AGCO Corporation

AGCO operates with geography-based reportable segments: Europe/Middle East (EME), North America, South America and Asia/Pacific/Africa (APA), and it sells based on the location of the third-party customer. The dealer/distributor network is densest in North America and Europe, and Europe represented the largest share of net sales in 2025 based on dealer/distributor disclosures. A majority of AGCO’s sales and manufacturing occur outside the United States, which increases exposure to foreign laws, tariffs, taxes, labor conditions and political and economic volatility. Currency translation can meaningfully affect reported net sales by segment, and trade policy/tariff actions (including steel/aluminum and China-related tariffs) add uncertainty to costs and demand in cross-border supply chains.

Demand for AGCO’s equipment is cyclical and tied to farm income, commodity prices and broader economic conditions; in downturns, customers may delay capital purchases and financing becomes harder or more expensive to obtain. The business model relies on independent dealers and distributors for retail sales and service, so dealer financial health and competitive dynamics can directly affect market access and pricing. AGCO’s finance joint ventures carry credit and residual value risk through dealer/retail receivables and leased equipment, and AGCO may be exposed through residual value guarantees if used equipment prices fall. With a majority of sales and manufacturing outside the U.S., AGCO faces foreign regulatory, tariff, tax, labor and political risks, plus currency translation volatility. Increasingly stringent emissions and environmental regulations and expanding climate-related disclosure requirements can raise compliance costs and create litigation/reputational risk if disclosures are challenged.