range tractors, replacement parts and hay tools. Income from operations increased $55.8 million in the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to higher sales and production volumes and the benefit of certain IEEPA tariff refunds recognized during the period.

Previous wording

Net sales in North America increased in the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to sales volume increases, most significantly in high-horsepower tractors and hay tools. Loss from operations for the three months ended June 30, 2026 was approximately flat compared to the three months ended June 30, 2025, primarily due to higher tariff-related costs, partially offset by the benefit of certain IEEPA tariff refunds recognized during the period.

Current wording

Net sales in North America increased in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to sales volume increases, most significantly in high-horsepower tractors and hay tools. Income from operations increased $29.7 million in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to the benefit of certain IEEPA tariff refunds recognized during the period and higher sales and production volumes, partially offset by higher tariff-related costs.

Previous wording

Net sales decreased in LATAM in the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to sales volume declines, most significantly in tractors, implements and combines, partially offset by favorable foreign currency translation. Income from operations decreased $48.7 million in the three months ended June 30, 2026 compared to the three months ended June 30, 2025, as a result of lower sales and production volumes and higher engineering expenses.

Current wording

Net sales decreased in LATAM in the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to sales volume declines, most significantly in tractors, sprayers, implements and combines, partially offset by favorable foreign currency translation. Income from operations decreased $13.0 million in the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily as a result of lower sales and production volumes.

Previous wording

Net sales decreased in LATAM in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to sales volume declines, most significantly in tractors, implements and combines, and negative pricing impacts, partially offset by favorable foreign currency translation. Income from operations decreased $96.1 million in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, as a result of lower sales and production volumes, higher engineering expenses and negative pricing impacts.

Current wording

Net sales decreased in LATAM in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to sales volume declines, most significantly in tractors, implements, combines and replacement parts, and negative pricing impacts, partially offset by favorable foreign currency translation. Income from operations decreased $109.1 million in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily as a result of lower sales and production volumes, higher engineering expenses and negative pricing impacts.

Previous wording

Net sales increased in APA in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to sales volume increases, most significantly in high-horsepower tractors, combines and sprayers, and favorable foreign currency translation. Income from operations increased $7.6 million in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to higher sales and production volumes.

Current wording

Net sales increased in APA in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to sales volume increases, most significantly in high-horsepower tractors, combines and sprayers, and favorable foreign currency translation. Income from operations increased $24.8 million in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to higher sales, favorable product mix and lower SG&A expenses, primarily due to reduced bad debt expense.

Previous wording

(1) The amounts above are gross of debt issuance costs of an aggregate amount of approximately $8.4 million.

Current wording

(1) The amounts above are gross of debt issuance costs of an aggregate amount of approximately $7.7 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. As of June 30, 2026, the Company had $290.0 million in outstanding borrowings under the revolving credit facility and had the ability to borrow $960.0 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. As of September 30, 2026, the Company had $254.4 million in outstanding borrowings under the revolving credit facility and had the ability to borrow $995.6 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 $228.0 million as of June 30, 2026). The credit facility expires on December 31, 2026. As of June 30, 2026, 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 $227.1 million as of September 30, 2026). The credit facility expires on December 31, 2026. As of September 30, 2026, the Company had no outstanding borrowings under the revolving credit facility.

Previous wording

To better align with evolving market dynamics and increasing regulatory and compliance requirements, on April 30, 2026, the Company executed an Interests Purchase Agreement and Share Purchase Agreement (collectively the “Agreements”) with wholly owned subsidiaries of Rabobank to sell its 49% equity interests in the joint ventures in the U.S. and Canada, AGCO Finance LLC and AGCO Finance Canada, Ltd. (collectively the “North America AGCO Finance joint ventures”), respectively, for aggregate consideration of approximately $188.4 million. The consideration consisted of (i) approximately $168.4 million, representing the carrying value of the Company's equity interests in the North America AGCO Finance joint ventures, previously included in “Investments in affiliates” on the Company's Condensed Consolidated Balance Sheets, and (ii) approximately $20.0 million, representing the estimated future net earnings associated with the run-off of the North America AGCO Finance portfolios existing as of the transaction date, which was recognized in “Other expense, net” within the Company's Condensed Consolidated Statements of Operations during the three and six months ended June 30, 2026. The proceeds were used as a source of funding for the Company's most recent share repurchase program executed in the second quarter of 2026. In connection with the Agreements, the Company entered into Financing Framework Agreements with wholly owned subsidiaries of Rabobank, which establish the commercial terms governing the future provision of financing solutions to dealers and farmers for those markets. The Company will continue to evaluate similar agreements in respect of other joint ventures with wholly owned subsidiaries of Rabobank in the future. This structural evolution strengthens the Company’s Farmer‑First strategy, ensures continued access to competitive financing offerings, and allows AGCO and Rabobank and its subsidiaries to more effectively address increasing regulatory and compliance requirements.

Current wording

To better align with evolving market dynamics and increasing regulatory and compliance requirements, on April 30, 2026, the Company executed an Interests Purchase Agreement and Share Purchase Agreement (collectively the “Agreements”) with wholly owned subsidiaries of Rabobank to sell its 49% equity interests in the joint ventures in the U.S. and Canada, AGCO Finance LLC and AGCO Finance Canada, Ltd. (collectively the “North America AGCO Finance joint ventures”), respectively, for aggregate consideration of approximately $188.4 million. The consideration consisted of (i) approximately $168.4 million, representing the carrying value of the Company's equity interests in the North America AGCO Finance joint ventures, previously included in “Investments in affiliates” on the Company's Condensed Consolidated Balance Sheets, and (ii) approximately $20.0 million, representing the estimated future net earnings associated with the run-off of the North America AGCO Finance portfolios existing as of the transaction date, which was recognized in “Other expense (income), net” within the Company's Condensed Consolidated Statements of Operations during the nine months ended September 30, 2026. The proceeds were used as a source of funding for the Company's most recent share repurchase program executed in the second quarter of 2026. In connection with the Agreements, the Company entered into Financing Framework Agreements with wholly owned subsidiaries of Rabobank, which establish the commercial terms governing the future provision of financing solutions to dealers and farmers for those markets. The Company will continue to evaluate similar agreements in respect of other joint ventures with wholly owned subsidiaries of Rabobank in the future. This structural evolution strengthens the Company’s Farmer‑First strategy, ensures continued access to competitive financing offerings, and allows AGCO and Rabobank and its subsidiaries to more effectively address increasing regulatory and compliance requirements.

Previous wording

The Company had redeemable noncontrolling interests of $292.4 million as of June 30, 2026 resulting from the PTx Trimble joint venture transaction, which may require the use of cash in certain instances, beginning in 2027.

Current wording

The Company had redeemable noncontrolling interests of $290.4 million as of September 30, 2026 resulting from the PTx Trimble joint venture transaction, which may require the use of cash in certain instances, beginning in 2027.

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 39.3% and 35.8% at June 30, 2026 and December 31, 2025, 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 39.0% and 35.8% at September 30, 2026 and December 31, 2025, respectively.

Previous wording

(a) Includes amounts due from non-guarantor subsidiaries of $2,776.9 million and $2,628.9 million as of June 30, 2026 and December 31, 2025, respectively.

Current wording

(a) Includes amounts due from non-guarantor subsidiaries of $2,246.3 million and $2,628.9 million as of September 30, 2026 and December 31, 2025, respectively.

Previous wording

(b) Includes amounts due from non-guarantor subsidiaries of $280.3 million and $108.2 million as of June 30, 2026 and December 31, 2025, respectively.

Current wording

(b) Includes amounts due from non-guarantor subsidiaries of $276.7 million and $108.2 million as of September 30, 2026 and December 31, 2025, respectively.

Previous wording

(c) Includes amounts due to non-guarantor subsidiaries of $2,445.5 million and $2,557.6 million as of June 30, 2026 and December 31, 2025, respectively.

Current wording

(c) Includes amounts due to non-guarantor subsidiaries of $1,956.2 million and $2,557.6 million as of September 30, 2026 and December 31, 2025, respectively.

Previous wording

(d) Includes amounts due to non-guarantor subsidiaries of $1,861.1 million and $1,556.0 million as of June 30, 2026 and December 31, 2025, respectively.

Current wording

(d) Includes amounts due to non-guarantor subsidiaries of $1,860.1 million and $1,556.0 million as of September 30, 2026 and December 31, 2025, respectively.

Previous wording

(a) Includes intercompany revenues generated from non-guarantor subsidiaries of $2,627.3 million.

Current wording

(a) Includes intercompany revenues generated from non-guarantor subsidiaries of $3,570.6 million.

Previous wording

(a) Includes amounts due from non-guarantor subsidiaries of $2,420.3 million and $2,329.1 million as of June 30, 2026 and December 31, 2025, respectively.

Current wording

(a) Includes amounts due from non-guarantor subsidiaries of $1,902.8 million and $2,329.1 million as of September 30, 2026 and December 31, 2025, respectively.

Previous wording

(b) Includes amounts due from non-guarantor subsidiaries of $274.7 million and $102.6 million as of June 30, 2026 and December 31, 2025, respectively.

Current wording

(b) Includes amounts due from non-guarantor subsidiaries of $273.7 million and $102.6 million as of September 30, 2026 and December 31, 2025, respectively.

Previous wording

(c) Includes amounts due to non-guarantor subsidiaries of $2,306.1 million and $2,368.1 million as of June 30, 2026 and December 31, 2025, respectively.

Current wording

(c) Includes amounts due to non-guarantor subsidiaries of $1,810.5 million and $2,368.1 million as of September 30, 2026 and December 31, 2025, respectively.