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Item 1. Financial Statements

2026-07-30 compared with 2026-05-05 · 391 added, 140 removed, 616 unchanged (46% of the section changed)

3 unchanged sentences

(unaudited and in millions, except share amounts)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Current Assets:

31 unchanged sentences

Common stock;

$ 0.01 par value, 150,000,000 shares authorized, 72,403,830 and 72,629,310 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

$ 0.01 par value, 150,000,000 shares authorized, 70,002,207 and 72,629,310 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 10.9 0.5

7 unchanged sentences

(unaudited and in millions, except per share data)

Three Months Ended March 31,

Three Months Ended June 30,

Net sales $ 2,609.7 $ 2,635.0

7 unchanged sentences

Restructuring and business optimization expenses

Loss on sale of business

Income from operations

1 unchanged sentence

Other expense, net 15.5 48.9

Income (loss) before income taxes and equity in net earnings of affiliates

Income tax provision

Income (loss) before equity in net earnings of affiliates

Income before income taxes and equity in net earnings of affiliates

Income tax provision (benefit) 40.4 ( 205.5 )

Income before equity in net earnings of affiliates

Equity in net earnings of affiliates

Net loss attributable to noncontrolling interests 2.4 0.4

Net income attributable to AGCO Corporation

$ 77.2 $ 314.8

Net income per common share attributable to AGCO Corporation:

$ 1.08 $ 4.22

Cash dividends declared and paid per common share $ 0.30 $ 0.29

Weighted average number of common and common equivalent shares outstanding:

See accompanying notes to condensed consolidated financial statements.

AGCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in millions, except per share data)

Six Months Ended June 30,

Net sales $ 4,952.6 $ 4,685.5

Cost of goods sold 3,725.3 3,506.3

Gross profit 1,227.3 1,179.2

Operating expenses:

Selling, general and administrative expenses 674.8 652.2

Engineering expenses

Amortization of intangibles

Impairment charges 2.1 7.9

Restructuring and business optimization expenses

Loss on sale of business

Income from operations 221.4 213.4

Interest expense, net

Other expense, net 42.0 81.2

Income before income taxes and equity in net earnings of affiliates 147.2 95.9

Income tax provision (benefit) 45.0 ( 203.5 )

Income before equity in net earnings of affiliates 102.2 299.4

Equity in net earnings of affiliates

Net income 127.2 323.1

10 unchanged sentences

(unaudited and in millions)

Three Months Ended March 31,

Three Months Ended June 30,

$ 74.8 $ 314.4

Other comprehensive income:

Foreign currency translation adjustments 1.5 58.2

Defined pension and postretirement benefit plans, net of tax

Deferred gains and losses on derivatives, net of tax 0.3 1.5

Other comprehensive income

Comprehensive income

Comprehensive loss (income) attributable to noncontrolling interests 3.1 ( 4.5 )

Comprehensive income attributable to AGCO Corporation

$ 81.7 $ 371.6

Six Months Ended June 30,

$ 127.2 $ 323.1

Other comprehensive income (loss):

4 unchanged sentences

Comprehensive income

Comprehensive loss attributable to noncontrolling interests

Comprehensive loss (income) attributable to noncontrolling interests 6.8 ( 4.2 )

Comprehensive income attributable to AGCO Corporation

4 unchanged sentences

(unaudited and in millions)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

Adjustments to reconcile net income to net cash used in operating activities:

$ 127.2 $ 323.1

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation 133.8 124.6

2 unchanged sentences

Impairment charges 2.1 7.9

Loss on sale of business

Equity in net earnings of affiliates, net of cash received ( 25.0 ) ( 23.1 )

10 unchanged sentences

Total adjustments ( 372.2 ) ( 169.6 )

Net cash used in operating activities

( 410.4 ) ( 212.2 )

Net cash provided by (used in) operating activities ( 245.0 ) 153.5

Cash flows from investing activities:

1 unchanged sentence

Proceeds from sale of property, plant and equipment 0.3 1.1

Investments in unconsolidated affiliates, net

( 8.5 ) ( 0.1 )

Proceeds from sale of business

Investments in unconsolidated affiliates ( 34.7 ) ( 1.2 )

Proceeds from sale of investments in unconsolidated affiliates 188.4 —

Other ( 15.5 ) ( 5.3 )

Net cash used in investing activities

( 65.6 ) ( 51.3 )

Net cash provided by (used in) investing activities 36.7 ( 108.1 )

Cash flows from financing activities:

1 unchanged sentence

Repayments of indebtedness ( 56.2 ) ( 367.5 )

Purchases and retirement of common stock ( 347.0 ) —

Payment of dividends to stockholders ( 42.0 ) ( 43.3 )

Payment of minimum tax withholdings on stock compensation ( 7.0 ) ( 9.1 )

Net cash provided by financing activities

Net cash provided by (used in) financing activities ( 75.6 ) 98.1

Effects of exchange rate changes on cash, cash equivalents and restricted cash ( 4.5 ) 27.7

Decrease in cash, cash equivalents and restricted cash

( 346.9 ) ( 50.1 )

Increase (decrease) in cash, cash equivalents and restricted cash ( 288.4 ) 171.2

Cash, cash equivalents and restricted cash, beginning of period 861.8 612.7

16 unchanged sentences

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 Condensed Consolidated Statements of Operations.

For the three months ended and as of March 31, 2026, the Company's wholly-owned subsidiary in Turkey had net sales of approximately $ 27.5 million and total assets of approximately 4.9 billion Turkish lira (or approximately $ 109.2 million).

The monetary assets and liabilities denominated in the Turkish lira were approximately 3.6 billion Turkish lira (or approximately $ 81.5 million) and approximately 2.3 billion Turkish lira (or approximately $ 51.4 million), respectively, as of March 31, 2026.

The monetary assets and liabilities were remeasured into United States dollars based on exchange rates as of March 31, 2026.

For the six months ended and as of June 30, 2026, the Company's wholly-owned subsidiary in Turkey had net sales of approximately $ 72.5 million and total assets of approximately 5.1 billion Turkish lira (or approximately $ 109.7 million).

The monetary assets and liabilities denominated in the Turkish lira were approximately 3.7 billion Turkish lira (or approximately $ 79.4 million) and approximately 1.6 billion Turkish lira (or approximately $ 34.0 million), respectively, as of June 30, 2026.

The monetary assets and liabilities were remeasured into United States dollars based on exchange rates as of June 30, 2026.

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

1 unchanged sentence

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

For the three months ended and as of March 31, 2026, the Company's wholly-owned subsidiary in Argentina had net sales of approximately $ 27.5 million and total assets of approximately 312.2 billion pesos (or approximately $ 224.8 million).

The monetary assets of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 83.0 billion pesos (or approximately $ 59.8 million), inclusive of approximately 13.4 billion pesos (or approximately $ 9.7 million) in cash and cash equivalents, as of March 31, 2026.

The monetary liabilities of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 40.2 billion pesos (or approximately $ 28.9 million) as of March 31, 2026.

The monetary assets and liabilities were remeasured into United States dollar based on exchange rates as of March 31, 2026.

For the six months ended and as of June 30, 2026, the Company's wholly-owned subsidiary in Argentina had net sales of approximately $ 71.2 million and total assets of approximately 315.2 billion pesos (or approximately $ 211.2 million).

The monetary assets of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 68.9 billion pesos (or approximately $ 46.2 million), inclusive of approximately 19.1 billion pesos (or approximately $ 12.8 million) in cash and cash equivalents, as of June 30, 2026.

The monetary liabilities of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 35.2 billion pesos (or approximately $ 23.6 million) as of June 30, 2026.

The monetary assets and liabilities were remeasured into United States dollar based on exchange rates as of June 30, 2026.

The Company's finance joint venture in Argentina, AGCO Capital Argentina S.A.

(“AGCO Capital”), had net monetary assets denominated in pesos at the official government rate of approximately 7.5 billion pesos (or approximately $ 5.4 million) as of March 31, 2026.

(“AGCO Capital”), had net monetary assets denominated in pesos at the official government rate of approximately 8.0 billion pesos (or approximately $ 5.4 million) as of June 30, 2026.

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 Condensed Consolidated Statements of Operations.

8 unchanged sentences

ACCOUNTS RECEIVABLE SALES AGREEMENTS

The Company’s finance joint ventures provide retail financing and wholesale financing to its dealers.

The terms of the financing arrangements offered to the Company’s dealers are similar to arrangements the finance joint ventures provide to unaffiliated third parties.

In addition, the Company transfers, on an ongoing basis, a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures.

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

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

To better align with evolving market dynamics and increasing regulatory and compliance requirements, on April 30, 2026, the Company executed an Interests Purchase Agreement and Share Purchase Agreement (collectively the “Agreements”) with wholly owned subsidiaries of Rabobank to sell its 49 % equity interests in the joint ventures in the U.S.

and Canada, AGCO Finance LLC and AGCO Finance Canada, Ltd.

(collectively the “North America AGCO Finance joint ventures”), respectively, for aggregate consideration of approximately $ 188.4 million.

The consideration consisted of (i) approximately $ 168.4 million, representing the carrying value of the Company's equity interests in the North America AGCO Finance joint ventures, previously included in “Investments in affiliates” on the Company's Condensed Consolidated Balance Sheets, and (ii) approximately $ 20.0 million, representing the estimated future net earnings associated with the run-off of the North America AGCO Finance portfolios existing as of the transaction date, which was recognized in “Other expense, net” within the Company's Condensed Consolidated Statements of Operations during the three and six months ended June 30, 2026.

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 these accounts receivable sales agreements that remain outstanding as of March 31, 2026 and December 31, 2025 was approximately $ 1.8 billion and $ 2.1 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 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.

The cash received from receivables sold under these accounts receivable sales agreements that remain outstanding as of June 30, 2026 and December 31, 2025 was approximately $ 1.8 billion and $ 2.1 billion, respectively.

Under the terms of the accounts receivable sales agreements in the U.S., Canada, Europe and Brazil, the Company pays the respective AGCO Finance entities a subsidized interest payment with respect to the accounts receivable sales agreements.

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

2 unchanged sentences

In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world.

The cash received from trade receivables sold under factoring arrangements that remain outstanding as of March 31, 2026 and December 31, 2025 was approximately $ 262.7 million and $ 270.5 million, respectively.

The cash received from trade receivables sold under factoring arrangements that remain outstanding as of June 30, 2026 and December 31, 2025 was approximately $ 257.2 million and $ 270.5 million, respectively.

Under these arrangements, the Company is required to continue to service the sold receivables at market rates.

1 unchanged sentence

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 Condensed Consolidated Statements of Operations, were approximately $ 18.6 million and $ 18.9 million during the three months ended March 31, 2026 and 2025, respectively.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $ 21.1 million and $ 39.7 million during the three and the six months ended June 30, 2026, respectively.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $ 19.8 million and $ 38.7 million during the three and the six months ended June 30, 2025, respectively.

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

As of March 31, 2026 and December 31, 2025, these finance joint ventures had approximately $ 112.8 million and $ 107.5 million, respectively, of outstanding accounts receivable associated with these arrangements.

As of June 30, 2026 and December 31, 2025, these finance joint ventures had approximately $ 112.2 million and $ 107.5 million, respectively, of outstanding accounts receivable associated with these arrangements.

In certain foreign countries, the Company invoices its finance joint ventures directly and the finance joint ventures retain a form of title to the goods delivered to dealers until the dealer makes payment so that the finance joint ventures can recover the goods in the event of dealer or end customer default on payment.

This occurs as the laws of some foreign countries do not provide for a seller’s retention of a security interest in goods in the same manner as established in the United States Uniform Commercial Code.

The only right the finance joint ventures retain with respect to the title are those enabling recovery of the goods in the event of customer default on payment.

The dealer or distributor may not return equipment or replacement parts to the Company while its contract with the finance joint venture is in force, and can only return the equipment to the retail finance joint venture with penalties that would generally not make it economically beneficial to do so.

The only right the finance joint ventures retain with respect to the title are those enabling recovery

Notes to Condensed Consolidated Financial Statements - Continued

of the goods in the event of customer default on payment.

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill during the three months ended March 31, 2026 are summarized as follows (in millions):

Changes in the carrying amount of goodwill during the six months ended June 30, 2026 are summarized as follows (in millions):

North America Latin America

2 unchanged sentences

Foreign currency translation ( 1.2 ) 4.1 ( 18.5 ) — ( 15.6 )

Balance as of March 31, 2026 $ 743.8 $ 106.0 $ 1,020.4 $ 20.4 $ 1,890.6

Balance as of June 30, 2026 $ 743.1 $ 106.6 $ 1,013.1 $ 20.4 $ 1,883.2

Goodwill is tested for impairment on an annual basis and more often if indications of impairment exist.

The Company conducts its annual impairment analyses as of October 1 st each year.

Changes in the carrying amount of acquired intangible assets during the three months ended March 31, 2026 are summarized as follows (in millions):

Changes in the carrying amount of acquired intangible assets during the six months ended June 30, 2026 are summarized as follows (in millions):

Gross carrying amounts:

3 unchanged sentences

Foreign currency translation ( 0.3 ) ( 1.5 ) ( 4.3 ) 0.2 ( 5.9 )

Balance as of March 31, 2026 $ 75.4 $ 190.5 $ 627.4 $ 51.3 $ 944.6

Balance as of June 30, 2026 $ 75.3 $ 189.7 $ 625.5 $ 51.4 $ 941.9

Accumulated amortization:

3 unchanged sentences

Foreign currency translation ( 0.2 ) ( 1.0 ) ( 2.5 ) 0.1 ( 3.6 )

Balance as of March 31, 2026 $ 51.4 $ 128.3 $ 167.6 $ 21.5 $ 368.8

Balance as of June 30, 2026 $ 52.4 $ 129.4 $ 179.5 $ 22.9 $ 384.2

Indefinite-lived intangible assets:

2 unchanged sentences

Foreign currency translation ( 0.9 )

Balance as of March 31, 2026 $ 87.2

Balance as of June 30, 2026 $ 86.9

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.

Notes to Condensed Consolidated Financial Statements - Continued

Inventories, net at March 31, 2026 and December 31, 2025, were as follows (in millions):

March 31, 2026 December 31, 2025

Inventories, net at June 30, 2026 and December 31, 2025, were as follows (in millions):

June 30, 2026 December 31, 2025

Finished goods $ 1,277.6 $ 1,070.6

3 unchanged sentences

Inventories, net $ 3,007.1 $ 2,709.3

At March 31, 2026 and December 31, 2025, the Company had recorded $ 283.5 million and $ 271.9 million, respectively, as a reserve for surplus and obsolete inventories.

At June 30, 2026 and December 31, 2025, the Company had recorded $ 296.0 million and $ 271.9 million, respectively, as a reserve for surplus and obsolete inventories.

These reserves are reflected within “Inventories, net” within the Company's Condensed Consolidated Balance Sheets.

PRODUCT WARRANTY

The warranty reserve activity for the three months ended March 31, 2026 and 2025, including deferred revenue associated with the Company's extended warranties that have been sold, was as follows (in millions):

Three Months Ended March 31,

The warranty reserve activity for the three and six months ended June 30, 2026 and 2025, including deferred revenue associated with the Company's extended warranties that have been sold, was as follows (in millions):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Balance at beginning of period $ 817.4 $ 746.6 $ 814.3 $ 743.0

Accruals for warranties issued

102.0 113.7 212.5 180.1

Settlements made and deferred revenue recognized

1 unchanged sentence

Foreign currency translation ( 6.0 ) 47.7 ( 11.9 ) 74.0

Balance at March 31 $ 817.4 $ 746.6

Balance at June 30 $ 798.8 $ 801.0 $ 798.8 $ 801.0

The Company’s agricultural equipment products generally are warranted against defects in material and workmanship for a period of one to four years .

2 unchanged sentences

Revenue is recognized for the extended warranty contracts on a straight-line basis, which the Company believes approximates the cost expected to be incurred in satisfying the obligations, over the extended warranty period.

Approximately $ 622.2 million, $ 626.6 million and $ 589.4 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

Approximately $ 195.2 million, $ 187.7 million and $ 157.2 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

Approximately $ 607.0 million, $ 626.6 million and $ 634.4 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2026, December 31, 2025 and June 30, 2025, respectively.

Approximately $ 191.8 million, $ 187.7 million and $ 166.6 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2026, December 31, 2025 and June 30, 2025, respectively.

The Company recognizes potential recoveries of the costs associated with warranties it provides when the collection is probable.

10 unchanged sentences

The Company has no economic interest in a supplier’s decision to participate in the programs, and the Company has no direct financial relationship with the banks or other intermediaries as it relates to the supplier finance programs.

As of March 31, 2026, payment terms with the majority of the Company’s suppliers are 30 to 180 days, which correspond to the contractual terms, with rates that are based on market rates (such as SOFR) plus a credit spread.

As of June 30, 2026, payment terms with the majority of the Company’s suppliers are 30 to 180 days, which correspond to the contractual terms, with rates that are based on market rates (such as SOFR) plus a credit spread.

There are no assets pledged as security under the programs.

As of March 31, 2026 and December 31, 2025, the amounts outstanding that remain unpaid to the banks or other intermediaries totaled $ 40.0 million and $ 31.7 million, respectively, and are reflected in “Accounts payable” in the Company’s Condensed Consolidated Balance Sheets.

Long-term debt consisted of the following at March 31, 2026 and December 31, 2025 (in millions):

March 31, 2026 December 31, 2025

As of June 30, 2026 and December 31, 2025, the amounts outstanding that remain unpaid to the banks or other intermediaries totaled $ 41.8 million and $ 31.7 million, respectively, and are reflected in “Accounts payable” in the Company’s Condensed Consolidated Balance Sheets.

Long-term debt consisted of the following at June 30, 2026 and December 31, 2025 (in millions):

June 30, 2026 December 31, 2025

Credit Facility, expires 2027 $ 290.0 $ —

14 unchanged sentences

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.

As of March 31, 2026, the Company had $ 115.0 million outstanding borrowings under the revolving credit facility and had the ability to borrow $ 1,135.0 million.

As of June 30, 2026, the Company had $ 290.0 million in outstanding borrowings under the revolving credit facility and had the ability to borrow $ 960.0 million.

Uncommitted Credit Facility

The Company has an uncommitted revolving credit facility that allows the Company to borrow up to € 200.0 million (or approximately $ 230.6 million as of March 31, 2026).

The Company has an uncommitted revolving credit facility that allows the Company to borrow up to € 200.0 million (or approximately $ 228.0 million as of June 30, 2026).

The credit facility expires on December 31, 2026.

As of March 31, 2026 and December 31, 2025, the Company had no outstanding borrowings under the revolving credit facility.

As of June 30, 2026 and December 31, 2025, the Company had no outstanding borrowings under the revolving credit facility.

Other Short-Term Borrowings

As of March 31, 2026 and December 31, 2025, the Company had short-term borrowings due within one year, excluding the current portion of long-term debt, of approximately $ 96.0 million and $ 56.1 million, respectively.

As of June 30, 2026 and December 31, 2025, the Company had short-term borrowings due within one year, excluding the current portion of long-term debt, of approximately $ 87.5 million and $ 56.1 million, respectively.

Notes to Condensed Consolidated Financial Statements - Continued

1 unchanged sentence

The Company has arrangements with various banks to issue standby letters of credit or similar instruments, which guarantee the Company’s obligations for the purchase or sale of certain inventories and for potential claims exposure for insurance coverage.

At March 31, 2026 and December 31, 2025, outstanding letters of credit totaled approximately $ 14.0 million and $ 14.0 million, respectively.

At June 30, 2026 and December 31, 2025, outstanding letters of credit totaled approximately $ 12.5 million and $ 14.0 million, respectively.

RESTRUCTURING AND BUSINESS OPTIMIZATION EXPENSES

2 unchanged sentences

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

Restructuring expenses activity, which relates to severance and other related costs, during the three months ended March 31, 2026, is summarized as follows (in millions):

Restructuring expenses activity, which relates to severance and other related costs, during the three and six months ended June 30, 2026, is summarized as follows (in millions):

Balance as of December 31, 2025 $ 82.8

3 unchanged sentences

Balance as of March 31, 2026

Approximately $ 33.7 million and $ 56.9 million of restructuring expenses are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively.

Approximately $ 23.4 million and $ 25.9 million of restructuring expenses are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively.

Second quarter 2026 provision, net of reversals

Second quarter 2026 cash activity ( 21.1 )

Foreign currency translation ( 0.5 )

Balance as of June 30, 2026

Approximately $ 22.9 million and $ 56.9 million of restructuring expenses are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, respectively.

Approximately $ 22.4 million and $ 25.9 million of restructuring expenses are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, respectively.

Business Optimization Expenses

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 three months ended March 31, 2026 and 2025, the Company recognized approximately $ 2.5 million and $ 13.8 million, respectively, of business optimization expenses.

During the three months ended June 30, 2026 and 2025, the Company recognized approximately $ 1.4 million and $ 13.1 million, respectively, of business optimization expenses.

During the six months ended June 30, 2026 and 2025, the Company recognized approximately $ 3.9 million and $ 26.9 million, respectively, of business optimization expenses.

Notes to Condensed Consolidated Financial Statements - Continued

7 unchanged sentences

The Company designates certain foreign currency contracts as cash flow hedges of expected future sales and purchases.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 169.4 million and $ 210.8 million as of March 31, 2026 and December 31, 2025, respectively.

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended March 31, 2026 (in millions):

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 305.1 million and $ 210.8 million as of June 30, 2026 and December 31, 2025, respectively.

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended June 30, 2026 (in millions):

Before-Tax Amount Income Tax Expense (Benefit) After-Tax Amount

Accumulated derivative net gains as of December 31, 2025

Accumulated derivative net gains as of March 31, 2026

$ 0.9 $ 0.6 $ 0.3

8 unchanged sentences

Total 3.1 0.5 2.6

Accumulated derivative net gains as of June 30, 2026

$ 1.0 $ 0.4 $ 0.6

____________________________________

(1) The outstanding contracts as of June 30, 2026 range in maturity through December 2026.

As of June 30, 2026, approximately $ 0.5 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.

Notes to Condensed Consolidated Financial Statements - Continued

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended June 30, 2025 (in millions):

Before-Tax Amount Income Tax Expense (Benefit) After-Tax Amount

Accumulated derivative net gains as of March 31, 2025 $ 9.8 $ 2.2 $ 7.6

Net changes in fair value of derivatives:

Foreign currency contracts

Net gains reclassified from accumulated other comprehensive loss into income:

Foreign currency contracts

( 1.4 ) ( 0.4 ) ( 1.0 )

Treasury rate locks

( 0.2 ) — ( 0.2 )

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

As of March 31, 2026, approximately $ 0.3 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.

Total ( 1.6 ) ( 0.4 ) ( 1.2 )

Accumulated derivative net gains as of June 30, 2025

$ 11.5 $ 2.4 $ 9.1

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the six months ended June 30, 2026 (in millions):

Before-Tax Amount Income Tax Expense (Benefit) After-Tax Amount

Accumulated derivative net gains as of December 31, 2025

$ 4.6 $ 1.4 $ 3.2

Net changes in fair value of derivatives:

Foreign currency contracts (1)

( 8.3 ) ( 1.9 ) ( 6.4 )

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

Foreign currency contracts (1)

Treasury rate locks

( 0.4 ) ( 0.1 ) ( 0.3 )

Total 4.7 0.9 3.8

Accumulated derivative net gains as of June 30, 2026

$ 1.0 $ 0.4 $ 0.6

____________________________________

(1) The outstanding contracts as of June 30, 2026 range in maturity through December 2026.

Notes to Condensed Consolidated Financial Statements - Continued

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended March 31, 2025 (in millions):

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the six months ended June 30, 2025 (in millions):

Before-Tax Amount Income Tax Expense (Benefit) After-Tax Amount

9 unchanged sentences

Total ( 4.1 ) ( 1.2 ) ( 2.9 )

Accumulated derivative net gains as of March 31, 2025

Accumulated derivative net gains as of June 30, 2025

$ 11.5 $ 2.4 $ 9.1

6 unchanged sentences

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 contracts, the Company is expected to deliver the notional amount of approximately € 385.5 million (or approximately $ 444.5 million as of March 31, 2026) and Fr.

155.5 million (or approximately $ 194.3 million as of March 31, 2026), 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.

At maturity of the cross currency swap contracts, the Company is expected to deliver the notional amount of approximately € 385.5 million (or approximately $ 439.4 million as of June 30, 2026) and Fr.

155.5 million (or approximately $ 192.2 million as of June 30, 2026) 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 contracts.

The following table summarizes the notional values of the instrument designated as a net investment hedge (in millions):

Notional Amount as of

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cross currency swap contracts

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements - Continued

The following table summarizes the changes in the fair value of the cross currency swap contracts designated as a net investment hedge during the three months ended March 31, 2026 and 2025 (in millions):

The following table summarizes the changes in the fair value of the cross currency swap contracts designated as a net investment hedge during the three and six months ended June 30, 2026 and 2025 (in millions):

Gain (Loss) Recognized in Other Comprehensive Income for the

Three Months Ended

Gain (Loss) Recognized in Other Comprehensive Income for the

Six Months Ended

Before-Tax Amount Income Tax Expense (Benefit) After-Tax Amount

March 31, 2026 $ 5.6 $ 1.5 $ 4.1

March 31, 2025 ( 10.0 ) ( 2.6 ) ( 7.4 )

Before-Tax Amount Income Tax Expense (Benefit) After-Tax Amount

June 30, 2026 $ 0.6 $ 0.1 $ 0.5 $ 6.2 $ 1.6 $ 4.6

June 30, 2025 ( 49.3 ) ( 12.7 ) ( 36.6 ) ( 59.3 ) ( 15.3 ) ( 44.0 )

Derivative Transactions Not Designated as Hedging Instruments

2 unchanged sentences

Gains and losses on such contracts are substantially offset by losses and gains on the remeasurement of the underlying asset or liability being hedged and are immediately recognized into earnings.

As of March 31, 2026 and December 31, 2025, the Company had outstanding foreign currency contracts with a notional amount of approximately $ 2,445.6 million and $ 2,865.7 million, respectively.

As of June 30, 2026 and December 31, 2025, the Company had outstanding foreign currency contracts with a notional amount of approximately $ 2,597.0 million and $ 2,865.7 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 Three Months Ended

Gain (Loss) Recognized in Net Income for the Six Months Ended

Classification of Gain (Loss)

March 31, 2026 March 31, 2025

June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Foreign currency contracts Other expense, net

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements - Continued

The table below sets forth the fair value of derivative instruments as of March 31, 2026 (in millions):

The table below sets forth the fair value of derivative instruments as of June 30, 2026 (in millions):

Asset Derivatives as of

March 31, 2026

June 30, 2026

Liability Derivatives as of

March 31, 2026

June 30, 2026

Balance Sheet Location Fair Value Balance Sheet Location Fair Value

8 unchanged sentences

____________________________________

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

(1) The outstanding contracts as of June 30, 2026 range in maturity through August 2026.

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

14 unchanged sentences

STOCKHOLDERS’ EQUITY

The following tables set forth changes in redeemable noncontrolling interests and stockholders’ equity attributed to AGCO Corporation for the three months ended March 31, 2026 and 2025 (in millions):

The following tables set forth changes in redeemable noncontrolling interests and stockholders’ equity attributed to AGCO Corporation for the three and six months ended June 30, 2026 and 2025 (in millions):

Redeemable Noncontrolling Interests

Stock Additional

Paid-in Capital Retained

Earnings Accumulated Other

Comprehensive Loss Total Stockholders’

Balance, March 31, 2026 $ 295.5 $ 0.7 $ — $ 6,032.2 $ ( 1,736.4 ) $ 4,296.5

Stock compensation and employee stock purchase plans

— — 17.3 — — 17.3

Forward share repurchase contract

— — 5.0 49.0 — 54.0

Comprehensive income:

Net income (loss) ( 2.4 ) — — 77.2 — 77.2

Other comprehensive income (loss):

Foreign currency translation adjustments

( 0.7 ) — — — 2.2 2.2

Defined pension and postretirement benefit plans, net of tax

— — — — 2.0 2.0

Deferred gains and losses on derivatives, net of tax

— — — — 0.3 0.3

Payment of dividends to stockholders — — — ( 21.0 ) — ( 21.0 )

Purchases and retirement of common stock

— — ( 11.4 ) ( 336.5 ) — ( 347.9 )

Balance, June 30, 2026 $ 292.4 $ 0.7 $ 10.9 $ 5,800.9 $ ( 1,731.9 ) $ 4,080.6

Redeemable Noncontrolling Interests Common

7 unchanged sentences

Forward share repurchase contract

— — ( 5.0 ) ( 49.0 ) — ( 54.0 )

Comprehensive income:

6 unchanged sentences

Payment of dividends to stockholders — — — ( 42.0 ) — ( 42.0 )

Purchases and retirement of common stock — — ( 11.4 ) ( 336.5 ) — ( 347.9 )

Balance, June 30, 2026 $ 292.4 $ 0.7 $ 10.9 $ 5,800.9 $ ( 1,731.9 ) $ 4,080.6

Notes to Condensed Consolidated Financial Statements - Continued

Redeemable Noncontrolling Interests Common

Stock Additional

Paid-in Capital Retained

Earnings Accumulated Other

Comprehensive Loss Total Stockholders’

Balance, March 31, 2025 $ 299.8 $ 0.7 $ 0.7 $ 5,629.6 $ ( 1,821.6 ) $ 3,809.4

Stock compensation plans

— — 9.3 ( 0.1 ) — 9.2

Comprehensive income:

Net income (loss) ( 0.4 ) — — 314.8 — 314.8

Other comprehensive income:

Foreign currency translation adjustments

4.9 — — — 53.3 53.3

Defined pension and postretirement benefit plans, net of tax

— — — — 2.0 2.0

Deferred gains and losses on derivatives, net of tax

— — — — 1.5 1.5

Payment of dividends to stockholders — — — ( 21.7 ) — ( 21.7 )

Balance, June 30, 2025 $ 304.3 $ 0.7 $ 10.0 $ 5,922.6 $ ( 1,764.8 ) $ 4,168.5

Redeemable Noncontrolling Interests Common

10 unchanged sentences

( 2.2 ) — — 325.3 — 325.3

Other comprehensive income (loss):

Other comprehensive income:

Foreign currency translation adjustments

5 unchanged sentences

Payment of dividends to stockholders — — — ( 43.3 ) — ( 43.3 )

Balance, March 31, 2025

$ 299.8 $ 0.7 $ 0.7 $ 5,629.6 $ ( 1,821.6 ) $ 3,809.4

Balance, June 30, 2025 $ 304.3 $ 0.7 $ 10.0 $ 5,922.6 $ ( 1,764.8 ) $ 4,168.5

Notes to Condensed Consolidated Financial Statements - Continued

The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation for the three months ended March 31, 2026 (in millions):

The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation for the six months ended June 30, 2026 (in millions):

Defined Pension and Postretirement Benefit Plans

11 unchanged sentences

Accumulated other comprehensive loss,

March 31, 2026

June 30, 2026

$ ( 219.6 ) $ 0.6 $ ( 1,512.9 ) $ ( 1,731.9 )

The following tables set forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation for the three months ended March 31, 2026 and 2025 (in millions):

The following tables set forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation for the three and six months ended June 30, 2026 and 2025 (in millions):

Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item within the Condensed Consolidated

Statements of Operations

Details about Accumulated Other Comprehensive Loss Components Three Months Ended March 31, 2026 (1)

Three Months Ended March 31, 2025 (1)

Details about Accumulated Other Comprehensive Loss Components Three Months Ended June 30, 2026 (1)

Three Months Ended June 30, 2025 (1)

Net losses (gains) on foreign currency contracts $ 3.3 $ ( 1.4 ) Cost of goods sold

2 unchanged sentences

Reclassification before tax 3.1 ( 1.6 )

Income tax expense (benefit)

Income tax expense (benefit) ( 0.5 ) 0.4 Income tax provision

Reclassification net of tax $ 2.6 $ ( 1.2 )

Defined pension and postretirement benefit plans:

Amortization of net actuarial losses $ 2.2 $ 2.2 Other expense, net (2)

Amortization of prior service cost 0.5 0.5 Other expense, net (2)

Reclassification before tax 2.7 2.7

Income tax benefit

( 0.7 ) ( 0.7 ) Income tax provision

Reclassification net of tax $ 2.0 $ 2.0

Net losses reclassified from accumulated other comprehensive loss $ 4.6 $ 0.8

____________________________________

(1) Losses (Gains) included within the Condensed Consolidated Statements of Operations for the three months ended June 30, 2026 and 2025, respectively.

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

Refer to Note 13 for additional information.

Notes to Condensed Consolidated Financial Statements - Continued

Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item within the Condensed Consolidated

Statements of Operations

Details about Accumulated Other Comprehensive Loss Components Six Months Ended June 30, 2026 (1)

Six Months Ended June 30, 2025 (1)

Net losses (gains) on foreign currency contracts $ 5.1 $ ( 3.7 ) Cost of goods sold

Net gains on treasury rate locks ( 0.4 ) ( 0.4 ) Interest expense, net

Reclassification before tax 4.7 ( 4.1 )

Income tax expense (benefit) ( 0.9 ) 1.2 Income tax provision

Reclassification net of tax $ 3.8 $ ( 2.9 )

Defined pension and postretirement benefit plans:

7 unchanged sentences

____________________________________

(1) Losses (Gains) included within the Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025, respectively.

(1) Losses (Gains) included within the Condensed Consolidated Statements of Operations for the six months ended June 30, 2026 and 2025, respectively.

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

2 unchanged sentences

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

Notes to Condensed Consolidated Financial Statements - Continued

with these transactions as of December 31, 2025.

In May 2026, the Company entered into an accelerated share repurchase (“ASR”) agreement with a financial institution to repurchase an aggregate of $ 293.0 million of shares of its common stock.

The Company received approximately 1,997,613 shares associated with this transaction as of June 30, 2026.

In November 2025, the Company entered into 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.

2 unchanged sentences

Under the Cooperation Agreement, TAFE also retains the right to maintain its existing percentage of beneficial ownership of the Company’s common stock.

In February 2026, pursuant to the Cooperation Agreement, the Company committed to repurchase a pro-rata amount of shares from TAFE related to the Company's most recent share repurchase program executed in the fourth quarter of 2025, with settlement expected to occur in May 2026.

The Company accounted for this arrangement as a forward share repurchase contract and, as of March 31, 2026, recorded a liability with an offsetting reduction to a combination of “Additional paid-in capital” and “Retained earnings” in the Company’s Condensed Consolidated Balance Sheets.

During the three months ended March 31, 2026, the Company did no t purchase any shares directly or enter into any accelerated share repurchase agreements.

As of March 31, 2026, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $ 785.0 million, which has no expiration date.

During the three months ended March 31, 2026 and 2025, the Company declared and paid cash dividends of $ 0.29 and $ 0.29 per common share, respectively.

In February 2026, pursuant to the Cooperation Agreement, the Company committed to repurchase a pro-rata amount of shares from TAFE related to the Company's share repurchase program executed in the fourth quarter of 2025.

The Company accounted for this arrangement as a forward share repurchase contract and, as of March 31, 2026, recorded a liability.

Settlement occurred in May 2026, resulting in the repurchase of 422,590 shares for approximately $ 52.1 million.

The shares repurchased were retired upon receipt, and the excess of the purchase price over par value per share was recorded to a combination of “Additional paid-in capital” and “Retained earnings” within the Company’s Condensed Consolidated Balance Sheets.

As of June 30, 2026, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $ 439.9 million, which has no expiration date.

Notes to Condensed Consolidated Financial Statements - Continued

During the three months ended June 30, 2026 and 2025, the Company declared and paid cash dividends of $ 0.30 and $ 0.29 per common share, respectively.

During the six months ended June 30, 2026 and 2025, the Company declared and paid cash dividends of $ 0.59 and $ 0.58 per common share, respectively.

On April 23, 2026, the Company's Board of Directors approved an increase in the Company's regular quarterly dividend to $ 0.30 per share, from $ 0.29 per share.

In addition, the Company's Board of Directors declared a regular quarterly dividend of $ 0.30 per common share to be paid on June 15, 2026, to all stockholders of record as of the close of business on May 15, 2026.

On July 8, 2026, the Company's Board of Directors declared a regular quarterly dividend of $ 0.30 per common share to be paid on September 15, 2026, to all stockholders of record as of the close of business on August 14, 2026.

NET INCOME PER COMMON SHARE

1 unchanged sentence

Diluted net income per common share assumes the exercise of outstanding stock-settled stock appreciation rights (“SSARs”) and the vesting of restricted stock unit awards (“RSUs”) using the treasury stock method when there is no other circumstance other than the passage of time under which they would not be issued, and the effects of such assumptions are dilutive.

A reconciliation of net income attributable to AGCO Corporation and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share for the three months ended March 31, 2026 and 2025 is as follows (in millions, except per share data):

Three Months Ended March 31,

A reconciliation of net income attributable to AGCO Corporation and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share for the three and six months ended June 30, 2026 and 2025 is as follows (in millions, except per share data):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Basic net income per share:

10 unchanged sentences

Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share

71.2 74.6 71.9 74.6

Diluted net income per share attributable to AGCO Corporation

$ 1.08 $ 4.22 $ 1.84 $ 4.36

Notes to Condensed Consolidated Financial Statements - Continued

The income tax provision and effective tax rate for the three months ended March 31, 2026 and 2025 are set forth below (in millions, except percentages):

Three Months Ended March 31,

Income tax provision and effective tax rate

The income tax provision (benefit) and effective tax rate for the three and six months ended June 30, 2026 and 2025 are set forth below (in millions, except percentages):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Income tax provision (benefit) and effective tax rate $ 40.4 37.3 % $ ( 205.5 ) ( 211.2 ) % $ 45.0 30.6 % $ ( 203.5 ) ( 212.2 ) %

Our effective tax rate varies from period to period due to the mix of taxable income and losses in the various tax jurisdictions in which we operate.

During the three and six months ended June 30, 2025, the Company’s income tax provision included a net tax benefit of $ 255.2 million related to a legal entity reorganization.

Notes to Condensed Consolidated Financial Statements - Continued

The Company maintains a valuation allowance to reserve a portion of its net deferred tax assets in the United States and certain foreign jurisdictions.

4 unchanged sentences

PENSION AND POSTRETIREMENT BENEFIT PLANS

Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the three months ended March 31, 2026 and 2025 are set forth below (in millions):

Three Months Ended March 31,

Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the three and six months ended June 30, 2026 and 2025 are set forth below (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Pension benefits 2026 2025 2026 2025

5 unchanged sentences

Net periodic pension cost $ 3.3 $ 4.8 $ 6.6 $ 9.4

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

Postretirement benefits 2026 2025 2026 2025

Service cost $ 0.1 $ — $ 0.1 $ —

Interest cost 0.5 0.3 0.9 0.7

Amortization of net actuarial losses — ( 0.1 ) — ( 0.1 )

Amortization of prior service cost 0.1 0.1 0.2 0.2

1 unchanged sentence

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 Condensed Consolidated Statements of Operations.

During the three months ended March 31, 2026, the Company made approximately $ 6.0 million of contributions to its defined pension benefit plans.

During the six months ended June 30, 2026, the Company made approximately $ 9.1 million of contributions to its defined pension benefit plans.

The Company currently estimates its minimum contributions for 2026 to its defined pension benefit plans will aggregate to approximately $ 15.5 million.

Notes to Condensed Consolidated Financial Statements - Continued

During the three months ended March 31, 2026, the Company made approximately $ 0.5 million of contributions to its postretirement health care and life insurance benefit plans.

During the six months ended June 30, 2026, the Company made approximately $ 1.0 million of contributions to its postretirement health care and life insurance benefit plans.

The Company currently estimates that it will make approximately $ 2.1 million of contributions to its postretirement health care and life insurance benefit plans during 2026.

Notes to Condensed Consolidated Financial Statements - Continued

FAIR VALUE OF FINANCIAL INSTRUMENTS

15 unchanged sentences

Refer to Note 9 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 March 31, 2026 and December 31, 2025 are summarized below (in millions):

As of March 31, 2026

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 are summarized below (in millions):

As of June 30, 2026

Level 1 Level 2 Level 3 Total

6 unchanged sentences

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 2026 and 2028 approximate fair value based on the borrowing rates currently available to the Company for loans with similar terms and average maturities.

At March 31, 2026, the estimated fair value of the Company's 0.800 % Senior notes due 2028, based on listed market values, was approximately € 556.8 million (or approximately $ 642.0 million), compared to the carrying value of € 600.0 million (or approximately $ 691.8 million).

At March 31, 2026, the estimated fair value of the Company's 5.450 % senior notes due 2027, based on listed market values, was approximately $ 403.2 million, compared to the carrying value of $ 400.0 million.

At March 31, 2026, the estimated fair value of the Company's 5.800 % senior notes due 2034, based on listed market values, was approximately $ 717.5 million, compared to the carrying value of $ 700.0 million.

At June 30, 2026, the estimated fair value of the Company's 0.800 % Senior notes due 2028, based on listed market values, was approximately € 567.7 million (or approximately $ 647.1 million), compared to the carrying value of € 600.0 million (or approximately $ 683.9 million).

At June 30, 2026, the estimated fair value of the Company's 5.450 % senior notes due 2027, based on listed market values, was approximately $ 402.4 million, compared to the carrying value of $ 400.0 million.

At June 30, 2026, the estimated fair value of the Company's 5.800 % senior notes due 2034, based on listed market values, was approximately $ 713.4 million, compared to the carrying value of $ 700.0 million.

Refer to Note 7 for additional information on the Company’s long-term debt.

1 unchanged sentence

COMMITMENTS AND CONTINGENCIES

Lease payment amounts for operating and finance leases with remaining terms greater than one year as of March 31, 2026 and December 31, 2025 were as follows (in millions):

March 31, 2026 December 31, 2025

Lease payment amounts for operating and finance leases with remaining terms greater than one year as of June 30, 2026 and December 31, 2025 were as follows (in millions):

June 30, 2026 December 31, 2025

Operating Leases (1)

15 unchanged sentences

Off-Balance Sheet Arrangements

At March 31, 2026, the Company had outstanding guarantees issued to its Argentine finance joint venture, AGCO Capital Argentina S.A.

At June 30, 2026, the Company had outstanding guarantees issued to its Argentine finance joint venture, AGCO Capital Argentina S.A.

(“AGCO Capital”), of approximately $ 81.7 million.

Such guarantees generally obligate the Company to repay outstanding finance obligations owed to AGCO Capital if end users default on such loans to the extent that, due to non-credit risk, the end users are not able, or not required, to pay their loans, or are required to pay in a different currency than the one agreed in their loan.

The Company also has obligations to guarantee indebtedness owed to certain of its finance joint ventures if dealers or end users default on loans.

1 unchanged sentence

The Company believes the credit risk associated with these guarantees is not material.

In addition, at March 31, 2026, the Company had accrued approximately $ 11.9 million of outstanding guarantees of residual values that may be owed to its finance joint ventures in the United States and Canada due upon expiration of certain eligible operating leases between the finance joint ventures and end users.

In addition, the Company guarantees residual values that may be owed to its finance joint ventures, primarily in the United States and Canada, due upon expiration of certain eligible operating leases between the finance joint ventures and end users.

At June 30, 2026, the Company had accrued approximately $ 12.7 million of outstanding guarantees of residual values related to the United States and Canada.

The maximum potential amount of future payments under these guarantees is approximately $ 235.7 million.

10 unchanged sentences

(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 and (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.

The following table summarizes the balance of contract liabilities as of March 31, 2026 and December 31, 2025 (in millions):

March 31, 2026 December 31, 2025

The following table summarizes the balance of contract liabilities as of June 30, 2026 and December 31, 2025 (in millions):

June 30, 2026

December 31, 2025

Contract liabilities

1 unchanged sentence

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

During the three months ended March 31, 2026, the Company recognized approximately $ 47.2 million of revenue that was recorded as a contract liability at the beg inning of 2026.

During the three months ended March 31, 2025, the Company recognized approximately $ 35.5 million of revenue that was recorded as a contract liability at the beginning of 2025.

During the three and six months ended June 30, 2026, the Company recognized approximately $ 47.2 million and $ 94.4 million of revenue that was recorded as a contract liability at the beg inning of 2026.

During the three and six months ended June 30, 2025, the Company recognized approximately $ 51.0 million and $ 86.5 million of revenue that was recorded as a contract liability at the beginning of 2025.

Remaining Performance Obligations

The estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2026 are $ 122.4 million for the remainder of 2026, $ 126.6 million in 2027, $ 73.9 million in 2028, $ 35.5 million in 2029 and $ 13.6 million ther eafter, and relate primarily to extended warranty contracts.

The Company applied the practical expedient in ASU 2014-09 and has not disclosed information about remaining performance obligations that have original expected durations of 12 months or less.

The estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2026 are $ 84.0 million for the remainder of 2026, $ 135.8 million in 2027, $ 84.8 million in 2028, $ 42.1 million in 2029 and $ 19.8 million ther eafter, and relate primarily to extended warranty contracts.

The Company applied the practical expedient in ASC 606 and has not disclosed information about remaining performance obligations that have original expected durations of 12 months or less.

Notes to Condensed Consolidated Financial Statements - Continued

Disaggregated Revenue :

Net sales for the three months ended March 31, 2026 disaggregated by primary geographical markets and major products consisted of the following (in millions):

Net sales for the three months ended June 30, 2026 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America

Latin America Europe/Middle East

Asia/Pacific/Africa

Primary geographical markets:

United States $ 373.8 $ — $ — $ — $ 373.8

Canada 97.7 — — — 97.7

Brazil — 167.2 — — 167.2

Other South America — 78.9 — — 78.9

Germany — — 494.6 — 494.6

France — — 293.6 — 293.6

United Kingdom and Ireland — — 164.4 — 164.4

Finland and Scandinavia — — 212.5 — 212.5

Italy — — 114.5 — 114.5

Other Europe — — 404.5 — 404.5

Middle East and Algeria — — 48.3 — 48.3

Africa — — — 20.6 20.6

Asia — — — 36.0 36.0

Australia and New Zealand — — — 77.9 77.9

Mexico, Central America and Caribbean — 25.2 — — 25.2

$ 471.5 $ 271.3 $ 1,732.4 $ 134.5 $ 2,609.7

Major products:

Tractors $ 191.0 $ 187.2 $ 1,211.2 $ 79.5 $ 1,668.9

Replacement parts 112.6 38.7 338.3 26.6 516.2

Grain storage and protein production systems — — — 0.1 0.1

Combines, application equipment and other machinery 167.9 45.4 182.9 28.3 424.5

$ 471.5 $ 271.3 $ 1,732.4 $ 134.5 $ 2,609.7

Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the three months ended June 30, 2025 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America Latin America (1)

23 unchanged sentences

$ 393.9 $ 330.4 $ 1,774.9 $ 135.8 $ 2,635.0

_________________________________

(1) Effective January 1, 2026, the Company realigned its organizational structure to support its Farmer‑First transformation initiatives in North America.

As a result, the Company’s Mexico operations were transferred from the North America segment to the South America segment, which was renamed Latin America.

Segment information for all prior periods presented has been retrospectively adjusted to reflect this change.

Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the three months ended March 31, 2025 disaggregated by primary geographical markets and major products consisted of the following (in millions):

Net sales for the six months ended June 30, 2026 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America Latin America

Europe/Middle East Asia/Pacific/Africa Consolidated

Primary geographical markets:

United States $ 691.5 $ — $ — $ — $ 691.5

Canada 186.4 — — — 186.4

Brazil — 308.7 — — 308.7

Other South America — 128.7 — — 128.7

Germany — — 980.9 — 980.9

France — — 561.8 — 561.8

United Kingdom and Ireland — — 310.7 — 310.7

Finland and Scandinavia — — 390.4 — 390.4

Italy — — 191.6 — 191.6

Other Europe — — 820.1 — 820.1

Middle East and Algeria — — 77.7 — 77.7

Africa — — — 41.9 41.9

Asia — — — 65.2 65.2

Australia and New Zealand — — — 151.4 151.4

Mexico, Central America and Caribbean — 45.6 — — 45.6

$ 877.9 $ 483.0 $ 3,333.2 $ 258.5 $ 4,952.6

Major products:

Tractors $ 336.2 $ 332.6 $ 2,374.8 $ 155.8 $ 3,199.4

Replacement parts 190.8 78.1 642.2 52.4 963.5

Grain storage and protein production systems — — — 0.1 0.1

Combines, application equipment and other machinery 350.9 72.3 316.2 50.2 789.6

$ 877.9 $ 483.0 $ 3,333.2 $ 258.5 $ 4,952.6

Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the six months ended June 30, 2025 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America Latin America (1)

Europe/Middle East

40 unchanged sentences

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

Segment results for the three months ended March 31, 2026 and 2025 and assets as of March 31, 2026 and December 31, 2025 based on the Company’s reportable segments are as follows (in millions):

Three Months Ended March 31,

North America Latin America

Segment results for the three and six months ended June 30, 2026 and 2025 and assets as of June 30, 2026 and December 31, 2025 based on the Company’s reportable segments are as follows (in millions):

Three Months Ended June 30, North America Latin America Europe/Middle East Asia/Pacific/Africa Total Segments

Net sales $ 471.5 $ 271.3 $ 1,732.4 $ 134.5 $ 2,609.7

Cost of goods sold

378.9 236.0 1,242.4 106.5 1,963.8

Selling, general and administrative expenses

77.1 42.1 146.5 14.8 280.5

Engineering expenses

40.0 15.0 83.3 2.9 141.2

Income (loss) from operations $ ( 24.5 ) $ ( 21.8 ) $ 260.2 $ 10.3 $ 224.2

Depreciation $ 14.7 $ 9.8 $ 39.1 $ 3.5 $ 67.1

Capital expenditures 8.7 9.2 38.4 0.9 57.2

Net sales $ 393.9 $ 330.4 $ 1,774.9 $ 135.8 $ 2,635.0

Cost of goods sold

305.3 265.8 1,299.3 106.0 1,976.4

Selling, general and administrative expenses

78.7 31.7 140.1 17.9 268.4

Engineering expenses

35.1 6.0 74.2 2.5 117.8

Income from operations $ ( 25.2 ) $ 26.9 $ 261.3 $ 9.4 $ 272.4

Depreciation $ 13.9 $ 8.2 $ 38.9 $ 3.1 $ 64.1

Capital expenditures 4.4 9.9 27.2 0.7 42.2

Notes to Condensed Consolidated Financial Statements - Continued

Six Months Ended June 30, North America Latin America

Europe/Middle East Asia/Pacific/Africa Total Segments

20 unchanged sentences

Capital expenditures 9.1 18.1 61.6 1.6 90.4

As of March 31, 2026

As of June 30, 2026

$ 1,354.9 $ 1,217.4 $ 3,160.6 $ 613.4 $ 6,346.3

1 unchanged sentence

1,303.9 1,158.0 2,907.6 606.6 5,976.1

Notes to Condensed Consolidated Financial Statements - Continued

A reconciliation from the segment information to the consolidated balances for income from operations is set forth below (in millions):

Three Months Ended

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Segment income from operations $ 224.2 $ 272.4 $ 395.3 $ 406.4

Impairment charges — ( 6.8 ) ( 2.1 ) ( 7.9 )

Loss on sale of business

— ( 12.3 ) — ( 12.3 )

Corporate expenses ( 38.1 ) ( 47.7 ) ( 89.2 ) ( 95.8 )

6 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-Q

Item 1. Financial Statements