Prior to X-mas, in the heart of New York City, AGCO released its future plans and vision on agriculture. From Nasdaq in Times Square, the company hosted its 2024 analyst meeting and shared the news of raising its long-term financial targets. AGCO, listed at the NYSE, remains focused on driving enhanced durability and profitability through the cycle.
“Our Farmer-First strategy has served us well since its launch in 2021, driving us to deliver even more innovative solutions for farmers through our differentiated portfolio of leading brands,” said Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer. “We are achieving higher highs and higher lows through the cycle, reinforcing our commitment to creating a more resilient business focused on high-margin opportunities and positioning us for sustainable and profitable growth.”
AGCO is extending its suite of precision ag solutions. Seth Crawford, Senior Vice President and General Manager of AGCO’s newest brand PTx, highlighted the company’s journey to become a strong global player in mixed fleet smart farming and autonomy solutions. AGCO aims to deliver precision ag net sales of $2.0 billion by 2029.
“AGCO is the only company that can effectively retrofit almost any make or model of equipment with Precision Planting and PTx Trimble technology, that will lead to higher yields with fewer inputs for farmers,” said Crawford. “Our retrofit-first mindset is increasing our total addressable market and accelerating technology adoption, resulting in more profitable farmers.”
The targeted growth of the PTx portfolio is centered on innovation with 3-5 new products launched each year, accelerating sprayer portfolio rollout, executing Connected Cloud strategy and globalizing the product portfolio. Another target is growing distribution by increasing full-line technology dealers, engaging new original equipment manufacturers (OEM) and increasing portfolio offerings to OEMs, including AGCO’s brands of Fendt, Massey Ferguson and Valtra.
The company also provided an update on its PTx data platform, which is critical to helping farmers manage operations across the mixed fleet. The first platform offering is expected to be available in 2025, with the full platform rollout expected in 2027. AGCO is taking its PTx portfolio to farmers through specialized and differentiated precision ag retrofit dealers as well as factory fit options for OEMs and AGCO brands.
“Our machine and technology offerings are further enhanced by FarmerCore, a new distribution model in North and South America taking the business from brick-and-mortar stores to the farm, which is where and how farmers want to be served,” said Hansotia.
AGCO’s net sales for 2025 are expected to be approximately $9.6 billion as market share gains are more than offset by softening demand and ongoing dealer inventory destocking. By 2029, AGCO is targeting to outgrow the industry by 4%-5% annually. The company aims to expand net sales of Fendt in North and South America to $1.7 billion as they will continue to roll out a full line of Fendt products. The growth of parts net sales is set to $2.3 billion, while increasing market share of genuine AGCO parts.
