On this page of StockholderLetter.com we present the latest annual shareholder letter from AGCO CORP /DE — ticker symbol AGCO. Reading current and past AGCO letters to shareholders can bring important insights into the investment thesis.

 •  3/24/2025 Letter Continued (Full PDF)
 •  3/27/2023 AGCO Stockholder Letter
 •  3/25/2024 AGCO Stockholder Letter
 •  More "Industrial Machinery & Equipment" Category Stockholder Letters
 •  AGCO Benford's Law Stock Score = 97

AGCO Shareholder/Stockholder Letter Transcript:

Farmer First
TRANSFORMING
the Future of Farming
2024 Annual Report

As the largest pure-play farm equipment manufacturer
in the world, we put farmers first by providing solutions
that enable productivity, profitability and sustainability.
2024 AT-A-GLANCE
MULTIBRAND FOCUS
$11.7B
$493M
~24,000
2,700
Annual revenue
Research and
development spend
Global employees
Independent dealers
and distributors in
140 countries
FINANCIAL HIGHLIGHTS (In millions, except for share amounts)
2022
2023
2024
2022
* Refer to the Reconciliation of Non-GAAP Measures.
2024
$7.50
$297
$450
$15.55
$12.42
$1,043
2023
FREE CASH FLOW*
$585
ADJUSTED EARNINGS
PER SHARE*
$1,732
$1,308
$11,662
ADJUSTED OPERATING INCOME*
$14,412
$12,651
NET SALES
2022
2023
2024
2022
2023
2024

We stand shoulder-to-shoulder
with farmers with differentiated
machinery and innovative
technology, while providing
exceptional value as we
structurally change to become a
higher-performing company.   
     Eric P. Hansotia, Chairman, President
and Chief Executive Officer
Dear fellow shareholders,
employees, customers
and dealers:
It was another transformational year for AGCO in 2024
    our most significant yet as we structurally changed
the business to build the foundation for a more resilient,
sustainable and profitable company. The headline event was
closing the largest ag technology deal in history to create
the PTx Trimble joint venture, which was quickly merged
with our Precision Planting business to form PTx     now
an industry-leading portfolio of mixed fleet, precision ag
technologies and solutions.
industrywide correction in 2024, restructuring the portfolio
and driving operational efficiency enabled us to deliver an
adjusted operating margin of 8.9%, well above previous
downturns. In fact, it was the fourth-best adjusted operating
margin in AGCO's history. That performance confirms our
confidence that our work to structurally transform the
company is gaining momentum. We are delivering on our
commitment to relentlessly create value for both farmers
and shareholders alike.
We also completed the divesture of a majority of our
Grain & Protein business, better positioning us to focus
solely on agricultural equipment and precision ag
technology products in support of long-term, high-growth,
high-margin opportunities. While undertaking these
actions to drive future growth and profitability, the industry
downturn also prompted us to adapt with a new mindset
around operational efficiency, just as our farmers must
do in a down market. We made big strides to take cost out
of the organization in the near term while also launching
a longer-term comprehensive rewiring of the company,
structurally changing our baseline and how we work to
create a more agile and resilient enterprise.
Precision technology to solve ag challenges
In recent years, AGCO   s Farmer-First focus has fueled
significant improvements in adjusted operating margins.
That progress has lifted us from a company that in the
past ranged from around 4% adjusted operating margins
at trough, to around 8% at the top of the cycle. Despite an
Standing shoulder-to-shoulder with the farmers we serve,
AGCO is a leader in offering precision technology to solve
the toughest problems in agriculture. PTx is the next
chapter of that story and represents a massive leap forward
to position us as the leader in precision ag technologies and
solutions for mixed fleets.
Innovation is at the heart of everything we do; since 2019,
our new patent applications have grown nearly 60%, with
a record number of filings across the company in 2024.
The case for these innovative solutions has never been
clearer: Globally, the farmer is facing increasing challenges.
Population growth is matched by an increasing demand for
more meat in the diet as economies mature. Meanwhile, the
demand for ethanol and other biofuels continues to grow.
These trends mean farmers must create more grain, even
as they are pressured to do so with fewer inputs. Precision
technology is the most effective option to bridge the gap.
AGCO 2024 Annual Report
1

This challenge cannot be addressed by offering precision
solutions solely on new equipment. That is why AGCO,
uniquely, has a retrofit-first mindset aligned with the
needs of all farmers     no matter the vintage or brand of
their equipment.
This includes exciting solutions like PTx Trimble OutRun   ,
a fully autonomous retrofit kit that allows tractors,
including older models, to pull grain carts without drivers
during harvest, and Precision Planting   s SymphonyVision
targeted spraying system, which employs cameras to
intelligently adjust the application of herbicide to target
only weeds and not crops. We also see a compelling need
to provide a single data platform for farmers to manage all
field work across their mixed fleets and plan to bring our
complete offering to market in 2027. Backed by accelerating
innovation, global expansion and continued development of
our channel, we expect to grow our precision ag sales to
$2 billion by 2029.
WE OFFER A PORTFOLIO THAT DELIVERS BENEFITS
ACROSS THE GROWING CYCLE.
ENABLERS
PLAN / PREP
HARVESTING
PLANTING
CROP
PROTECTION
NUTRIENT
MANAGEMENT
Fendt: Continuing the transformation into a
full-line, global brand
Another growth pillar of our Farmer-First strategy is the
globalization and full-line product rollout of our Fendt
premium brand. Fendt is designed to meet the needs of the
most demanding farmers in the marketplace. We are well
on our way toward unlocking Fendt   s full potential     having
grown sales in North and South America from $300 million
in 2020 to $1 billion plus in 2024. What began as a European
tractor business is now a global, full product line offering
including planters, sprayers, combines and hay equipment    
along with technology solutions. Fendt has introduced some
of the most innovative equipment in the industry, including
the award-winning Fendt   600 Vario   Series tractor in North
America, and the Fendt Momentum   30-Foot Planter, which
brings advanced planting benefits to smaller farms.
Fendt   s reach into new global markets has expanded
rapidly. In just four years we have increased dealer
coverage in South America from zero to around 80%, and in
North America from 40% to 80%. Today we are focused on
strengthening awareness of the Fendt brand to penetrate
more deeply in areas where we already have coverage.
These initiatives, coupled with a robust pipeline of products
under development, position us to achieve our goal of
$1.7 billion in Fendt sales by 2029.
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AGCO 2024 Annual Report
Global parts: Resilient, profitable and growing
The third growth pillar of the AGCO Farmer-First strategy is
maximizing opportunities in global parts. AGCO   s approach
is straightforward: offer the right parts in the right place
with fill rates that consistently lead the industry. In 2024, we
increased the percentage of orders fulfilled from available
inventory across all four regions. E-commerce is playing an
increasing role and offers a host of benefits. Farmers enjoy
placing orders on their terms and on their schedule. This
also leads to larger orders     about 25% larger on average.
Notably, parts remains the highest-margin part of our
business, and it continues to grow throughout all market
conditions. We are on track to increase e-commerce to
25% of parts sales and to grow the parts business from
$1.8 billion in 2024 to approximately $2.3 billion in net
sales by 2029.
FarmerCore: To get even closer to farmers
Another important milestone in our transformational
journey was the 2024 launch of FarmerCore, an entirely
new approach to distribution focused on uptime. Initially
launched in North and South American markets,
FarmerCore is all about bringing the business to the
farmer instead of requiring them to come to us. That
means allowing farmers to research, buy and finance
their machines, order parts and get equipment serviced

at their location versus a dealer location. It emphasizes
mobile, on-farm solutions, utilizing high-capability service
trucks that can perform the same services as a traditional
brick-and-mortar facility. And it is all enabled through a
full suite of digital solutions. Farmers tell us they love the
flexibility and convenience of this new approach     one
that is unique in our industry.
Leveraging innovation to drive
operational efficiency
In 2024, faced with a weaker demand environment, we took
decisive actions to address expenses, including reducing
production hours by 28%. At the same time, we began
structurally changing AGCO's operations to a higherperforming company, regardless of cycles. One way we will
achieve this better, simpler and faster way of working is
through technology with tools like artificial intelligence and
automation to simplify and standardize our work. Through
all these actions, we made the difficult decision to downsize
our global salaried workforce by approximately 6%.
An efficient organization also is one that operates
sustainably and responsibly to create long-term value. We
are especially proud of our progress in improving safety    
driving down our total case incident rate by more than 50%
from 2023 to 0.89 in 2024     a world-class performance
and the best in our company   s history. Additionally, 71% of
locations reported zero recordable injuries, which is truly
outstanding. We like to say AGCO is where extraordinary
grows, and the hard work, dedication and commitment to
excellence of one global AGCO team allows us to deliver
even more value to farmers.
Looking forward: A more resilient AGCO built to
prosper in every environment
That value for farmers is never more critical than during
downturns. Market corrections are normal, even inevitable,
in our industry, and we expect weaker demand will likely
persist in 2025 before the cycle turns. The transformative
measures we undertook across the business in 2024 created
a more resilient AGCO     both for the coming year and
through the full market cycle. Our confidence in this
approach has led us to raise our 2029 target adjusted
operating margin to a 14%-15% range at mid-cycle. We
remain deeply committed to ongoing value creation and
to returning value to shareholders, with approximately
$1.8 billion returned over the last five years.
AGCO is at the forefront of the technology-driven
revolution that is rapidly transforming the agriculture
industry     enabling farmers to be more productive than
ever in history. We stand shoulder-to-shoulder with
farmers with differentiated machinery and innovative
technology, while providing exceptional value as we
structurally change to become a higher-performing
company. We are excited to continue     and accelerate    
that transformation, working relentlessly to grow value
for farmers and all our stakeholders.
Sincerely,
Eric P. Hansotia
Chairman, President and Chief Executive Officer
AGCO 2024 Annual Report
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 3/24/2025 Letter Continued (Full PDF)