Machinery – North America Ag Weakness Persists, with HHP Tractor Retail Sales Down 8% in April

Research evidence excerpt

Machinery – North America Ag Weakness Persists, with HHP Tractor Retail Sales Down 8% in April

Truist Securities

Equity Research Report May 11, 2026

INDUSTRIALS: Machinery

Machinery – North America Ag Weakness

Persists, with HHP Tractor Retail Sales Jamie Cook, CFA

212-303-4116 Down 8% in April Jamie.Cook@truist.com

The Association of Equipment Manufacturers (AEM) released April tractor and combine

industry retail sales data for the US and Canada.

Kevin Wilson, CFA

212-590-0996

Kevin.S.Wilson@truist.com US total tractor industry retail sales (units) declined 11% y/y in April, marking the

49th month of y/y decline of the past 50 months; year to date, total tractor retail sales are

Stephen Farkouh down 10%. US HHP tractor retail sales declined 13% in April (vs down 25% in March)

212-401-4459 and are down 20% YTD. US LHP tractors declined 11% in April (vs down 7% in March)

Stephen.Farkouh@truist.com and are down 9% YTD. US combine retail sales rose 3% on an easy comp (April 2025

combines fell 32% y/y). US tractor inventories rose 1% m/m in March (inventories are

5 Page Document reported on a one-month lag) including HHP tractors up 3% m/m to ~38% of LTM sales;

combine inventories rose 10% m/m to 25% of LTM sales. In Canada, April total tractor

sales fell 11% y/y although HHP tractors rose 12% y/y (on an easy comp). Canada total

Reasons for this report tractor retail sales are down 9% YTD and HHP tractors down 1% YTD. Canada combine

retail sales rose 43% off a low base and are up 14% YTD. Canada tractor inventories

✓ Quick Reaction to Newsflow/Volatility rose 6% m/m in March and combine inventories rose 32% m/m.

✓ Sector Data Update

OEs continue to see 2026 as the trough of the large ag cycle: CNH Industrial