Highlights

  • AGCO shows 446.20% basic EPS growth, a P/E of 14.55 and PEG of -0.53.
  • Second quarter net income attributable to AGCO was $77.2 million, against $314.8 million.
  • Net sales were $2,609.7 million in the second quarter, 1.0% lower than a year earlier.
  • AGCO entered a $293.0 million accelerated share repurchase in May; $439.9 million remains authorized.

AGCO (NYSE:AGCO) reported second quarter 2026 net income attributable to AGCO of $77.2 million, and the undervalued growth stock figures read 446.20% one-year growth in basic earnings per share, a trailing twelve-month P/E of 14.55 and an expected-basis PEG of -0.53, with shares trading at USD 104.21 on October 28, 2026, up 0.78%. In its latest disclosures, the agricultural machinery maker agreed on April 30 to sell its 49% interests in the North America AGCO Finance joint ventures for approximately $188.4 million, entered a $293.0 million accelerated share repurchase in May, and declared a regular quarterly dividend of $0.30 per share on July 8.

Based in Duluth, Georgia, and incorporated in Delaware, AGCO sells agricultural equipment, precision agriculture technology and replacement parts, mostly to independent dealers and distributors that sell to end users. It reports four geography-based segments: Europe/Middle East, North America, Latin America and Asia/Pacific/Africa. AGCO holds 49% of its AGCO Finance joint ventures, with Rabobank owning the rest, and Trimble owns 15% of the PTx Trimble joint venture.

Growth: Second Quarter Earnings, Net Sales and Regional Results

Net income attributable to AGCO was $77.2 million in the second quarter against $314.8 million, and $132.2 million for the six months against $325.3 million. Basic and diluted earnings per share were both $1.08 against $4.22 in the quarter, and basic earnings per share were $1.84 against $4.36 for the six months. The prior-year income tax line included a net tax benefit of $255.2 million related to a legal entity reorganization.

Net sales were $2,609.7 million in the quarter, 1.0% lower, and $4,952.6 million for the six months, 5.7% higher. Income from operations was $140.7 million against $164.0 million in the quarter and $221.4 million against $213.4 million for the six months. The income tax provision was $40.4 million against a benefit of $205.5 million.

Quarterly net sales were $1,732.4 million in Europe/Middle East against $1,774.9 million and $471.5 million in North America against $393.9 million.

Valuation: P/E of 14.55, PEG of -0.53 and Balance Sheet Measures

The P/E ratio of 14.55 is measured on trailing twelve-month earnings, and the PEG ratio of -0.53 on expected growth. Total stockholders' equity was $4,080.6 million at June 30, 2026, against $4,273.5 million at December 31, 2025. Cash flows used in operating activities were approximately $245.0 million for the first six months, against cash flows provided by operating activities of approximately $153.5 million a year earlier, which the company attributed to changes in working capital. Inventories were approximately $3,007.1 million against $2,709.3 million.

Capital Returns, Debt and Liquidity

A $1.0 billion repurchase program authorized July 9, 2025 has no expiration date, and $439.9 million remained authorized at June 30, 2026. The May 2026 accelerated repurchase agreement covers $293.0 million of shares, with approximately 1,997,613 shares received and retired by June 30. The company declared and paid dividends of $0.30 per share in the quarter against $0.29, after the Board raised the regular quarterly dividend on April 23, 2026.

Cash and cash equivalents were $573.4 million against $861.8 million at December 31, 2025. The $1.25 billion revolving credit facility matures December 19, 2027, with $290.0 million outstanding and $960.0 million available. The $400.0 million of 5.450% senior notes due March 21, 2027 moved to current liabilities. The debt to capitalization ratio was 39.3% against 35.8% at December 31, 2025.

Disclosed Risks and Outlook: Tariffs, Latin America and 2026 Guidance

The company attributed the quarterly decline in income from operations to lower sales and production volumes, higher tariff-related costs, SG&A expenses and engineering expenses, partly offset by certain IEEPA tariff refunds. Refund claims remain subject to U.S. Customs and Border Protection review, and the company said it cannot predict their timing, amount or collectability. Latin America reported a loss from operations of $21.8 million against income of $26.9 million, and North America reported a loss of $24.5 million against $25.2 million. Redeemable noncontrolling interests of $292.4 million may require cash beginning in 2027.

The 10-Q outlook expects global industry demand to be relatively flat in 2026 and net sales to increase modestly. On the second quarter 2026 earnings call, management updated its 2026 targets: net sales of $10.1 billion to $10.2 billion, adjusted earnings per share of $5.50 to $5.75, adjusted operating margin of approximately 7.5%, capital expenditures of $300 million to $325 million and an effective tax rate of 31% to 33%. It targeted third quarter net sales of $2.3 billion to $2.4 billion and earnings per share of $0.85 to $0.90.