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Item 8. Financial Statements and Supplementary Data

2026-02-13 compared with 2025-02-24 · 421 added, 368 removed, 1963 unchanged (29% of the section changed)

3 unchanged sentences

Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023

Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 202 4 , 202 3 and 20 2 2

Consolidated Statements of Comprehensive Income (Loss) for the years ended De c ember 31, 2025, 2024 and 2023

Consolidated Balance Sheets as of December 31, 2025 and 2024

28 unchanged sentences

As of December 31, 2025, the Company had accrued volume discounts and sales incentives of approximately $927.2 million and an allowance for sales incentive discounts of approximately $24.6 million.

Sales incentive programs include reductions in invoice prices, reductions in retail financial rates, dealer commissions and dealer incentive allowances.

Sales incentive programs include reductions in invoice prices, reductions in retail finance rates, dealer commissions and dealer incentive allowances.

Volume discounts and sales incentives are recorded at the time of sale as a reduction of revenue using the expected value method.

21 unchanged sentences

Assessment of goodwill impairment for a certain reporting unit

As discussed in Note 1 to the consolidated financial statements, the Company evaluates goodwill for impairment annually as of October 1 and when events or circumstances indicate that fair value of a reporting unit may be below its carrying value.

As discussed in Note 1 to the consolidated financial statements, the Company evaluates goodwill for impairment annually as of October 1 and when events or circumstances indicate that the fair value of a reporting unit may be below its carrying value.

As of December 31, 2025, the Company has $1,898.8 million of goodwill.

1 unchanged sentence

The fair values of the reporting units are determined based on a combination of valuation techniques, including an income approach and guideline public company method.

Based on the Company’s analysis, the Company determined that the fair value of a certain reporting unit was less than the carrying value and therefore recorded a goodwill impairment of $351.0 million for this reporting unit.

Based on the Company’s analysis, the Company determined that the fair value of a certain reporting unit was in excess of the carrying value and therefore did not record any goodwill impairment for this reporting unit.

We identified the assessment of the Company's goodwill impairment testing for a certain reporting unit as a critical audit matter.

30 unchanged sentences

Interest expense, net 66.4 93.0 4.6

Other expense, net 218.5 362.3 145.2

Other expense (income), net ( 72.7 ) 218.5 362.3

Income (loss) before income taxes and equity in net earnings of affiliates 602.0 ( 433.6 ) 1,333.5

Income tax provision 98.4 230.4 296.6

Income tax provision (benefit) ( 77.4 ) 98.4 230.4

Income (loss) before equity in net earnings of affiliates 679.4 ( 532.0 ) 1,103.1

21 unchanged sentences

Net loss (gain) recognized due to settlement ( 0.2 ) 14.0 0.4

Net actuarial (loss) gain arising during the year ( 2.2 ) ( 16.1 ) 12.3

Net actuarial loss arising during the year ( 11.4 ) ( 2.2 ) ( 16.1 )

Amortization of prior service cost 1.5 1.1 1.3

2 unchanged sentences

Net changes in fair value of derivatives 0.8 3.4 ( 8.9 )

Net losses reclassified from accumulated other comprehensive loss into income 6.3 9.0 14.1

Net losses (gains) reclassified from accumulated other comprehensive loss into income

( 6.5 ) 6.3 9.0

Foreign currency translation adjustments 144.9 ( 226.6 ) 102.3

38 unchanged sentences

Stockholders’ Equity:

AGCO Corporation stockholders’ equity:

Preferred stock;

5 unchanged sentences

Accumulated other comprehensive loss ( 1,774.9 ) ( 1,902.9 )

Total AGCO Corporation stockholders’ equity 3,742.8 4,656.7

Noncontrolling interests — 0.1

Total stockholders’ equity 4,273.5 3,742.8

Total liabilities, noncontrolling redeemable interests and stockholders’ equity $ 11,190.6 $ 11,421.2

Total liabilities, redeemable noncontrolling interests and stockholders’ equity $ 11,927.8 $ 11,190.6

See accompanying notes to Consolidated Financial Statements.

12 unchanged sentences

Net income (loss) — — — — 1,171.4 — ( 0.1 ) 1,171.3

Adoption of ASU 2016-13 by finance joint ventures — — — — ( 5.5 ) — — ( 5.5 )

Payment of dividends to stockholders — — — — ( 457.4 ) — — ( 457.4 )

3 unchanged sentences

Stock compensation — — — 44.9 — — — 44.9

Distribution to noncontrolling interest — — — — — — ( 13.8 ) ( 13.8 )

Investment by noncontrolling interests — — — — — — 0.1 0.1

Purchases and retirement of common stock — ( 371,669 ) — ( 49.9 ) ( 3.1 ) — — ( 53.0 )

Defined benefit pension and postretirement plans, net of tax

Defined pension and postretirement benefit plans, net of tax

— — — — — ( 7.4 ) — ( 7.4 )

Deferred gains and losses on derivatives, net of tax — — — — — 0.1 — 0.1

Change in cumulative translation adjustment — — — — — ( 30.9 ) 0.9 ( 30.0 )

Foreign currency translation adjustments — — — — — 102.3 — 102.3

Balance, December 31, 2023 — 74,517,973 0.7 4.1 6,360.0 ( 1,708.1 ) 0.1 4,656.8

Net income (loss) ( 60.8 ) — — — ( 424.8 ) — — ( 424.8 )

Adoption of ASU 2016-13 by finance joint ventures — — — — ( 5.5 ) — — ( 5.5 )

Payment of dividends to stockholders — — — — ( 273.1 ) — — ( 273.1 )

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Purchases and retirement of common stock — ( 311,852 ) — ( 5.4 ) ( 16.6 ) — — ( 22.0 )

Sale of minority interest — — — — — — ( 0.1 ) ( 0.1 )

Equity transaction associated with JCA noncontrolling interest — — — 3.1 — — — 3.1

Initial fair value of redeemable noncontrolling interests

355.1 — — — — — — —

Investment by redeemable noncontrolling interest

8.1 — — — — — — —

Defined pension and postretirement benefit plans, net of tax — — — — — 19.8 — 19.8

Deferred gains and losses on derivatives, net of tax — — — — — 9.7 — 9.7

Change in cumulative translation adjustment — — — — — 102.3 — 102.3

Foreign currency translation adjustments ( 2.3 ) — — — — ( 224.3 ) — ( 224.3 )

Balance, December 31, 2024 300.1 74,420,952 0.7 — 5,645.0 ( 1,902.9 ) — 3,742.8

6 unchanged sentences

Purchases and retirement of common stock — ( 1,997,204 ) — ( 18.9 ) ( 233.4 ) — — ( 252.3 )

Sale of minority interest — — — — — — ( 0.1 ) ( 0.1 )

Equity transaction associated with JCA noncontrolling interest — — — 3.1 — — — 3.1

Initial fair value of redeemable noncontrolling interests 355.1 — — — — — — —

Investment by redeemable noncontrolling interest 8.1 — — — — — — —

Defined pension and postretirement benefit plans, net of tax — — — — — ( 4.6 ) — ( 4.6 )

Deferred gains and losses on derivatives, net of tax — — — — — ( 5.7 ) — ( 5.7 )

Change in cumulative translation adjustment ( 2.3 ) — — — — ( 224.3 ) — ( 224.3 )

Foreign currency translation adjustments 6.6 — — — — 138.3 — 138.3

Balance, December 31, 2025 $ 299.2 72,629,310 $ 0.7 $ 0.5 $ 6,047.2 $ ( 1,774.9 ) $ — $ 4,273.5

9 unchanged sentences

Depreciation 256.5 251.2 230.4

Impairment charges 369.5 4.1 36.0

Amortization of intangibles 71.1 81.0 57.7

Stock compensation expense 28.4 18.4 46.4

Impairment charges 10.0 369.5 4.1

Loss on sale of business 10.8 507.3 —

Gain on sale of investment in affiliate ( 251.9 ) — —

pension plan termination and settlement — 18.5 —

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Proceeds from sale of business ( 1.8 ) 630.7 —

Sale of, distributions from (investments in) unconsolidated affiliates, net ( 7.4 ) ( 21.6 ) 4.0

Sale of (investments in) unconsolidated affiliates, net 236.8 ( 7.4 ) ( 21.6 )

Proceeds from cross currency swap contract — 22.6 —

8 unchanged sentences

Payment of debt issuance costs — ( 15.7 ) ( 10.9 )

Investments by (distributions to) noncontrolling interests, net 8.1 — ( 11.5 )

Investments by noncontrolling interests, net — 8.1 —

Net cash provided by (used in) financing activities ( 729.2 ) 1,045.5 ( 671.7 )

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OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

AGCO Corporation (“AGCO” or the “Company”) is a global leader in the design, manufacture and distribution of agricultural machinery and precision agriculture technology.

The Company delivers value to farmers and Original Equipment Manufacturer (“OEM”) customers through our differentiated brand portfolio including leading brands Fendt ® , Massey Ferguson ® , PTx and Valtra ® .

The Company's full line of equipment, smart farming solutions and services helps farmers sustainably feed our world.

AGCO Corporation (“AGCO” or the “Company”) is a global leader in agricultural machinery and precision agriculture technologies.

Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt ™ , Massey Ferguson ™ , PTx ™ and Valtra ™ .

AGCO’s high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world.

The Company distributes most of its products through a combination of approximately 2,800 independent dealers and distributors.

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For subsidiaries operating in highly inflationary economies, the United States dollar is the functional currency.

Remeasurement adjustments for financial statements in highly inflationary economies and other transactional exchange gains and losses are reported in “Other expense, net” within the Company's

Remeasurement adjustments for financial statements in highly inflationary economies and other transactional exchange gains and losses are reported in “Other expense (income), net” within the

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Consolidated Statements of Operations.

For the year ended December 31, 2024, the Company's wholly-owned subsidiary in Turkey had net sales of approximately $ 412.1 million and total assets of approximately 6.5 billion Turkish lira (or approximately $ 185.2 million).

Company's Consolidated Statements of Operations.

For the year ended and as of December 31, 2025, the Company's wholly-owned subsidiary in Turkey had net sales of approximately $ 262.9 million and total assets of approximately 6.0 billion Turkish lira (or approximately $ 139.6 million).

The monetary assets and liabilities denominated in the Turkish lira were approximately 4.9 billion Turkish lira (or approximately $ 114.5 million) and approximately 2.7 billion Turkish lira (or approximately $ 62.6 million), respectively, as of December 31, 2025.

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In recent years, the Argentine government has substantially limited the ability of companies to transfer funds out of Argentina.

As a consequence of these limitations, the spread between the official government exchange rate and the exchange rates resulting implicitly from certain capital market operations, usually effected to obtain United States dollars, had broadened significantly.

Argentina's economy was determined to be highly inflationary during 2018.

In December 2023, the central bank of Argentina adjusted the official foreign currency exchange rate for the Argentine peso, significantly devaluing the currency relative to the United States dollar.

The Company has a wholly-owned subsidiary in Argentina that assembles and distributes agricultural equipment and replacement parts.

For the year ended December 31, 2024, the Company's wholly-owned subsidiary in Argentina had net sales of approximately $ 215.9 million and total assets of approximately 258.3 billion pesos (or approximately $ 250.6 million).

For the year ended and as of December 31, 2025, the Company's wholly-owned subsidiary in Argentina had net sales of approximately $ 188.4 million and total assets of approximately 313.3 billion pesos (or approximately $ 216.2 million).

The monetary assets of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 85.0 billion pesos (or approximately $ 58.7 million), inclusive of approximately 16.5 billion pesos (or approximately $ 11.4 million) in cash and cash equivalents, as of December 31, 2025.

3 unchanged sentences

(“AGCO Capital”) has net monetary assets denominated in pesos at the official government rate of approximately 4.3 billion pesos (or approximately $ 3.0 million) as of December 31, 2025.

All gains and losses resulting from AGCO Capital's remeasurement of its monetary assets and liabilities are reported in “Equity in net earnings of affiliates” within our Consolidated Statements of Operations.

All gains and losses resulting from AGCO Capital's remeasurement of its monetary assets and liabilities are reported in “Equity in net earnings of affiliates” within the Company's Consolidated Statements of Operations.

Cash, Cash Equivalents and Restricted Cash

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(1) Consisted primarily of cash on hand and bank deposits.

(2) Consisted primarily of money market deposits, certificates of deposits and overnight investments.

(2) Consisted primarily of money market deposits, certificates of deposit and overnight investments.

The Company considers all investments with an original maturity of three months or less to be cash equivalents.

6 unchanged sentences

Accounts and notes receivable arise from the sale of equipment and replacement parts to independent dealers, distributors or other customers.

In the United States and Canada, receivables arising from sales to dealers are immediately due upon a retail sale of the underlying equipment by the dealer with the exception of sales of grain storage and protein production

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

systems as discussed further below.

In the United States and Canada, receivables arising from sales to dealers are immediately due upon a retail sale of the underlying equipment by the dealer.

If not previously paid by the dealer in the United States and Canada, installment payments are required generally beginning after the interest-free period with the remaining outstanding equipment balance generally due within 12 months after shipment or delivery.

These interest-free periods vary by product and generally range from one to 12 months.

In limited circumstances, the Company provides sales terms, and in some cases, interest-free periods that are longer than 12 months for certain products.

These are typically specified programs predominately in the United States and Canada, that allow for interest-free periods and due dates of up to 24 months for certain products depending on the year of the sale and the dealer or distributor’s ordering or sales volume during the preceding year.

In limited circumstances, the Company provides sales terms, and in some cases,

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

interest-free periods that are longer than 12 months for certain products.

These are typically specified programs predominantly in the United States and Canada, that allow for interest-free periods and due dates of up to 24 months for certain products depending on the year of the sale and the dealer or distributor’s ordering or sales volume during the preceding year.

Interest generally is charged at or above prime lending rates on the outstanding receivable balances after shipment or delivery and after interest-free periods.

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In certain markets, there is a time lag, which varies based on the timing and level of retail demand, between the date the Company records a sale and when the dealer sells the equipment to a retail customer.

Sales of grain storage and protein production systems both in the United States and in other countries generally are payable within 30 days of shipment.

In certain countries, sales of such systems for which the Company is responsible for construction or installation may be contingent upon customer acceptance.

Payment terms vary by market and product, with fixed payment schedules on all sales.

When the Company is responsible for installation services, fixed payment schedules may include upfront deposits, progress payments and final payment upon customer acceptance.

The following summarizes by geographic region, as a percentage of the Company’s consolidated net sales, amounts with maximum interest-free periods as presented below (in millions):

11 unchanged sentences

The Company provides various volume bonus and sales incentive programs with respect to its products.

These sales incentive programs include reductions in invoice prices, reductions in retail financing rates, dealer commissions and dealer

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

incentive allowances.

These sales incentive programs include reductions in invoice prices, reductions in retail financing rates, dealer commissions and dealer incentive allowances.

In most cases, incentive programs are established and communicated to the Company’s dealers on a quarterly basis.

4 unchanged sentences

The related provisions and accruals are made on a product or product-line basis and are monitored for adequacy and revised at least quarterly in the event of subsequent modifications to the programs.

Interest rate subsidy payments, which are a reduction in retail finance rates, are recorded in the same manner as dealer commissions and dealer incentive allowances.

Interest rate subsidy payments, which are a

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

reduction in retail finance rates, are recorded in the same manner as dealer commissions and dealer incentive allowances.

Volume discounts are estimated and recognized based on historical experience, and related reserves are monitored and adjusted based on actual dealer purchase volumes and the dealer’s progress towards achieving specified cumulative target levels.

1 unchanged sentence

All incentive programs are recorded and presented as a reduction of revenue, due to the fact that the Company does not receive a distinct good or service in exchange for the consideration provided.

In the United States and Canada, reserves for incentive programs related to accounts receivable not sold to Company’s U.S.

In the United States and Canada, reserves for incentive programs related to accounts receivable not sold to the Company’s U.S.

and Canadian finance joint ventures are recorded as “Accounts receivable allowances” within the Company’s Consolidated Balance Sheets due to the fact that the incentives are paid through a reduction of future cash settlement of the receivable.

22 unchanged sentences

____________________________________

(1) Deductions are the result of the sale of the Company's Grain & Protein business.

(1) Deductions are the result of the sale of the majority of the Company's Grain & Protein business.

Refer to Note 3 for additional information.

In the United States and Canada, sales incentives can be paid through future cash settlements of receivables and through credit memos to Company’s dealers or through reductions in retail financing rates paid to the Company’s finance joint

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Outside of the United States and Canada, sales incentives can be paid through cash or credit memos to the Company’s dealers or through reductions in retail financing rates paid to the Company’s finance joint ventures.

2 unchanged sentences

Accounting for Transfers of Financial Assets.” Cash payments made to the Company’s finance joint ventures for sales incentive discounts provided to dealers related to outstanding accounts receivables sold are recorded within “Accrued expenses” within the Company's Consolidated Balance Sheets.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Inventories are valued at the lower of cost or net realizable value, using the first-in, first-out method.

19 unchanged sentences

Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value, less estimated costs to sell.

The annual impairment tests completed as of October 1, 2024 indicated the fair value of each of the Company's reporting units was above its respective carrying value except for the PTx Trimble North America reporting unit, which is part of the North America operating segment.

Based on the results of the impairment test, the Company recorded an impairment charge of $ 351.0 million.

The Company completed the PTx Trimble joint venture transaction on April 1, 2024.

Since that date, the near-term outlook of the reporting unit has deteriorated, driven by weak industry demand and lower market penetration.

These conditions led to downward revisions of the Company's forecasts of earnings which resulted in the impairment charge.

We estimated the fair value of the reporting unit using an income approach.

The most critical assumptions used in the calculation of the fair value of the reporting unit were the forecasted revenue growth and the discount rate.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The results of our goodwill impairment analyses conducted as of October 1, 2023 and 2022 indicated that no impairment existed and no reduction in the carrying amount of goodwill was required.

The Company’s accumulated goodwill impairment is approximately $ 708.2 million related to impairment charges the Company recorded during 2024 related to the PTx Trimble business in North America as noted above and in 2019, 2012 and 2006 pertaining to its grain storage and protein production systems business in Europe/Middle East, its Chinese harvesting reporting unit and its former sprayer reporting unit, respectively.

The results of the goodwill impairment analyses conducted as of October 1, 2025 indicated that no impairment existed and no reduction in the carrying amount of goodwill was required.

The results of the goodwill impairment analyses conducted as of October 1, 2024, indicated that the carrying value of the net assets of the Company’s PTx Trimble North America reporting unit, which is part of the North America operating segment, was in excess of the fair value of the reporting unit, and therefore, the Company recorded an impairment charge of approximately $ 351.0 million within “Impairment charges” in the Company’s Consolidated Statements of Operations.

The results of the goodwill impairment analyses conducted as of October 1, 2023 indicated that no impairment existed and no reduction in the carrying amount of goodwill was required.

The Company’s accumulated goodwill impairment is approximately $ 708.2 million related to the PTx Trimble reporting unit in North America as noted above and in 2019, 2012 and 2006 pertaining to its grain storage and protein production systems business in Europe/Middle East, its Chinese harvesting reporting unit and its former sprayer reporting unit, respectively.

The Company’s former grain storage and protein production systems Europe/Middle East reporting unit operated within the Europe/Middle East geographical reportable segment.

The Chinese harvesting business operates within the Asia/Pacific/Africa geographical reportable segment and the former sprayer reporting unit operated within the North American geographical reportable segment.

The Company amortizes certain acquired identifiable intangible assets primarily on a straight-line basis over their estimated useful lives, which range from four to 50 years.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company amortizes certain acquired identifiable intangible assets primarily on a straight-line basis over their estimated useful lives, which range from three to 50 years.

The acquired intangible assets have a weighted average useful life as follows:

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All incentive programs are recorded and presented as a reduction of revenue, due to the fact that the Company does not receive a distinct good or service in exchange for the consideration provided.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Dealers or distributors may not return equipment or replacement parts while their contract with the Company is in force, except for under established promotional and annual replacement parts return programs.

2 unchanged sentences

Shipping and handling costs associated with freight activities after the customer has obtained control are accounted for as fulfillment costs and are expensed at the time revenue is recognized in “Cost of goods sold” and “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Operations.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

As afforded under the practical expedient in ASU 2014-09, the Company does not adjust the amount of revenue to be recognized under a contract with a dealer, distributor or other customer for the time value of money when the difference between the receipt of payment and the recognition of revenue is less than one year.

25 unchanged sentences

If a significant change in one of the assumptions occurs, then the Company will recognize an adjustment under the cumulative catch-up method and the impact of the adjustment on the revenue recorded to date is recognized in the period the adjustment is identified.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Refer to Note 24 for additional information regarding the Company’s sources of revenue and associated contract liabilities and performance obligations.

2 unchanged sentences

Research and development expenses for the years ended December 31, 2025, 2024 and 2023 totaled approximately $ 374.5 million, $ 381.3 million and $ 420.9 million, respectively.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Advertising Costs

23 unchanged sentences

AGCO Corporation

Redeemable and Nonredeemable Noncontrolling Interests

Redeemable Noncontrolling Interests

Amount Income

2 unchanged sentences

Defined pension and postretirement benefit plans $ ( 6.7 ) $ 2.1 $ ( 4.6 ) $ —

$ 26.7 $ ( 6.9 ) $ 19.8 $ —

Deferred gains and losses on derivatives ( 7.1 ) 1.4 ( 5.7 ) —

Foreign currency translation adjustments 138.3 — 138.3 6.6

Total components of other comprehensive loss

$ ( 184.6 ) $ ( 10.2 ) $ ( 194.8 ) $ ( 2.3 )

Total components of other comprehensive income $ 124.5 $ 3.5 $ 128.0 $ 6.6

AGCO Corporation

Noncontrolling Interests

Redeemable and Nonredeemable Noncontrolling Interests

Amount Income

5 unchanged sentences

Foreign currency translation adjustments ( 224.3 ) — ( 224.3 ) ( 2.3 )

Total components of other comprehensive income

Total components of other comprehensive loss

$ ( 184.6 ) $ ( 10.2 ) $ ( 194.8 ) $ ( 2.3 )

8 unchanged sentences

Foreign currency translation adjustments 102.3 — 102.3 —

Total components of other comprehensive loss

Total components of other comprehensive income

$ 92.0 $ 3.0 $ 95.0 $ —

3 unchanged sentences

The accounting for changes in the fair value of each derivative financial instrument depends on whether it has been designated and qualifies as an accounting hedge, as well as the type of hedging relationship identified.

See Note 14 for additional information regarding the Company’s derivative instruments and hedging activities.

Refer to Note 14 for additional information regarding the Company’s derivative instruments and hedging activities.

AGCO CORPORATION

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For the adoption of the standard by the Company’s finance joint ventures on January 1, 2023 under the modified retrospective approach, the Company recognized the cumulative effect of ASU 2016-13 as an adjustment to the opening balance of stockholders’ equity as of January 1, 2023 within “Retained earnings.” The cumulative effect was a reduction of approximately $ 5.5 million.

In September 2022, the FASB issued ASU 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50):

Disclosure of Supplier Finance Program Obligations.” The new standard requires that a buyer in a supplier finance program disclose sufficient information about the key terms of the program, the amount of outstanding confirmed obligations at period end, where the obligations are presented in the balance sheet, and a rollforward of the obligations during the annual period.

This guidance was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the rollforward, which is effective for fiscal years beginning after December 15, 2023.

The adoption of ASU 2022-04 resulted in disclosure of the Company's supplier financing programs.

Refer to Note 11 for further details.

The Company has adopted ASU 2021-08, “Business Combinations:

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” effective for fiscal years beginning after December 15, 2022, which did not have a material impact on the Company's results of operations, financial condition or cash flows but may impact future acquisitions.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280):

3 unchanged sentences

Refer to Note 25 for further details.

New Accounting Pronouncements to be Adopted

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

1 unchanged sentence

The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

The requirements will be effective for annual periods beginning after December 15, 2024.

The guidance will be applied on a prospective basis with the option to apply the standard retrospectively.

The requirements will be effective for annual periods beginning after December 15, 2024, and may be applied prospectively or retrospectively.

Early adoption is permitted.

The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures.

The Company adopted the new standard prospectively for the period ending December 31, 2025.

Refer to Note 19 for further details.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

New Accounting Pronouncements to be Adopted

In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

3 unchanged sentences

The ASU will be applied prospectively with an option to simultaneously apply retrospectively.

The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures.

The updated standard will impact only our disclosures, with no impact to our financial condition or results of operations.

On September 28, 2023, the Company entered into a Sale and Contribution Agreement among AGCO, Trimble Inc.

5 unchanged sentences

AGCO began consolidating PTx Trimble within its consolidated financial statements on April 1, 2024.

The Company is accounting for the Joint Venture transaction as a business combination using the acquisition method of accounting which requires assets acquired and liabilities assumed to be recorded at their acquisition date fair value.

The Company accounted for the Joint Venture transaction as a business combination using the acquisition method of accounting which requires assets acquired and liabilities assumed to be recorded at their acquisition date fair value.

The Company allocated the purchase price of the acquisition to identified assets acquired, liabilities assumed, and noncontrolling interests based on their estimated fair values as of the acquisition date.

2 unchanged sentences

Fair values of certain assets were determined based on Level 3 inputs, including estimated future cash flows, discount rates, royalty rates, growth rates and sales projections, all of which require significant management judgment and are susceptible to change.

Measurement period adjustments were made to the previously disclosed preliminary fair values of developed technologies, trade name, customer relationships, deferred taxes and redeemable noncontrolling interests as a result of updated valuations resulting in an increase of intangible assets of $ 174.5 million, deferred taxes of $ 14.0 million, redeemable noncontrolling interests of $ 22.9 million and decrease in goodwill of $ 139.1 million.

The goodwill consists of expected future economic benefits that will arise from expected future product sales, operating efficiencies and sales channel synergies that may result from the Joint Venture.

The Company expects that the portion of the goodwill balance allocated to the US business will be deductible for tax purposes, and the goodwill allocated to the Joint Venture’s investments in foreign subsidiaries, primarily in Germany and France, will not be deductible for tax purposes.

The goodwill arising from the Joint Venture has been assigned to four new reporting units within our North America, South America, Europe/Middle East and

The Company has deducted the portion of the goodwill balance allocated to the U.S.

business for tax purposes, whereas the goodwill allocated to the Joint Venture’s investments in foreign subsidiaries, primarily in Germany and France, was not deductible for tax purposes.

The goodwill arising from the Joint Venture has been assigned to four new reporting units within our North America, South America, Europe/Middle East and Asia/Pacific/Africa operating segments.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Asia/Pacific/Africa operating segments.

Refer to Note 6 for the carrying amounts of goodwill by segment as of December 31, 2024.

The purchase consideration transferred consisted of the following (in millions):

5 unchanged sentences

(a) Equity transaction associated with JCA noncontrolling interest

The transfer of the 15 % interest in AGCO's JCA business is accounted for as an equity transaction.

The transfer of the 15 % interest in AGCO's JCA business was accounted for as an equity transaction.

The adjustment to additional paid-in-capital represents the excess of the fair value of the JCA business transferred over its historical carrying amount.

25 unchanged sentences

The put and call options prices are based on multiples of EBITDA, subject to the terms of the Agreement.

We estimated the fair value of

We estimated the fair value of the put and call options using a Monte Carlo simulation along with a Black Scholes model assuming an exercise date of three years from the close of the transaction, the first allowable exercise date.

We evaluated the put and call options for the redeemable noncontrolling interests under ASC 480, Distinguishing Liabilities from Equity, and classified the redeemable

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

the put and call options using a Monte Carlo simulation along with a Black Scholes model assuming an exercise date of three years from the close of the transaction, the first allowable exercise date.

We evaluated the put and call options for the redeemable noncontrolling interests under ASC 480, Distinguishing Liabilities from Equity, and classified the redeemable noncontrolling interests as mezzanine equity based on its redemption features.

noncontrolling interests as mezzanine equity based on its redemption features.

The amount of the net income or loss attributable to the redeemable noncontrolling interests is recorded in “Net loss attributable to noncontrolling interests” within the Company's Consolidated Statements of Operations.

7 unchanged sentences

____________________________________

(1) Based on available information and certain assumptions that we believe are reasonable.

(1) Based on available information and certain assumptions that we believe were reasonable.

The following unaudited pro forma financial information presents the consolidated results of operations as if the OneAg acquisition had occurred on January 1, 2023.

7 unchanged sentences

These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisitions occurred on the assumed dates, nor are they necessarily an indication of future operating results.

The amounts of PTx Trimble's net sales and net loss attributable to AGCO Corporation consolidated by the Company since the acquisition date were $ 171.3 million and $ 350.9 million, respectively.

The amounts of PTx Trimble's net sales and net loss attributable to AGCO Corporation consolidated by the Company since the acquisition date through December 31, 2024 were $ 171.3 million and $ 350.9 million, respectively.

During the years ended December 31, 2024 and 2023, transaction-related costs of approximately $ 23.1 million and $ 16.0 million were expensed as incurred to “Selling, general and administrative expenses” in the Company's Consolidated Statements of Operations, respectively.

7 unchanged sentences

The results of the G&P business through the date of the divestiture are included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments.

The Company received net proceeds of $ 630.7 million and recognized a loss on the sale of business of $ 507.3 million, which is included within “Loss on sale of business” in the Company's Consolidated Statements of Operations.

The loss on sale of business includes $ 93.6 million of cumulative translation adjustment losses representing amounts previously recorded in accumulated other comprehensive loss.

The proceeds from the sale were used to repay the Term Loan Facility and reduce borrowings under the Credit Facility.

The Company received net proceeds of $ 630.7 million on the transaction date, which was subject to the finalization of preliminary working capital and other adjustments, and recognized a loss on the sale of business of $ 507.3 million.

The loss on sale of business included $ 93.6 million of cumulative translation adjustment losses representing amounts previously recorded in accumulated other comprehensive loss.

In May 2025, the preliminary working capital and other adjustments were finalized resulting in an additional loss of $ 12.3 million which is included within “Loss on sale of business” in the Company's Consolidated Statements of Operations.

The proceeds from the sale were used to repay the Term Loan Facility and reduce borrowings under the Credit Facility in 2024.

Refer to Note 12 for further information.

34 unchanged sentences

The Company has accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures.

The cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements that remain outstanding as of December 31, 2024 and 2023 was approximately $ 2.3 billion and $ 2.5 billion, respectively.

The cash received from receivables sold under these accounts receivable sales agreements that remain outstanding as of December 31, 2025 and 2024 was approximately $ 2.1 billion and $ 2.3 billion, respectively.

Under the terms of the accounts receivable sales agreements in the U.S., Canada, Europe and Brazil, the Company pays an annual fee to its finance joint ventures related to the servicing of the receivables sold.

The Company also pays the respective AGCO Finance entities a subsidized interest payment with respect to the accounts receivable sales agreements, calculated based upon the interest rate charged by Rabobank to its affiliate, and such affiliate then lends to the AGCO Finance entities plus an agreed-upon margin.

These fees are reflected within losses on the sales of receivables included within “Other expense, net” in the Company’s Consolidated Statements of Operations.

These fees are reflected within losses on the sales of receivables included within “Other expense (income), net” in the Company’s Consolidated Statements of Operations.

The Company does not service the receivables after the sale occurs and does not maintain any direct retained interest in the receivables.

5 unchanged sentences

The Company reviewed its accounting for the accounts receivable sales agreements and determined that receivables sold under these agreements should be accounted for as off-balance sheet transactions.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Consolidated Statements of Operations, were approximately $ 118.2 million , $ 148.4 million and $ 71.1 million during 2024, 2023 and 2022, respectively.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense (income), net” in the Company’s Consolidated Statements of Operations, were approximately $ 90.3 million, $ 118.2 million and $ 148.4 million during 2025, 2024 and 2023, respectively.

The Company’s finance joint ventures in Europe, Brazil and Australia also provide wholesale financing directly to the Company’s dealers.

13 unchanged sentences

Balance as of December 31, 2023 $ 668.2 $ 93.5 $ 458.5 $ 113.2 $ 1,333.4

Foreign currency translation 0.9 7.5 14.2 — 22.6

Balance as of December 31, 2023 668.2 93.5 458.5 113.2 1,333.4

Acquisitions 955.6 32.5 592.4 20.4 1,600.9

Divestiture (1)

955.6 32.5 592.4 20.4 1,600.9

Impairment charge ( 354.1 ) — — — ( 354.1 )

Divestiture (1)

( 523.9 ) ( 12.4 ) ( 61.4 ) ( 113.2 ) ( 710.9 )

Foreign currency translation ( 3.0 ) ( 18.7 ) ( 27.2 ) — ( 48.9 )

Balance as of December 31, 2024 742.8 94.9 962.3 20.4 1,820.4

Foreign currency translation 1.5 7.6 69.3 — 78.4

Balance as of December 31, 2025 $ 744.3 $ 102.5 $ 1,031.6 $ 20.4 $ 1,898.8

_________________________________

9 unchanged sentences

Balance as of December 31, 2023 $ 194.3 $ 580.7 $ 148.2 $ 6.3 $ 929.5

Impairment charge — — ( 5.1 ) — ( 5.1 )

Acquisitions 6.5 47.3 526.0 44.8 624.6

( 122.7 ) ( 434.4 ) ( 59.2 ) — ( 616.3 )

Foreign currency translation ( 3.0 ) ( 14.5 ) ( 10.3 ) ( 0.2 ) ( 28.0 )

Balance as of December 31, 2024 75.1 179.1 604.7 50.9 909.8

Acquisitions 6.5 47.3 526.0 44.8 624.6

Impairment charge

( 1.6 ) — ( 0.6 ) — ( 2.2 )

7 unchanged sentences

Amortization expense 7.4 23.0 37.2 13.4 81.0

Impairment charge

( 74.2 ) ( 383.7 ) ( 49.3 ) — ( 507.2 )

2 unchanged sentences

Amortization expense 4.2 7.0 54.6 5.3 71.1

Impairment charge

( 1.2 ) — ( 0.4 ) — ( 1.6 )

9 unchanged sentences

The Company estimates amortization of existing intangible assets will be $ 67.8 million in 2026, $ 61.1 million in 2027, $ 54.5 million in 2028, $ 51.7 million in 2029 and $ 50.6 million in 2030.

External-use software, net, developed by the Company and marketed externally, was approximately $ 0.4 million and $ 6.3 million as of December 31, 2024 and 2023, respectively, and classified within “Intangible assets, net.” Additionally, $ 4.6 million of external-use software, net was divested as part of the sale of the majority of the Company's G&P business.

External-use software, net, developed by the Company and marketed externally, was approximately $ 0.4 million as of December 31, 2024 and classified within “Intangible assets, net.” Additionally, $ 4.6 million of external-use software, net was divested as part of the sale of the majority of the Company's G&P business.

AGCO CORPORATION

42 unchanged sentences

Finance joint ventures $ 562.8 $ 471.4

Manufacturing joint ventures 31.4 30.6

Manufacturing joint venture

Other affiliates 9.5 16.8

4 unchanged sentences

Under the various joint venture agreements, Rabobank or its affiliates provide financing to the joint venture companies.

AGCO has a 49 % interest in the Company’s finance joint ventures.

AGCO has a 49 % interest in those finance equity joint ventures.

Refer to Note 18 for further discussion of the Company's relationship with Rabobank.

The Company’s manufacturing joint ventures consist of Groupement International De Mecanique Agricole SAS (“GIMA”), a joint venture with a third-party manufacturer to purchase, design and manufacture components for agricultural equipment in France, and CP GSI Machinery Co Ltd, a joint venture with a third-party manufacturer to manufacture protein production equipment in China.

The Company’s manufacturing joint venture consists of Groupement International De Mecanique Agricole SAS (“GIMA”), a joint venture with a third-party manufacturer to purchase, design and manufacture components for agricultural equipment in France.

The other affiliates represent investments in farm equipment manufacturers, an electronic and software system manufacturer, precision agriculture technology providers, distributors and licensees.

22 unchanged sentences

There were no returns on investment in excess of earnings in 2025 and 2024, respectively.

During 2022, approximately $ 5.7 million of these dividends were a return of investment in excess of earnings related to a certain finance joint venture, and were included within “Sale of, distributions from (investments in) unconsolidated affiliates, net” within the Company’s Consolidated Statements of Cash Flows.

In addition, during the year ended December 31, 2022, the Company recorded a write-down of the investment in its Russian finance joint venture of approximately $ 4.8 million, reflected within “Equity in net earnings of affiliates” in the Consolidated Statements of Operations.

The Russian finance joint venture was sold during the three months ended December 31, 2022.

SUPPLIER FINANCE PROGRAMS

9 unchanged sentences

As of December 31, 2025 and 2024, the amounts outstanding that remain unpaid to the banks or other intermediaries totaled $ 31.7 million and $ 50.6 million, respectively, and are reflected in “ Accounts payable ” in the Company’s Consolidated Balance Sheets.

The following table summarizes the activity of the Company’s supplier finance programs during the year ended December 31, 2024 (in millions):

The following table summarizes the activity of the Company’s supplier finance programs during the years ended December 31, 2025 and 2024 (in millions):

Balance at beginning of the year $ 50.6 $ 82.7

1 unchanged sentence

Amounts settled under the programs

( 213.3 ) ( 314.6 )

Balance at the end of the year $ 31.7 $ 50.6

11 unchanged sentences

Senior term loans due between 2025 and 2028

Other long-term debt

Debt issuance costs

1 unchanged sentence

2,384.7 2,558.1

Current portion of other long-term debt

1.002 % EIB Senior term loan due 2025

Senior term loans due 2025

Senior term loans due 2026

Total long-term indebtedness

3 unchanged sentences

Cash payments for interest were approximately $ 121.9 million, $ 125.5 million and $ 60.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Credit Facility and Term Loan Facility

In December 2022, the Company, certain of its subsidiaries and Rabobank, and other named lenders entered into an amendment to its credit facility providing for a $ 1.25 billion multi-currency unsecured revolving credit facility (“Credit Facility”), which replaced the Company’s former $ 800.0 million multi-currency unsecured revolving credit facility.

The amendment provided an additional $ 450.0 million in borrowing capacity.

An initial borrowing under the credit facility was used to repay and retire a $ 240.0 million short-term multi-currency revolving credit facility with Rabobank that matured on March 31, 2023.

Credit Facility

The Company has a credit facility providing for a $ 1.25 billion multi-currency unsecured revolving credit facility (“Credit Facility”) that matures on December 19, 2027.

The Credit Facility consists of a $ 325.0 million United States dollar tranche and a $ 925.0 million multi-currency tranche for loans denominated in United States Dollars, Euros or other currencies to be agreed upon.

The credit facility matures on December 19, 2027.

Interest accrues on amounts outstanding for any borrowings denominated in United States dollars, at the Company’s option, at either (1) the Secured Overnight Financing Rate (“SOFR”) plus 0.1 % plus a margin ranging from 0.875 % to 1.875 % based on the Company’s credit rating, or (2) the base rate, which is the highest of (i) the Prime Rate, (ii) the Federal Funds Effective Rate plus 0.5 %, and (iii) Term SOFR for a one-month tenor plus 1.0 %, plus a margin ranging from 0.000 % to

Interest accrues on amounts outstanding for any borrowings denominated in Euros at the Euro Interbank Offered Rate (“EURIBOR”) plus a margin ranging from 0.875 % to 1.875 % based on the Company’s credit rating.

In May 2025, the Company amended the Credit Facility with respect to the net leverage ratio financial covenant requirements for the remainder of 2025 and in the event of a future material acquisition.

As of December 31, 2025, the

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

0.875 % based on the Company’s credit rating.

As of December 31, 2024, the Company had no outstanding borrowings under the revolving credit facility and had the ability to borrow $ 1,249.9 million.

In December 2023, the Company amended the Credit Facility to allow for incremental borrowings in the form of a delayed draw term loan facility in an aggregate principal amount of $ 250.0 million.

In March 2024, the Company further amended the Credit Facility to increase this amount by $ 250.0 million, for an aggregate amount of $ 500.0 million (“Term Loan Facility”).

The Company drew down the Term Loan Facility on March 28, 2024.

Borrowings under the Term Loan Facility bear interest at the same rate and margin as the Credit Facility.

The Term Loan Facility matures on December 19, 2027.

On November 1, 2024, the Company repaid the $ 500.0 million outstanding under the Term Loan Facility utilizing proceeds from the sale of the majority of the Company’s G&P business.

Refer to Note 3 for further information.

Company had no outstanding borrowings under the revolving credit facility and had the ability to borrow $ 1,250.0 million.

Uncommitted Credit Facility

In June 2022, the Company entered into an uncommitted revolving credit facility that allows the Company to borrow up to € 100.0 million (or approximately $ 103.8 million as of December 31, 2024).

The Company has an uncommitted revolving credit facility that allows the Company to borrow up to € 200.0 million (or approximately $ 234.6 million as of December 31, 2025).

The credit facility expires on December 31, 2026.

Any loans will bear interest at the EURIBOR plus a credit spread.

As of December 31, 2024 and December 31, 2023, the Company had no outstanding borrowings under the revolving credit facility and had the ability to borrow € 100.0 million (or approximately $ 103.8 million).

As of December 31, 2025 and December 31, 2024, the Company had no outstanding borrowings under the revolving credit facility.

5.450 % Senior Notes due 2027 and 5.800 % Senior Notes due 2034

12 unchanged sentences

1.002 % European Investment Bank (“EIB”) Senior Term Loan Due 2025

On January 25, 2019, the Company borrowed € 250.0 million (or approximately $ 259.5 million as of December 31, 2024) from the EIB.

The loan matures on January 24, 2025.

The Company is permitted to prepay the term loan before its maturity date.

Interest is payable on the term loan at 1.002 % per annum, payable semi-annually in arrears.

Subsequent to December 31, 2024, on January 24, 2025, the Company repaid € 250.0 million (or approximately $ 262.3 million) upon maturity of the EIB Senior term loan due 2025.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

On January 24, 2025, the Company repaid € 250.0 million (or approximately $ 262.3 million) upon maturity of the EIB Senior term loan due 2025.

EIB Senior Term Loans due 2029 and 2030

5 unchanged sentences

The Company also has to fulfill financial covenants with respect to a net leverage ratio and an interest coverage ratio.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

On January 25, 2024, the Company entered into an additional multi-currency Finance Contract with the EIB permitting the Company to borrow up to € 170.0 million, for which the proceeds will be used in a similar manner as described for the EIB Senior Term Loan due 2029 above.

7 unchanged sentences

Of the 2016 term loans, the Company repaid an aggregate amount of € 322.5 million in October 2019, October 2021, April 2022 and October 2023.

Of the 2018 senior loans, the Company repaid an aggregate amount of € 244.0 million in August 2021, February 2022, and August 2023.

In aggregate, as of December 31, 2024, the Company had indebtedness of € 146.5 million (or approximately $ 152.0 million as of December 31, 2024) through a group of four remaining related term loan agreements.

In August 2025, the Company repaid € 63.0 million (or approximately $ 72.8 million) upon maturity of the Senior term loans due 2025.

Of the 2018 senior loans, the Company repaid an aggregate amount of € 307.0 million in August 2021, February 2022, August 2023 and August 2025.

In aggregate, as of December 31, 2025, the Company had indebtedness of € 83.5 million (or approximately $ 97.9 million as of December 31, 2025) through a group of two remaining related term loan agreements.

The provisions of the term loan agreements are substantially identical, with the exception of interest rate terms and maturities.

As of December 31, 2024, for the term loans with a fixed interest rate, interest is payable in arrears on an annual basis, with interest rates ranging from 1.67 % to 2.26 % and maturity dates between August 2025 and August 2028.

For the term loan with a floating interest rate, interest is payable in arrears on a semi-annual basis, with an interest rate based on the EURIBOR plus a margin of 1.10 % and a maturity date of August 2025.

Bridge Facility

On September 28, 2023, the Company entered into a bridge facility commitment letter with Morgan Stanley pursuant to which Morgan Stanley committed to provide a $ 2.0 billion senior unsecured 364-day bridge facility (the "Bridge Facility").

The availability under the Bridge Facility was reduced to zero by certain permanent financing transactions including the net proceeds from the issuance of the Notes, the Company's entry into the Term Loan Facility and by amounts based on the Company's cash flow, and the Company terminated the Bridge Facility on March 25, 2024.

As of December 31, 2025, interest is payable in arrears on an annual basis, with interest rates ranging from 1.983 % to 2.256 % and maturity dates between October 2026 and August 2028.

Other Short-Term Borrowings

3 unchanged sentences

At December 31, 2025 and 2024, outstanding letters of credit totaled $ 14.0 million and $ 13.2 million, respectively.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

RESTRUCTURING AND BUSINESS OPTIMIZATION EXPENSES AND ASSET IMPAIRMENT CHARGES

RESTRUCTURING AND BUSINESS OPTIMIZATION EXPENSES

Restructuring Expenses

1 unchanged sentence

The initial phase of the Program is focused on further reducing structural costs, streamlining the Company’s workforce and enhancing global efficiencies related to changing the Company’s operating model for certain corporate and back-office functions and better leveraging technology and global centers of excellence.

The Company estimates that it will incur charges for one-time termination benefits of approximately $ 150.0 million to $ 200.0 million in connection with this phase of the Program, primarily consisting of cash charges related to severance payments, employees benefits and related costs.

The Company incurred the majority of charges in 2024 and expects to incur the remaining charges in 2025.

The Company estimated that it would incur charges for one-time termination benefits of approximately $ 150.0 million to $ 200.0 million in connection with the initial phase of the Program, primarily consisting of cash charges related to severance payments, employees benefits and related costs.

The Company incurred a substantial portion of the charges by the end of fiscal year 2025.

Additionally, i n recent years, the Company announced and initiated several actions to rationalize employee headcount in various manufacturing facilities and administrative offices located in the U.S., Europe, South America, Africa and Asia, in order to reduce costs in response to fluctuating global market demand.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Restructuring expenses activity, which relates to severance and other related costs, during the years ended December 31, 2025, 2024 and 2023 is summarized as follows (in millions):

16 unchanged sentences

Business optimization expenses primarily relate to professional services costs incurred as part of the restructuring program aimed at reducing structural costs, enhancing global efficiencies by changing the Company’s operating model for certain corporate and back-office functions.

During the year ended December 31, 2024, the Company recognized approximately $ 14.9 million of business optimization expenses.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Asset Impairment Charges

As a consequence of the conflict between Russia and Ukraine, during the three months ended March 31, 2022, the Company assessed the fair value of its gross assets related to the joint ventures operating in Russia for potential impairment and recorded asset impairment charges of approximately $ 36.0 million, reflected as “Impairment charges” in its Consolidated Statements of Operations, with an offsetting benefit of approximately $ 12.2 million included within “Net loss attributable to noncontrolling interests.” The Company sold its interest in its Russian distribution joint venture during the three months ended December 31, 2022.

Foreign currency translation impacts since inception of the Russian joint venture previously recognized within “Accumulated other comprehensive loss” were therefore recorded within “Other expense, net” on the Company’s Consolidated Statements of Operations during the three months ended December 31, 2022.

In addition, during the three months ended March 31, 2022, the Company recorded a write-down of its investment in its Russian finance joint venture of approximately $ 4.8 million, reflected within “Equity in net earnings of affiliates” in its Consolidated Statements of Operations.

The Russian finance joint venture was sold during the three months ended December 31, 2022.

During the years ended December 31, 2025 and 2024, the Company recognized approximately $ 36.0 million and $ 14.9 million, respectively, of business optimization expenses.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

9 unchanged sentences

The component of the gains and losses on the Company’s net investment in the designated foreign operations driven by changes in foreign exchange rates are economically offset by movements in the fair value of the cross currency swap contracts or foreign currency denominated debt.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company is exposed to commodity risk from steel and other raw material purchases where a portion of the contractual purchase price is linked to a variable rate based on publicly available market data.

9 unchanged sentences

The Company’s valuation techniques are designed to maximize the use of observable inputs and minimize the use of unobservable inputs.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Counterparty Risk

12 unchanged sentences

The Company designates certain steel commodity contracts as cash flow hedges of expected future purchases of steel.

The Company did not have any derivatives that were designated as cash flow hedges related to steel commodity contracts as of December 31, 2024.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 2.5 million and $ 0.9 million as of December 31, 2023 and 2022, respectively.

The Company did not have any derivatives that were designated as cash flow hedges related to steel commodity contracts as of December 31, 2025 and 2024, respectively.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 2.5 million as of December 31, 2023.

Interest Rate Risk

1 unchanged sentence

The derivative position settled on March 28, 2024 with a cash settlement that offset changes in the benchmark treasury rate between the execution of the treasury rate lock and the debt pricing date for the 2034 Notes.

This treasury rate lock was designated as a cash flow hedge and the gain at termination of $ 8.2 million was recognized in accumulated other comprehensive loss.

The amount recognized in accumulated other comprehensive loss is reclassified to interest expense as interest payments are made on the 2034 Notes through the maturity date.accumulated other comprehensive loss is reclassified to interest expense as interest payments are made on the 2034 Notes through the maturity date.

This treasury rate lock was designated as a cash flow hedge and the gain at termination of $ 8.2 million was recognized in accumulated other

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

comprehensive loss.

The amount recognized in accumulated other comprehensive loss is reclassified to interest expense as interest payments are made on the 2034 Notes through the maturity date.

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the years ended December 31, 2025, 2024 and 2023 (in millions):

1 unchanged sentence

Accumulated derivative net losses as of December 31, 2022

Net changes in fair value of derivatives

Foreign Currency Contracts:

$ ( 1.0 ) $ ( 0.1 ) $ ( 0.9 )

Commodity Contracts

( 4.7 ) ( 1.2 ) ( 3.5 )

( 19.7 ) ( 5.1 ) ( 14.6 )

Net losses reclassified from accumulated other comprehensive loss into income

Foreign Currency Contracts:

14.5 3.9 10.6

Commodity Contracts

19.2 5.1 14.1

Accumulated derivative net losses as of December 31, 2022 $ ( 1.0 ) $ ( 0.1 ) $ ( 0.9 )

Net changes in fair value of derivatives:

8 unchanged sentences

Accumulated derivative net losses as of December 31, 2023

$ ( 1.3 ) $ ( 0.5 ) $ ( 0.8 )

Net changes in fair value of derivatives:

5 unchanged sentences

Total 6.7 3.3 3.4

Net losses reclassified from accumulated other comprehensive loss into income

Net losses (gains) reclassified from accumulated other comprehensive loss into income:

Foreign currency contracts

5 unchanged sentences

$ 11.7 $ 2.8 $ 8.9

Net changes in fair value of derivatives:

Foreign currency contracts (1)

Total 1.2 0.4 0.8

Net gains reclassified from accumulated other comprehensive loss into income:

Foreign currency contracts (1)

( 7.5 ) ( 1.6 ) ( 5.9 )

Treasury rate locks

( 0.8 ) ( 0.2 ) ( 0.6 )

Total ( 8.3 ) ( 1.8 ) ( 6.5 )

Accumulated derivative net gains as of December 31, 2025

$ 4.6 $ 1.4 $ 3.2

____________________________________

(1) The outstanding contracts as of December 31, 2025 range in maturity through December 2026.

(2) As of December 31, 2024, there were no outstanding contracts.

As of December 31, 2024, approximately $ 2.0 million of realized derivative net losses, before taxes, remain in accumulated other comprehensive loss related to foreign currency contracts associated with inventory that had not yet been sold.

As of December 31, 2025, approximately $ 0.4 million of realized derivative net gains, before taxes, remain in accumulated other comprehensive loss related to foreign currency contracts associated with inventory that had not yet been sold.

AGCO CORPORATION

7 unchanged sentences

The cross currency swap had an expiration date of January 29, 2028.

At maturity of the cross currency swap contract, the Company was expected to deliver the notional amount of approximately € 247.9 million (or approximately $ 257.3 million as of December 31, 2024) and receive $ 300.0 million from the counterparties.

The Company receives quarterly interest payments from the counterparties based on a fixed interest rate until maturity of the cross currency swap.

At maturity of the cross currency swap contract, the Company was expected to deliver the notional amount of approximately € 247.9 million and receive $ 300.0 million from the counterparties.

The Company received quarterly interest payments from the counterparties based on a fixed interest rate until maturity of the cross currency swap.

On November 4, 2024, the Company's existing cross currency swap contract was terminated and the Company delivered the notional amount of approximately $ 277.4 million and received $ 300.0 million from the counterparties, resulting in a gain of approximately $ 22.6 million that was recognized in accumulated other comprehensive loss.

On November 4, 2024, the Company entered into new $ 600.0 million cross currency swap contracts comprising of $ 200.0 million tranche for three years tenor, $ 200 million tranche for five years tenor and $ 200.0 million tranche for seven years tenor.

as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment.

On November 4, 2024, the Company entered into $ 600.0 million cross currency swap contracts comprising of $ 200.0 million tranche for three years tenor, $ 200.0 million tranche for five years tenor and $ 200.0 million tranche for seven years tenor as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment.

The cross currency swap contracts have an expiration date of November 6, 2027, November 6, 2029 and November 6, 2031, respectively.

At maturity of the cross currency swap contract, the Company is expected to deliver the notional amount of approximately € 385.5 million (or approximately $ 400.1 million as of December 31, 2024) and 155.5 million Swiss francs (or approximately $ 171.9 million as of December 31, 2024), respectively, and receive $ 600.0 million from the counterparties.

At maturity of the cross currency swap contract, the Company is expected to deliver the notional amount of approximately € 385.5 million (or approximately $ 452.2 million as of December 31, 2025) and Fr.

155.5 million (or approximately $ 196.1 million as of December 31, 2025), respectively, and receive $ 600.0 million from the counterparties.

The Company receives quarterly interest payments from the counterparties based on a fixed interest rate until maturity of the cross currency swap.

During 2023, the Company designated € 150.0 million of its multi-currency revolving credit facility maturing in December 2027 as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment.

The Company recognized the change in fair value of the foreign currency denominated debt designated as a net investment hedge, a loss of $ 3.1 million, net of tax, in accumulated other comprehensive loss during the year ended December 31, 2023.

The Company recognized the change in fair value of the foreign currency denominated debt designated as a net investment hedge, a loss of $ 3.1 million, net of tax, in other comprehensive income during the year ended December 31, 2023.

This portion of the multi-currency revolving credit facility was repaid in December 2023.

2 unchanged sentences

December 31, 2025 December 31, 2024

Cross currency swap contract $ 600.0 $ 300.0

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table summarizes the after-tax impact of changes in the fair value of the instruments designated as net investment hedges (in millions):

Gain (Loss) Recognized in Accumulated Other Comprehensive Loss for the Years Ended

Cross currency swap contracts

$ 600.0 $ 600.0

The following table summarizes the changes in the fair value of the cross currency swap contracts designated as a net investment hedge during the years ended December 31, 2025, 2024 and 2023 (in millions):

Gain (Loss) Recognized in Other Comprehensive Income (Loss) for the Years Ended

Before-Tax Amount Income Tax Expense (Benefit)

3 unchanged sentences

December 31, 2023 ( 12.7 ) ( 3.3 ) ( 9.4 )

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Derivative Transactions Not Designated as Hedging Instruments

3 unchanged sentences

As of December 31, 2025 and 2024, the Company had outstanding foreign currency contracts with a notional amount of approximately $ 2,865.7 million and $ 3,231.2 million, respectively.

The following table summarizes the results on net income of derivatives not designated as hedging instruments (in millions):

Gain (Loss) Recognized in Net Income for the Years Ended

The following table summarizes the results on net income (loss) of derivatives not designated as hedging instruments (in millions):

Gain (Loss) Recognized in Net Income (Loss) for the Years Ended

Classification of

Gain (Loss) December 31, 2025 December 31, 2024 December 31, 2023

Foreign currency contracts Other expense, net $ ( 49.3 ) $ 29.9 $ ( 38.2 )

Foreign currency contracts Other expense (income), net $ 24.3 $ ( 49.3 ) $ 29.9

The table below sets forth the fair value of derivative instruments as of December 31, 2025 (in millions):

8 unchanged sentences

Foreign currency contracts Other current assets $ 0.8 Other current liabilities $ 2.5

Commodity contracts Other current assets — Other current liabilities —

Cross currency swap contracts

6 unchanged sentences

(1) The outstanding contracts as of December 31, 2025 range in maturity through February 2026.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The table below sets forth the fair value of derivative instruments as of December 31, 2024 (in millions):

8 unchanged sentences

Foreign currency contracts Other current assets $ 3.7 Other current liabilities $ 1.6

Cross currency swap contract Other noncurrent assets 20.3 Other noncurrent liabilities —

Cross currency swap contracts

Other noncurrent assets 16.2 Other noncurrent liabilities —

Derivative instruments not designated as hedging instruments:

1 unchanged sentence

Total derivative instruments $ 46.0 $ 14.2

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

STOCK COMPENSATION PLANS

5 unchanged sentences

_________________________________

(1) Includes approximately $ 6.5 million of compensation expense related to PTx Trimble employees vesting in legacy Trimble awards.

(1) The years ended December 31, 2025 and 2024 include approximately $ 3.0 million and $ 6.5 million, respectively, of compensation expense related to PTx Trimble employees vesting in legacy Trimble awards.

The Company recognizes the effect of award forfeitures as an adjustment to stock compensation expense in the period in which the forfeiture occurs.

11 unchanged sentences

The compensation expense associated with these awards is amortized ratably over the vesting or performance period based on the Company’s projected assessment of the level of performance that will be achieved and earned.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

During 2025, the Company granted performance awards covering up to 441,212 shares, assuming the Company achieves maximum levels of performance related to varying performance periods.

5 unchanged sentences

Weighted average grant-date fair value $ 108.20 $ 126.95 $ 143.63

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Performance award transactions during 2025 were as follows and are presented as if the Company were to achieve its maximum levels of performance under the plan:

5 unchanged sentences

Shares awarded but not earned at December 31 719,632 $ 116.05

Based on the level of performance achieved as of December 31, 2024, 167,875 shares were earned under the related performance period, including 1,997 shares vested as of December 31, 2023 related to certain retirees and other individuals.

Based on the level of performance achieved as of December 31, 2025, 27,052 shares were earned under the related performance period.

16,650 shares were issued in February 2026, net of 10,402 shares that were withheld for taxes related to the earned awards.

The Plan allows for the participant to have the option of forfeiting a portion of the shares awarded in lieu of a cash payment contributed to the participant’s tax withholding to satisfy the participant’s statutory minimum federal, state and employment taxes which would be payable at the time of grant.

As of December 31, 2024, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved, was approximately $ 8.3 million, and the weighted average period over which it is expected to be recognized is approximately one and one-half years.

As of December 31, 2025, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved, was approximately $ 29.8 million, and the weighted average period over which it is expected to be recognized is approximately two years .

This estimate is based on the current projected levels of performance of outstanding awards.

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Shares awarded but not vested at December 31 293,145 $ 109.50

During January 2025, 56,009 RSUs shares were issued, net of 34,605 shares that were withheld for taxes.

During January 2026, 65,049 RSUs were issued, net of 41,119 shares that were withheld for taxes.

1 unchanged sentence

On January 28, 2026, the Company granted 228,993 performance award shares (subject to the Company achieving future target levels of performance) and 197,162 RSUs under the Plan.

The 2025 grant of performance award shares is subject to a total shareholder return modifier.

The performance award shares are subject to a total shareholder return modifier.

Director Restricted Stock Grants

5 unchanged sentences

The Company recorded stock compensation expense of approximately $ 1.5 million during 2025 associated with these grants.

Employee Stock Purchase Plan

The Company's Stock Purchase Plan (“ESPP”) provides employees of the Company and its participating subsidiaries

and affiliates an opportunity to purchase shares of the Company's common stock at a 10 % discount using the Company's share price on the last trading day of the six-month offering period.

Participants can contribute between 1 % and 10 % of their compensation.

The ESPP was approved by the Company’s stockholders on April 24, 2025 and became effective with the first offering period under the plan commencing on July 1, 2025.

A total of 4,000,000 shares were authorized to be issued.

As of December 31, 2025, the remaining shares authorized to be issued under the ESPP was approximately 4,000,000 .

The Company recorded stock compensation expense of approximately $ 0.2 million during 2025 associated with the ESPP.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

STOCKHOLDERS' EQUITY

1 unchanged sentence

Share Repurchase Program

In November 2024, the Company entered into an accelerated share repurchase ("ASR") agreement with a financial institution to repurchase $ 22.0 million of shares of its common stock.

On July 9, 2025, the Company's Board of Directors authorized a new share repurchase program authorizing the Company to repurchase up to 1.0 billion of the Company's common stock, which has no expiration date.

In November 2025, the Company entered into accelerated share repurchase (“ASR”) agreements with two financial institutions to repurchase an aggregate of $ 250.0 million of shares of its common stock.

The Company received approximately 1,997,204 shares associated with these transactions as of December 31, 2025.

In February 2026, the Company received an additional 333,755 shares upon final settlement of its November 2025 ASR agreements.

In November 2024, the Company entered into an ASR agreement with a financial institution to repurchase $ 22.0 million of shares of its common stock.

The Company received approximately 228,969 shares associated with the completion of this transaction as of December 31, 2024.

1 unchanged sentence

The Company received approximately 371,669 shares associated with this transaction as of December 31, 2023.

In January 2024, the Company

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

received an additional 82,883 shares upon final settlement of its November 2023 ASR agreement.

In August and November 2021, the Company entered into two ASR agreements with financial institutions to repurchase an aggregate of $ 135.0 million of shares of its common stock.

The Company received approximately 952,204 shares associated with these transactions as of December 31, 2021.

In January 2024, the Company received an additional 82,883 shares upon final settlement of its November 2023 ASR agreement.

4 unchanged sentences

$ 1.16 $ 3.66 $ 6.10

On January 16, 2025, the Company's Board of Directors declared a regular quarterly dividend of $ 0.29 per common share to be paid on March 14, 2025, to all stockholders of record as of the close of business February 14, 2025.

On January 15, 2026, the Company's Board of Directors declared a regular quarterly dividend of $ 0.29 per common share to be paid on March 16, 2026, to all stockholders of record as of the close of business on February 13, 2026.

__ __________________________________

(1) The Company’s Board of Directors declared and the Company has paid quarterly cash dividends of $ 0.29 per common share during each quarter of 2025.

In addition, the Company's Board of Directors declared and the Company paid a special variable dividend of $ 2.50 per common share during 2024 totaling approximately $ 186.6 million.

(2) On April 27, 2023, the Company’s Board of Directors approved a quarterly dividend of $ 0.29 per common share outstanding commencing in the second quarter of 2023.

The Company’s Board of Directors declared and the Company has paid quarterly cash dividends of $ 0.29 per common share beginning in the second quarter of 2023, from $ 0.24 per common share in the first quarter of 2023.

(2) The Company’s Board of Directors declared and the Company has paid quarterly cash dividends of $ 0.29 per common share during each quarter of 2024.

In addition, the Company's Board of Directors declared and the Company paid a special variable dividend of $ 2.50 per common share during 2024 totaling approximately $ 186.6 million.

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Defined Pension and Postretirement Benefit Plans

Cumulative Translation Adjustment Deferred Gains and Losses on Derivatives

Deferred Gains and Losses on Derivatives

Cumulative Translation Adjustment Total

Accumulated other comprehensive loss, December 31, 2022

$ ( 231.2 ) $ ( 0.9 ) $ ( 1,571.0 ) $ ( 1,803.1 )

Other comprehensive loss before reclassifications

Other comprehensive income (loss) before reclassifications

( 15.7 ) ( 8.9 ) 102.3 77.7

Net losses reclassified from accumulated other comprehensive loss 8.3 9.0 — 17.3

Other comprehensive loss

Other comprehensive income (loss)

( 7.4 ) 0.1 102.3 95.0

Accumulated other comprehensive loss, December 31, 2023 $ ( 238.6 ) $ ( 0.8 ) $ ( 1,468.7 ) $ ( 1,708.1 )

$ ( 231.2 ) $ ( 1,571 ) $ ( 0.9 ) $ ( 1,803.1 )

Other comprehensive income (loss) before reclassifications ( 3.1 ) 3.4 ( 224.3 ) ( 224.0 )

( 15.7 ) 102.3 ( 8.9 ) 77.7

Net losses reclassified from accumulated other comprehensive loss 22.9 6.3 — 29.2

2 unchanged sentences

Accumulated other comprehensive loss, December 31, 2024

$ ( 218.8 ) $ 8.9 $ ( 1,693.0 ) $ ( 1,902.9 )

Other comprehensive income (loss) before reclassifications

Net losses reclassified from accumulated other comprehensive loss 22.9 — 6.3 29.2

Other comprehensive income (loss)

( 11.5 ) 0.8 138.3 127.6

Net losses (gains) reclassified from accumulated other comprehensive loss

6.9 ( 6.5 ) — 0.4

Other comprehensive income (loss) ( 4.6 ) ( 5.7 ) 138.3 128.0

Accumulated other comprehensive loss, December 31, 2025

8 unchanged sentences

Year ended December 31, 2023 (1)

Net losses on foreign currency contracts

$ 6.7 $ 11.1 $ 14.5 Cost of goods sold

Net losses on commodity contracts

0.3 0.1 4.7 Cost of goods sold

Net gains on treasury rate locks

( 0.7 ) — — Interest expense, net

Net losses (gains) on foreign currency contracts $ ( 7.5 ) $ 6.7 $ 11.1 Cost of goods sold

Net losses on commodity contracts — 0.3 0.1 Cost of goods sold

Net gains on treasury rate locks ( 0.8 ) ( 0.7 ) — Interest expense, net

Reclassification before tax ( 8.3 ) 6.3 11.2

Income tax benefit

— ( 2.2 ) ( 5.1 ) Income tax provision

Income tax expense (benefit) 1.8 — ( 2.2 ) Income tax provision

Reclassification net of tax $ ( 6.5 ) $ 6.3 $ 9.0

Defined pension and postretirement benefit plans:

Amortization of net actuarial losses $ 10.5 $ 9.4 $ 8.7 Other expense, net (2)

Amortization of prior service cost 1.5 1.7 0.2 Other expense, net (2)

Net loss recognized due to settlement

18.8 — — Other expense, net (2)

Amortization of net actuarial losses $ 7.3 $ 10.5 $ 9.4 Other expense (income), net (2)

Amortization of prior service cost 1.9 1.5 1.7 Other expense (income), net (2)

Net loss (gain) recognized due to settlement

( 0.2 ) 18.8 — Other expense (income), net (2)

Reclassification before tax 9.0 30.8 11.1

4 unchanged sentences

$ 0.4 $ 29.2 $ 17.3

____________________________________

(1) Losses (Gains) included within the Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023, respectively.

(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost.

Refer to Note 20 of the Company’s Consolidated Financial Statements.

Refer to Note 20 for additional information.

NET INCOME (LOSS) PER COMMON SHARE

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A reconciliation of net income (loss) attributable to AGCO Corporation and weighted average common shares outstanding for purposes of calculating basic and diluted net income (loss) per share for the years ended December 31, 2025, 2024 and 2023 is as follows (in millions, except per share data):

2025 2024 (1)

Basic net income (loss) per share:

21 unchanged sentences

Under the various joint venture agreements, Rabobank or its affiliates provide financing to the joint venture companies, primarily through lines of credit.

During 2024 and 2023, respectively, the Company made a total of approximately $ 12.0 million and $ 24.6 million of additional investments in its finance joint venture in Brazil.

During 2022, the Company did not make additional investments in its finance joint ventures.

During 2025, the Company loaned its Argentine finance joint venture, AGCO Capital Argentina S.A.

(“AGCO Capital”), $ 11.3 million, which is outstanding as of December 31, 2025.

During 2025, the Company made approximately $ 11.5 million of additional investment in its finance joint venture in France.

During 2025, 2024 and 2023, respectively, the Company made a total of approximately $ 10.3 million, $ 12.0 million and $ 24.6 million of additional investments in its finance joint venture in Brazil.

During 2025, 2024, and 2023, the Company received approximately $ 18.3 million, $ 13.7 million and $ 28.9 million, respectively, of dividends from certain of its finance joint ventures.

6 unchanged sentences

The cost of those programs is recognized at the time of sale to the Company’s dealers (see Note 1 ).

The Company has a minority equity interest in Tractors and Farm Equipment Limited (“TAFE”), which manufactures and sells Massey Ferguson-branded equipment primarily in India, and also supplies tractors and components to the Company for sale in other markets.

Mallika Srinivasan, who is the Chairman and Managing Director of TAFE, is currently a member of the Company’s Board of Directors.

As of December 31, 2024, TAFE beneficially owned 12,150,152 shares of the Company’s common stock, not including shares of the Company’s common stock received by Ms.

Srinivasan for service as a director.

The Company and TAFE are parties to an agreement pursuant to which, among other things, TAFE has agreed not to purchase in excess of 12,150,152 shares of the Company’s common stock, subject to certain adjustments, and the Company has agreed to annually nominate a TAFE representative to its Board of Directors.

As of June 30, 2025, the Company entered into several agreements with Tractors and Farm Equipment Limited (“TAFE”), including the ones described further below among others, to resolve all outstanding disputes and other matters related to the commercial relationship between AGCO and TAFE as well as TAFE's shareholding in AGCO, ownership and use of the Massey Ferguson brand in India and certain other countries, and other key governance issues between the parties.

Specifically as it relates to AGCO's shareholding in TAFE, the Company and TAFE entered into a Buyback Agreement (the “Buyback Agreement”) pursuant to which TAFE will repurchase the Company’s remaining shareholdings in TAFE for an aggregate amount of $ 260 million.

On September 30, 2025, AGCO completed the sale to TAFE of AGCO’s ownership interest in TAFE for an aggregate amount of $ 260 million, with after-tax proceeds from the sale totaling approximately $ 230 million and recorded a gain of $ 251.9 million on the sale of the investment in affiliate within “Other expense (income), net” in the Company’s Consolidated Statements of Operations.

As part of the sale process, the substantive provisions of the agreements

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

AGCO entered into with TAFE on June 30, 2025 became effective, and the Amended and Restated Letter Agreement between AGCO and TAFE dated April 24, 2019, as most recently amended on July 7, 2025, expired.

Settlement Agreements

On June 30, 2025, the Company and TAFE entered into an Arbitrations Settlement Agreement and an India Litigation Settlement Agreement (collectively, the “Settlement Agreements”) pursuant to which the parties agreed to resolve claims arising from the Company’s termination of various commercial and brand agreements with TAFE and related arbitrations and litigation.

Under the Settlement Agreements, the parties agreed to mutually release any and all claims against one another.

Intellectual Property Agreement

On June 30, 2025, the Company and TAFE entered into an Intellectual Property Agreement (the “Intellectual Property Agreement”) pursuant to which TAFE will take ownership of the Massey Ferguson brand in India, Nepal and Bhutan, having previously been a brand licensee for over 60 years, and the Company will retain certain protective rights, including rights of first refusal upon a proposed transfer of these intellectual property assets.

The Intellectual Property Agreement also provides for certain customary confidentiality provisions.

Buyback Agreement

On June 30, 2025, the Company and TAFE entered into a Buyback Agreement (the “Buyback Agreement”) pursuant to which TAFE will repurchase the Company’s remaining shareholdings in TAFE for an aggregate amount of $ 260 million.

As discussed above, AGCO completed the sale to TAFE of AGCO's ownership interest in TAFE on September 30, 2025.

Cooperation Agreement

On June 30, 2025, the Company and TAFE entered into a Cooperation Agreement (the “Cooperation Agreement”) pursuant to which TAFE agreed to standstill provisions with respect to its actions with regard to the Company, including the limitation on TAFE purchasing additional shares of the Company that would increase its holdings above its current percentage of outstanding shares, the requirement to vote its shares of the Company in accordance with recommendations from the Company’s Board of Directors and not engaging in future public stockholder activism.

The standstill provisions do not expire.

TAFE retained the discretion to vote independently on any publicly-announced proposals related to an Extraordinary Transaction (as defined in the Cooperation Agreement).

The Cooperation Agreement releases TAFE from the restriction on purchasing shares in the Company following certain events such as (i) the Company’s public announcement of a possible sale of the Company, (ii) any person commencing a Board-approved public tender to acquire the Company, (iii) certain persons (other than TAFE) acquiring 12.5 % or more of the Company’s outstanding shares, (iv) any person commencing a Qualified Tender Offer (as defined in the Cooperation Agreement), (v) any person commencing a public tender offer by filing a Schedule TO, or (vi) any person publicly announcing its intention to commence a public tender offer or makes a public offer.

TAFE also agreed to participate pro rata in the Company’s share repurchase programs as authorized by the Company’s Board of Directors from time to time, but retains the right to maintain its current percentage level of beneficial ownership of the Company’s Common Stock.

As of December 31, 2025, TAFE beneficially owned 12,150,152 shares of the Company’s common stock.

In April 2024, the Company terminated all of its commercial relationships with TAFE and does not expect to incur material purchases.

During 2025, 2024 and 2023, the Company purchased approximately $ 55.2 million, $ 165.9 million and $ 171.6 million, respectively, of tractors and components from TAFE.

During 2025, 2024 and 2023, the Company sold approximately $ 0.1 million, $ 5.0 million and $ 3.6 million, respectively, of parts to TAFE.

In April 2024, the Company terminated all of its commercial relationships with TAFE and does not expect to incur

The Company received dividends from TAFE of approximately $ 0.7 million, $ 3.3 million and $ 2.9 million during 2025, 2024 and 2023, respectively.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

material purchases.

The Company received dividends from TAFE of approximately $ 3.3 million, $ 2.9 million and $ 2.1 million during 2024, 2023 and 2022, respectively.

The sources of income (loss) before income taxes and equity in net earnings of affiliates were as follows for the years ended December 31, 2025, 2024 and 2023 (in millions):

7 unchanged sentences

United States:

$ ( 13.3 ) $ ( 4.6 ) $ 45.5

Foreign 299.9 203.3 433.6

1 unchanged sentence

United States:

( 266.1 ) ( 104.5 ) ( 64.1 )

( 48.6 ) ( 22.1 ) ( 18.7 )

Foreign ( 51.8 ) 24.0 ( 181.6 )

1 unchanged sentence

$ ( 77.4 ) $ 98.4 $ 230.4

The Company's income tax provision as of December 31, 2023 includes a benefit of $ 112.3 million related to the recognition of a deferred tax asset of $ 197.7 million, net of a valuation allowance of $ 85.4 million, related to the finalization of negotiations surrounding the application of Swiss Tax reform legislation enacted in 2020.

The provision also includes a charge of approximately $ 26.4 million associated with our enrollment in a Brazilian tax amnesty program, “Litigation Zero”, discussed further below.

A reconciliation of income taxes computed at the United States federal statutory income tax rate (21% for 2024, 2023 and 2022) to the provision for income taxes reflected in the Company’s Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022 is as follows (in millions):

The Company's income tax provision as of December 31, 2025 includes a net federal tax benefit of $ 179.8 million related to a legal entity reorganization, which excludes approximately $ 82.0 million of additional benefits related to a change in the Company's permanent reinvestment assertion and state tax benefits associated with the reorganization.

The Company's income tax provision as of December 31, 2023 included a benefit of $ 112.3 million related to the recognition of a deferred tax asset of $ 197.7 million, net of a valuation allowance of $ 85.4 million, related to the finalization of negotiations surrounding the application of Swiss Tax reform legislation enacted in 2020.

The provision also included a charge of approximately $ 26.4 million associated with the Company's enrollment in a Brazilian tax amnesty program, “Litigation Zero”, discussed further below.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

A reconciliation of income taxes computed at the United States federal statutory income tax rate (21% for 2025) to the provision for income taxes reflected in the Company’s Consolidated Statements of Operations for the year ended December 31, 2025 is as follows (in millions):

Provision for income taxes at United States federal statutory rate

$ 126.4 21.0 %

State and local income taxes, net of federal income tax effects (1)

( 46.6 ) ( 7.7 ) %

Foreign tax effects:

Statutory income tax rate differential ( 13.9 ) ( 2.3 ) %

Trade tax 32.4 5.4 %

Other ( 3.6 ) ( 0.6 ) %

Statutory income tax rate differential ( 39.7 ) ( 6.6 ) %

Cantonal tax 16.3 2.7 %

Foreign jurisdiction on dividends 6.6 1.1 %

Other 4.2 0.7 %

Nontaxable or nondeductible (gains) losses ( 52.0 ) ( 8.6 ) %

Foreign jurisdiction on dividends 8.6 1.4 %

Other 6.0 1.0 %

Statutory income tax rate differential 11.6 1.9 %

Other ( 0.8 ) ( 0.1 ) %

Statutory income tax rate differential ( 19.4 ) ( 3.2 ) %

Brazil interest on net equity ( 31.2 ) ( 5.2 ) %

Foreign withholding tax 22.3 3.7 %

Other ( 5.0 ) ( 0.8 ) %

Currency remeasurement 6.3 1.1 %

Other 6.0 1.0 %

Foreign withholding tax 25.0 4.2 %

Other 0.3 0.1 %

China 6.9 1.2 %

Other foreign jurisdictions 10.6 1.8 %

Effect of cross-border tax laws:

Global intangible low-taxed income, net of credits 26.6 4.4 %

Branch income and loss, net of credits ( 43.8 ) ( 7.3 ) %

Subpart F, net of credits 15.7 2.6 %

Research and development tax credits ( 8.6 ) ( 1.4 ) %

Changes in valuation allowances

Nontaxable or nondeductible items 6.4 0.8 %

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Changes in unrecognized tax benefits

United States tax restructuring (2)

( 179.8 ) ( 29.9 ) %

$ ( 77.4 ) ( 12.9 ) %

____________________________________

(1) State taxes in Iowa, Illinois, Kansas, and Minnesota made up the majority (greater than 50%) of the tax effect in this category.

(2) The Company's income tax provision as of December 31, 2025 includes a net federal tax benefit of $ 179.8 million related to a legal entity reorganization.

This amount excludes approximately $ 42.1 million of state and local tax benefits and $ 39.9 million of additional benefits related to a change in the Company's permanent reinvestment assertion associated with the reorganization, which are recorded in cross-border tax effects.

As previously disclosed, prior to the adoption of ASU 2023-09, a reconciliation of income taxes computed at the United States federal statutory income tax rate (21% for 2024 and 2023) to the provision for income taxes reflected in the Company’s Consolidated Statements of Operations for the years ended December 31, 2024 and 2023 is as follows (in millions):

Provision for income taxes at United States federal statutory rate

6 unchanged sentences

Foreign inclusion, net of foreign tax credits

42.8 13.5 4.4

Tax effect of permanent differences 13.6 ( 34.0 )

Change in valuation allowance (1)

13.1 116.5 0.7

Change in tax contingency reserves 30.1 33.2

4 unchanged sentences

____________________________________

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

____________________________________

(1) In 2023, a gross deferred tax asset of $ 197.7 million less a valuation allowance of $ 85.4 million was recognized to reflect future Swiss tax incentives the Company anticipates it will be able to utilize by 2034 when the incentive expires.

1 unchanged sentence

Further, in 2024, “Other, net” also includes a provision of approximately $ 12.7 million related to a noncontrolling interest.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The significant components of the deferred tax assets and liabilities at December 31, 2025 and 2024 were as follows (in millions):

9 unchanged sentences

Investment in affiliates 50.9 67.5

tax basis intangibles 207.9 —

Book over tax depreciation and amortization 22.8 —

Other 41.9 30.6

4 unchanged sentences

Tax over book depreciation and amortization — 62.3

Investment in affiliates — 3.9

Other 3.5 6.0

26 unchanged sentences

____________________________________

(1) The amounts recorded to expense in 2025 are primarily related to Switzerland and the U.S.

The amounts recorded to expense in 2024 are primarily related to China and the amounts recorded to expense in 2023 are primarily related to Switzerland and the U.S.

There were no amounts credited or charged through other comprehensive income during 2025, 2024 and 2023.

(2) There are no deductions in 2025.

The deductions in 2024 are primarily related to reversal of valuation allowance from the divestiture of the majority of the Company's G&P business.

The deductions in 2023 are primarily related to reversal of valuation allowance from the effective utilization of certain tax losses in the Brazil amnesty program.

The Company had net operating loss carryforwards of $ 93.9 million as of December 31, 2024, with expiration dates as follows:

In tax jurisdictions outside of the United States, the Company had net operating loss carryforwards of $ 315.3 million as of December 31, 2025, with expiration dates as follows:

2026 - $ 3.0 million;

2 unchanged sentences

2029 and thereafter - $ 45.3 million and unlimited - $ 245.7 million.

The net operating loss carryforwards of $ 93.9 million are entirely in tax jurisdictions outside of the United States.

The amount of the Company’s U.S.

state net operating loss carryforwards is not material.

The Company paid income taxes of $ 344.0 million, $ 463.6 million and $ 304.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The Company had U.S.

state net operating loss carryforwards of $ 17.1 million as of December 31, 2025.

The Company paid income taxes for the year ended December 31, 2025 as follows (in millions):

state and local 4.1

Corporate income tax 46.3

Trade tax 55.4

Switzerland 29.1

Other foreign 54.3

Income taxes, net of amounts refunded $ 283.1

The table above presents jurisdictions in which income taxes paid exceed 5% of total income taxes, net of refunds.

Unless otherwise indicated, amounts for foreign jurisdictions include both national and provincial income taxes paid.

The Company paid income taxes of $ 344.0 million and $ 463.6 million for the years ended December 31, 2024 and 2023, respectively.

The Company recognizes income tax benefits from uncertain tax positions only when there is a more than 50% likelihood that the tax positions will be sustained upon examination by the taxing authorities based on the technical merits of the positions.

At December 31, 2025 and 2024, the Company had approximately $ 3.8 million and $ 9.3 million, respectively, of accrued or deferred taxes related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions that it expects to settle or pay in the next 12 months, reflected in “Other current liabilities” in the Company’s Consolidated Balance Sheets.

At December 31, 2024 and 2023, the Company had approximately $ 378.4 million and $ 344.2 million, respectively, of accrued taxes reflected in “Other noncurrent liabilities” in the Company’s Consolidated Balance Sheets.

At December 31, 2025 and 2024, the Company had approximately $ 465.8 million and

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

$ 378.4 million, respectively, of accrued taxes reflected in “Other noncurrent liabilities” in the Company’s Consolidated Balance Sheets.

The Company accrued approximately $ 1.8 million and $ 3.6 million of interest and penalties related to unrecognized tax benefits in its provision for income taxes during 2025 and 2024, respectively.

10 unchanged sentences

Gross unrecognized income tax benefits at the end of the year $ 469.9 $ 387.4

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

At December 31, 2025 and 2024, the Company had $ 469.9 million and $ 387.4 million, respectively, of unrecognized income tax benefits, which would affect the Company’s effective tax rate if recognized.

17 unchanged sentences

After weighing various impacts involved with enrollment, including the avoidance of potential interest, penalties and legal costs, the Company enrolled in the program in the quarter ended March 31, 2023.

The Company recorded approximately 182.6 million Brazilian reais (or approximately $ 34.8 million) within “Income tax provision” net of associated U.S.

The Company recorded approximately 182.6 million

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Brazilian reais (or approximately $ 34.8 million) within “Income tax provision” net of associated U.S.

income tax credits of approximately $ 8.4 million and completed its installment payments related to its enrollment in the program during the year ended December 31, 2023.

5 unchanged sentences

In connection with the termination process, the Company offered a lump sum benefit payout option to Plan participants, and the remaining assets of the Plan were used to purchase a group annuity contract that transferred the remaining plan liabilities to an insurance carrier.

The termination process was finalized by December 31, 2024 and the settlement resulted in the recognition of approximately $ 18.5 million within “Other expense, net” within the Company's Consolidated Statements of Operations representing the amounts previously recognized in accumulated other comprehensive loss.

As of December 31, 2024, there were no remaining balances on the balance sheet related to the Plan.

The termination process was finalized by December 31, 2024 and the settlement resulted in the recognition of approximately $ 18.5 million within “Other expense (income), net” within the Company's Consolidated Statements of Operations representing the amounts previously recognized in “Accumulated other comprehensive loss.” As of December 31, 2024, there were no remaining balances on the balance sheet related to the Plan.

The Company also maintains an Executive Nonqualified Pension Plan (“ENPP”) in the U.S.

that provides certain senior executives with retirement income for a period of 15 years or up to a lifetime annuity, if certain requirements are met.

Benefits under the ENPP vest if the participant has attained age 50 and has at least ten years of service (including five years

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

as a participant in the ENPP), but are not payable until the participant reaches age 65 .

Benefits under the ENPP vest if the participant has attained age 50 and has at least ten years of service (including five years as a participant in the ENPP), but are not payable until the participant reaches age 65 .

The lifetime annuity benefit generally is available only to vested participants who retire on or after reaching age 65 and was eliminated during 2021 for participants reaching age 65 subsequent to December 31, 2022.

The ENPP is an unfunded, nonqualified defined benefit pension plan.

The ENPP is frozen as of December 31, 2024 against future benefit accruals.

The ENPP was frozen as of December 31, 2024 against future benefit accruals.

Net annual pension costs for the years ended December 31, 2025, 2024 and 2023 for the Company’s defined benefit pension plans and ENPP are set forth below (in millions):

5 unchanged sentences

Amortization of prior service cost 1.6 10.5 1.5

Net (gain) loss recognized due to settlement 18.8 0.4 ( 0.4 )

Net loss recognized due to settlement

( 0.2 ) 18.8 0.4

Curtailment (gain) loss

Net annual pension cost $ 17.3 $ 35.7 $ 19.8

The components of net periodic pension and postretirement benefits cost, other than the service cost component, are included in “Other expense, net” in the Company’s Consolidated Statements of Operations.

The components of net periodic pension and postretirement benefits cost, other than the service cost component, are included in “Other expense (income), net” in the Company’s Consolidated Statements of Operations.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The weighted average assumptions used to determine the net annual pension costs for the Company’s defined benefit pension plans and ENPP for the years ended December 31, 2025, 2024 and 2023 are as follows:

12 unchanged sentences

funded, qualified plan.

The termination process was finalized by December 31, 2024.

(2) Applicable for U.S.

4 unchanged sentences

Interest cost 1.4 1.5 1.3

Amortization of net actuarial gains

Amortization of prior service cost 0.3 0.1 0.2

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Actuarial losses (gains) 7.8 ( 42.3 ) 4.7 ( 3.1 )

Acquisitions — — ( 0.2 ) —

Amendments 0.1 ( 0.3 ) — 1.6

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Funded status $ ( 61.9 ) $ ( 56.0 ) $ ( 25.0 ) $ ( 19.7 )

Pension and ENPP Benefits Postretirement Benefits

Amounts recognized in Consolidated

Balance Sheets:

2025 2024 2025 2024

Other assets (noncurrent)

11 unchanged sentences

$ ( 304.4 ) $ ( 73.2 ) $ ( 231.2 )

Prior service cost arising during the year

( 25.5 ) ( 6.4 ) ( 19.1 )

Net gain recognized due to settlement

( 0.4 ) — ( 0.4 )

Net actuarial gain arising during the year

Net loss recognized due to settlement

Net actuarial loss arising during the year

( 21.5 ) ( 5.4 ) ( 16.1 )

3 unchanged sentences

$ ( 314.4 ) $ ( 75.8 ) $ ( 238.6 )

Prior service cost arising during the year

( 1.4 ) ( 0.5 ) ( 0.9 )

Net loss recognized due to settlement

18.8 4.8 14.0

Net actuarial loss arising during the year

6 unchanged sentences

( 0.1 ) — ( 0.1 )

Net loss recognized due to settlement

Net gain recognized due to settlement

( 0.2 ) — ( 0.2 )

7 unchanged sentences

Unrecognized net actuarial losses $ 260.4 $ 256.7

The decrease in unrecognized net actuarial losses between years is primarily due to the termination of the U.S.

qualified defined benefits plan, as well as the total net impact of the changes in the assumptions, specifically the increase in the discount rate.

The increase in unrecognized net actuarial losses between years is primarily due to the termination of the U.S.

qualified defined benefit plan in the prior year, as well as the total net impact of the changes in the assumptions, specifically the decrease in the discount rate.

The unrecognized net actuarial losses will be impacted in future periods by actual asset returns, discount rate changes, currency exchange rate fluctuations, actual demographic experience and certain other factors.

4 unchanged sentences

As of December 31, 2025, the average amortization periods were as follows:

Average amortization period of losses related to defined benefit pension plans 6 years 16 years

Average amortization period of losses related to defined benefit pension plans 6.5 years

AGCO CORPORATION

5 unchanged sentences

and Brazilian postretirement health care benefit plans as of December 31, 2025 and 2024 (in millions):

Unrecognized net actuarial gains (1)

Unrecognized net actuarial losses (gains) (1)

$ 1.6 $ ( 3.3 )

2 unchanged sentences

postretirement benefit plans.

The change in unrecognized net actuarial gains related to the Company’s U.S.

and Brazilian postretirement benefit plans is primarily resulting from the gain in relation to the change in the projected benefit obligation as a result of the favorable impact of the underlying assumptions as of December 31, 2024.

The change in unrecognized net actuarial losses (gains) related to the Company’s U.S.

and Brazilian postretirement benefit plans is primarily resulting from the loss in relation to the change in the projected benefit obligation as a result of the unfavorable impact of the underlying assumptions as of December 31, 2025.

The unrecognized net actuarial gains or losses will be impacted in future periods by discount rate changes, actual demographic experience, actual health care inflation and certain other factors.

32 unchanged sentences

unfunded, nonqualified plan.

The termination process was finalized by December 31, 2024.

The weighted average discount rate used to determine the benefit obligation for the Company’s postretirement benefit plans for the years ended December 31, 2025 and 2024 was 7.7 % and 7.2 %, respectively.

23 unchanged sentences

Investment Strategy and Concentration of Risk

The weighted average asset allocation of the Company’s U.S.

pension benefit plans as of December 31, 2024 and 2023 are as follows:

Asset Category 2024 (1)

Equity securities — % — %

Fixed income securities — % 89 %

Other investments — % 11 %

Total — % 100 %

______________________________________

defined qualified pension plan was terminated and fully settled as of December 31, 2024.

As such, there are no related pension plan assets.

The weighted average asset allocation of the Company’s U.K.

5 unchanged sentences

Total 100 % 100 %

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company categorizes its pension plan assets into one of three levels based on the assumptions used in valuing the asset.

See Note 21 for a discussion of the fair value hierarchy as per the guidance in ASC 820, “Fair Value measurements” (“ASC 820”).

Refer to Note 21 for a discussion of the fair value hierarchy as per the guidance in ASC 820, “Fair Value measurements” (“ASC 820”).

The Company’s valuation techniques are designed to maximize the use of observable inputs and minimize the use of unobservable inputs.

10 unchanged sentences

The “market approach” valuation technique is used to value investments in these funds.

The funds typically are open-end funds as they generally offer subscription and redemption options to investors.

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

funds typically are open-end funds as they generally offer subscription and redemption options to investors.

The frequency of such subscriptions or redemptions is dictated by each fund’s governing documents.

3 unchanged sentences

The funds consider subscription and redemption rights, including any restrictions on the disposition of the interest, in its determination of the fair value.

Other alternative investments include derivative contracts such as options and currency forwards, commodity securities and insurance-linked securities, which are largely valued based on observable data.

• Insurance Contracts :

10 unchanged sentences

Alternative investments:

Private equity fund — — —

Hedge funds measured at net asset value (4)

Commodity securities

Insurance-linked securities

Derivative contracts - currency forwards, interest rate swaps and options

Total alternative investments (2)

16.3 4.5 11.8 —

Miscellaneous funds (3)

4 unchanged sentences

(1) 73 % of “fixed income” securities are in government treasuries;

22 % are in foreign securities;

13 % are in investment-grade corporate bonds;

8 % are in asset or mortgage backed securities;

2 % are in investment-grade corporate bonds and 1 % are in high-yield securities.

(2) 49 % of “alternative investments” are in relative value funds;

30 % are in long-short equity funds;

14 % are in event-driven funds and 7 % are in credit funds.

4 % are in high-yield securities and 2 % are in foreign securities.

(2) 54 % of “alternative investments” are in hedge funds;

28 % are in commodity securities;

12 % are in insurance-linked securities;

and 6 % are in derivative contracts.

(3) “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland.

20 unchanged sentences

Alternative investments:

Private equity fund 2.2 — — 2.2

Hedge funds measured at net asset value (4)

8 unchanged sentences

2 % are in investment-grade corporate bonds;

2 % are in high-yield securities.

7 % are in asset or mortgage backed securities and 1 % are in high-yield securities.

(2) 49 % of “alternative investments” are in relative value funds;

30 % are in long-short equity funds;

8 % are in event-driven funds;

9 % are in credit funds;

and 6 % are distributed in hedged and non-hedged funds.

14 % are in event-driven funds and 7 % are in credit funds.

(3) “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland.

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The asset mix is recognized as the primary mechanism to influence the reward and risk structure of the pension fund investments in an effort to accomplish the plans’ funding objectives.

The overall investment strategies and target allocations of retirement fund investments for the Company’s non-U.S.

The Company engages investment professionals to manage the overall schemes.

The Company's strategic allocation considers multi-asset growth portfolios, cash flow driven investments, and liability hedging assets.

Each type of portfolio aims to mitigate specific concentrations of risks while achieving returns.

Ranging from matching the movement in liabilities related to interest rates and inflation with no outperformance to producing income with a high degree of certainty, a defined purpose is established for each portfolio.

Such diversification allows for a balanced approach between investments in assets for near-term benefit payments and assets for longer-term growth.

The target allocations of retirement fund investments for the Company’s non-U.S.

based pension plans are as follows:

Pension Plans (1)

Overall investment strategies:

Assets for the near-term benefit payments 10.0 %

Assets for longer-term growth 90.0 %

Total 100.0 %

Target allocations:

Equity securities 5.0 %

Fixed income securities 90.0 %

Equity securities 7.5 %

Alternative investments

Total 100.0 %

2 unchanged sentences

pension fund investments are related to the Company’s pension plan in the United Kingdom.

(2) The overall non-U.S.

pension funds invest in a broad diversification of asset types.

The Company has noted that over very long periods, this mix of investments would achieve an average return on its non-U.S.

based pension plans of approximately 6.00 %.

In arriving at the choice of an expected return assumption of 5.50 % for its U.K.-based plans for the year ending December 31, 2025, the Company has tempered this historical indicator with lower expectations for returns and changes to investments in the future as well as the administrative costs of the plans.

The expected long-term return on plan assets is based on a long horizon of 15 to 20 years.

Projected returns consider current and historical asset allocations.

The Company has noted this mix of investments for a 20 years period supports an expected long-term return on its non-U.S.

based pension plans of approximately 5.8 % to 7.0 %.

Based on the historical returns and forward-looking return expectations, we believe our expected return assumption of 6.20 % for our U.K.-based plans for the year ending December 31, 2026 is reasonable and attainable.

The Company has tempered this historical indicator with lower expectations for returns and changes to investments in the future as well as the administrative costs of the plans.

Equity securities primarily include investments in large-cap and small-cap companies located across the globe.

Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, agency mortgages, asset-backed securities and government securities.

Alternative and other assets include investments in hedge fund of funds that follow diversified investment strategies.

Fixed income securities include government securities, investment-grade corporate bonds of companies from diversified industries, asset-backed securities, high-yield securities and foreign securities.

Alternative and other assets include investments in hedge funds, derivative contracts, commodity securities and insurance-linked securities.

To date, the Company has not invested pension funds in its own stock and has no intention of doing so in the future.

27 unchanged sentences

Such models used for option contracts also use implied volatility.

Refer to Note 14 for a discussion of the Company’s derivative instruments and hedging activities.

Refer to Note 14 for additional information on the Company’s derivative instruments and hedging activities.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024 are summarized below (in millions):

7 unchanged sentences

Derivative liabilities — 14.2 — 14.2

The carrying amounts of long-term debt under the Company’s 1.002 % EIB Senior term loan due 2025, EIB Senior term loans due 2029 and 2030 and Senior term loans due between 2025 and 2028 approximate fair value based on the borrowing rates currently available to the Company for loans with similar terms and average maturities.

The carrying amounts of long-term debt under the Company’s EIB Senior term loans due 2029 and 2030 and Senior term loans due between 2025 and 2028 approximate fair value based on the borrowing rates currently available to the Company for loans with similar terms and average maturities.

At December 31, 2025, the estimated fair value of the Company’s 0.800 % Senior notes due 2028, based on listed market values, was approximately € 566.7 million (or approximately $ 664.8 million), compared to the carrying value of € 600.0 million (or approximately $ 703.8 million).

18 unchanged sentences

The timing and amounts of future contributions are dependent upon the funding status of the plans, which is expected to vary as a result of changes in interest rates, returns on underlying assets, and other factors.

Refer to Notes 19 and 20 of the Consolidated Financial Statements for additional information regarding the Company’s uncertain tax positions and pension and postretirement benefit plans, respectively.

Refer to Note 19 and Note 20 of the Consolidated Financial Statements for additional information regarding the Company’s uncertain tax positions and pension and postretirement benefit plans, respectively.

These obligations comprise a majority of the Company’s other short-term and long-term obligations.

22 unchanged sentences

In July 2022, the case was tried before a jury, which determined that the Company and Precision Planting had not infringed the Deere patents.

Following customary post-trial procedures, the Court entered a judgement in the Company’s favor, and Deere appealed the judgment to the U.S.

Following customary post-trial procedures, the Court entered a judgment in the Company’s favor, and Deere appealed the judgment to the U.S.

Court of Appeals for the Federal Circuit.

On January 24, 2025, the Court ruled in favor of the Company and Precision Planting.

The case remains subject to the right of Deere to file for a writ of certiorari from the U.S.

Supreme Court.

The Company has an indemnity right under the purchase agreement related to the acquisition of Precision Planting from its previous owner.

Pursuant to that right, the previous owner of Precision Planting currently is responsible for the litigation costs associated with the complaint and is obligated to reimburse AGCO for some or all of the damages in the event of an adverse outcome in the litigation.

Deere did not file for a writ of certiorari from the U.S.

Supreme Court within the required time period, and, as a result, the District Court judgment is final.

The Company is a party to various other legal claims and actions incidental to its business.

3 unchanged sentences

Total lease assets and liabilities at December 31, 2025 and 2024 were as follows (in millions):

Lease Assets Classification As of December 31, 2024 As of December 31, 2023

Lease Assets Classification As of December 31, 2025

As of December 31, 2024

Operating ROU assets Right-of-use lease assets $ 167.3 $ 168.9

32 unchanged sentences

2029 23.5 0.3

2029 15.2 0.2

Thereafter 37.5 6.0

47 unchanged sentences

Contract Liabilities

Contract liabilities relate to the following:

(1) unrecognized revenues where payment of consideration precedes the Company’s performance with respect to extended warranty and maintenance contracts and where the performance obligation is satisfied over time, (2) unrecognized revenues where payment of consideration precedes the Company’s performance with respect to precision agriculture technology services and where the performance obligation is satisfied over time and (3) unrecognized revenues where payment of consideration precedes the Company’s performance with respect to certain grain storage and protein production systems and where the performance obligation is satisfied over time.

Significant changes in the balance of contract liabilities for the years ended December 31, 2024 and 2023 were as follows (in millions):

Year Ended December 31, 2024

Year Ended December 31, 2023

Balance at beginning of period $ 310.7 $ 239.0

Acquisitions 21.0 —

Advance consideration received 207.2 228.8

Revenue recognized during the period for extended warranty contracts, maintenance services and technology services ( 156.6 ) ( 110.6 )

Revenue recognized during the period related to grain storage and protein production systems ( 16.6 ) ( 53.7 )

Foreign currency translation ( 13.3 ) 7.2

Balance as of December 31 $ 341.5 $ 310.7

Contract liabilities primarily relate to the following:

The following table summarizes the balance of contract liabilities as of December 31, 2025 and 2024 (in millions):

Contract liabilities

$ 386.1 $ 341.5

The contract liabilities are classified as either “Accrued Expenses” or “Other current liabilities” and “Other noncurrent liabilities” in the Company’s Consolidated Balance Sheets.

37 unchanged sentences

America South

Middle East Asia/

Pacific/Africa Consolidated

Middle East Asia/Pacific/Africa

Total Segments

Primary geographical markets:

21 unchanged sentences

$ 2,298.3 $ 1,208.5 $ 6,712.3 $ 626.3 $ 10,845.4 $ 816.5 $ 11,661.9

__________________________________

(1) “Other” represents the results for the year ended December 31, 2024 for the majority of the Company’s G&P business which was divested on November 1, 2024.

The results of the G&P business through the date of the divestiture were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments.

AGCO CORPORATION

1 unchanged sentence

Net sales for the year ended December 31, 2023 disaggregated by primary geographical markets and major products consisted of the following (in millions):

Middle East Asia/

Pacific/Africa Consolidated (1)

Middle East Asia/Pacific/Africa (1)

Total Segments

Primary geographical markets:

23 unchanged sentences

(1) Rounding may impact the summation of amounts.

(2) “Other” represents the results for the year ended December 31, 2023 for the majority of the Company’s G&P business which was divested on November 1, 2024.

The results of the G&P business through the date of the divestiture were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments.

AGCO CORPORATION

8 unchanged sentences

The Company’s selling, general and administrative expenses and engineering expenses are charged to each segment based on the region and division where the expenses are incurred.

As a result, the components of income from operations for one segment may not be comparable to another segment.

As a result, the components of income (loss) from operations for one segment may not be comparable to another segment.

Segment results for the years ended December 31, 2025, 2024 and 2023 based on the Company’s reportable segments are as follows (in millions):

AGCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Years Ended December 31, North America South America Europe/Middle East Asia/Pacific/Africa Total Segments

3 unchanged sentences

Engineering expenses 138.9 41.5 296.4 10.9 487.7 — 487.7

Income from operations $ 175.8 $ 104.4 $ 925.7 $ 32.7 $ 1,238.6

Income (loss) from operations

$ ( 112.0 ) $ 51.4 $ 1,006.8 $ 27.8 $ 974.0 $ — $ 974.0

Depreciation $ 58.5 $ 32.9 $ 153.9 $ 11.2 $ 256.5 $ — $ 256.5

2 unchanged sentences

Net sales (2)

$ 2,298.3 $ 1,208.5 $ 6,712.3 $ 626.3 $ 10,845.4 $ 816.5 $ 11,661.9

Cost of goods sold 1,750.1 975.3 4,913.4 494.9 8,133.7 629.1 8,762.8

2 unchanged sentences

Income from operations (3)

$ 84.0 $ 87.0 $ 961.3 $ 31.2 $ 1,163.5 $ 75.1 $ 1,238.6

Depreciation $ 58.4 $ 34.1 $ 136.9 $ 14.9 $ 244.3 $ 6.9 $ 251.2

2 unchanged sentences

Net sales (4)

$ 3,138.2 $ 2,078.2 $ 7,385.2 $ 793.1 $ 13,394.7 $ 1,017.7 $ 14,412.4

Cost of goods sold 2,311.0 1,520.3 5,383.5 626.8 9,841.6 793.4 10,635.0

2 unchanged sentences

Income from operations (5)

$ 398.1 $ 357.8 $ 1,110.0 $ 78.5 $ 1,944.4 $ 79.2 $ 2,023.6

Depreciation $ 51.9 $ 33.6 $ 114.1 $ 16.7 $ 216.3 $ 14.1 $ 230.4

1 unchanged sentence

Capital expenditures 113.2 72.1 309.9 4.2 499.4 18.7 518.1

____________________________________

(1) “Other” represents the results for the years ended December 31, 2024 and 2023 for the majority of the Company’s Grain & Protein (“G&P”) business which was divested on November 1, 2024.

The results of the G&P business through the date of the divestiture were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments.

(2) Of the $ 816.5 million of the net sales of the divested G&P business recast to “Other”, $ 552.0 million, $ 107.4 million, $ 100.6 million and $ 56.5 million were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments, respectively.

(3) Of the $ 75.1 million of the income (loss) from operations of the divested G&P business recast to “Other”, $ 91.8 million, $ 17.4 million, $( 35.6 ) million and $ 1.5 million were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments, respectively.

(4) Of the $ 1,017.7 million of the net sales of the divested G&P business recast to “Other”, $ 614.5 million, $ 156.0 million, $ 155.3 million and $ 91.9 million were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments, respectively.

(5) Of the $ 79.2 million of the income (loss) from operations of the divested G&P business recast to “Other”, $ 61.2 million, $ 28.6 million, $( 9.4 ) million and $( 1.2 ) million were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments, respectively.

AGCO CORPORATION

20 unchanged sentences

Consolidated total assets $ 11,927.8 $ 11,190.6 $ 11,421.2

Property, plant and equipment, right-of-use lease assets and amortizable intangible assets by country as of December 31, 2024 and 2023 was as follows (in millions):

____________________________________

(1) “Other” represents the results for the years ended and assets as of December 31, 2024 and 2023 for the majority of the Company’s G&P business which was divested on November 1, 2024.

The results and assets of the G&P business through the date of the divestiture were previously included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments.

Property, plant and equipment, right-of-use lease assets and amortizable intangible assets by country as of December 31, 2025 and 2024 were as follows (in millions):

United States $ 863.6 $ 945.8

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data