AGCO – Quick Take – Takeaways from the Truist Securities Industrials & Services Conference

Research evidence excerpt

AGCO – Quick Take – Takeaways from the Truist Securities Industrials & Services Conference

vice through on-farm product support

with less capital intensive dealer investment (smaller brick-and-mortar locations although

requires trucks to provide mobile support). AGCO also believes Fendt is a premium product

4 Page Document delivering ~10% better fuel efficiency for row crop use or ~20% for specialty crops. Finally,

AGCO sees its FarmENGAGE mixed fleet farm management system as a differentiator as

the data platform sits on top of competitor data systems and allows for seamless integration

Reasons for this report and management of mixed fleet equipment data.

✓ Truist Securities Hosted Event Takeaways Brazil remains the most volatile and uncertain region: Like peers, AGCO sees Brazil as

✓ Quick Reaction to Newsflow/Volatility the most uncertain region as farmer credit conditions are challenged and fertilizer / diesel

cost inflation is hitting Brazilian farmers the hardest (given planting season timing / multiple

harvest cycles per year in many parts of the country). AGCO is watching for the outcome of

this year’s FINAME government subsidized lending program as well as farmer sentiment tied

to the uncertain outcome of Brazil’s presidential election later this year. Latin America dealer

inventory was ~4 months last quarter, still above AGCO’s 3-month target for the region,

and pricing was negative. AGCO expects margins in Latin America to turn positive in 2H as

pricing turns positive and underproduction / dealer destock eases.

Continue to target $2B in PTx sales by 2029: AGCO expects precision ag (PTx) sales

of $860M–$900M this year versus ~$860M in 2025. Management believes the implied

growth over the next several years will be primarily driven by geographic expansion and