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Tractor Maker Agco Sees Farm Rebound Beginning This Year
Farmers Need to Update, and Are Retrofitting Existing Equipment With AI-Packed Components
A long-awaited recovery in the farm sector appears to be in sight as Agco Corp., one of the world鈥檚 biggest agriculture equipment makers, is predicting an increase in sales for the first time in three years in 2026.听
The manufacturer of Massey Ferguson and Fendt tractors estimated net sales just above last year, according to a Feb. 5 statement. While the sale of new machines is set to remain sluggish, growers need to update soon and are increasingly retrofitting existing equipment with artificial intelligence-packed components that help them more precisely plant, treat and harvest fields.听
鈥淭he future looks brighter,鈥 CEO Eric Hansotia said on a call with investors. 鈥淭wo thousand and twenty-five was the bottom of the trough, and the fleets in our major markets are at the peak of their age.鈥
Shares rose as much as 5.6%, the highest in two years, before later falling.
The optimism also comes after data earlier this week showed plummeting sentiment among farmers as disrupted soybean exports limit cashflows. President Donald Trump raised hopes Feb. 4 when he said China was considering buying more than an initial 12 million tons of U.S. soybeans. However, even if China bought additional cargoes, targeted volumes would likely still be below recent years.听
Meanwhile, a tranche of $12 billion in听aid听to U.S. farmers has yet to translate to sales for Agco, Chief Financial Officer Damon Audia said on the call.听
Sales Bump
For 2026, net sales could rise to between $10.4 billion and $10.7 billion, Agco said. That鈥檚 above a Bloomberg estimate of $10.07 billion and surpasses sales in the year ended Dec. 31 of $10.08 billion.
Fourth-quarter earnings also topped analyst estimates. 鈥淎gco delivered a strong top- and bottom-line beat to finish 2025,鈥 Oppenheimer analyst Kristen Owen said in a note.
The company kicked off the earnings cycle ahead of bigger rivals Deere & Co. and CNH Industrial NV, which are expected to report in the weeks ahead.听
Hansotia said Agco is expanding its market share with the help of its precision-agriculture PTx brand as well as its higher-end Fendt line of machines. Having parts that work on different equipment brands 鈥渞emains an absolute clear differentiator,鈥 he said.
