AGCO CORP /DE 10-Q

ITEM 1. FINANCIAL STATEMENTS AGCO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in millions, except share amounts) June 30, 2026 December 31, 2025 ASSETS Current Assets: Cash and cash equivalents $ 573.4 $ 861.8 Accounts and notes receivable, net 1,232.1 1,079.4 Inventories, net 3,007.1 2,709.3 Other current assets 525.1 545.6 Total current assets 5,337.7 5,196.1 Property, plant and equipment, net 1,939.9 1,996.2 Right-of-use lease assets 153.0 167.3 Investments in affiliates 490.6 609.9 Deferred tax assets 974.4 905.5 Other assets 455.0 481.0 Intangible assets, net 644.6 673.0 Goodwill 1,883.2 1,898.8 Total assets $ 11,878.4 $ 11,927.8 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY Current Liabilities: Borrowings due within one year $ 546.7 $ 117.7 Accounts payable 1,030.8 951.0 Accrued expenses 2,340.1 2,538.7 Other current liabilities 123.6 121.7 Total current liabilities 4,041.2 3,729.1 Long-term debt, less current portion and debt issuance costs 2,180.3 2,323.1 Operating lease liabilities 111.9 122.1 Pension and postretirement health care benefits 167.2 169.2 Deferred tax liabilities 123.0 126.5 Other noncurrent liabilities 881.8 885.1 Total liabilities 7,505.4 7,355.1 Commitments and contingencies ( Note 15 ) Redeemable noncontrolling interests 292.4 299.2 Stockholders’ Equity: Preferred stock; $ 0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding in 2026 and 2025 — — Common stock; $ 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 0.7 0.7 Additional paid-in capital 10.9 0.5 Retained earnings 5,800.9 6,047.2 Accumulated other comprehensive loss ( 1,731.9 ) ( 1,774.9 ) Total stockholders’ equity 4,080.6 4,273.5 Total liabilities, redeemable noncontrolling interests and stockholders’ equity $ 11,878.4 $ 11,927.8 See accompanying notes to condensed consolidated financial statements. 3 Table of Contents AGCO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in millions, except per share data) Three Months Ended June 30, 2026 2025 Net sales $ 2,609.7 $ 2,635.0 Cost of goods sold 1,963.8 1,976.4 Gross profit 645.9 658.6 Operating expenses: Selling, general and administrative expenses 335.7 326.4 Engineering expenses 141.2 117.8 Amortization of intangibles 17.1 15.7 Impairment charges — 6.8 Restructuring and business optimization expenses 11.2 15.6 Loss on sale of business — 12.3 Income from operations 140.7 164.0 Interest expense, net 17.0 17.8 Other expense, net 15.5 48.9 Income before income taxes and equity in net earnings of affiliates 108.2 97.3 Income tax provision (benefit) 40.4 ( 205.5 ) Income before equity in net earnings of affiliates 67.8 302.8 Equity in net earnings of affiliates 7.0 11.6 Net income 74.8 314.4 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: Basic $ 1.08 $ 4.22 Diluted $ 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: Basic 71.1 74.6 Diluted 71.2 74.6 See accompanying notes to condensed consolidated financial statements. 4 Table of Contents AGCO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in millions, except per share data) Six Months Ended June 30, 2026 2025 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 273.8 233.8 Amortization of intangibles 34.0 31.0 Impairment charges 2.1 7.9 Restructuring and business optimization expenses 21.2 28.6 Loss on sale of business — 12.3 Income from operations 221.4 213.4 Interest expense, net 32.2 36.3 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 25.0 23.7 Net income 127.2 323.1 Net loss attributable to noncontrolling interests 5.0 2.2 Net income attributable to AGCO Corporation $ 132.2 $ 325.3 Net income per common share attributable to AGCO Corporation: Basic $ 1.84 $ 4.36 Diluted $ 1.84 $ 4.36 Cash dividends declared and paid per common share $ 0.59 $ 0.58 Weighted average number of common and common equivalent shares outstanding: Basic 71.8 74.6 Diluted 71.9 74.6 See accompanying notes to condensed consolidated financial statements. 5 Table of Contents AGCO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited and in millions) Three Months Ended June 30, 2026 2025 Net income $ 74.8 $ 314.4 Other comprehensive income: Foreign currency translation adjustments 1.5 58.2 Defined pension and postretirement benefit plans, net of tax 2.0 2.0 Deferred gains and losses on derivatives, net of tax 0.3 1.5 Other comprehensive income 3.8 61.7 Comprehensive income 78.6 376.1 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, 2026 2025 Net income $ 127.2 $ 323.1 Other comprehensive income (loss): Foreign currency translation adjustments 40.0 140.4 Defined pension and postretirement benefit plans, net of tax 3.8 3.9 Deferred gains and losses on derivatives, net of tax ( 2.6 ) 0.2 Other comprehensive income 41.2 144.5 Comprehensive income 168.4 467.6 Comprehensive loss (income) attributable to noncontrolling interests 6.8 ( 4.2 ) Comprehensive income attributable to AGCO Corporation $ 175.2 $ 463.4 See accompanying notes to condensed consolidated financial statements. 6 Table of Contents AGCO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in millions) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net income $ 127.2 $ 323.1 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 133.8 124.6 Amortization of intangibles 34.0 31.0 Stock compensation expense 27.9 17.9 Impairment charges 2.1 7.9 Loss on sale of business — 12.3 Equity in net earnings of affiliates, net of cash received ( 25.0 ) ( 23.1 ) Deferred income tax benefit ( 64.5 ) ( 301.3 ) Other ( 14.0 ) 14.0 Changes in operating assets and liabilities: Accounts and notes receivable, net ( 177.7 ) 107.5 Inventories, net ( 298.8 ) ( 146.5 ) Other current and noncurrent assets 43.8 ( 70.3 ) Accounts payable 114.9 176.1 Accrued expenses ( 156.5 ) ( 244.5 ) Other current and noncurrent liabilities 7.8 124.8 Total adjustments ( 372.2 ) ( 169.6 ) Net cash provided by (used in) operating activities ( 245.0 ) 153.5 Cash flows from investing activities: Purchases of property, plant and equipment ( 101.8 ) ( 90.4 ) Proceeds from sale of property, plant and equipment 0.3 1.1 Proceeds from sale of business — ( 12.3 ) 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 provided by (used in) investing activities 36.7 ( 108.1 ) Cash flows from financing activities: Proceeds from indebtedness 376.6 518.0 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 (used in) financing activities ( 75.6 ) 98.1 Effects of exchange rate changes on cash, cash equivalents and restricted cash ( 4.5 ) 27.7 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 Cash, cash equivalents and restricted cash, end of period $ 573.4 $ 783.9 See accompanying notes to condensed consolidated financial statements. 7 Table of Contents AGCO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. BASIS OF PRESENTATION The condensed consolidated financial statements of AGCO Corporation and its subsidiaries (the “Company” or “AGCO”) included herein have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position, results of operations, comprehensive income and cash flows at the dates and for the periods presented. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Results for interim periods are not necessarily indicative of the results for the year. Certain prior-period amounts have been reclassified in the accompanying condensed consolidated financial statements and notes thereto in order to conform to the current period presentation. The Company has a wholly-owned subsidiary in Turkey that distributes agricultural equipment and replacement parts. On the basis of available data related to inflation indices and as a result of the devaluation of the Turkish lira relative to the United States dollar, the Turkish economy was determined to be highly inflationary during 2022. A highly inflationary economy is one where the cumulative inflation rate for the three years preceding the beginning of the reporting period, including interim reporting periods, is in excess of 100 percent. 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 Condensed Consolidated Statements of Operations. 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. In recent years, the Argentine government has substantially limited the ability of companies to transfer funds out of Argentina. Argentina's economy was determined to be highly inflationary during 2018. 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 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. 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): Disaggregation of Income Statement Expenses,” which requires disaggregation of certain expense captions into specified natural expense categories in the disclosures within the notes to the consolidated financial statements. In addition, the guidance requires disclosure of selling expenses and its definition. The amendments in the ASU are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The ASU will be applied prospectively with an option to simultaneously apply retrospectively. The updated standard will impact only our disclosures, with no impact to our financial condition or results of operations. 8 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 2. 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 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. The Company does not service the receivables after the sale occurs and does not maintain any direct retained interest in the receivables. 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. 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 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. The Company does not maintain any direct retained interest in the receivables. 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 $ 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 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 9 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 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. 3. GOODWILL AND OTHER INTANGIBLE ASSETS 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 Europe/Middle East Asia/Pacific/Africa Consolidated Balance as of December 31, 2025 $ 744.3 $ 102.5 $ 1,031.6 $ 20.4 $ 1,898.8 Foreign currency translation ( 1.2 ) 4.1 ( 18.5 ) — ( 15.6 ) 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 six months ended June 30, 2026 are summarized as follows (in millions): Gross carrying amounts: Trademarks and Trade Names Customer Relationships Patents and Technology Other Total Balance as of December 31, 2025 $ 75.6 $ 191.2 $ 621.0 $ 51.2 $ 939.0 Acquisition — — 8.8 — 8.8 Foreign currency translation ( 0.3 ) ( 1.5 ) ( 4.3 ) 0.2 ( 5.9 ) Balance as of June 30, 2026 $ 75.3 $ 189.7 $ 625.5 $ 51.4 $ 941.9 Accumulated amortization: Trademarks and Trade Names Customer Relationships Patents and Technology Other Total Balance as of December 31, 2025 $ 50.5 $ 126.9 $ 156.2 $ 20.2 $ 353.8 Amortization expense 2.1 3.5 25.8 2.6 34.0 Foreign currency translation ( 0.2 ) ( 1.0 ) ( 2.5 ) 0.1 ( 3.6 ) Balance as of June 30, 2026 $ 52.4 $ 129.4 $ 179.5 $ 22.9 $ 384.2 Indefinite-lived intangible assets: Trademarks and Trade Names Balance as of December 31, 2025 $ 87.8 Foreign currency translation ( 0.9 ) 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. 10 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 4. INVENTORIES 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 Repair and replacement parts 810.0 824.6 Work in process 261.1 181.9 Raw materials 658.4 632.2 Inventories, net $ 3,007.1 $ 2,709.3 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. 5. PRODUCT WARRANTY 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 ( 114.6 ) ( 107.0 ) ( 216.1 ) ( 196.1 ) Foreign currency translation ( 6.0 ) 47.7 ( 11.9 ) 74.0 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 . The Company accrues for future warranty costs at the time of sale based on historical warranty experience. The Company's extended warranty period for the majority of products ranges from three to five years . 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 $ 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. When specifics of the recovery have been agreed upon with the Company’s suppliers through the confirmation of liability for the recovery, the Company records the recovery within “Accounts and notes receivable, net” in the Company's Condensed Consolidated Balance Sheets. Estimates of the amount of warranty claim recoveries to be received from the Company’s suppliers based upon contractual supplier arrangements are recorded within “Other current assets” in the Company's Condensed Consolidated Balance Sheets. 11 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 6. SUPPLIER FINANCE PROGRAMS The Company has supplier financing arrangements with certain banks or other intermediaries whereby a bank or intermediary purchases receivables held by the Company’s suppliers. Under the program, suppliers have the option to be paid by the bank or intermediary earlier than the payment due date. When the supplier receives an early payment, they receive discounted amounts, and the Company pays the bank or intermediary the face amount of the invoice on the payment due date. The Company does not reimburse suppliers for any costs incurred for participation in the program. The Company and its suppliers agree on the contractual terms, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the supplier finance programs. The suppliers’ voluntary inclusion in the supplier financing programs has no bearing on the Company’s payment terms. 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 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 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. 7. INDEBTEDNESS 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 $ — 5.450 % Senior notes due 2027 400.0 400.0 5.800 % Senior notes due 2034 700.0 700.0 0.800 % Senior notes due 2028 683.9 703.8 EIB Senior term loan due 2029 285.0 293.3 EIB Senior term loan due 2030 193.8 199.4 Senior term loans due between 2026 and 2028 95.2 97.9 Debt issuance costs ( 8.4 ) ( 9.7 ) 2,639.5 2,384.7 Less: Senior term loans due 2026 ( 59.9 ) ( 61.6 ) 5.450 % Senior notes due 2027, net of debt issuance costs ( 399.3 ) — Total long-term indebtedness $ 2,180.3 $ 2,323.1 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. 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 $ 228.0 million as of June 30, 2026). The credit facility expires on December 31, 2026. 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 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. 12 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) Standby Letters of Credit and Similar Instruments 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 June 30, 2026 and December 31, 2025, outstanding letters of credit totaled approximately $ 12.5 million and $ 14.0 million, respectively. 8. RESTRUCTURING AND BUSINESS OPTIMIZATION EXPENSES Restructuring Expenses The Company announced a restructuring program (the “Program”) in response to increased weakening demand in the agriculture industry in 2024. 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 and six months ended June 30, 2026, is summarized as follows (in millions): Balance as of December 31, 2025 $ 82.8 First quarter 2026 provision, net of reversals 7.5 First quarter 2026 cash activity ( 32.3 ) Foreign currency translation ( 0.9 ) Balance as of March 31, 2026 $ 57.1 Second quarter 2026 provision, net of reversals 9.8 Second quarter 2026 cash activity ( 21.1 ) Foreign currency translation ( 0.5 ) Balance as of June 30, 2026 $ 45.3 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 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. 13 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 9. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Derivative Transactions Designated as Hedging Instruments Cash Flow Hedges Foreign Currency Contracts The Company uses cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates. The changes in the fair values of these cash flow hedges are recorded in accumulated other comprehensive loss and are subsequently reclassified into “Cost of goods sold” during the period the sales and purchases are recognized. These amounts offset the effect of the changes in foreign currency rates on the related sale and purchase transactions. 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 $ 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 March 31, 2026 $ 0.9 $ 0.6 $ 0.3 Net changes in fair value of derivatives: Foreign currency contracts (1) ( 3.0 ) ( 0.7 ) ( 2.3 ) Total ( 3.0 ) ( 0.7 ) ( 2.3 ) Net losses (gains) reclassified from accumulated other comprehensive loss into income: Foreign currency contracts (1) 3.3 0.6 2.7 Treasury rate locks ( 0.2 ) ( 0.1 ) ( 0.1 ) 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. 14 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 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 3.3 0.6 2.7 Total 3.3 0.6 2.7 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 ) 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 ) Total ( 8.3 ) ( 1.9 ) ( 6.4 ) Net losses (gains) reclassified from accumulated other comprehensive loss into income: Foreign currency contracts (1) 5.1 1.0 4.1 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. 15 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 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 Accumulated derivative net gains as of December 31, 2024 $ 11.7 $ 2.8 $ 8.9 Net changes in fair value of derivatives: Foreign currency contracts 3.9 0.8 3.1 Total 3.9 0.8 3.1 Net gains reclassified from accumulated other comprehensive loss into income: Foreign currency contracts ( 3.7 ) ( 1.1 ) ( 2.6 ) Treasury rate locks ( 0.4 ) ( 0.1 ) ( 0.3 ) Total ( 4.1 ) ( 1.2 ) ( 2.9 ) Accumulated derivative net gains as of June 30, 2025 $ 11.5 $ 2.4 $ 9.1 Net Investment Hedges The Company uses non-derivative and derivative instruments to hedge a portion of its net investment in foreign operations against adverse movements in exchange rates. For instruments that are designated as hedges of net investments in foreign operations, changes in the fair value of the derivative instruments are recorded in foreign currency translation adjustments, a component of accumulated other comprehensive loss, to offset changes in the value of the net investments being hedged. When the net investment in foreign operations is sold or substantially liquidates, the amounts recorded in accumulated other comprehensive loss are reclassified to earnings. To the extent foreign currency denominated debt is de-designated from a net investment hedge relationship, changes in the value of the foreign currency denominated debt are recorded in earnings through the maturity date. On November 4, 2024, the Company entered into $ 600.0 million cross currency swap contracts comprising a $ 200.0 million tranche with a three-years tenor, $ 200.0 million tranche with a five-years tenor and $ 200.0 million tranche with a 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 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 June 30, 2026 December 31, 2025 Cross currency swap contracts $ 600.0 $ 600.0 16 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 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 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 The Company enters into foreign currency contracts to economically hedge a portion of its receivables and payables on the Company and its subsidiaries’ balance sheets that are denominated in foreign currencies other than the functional currency. These contracts are classified as non-designated derivative instruments. 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 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) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Foreign currency contracts Other expense, net $ ( 13.8 ) $ 26.0 $ ( 35.4 ) $ 43.9 17 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) The table below sets forth the fair value of derivative instruments as of June 30, 2026 (in millions): Asset Derivatives as of June 30, 2026 Liability Derivatives as of June 30, 2026 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments designated as hedging instruments: Foreign currency contracts Other current assets $ 1.8 Other current liabilities $ 6.7 Cross currency swap contracts Other noncurrent assets — Other noncurrent liabilities 31.0 Derivative instruments not designated as hedging instruments: Foreign currency contracts (1) Other current assets 5.8 Other current liabilities 7.8 Total derivative instruments $ 7.6 $ 45.5 ____________________________________ (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): Asset Derivatives as of December 31, 2025 Liability Derivatives as of December 31, 2025 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments designated as hedging instruments: Foreign currency contracts Other current assets $ 0.8 Other current liabilities $ 2.5 Cross currency swap contracts Other noncurrent assets — Other noncurrent liabilities 37.2 Derivative instruments not designated as hedging instruments: Foreign currency contracts Other current assets 19.4 Other current liabilities 8.7 Total derivative instruments $ 20.2 $ 48.4 18 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 10. STOCKHOLDERS’ EQUITY 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 Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity 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 Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity Balance, December 31, 2025 $ 299.2 $ 0.7 $ 0.5 $ 6,047.2 $ ( 1,774.9 ) $ 4,273.5 Stock compensation and employee stock purchase plans — — 21.8 — — 21.8 Forward share repurchase contract — — — — — — Comprehensive income: Net income (loss) ( 5.0 ) — — 132.2 — 132.2 Other comprehensive income (loss): Foreign currency translation adjustments ( 1.8 ) — — — 41.8 41.8 Defined pension and postretirement benefit plans, net of tax — — — — 3.8 3.8 Deferred gains and losses on derivatives, net of tax — — — — ( 2.6 ) ( 2.6 ) 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 19 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) Redeemable Noncontrolling Interests Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity 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 Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity Balance, December 31, 2024 $ 300.1 $ 0.7 $ — $ 5,645.0 $ ( 1,902.9 ) $ 3,742.8 Stock compensation plans — — 10.0 ( 4.4 ) — 5.6 Comprehensive income: Net income (loss) ( 2.2 ) — — 325.3 — 325.3 Other comprehensive income: Foreign currency translation adjustments 6.4 — — — 134.0 134.0 Defined pension and postretirement benefit plans, net of tax — — — — 3.9 3.9 Deferred gains and losses on derivatives, net of tax — — — — 0.2 0.2 Payment of dividends to stockholders — — — ( 43.3 ) — ( 43.3 ) Balance, June 30, 2025 $ 304.3 $ 0.7 $ 10.0 $ 5,922.6 $ ( 1,764.8 ) $ 4,168.5 20 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 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 Deferred Gains and Losses on Derivatives Cumulative Translation Adjustment Total Accumulated other comprehensive loss, December 31, 2025 $ ( 223.4 ) $ 3.2 $ ( 1,554.7 ) $ ( 1,774.9 ) Other comprehensive income (loss) before reclassifications ( 0.3 ) ( 6.4 ) 41.8 35.1 Net losses reclassified from accumulated other comprehensive loss 4.1 3.8 — 7.9 Other comprehensive income (loss) 3.8 ( 2.6 ) 41.8 43.0 Accumulated other comprehensive loss, 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 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 June 30, 2026 (1) Three Months Ended June 30, 2025 (1) Derivatives: Net losses (gains) on foreign currency contracts $ 3.3 $ ( 1.4 ) Cost of goods sold Net gains on treasury rate locks ( 0.2 ) ( 0.2 ) Interest expense, net Reclassification before tax 3.1 ( 1.6 ) 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. 21 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 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) Derivatives: 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: Amortization of net actuarial losses $ 4.5 $ 4.3 Other expense, net (2) Amortization of prior service cost 1.0 1.0 Other expense, net (2) Reclassification before tax 5.5 5.3 Income tax benefit ( 1.4 ) ( 1.4 ) Income tax provision Reclassification net of tax $ 4.1 $ 3.9 Net losses reclassified from accumulated other comprehensive loss $ 7.9 $ 1.0 ____________________________________ (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. Refer to Note 13 for additional information. Share Repurchase Program 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 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. All shares received under the ASR agreements 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. In conjunction with the Cooperation Agreement entered into with Tractors and Farm Equipment Limited (“TAFE”) in June 2025 (the “Cooperation Agreement”), TAFE agreed to participate on a pro rata basis in the Company’s share repurchase programs as authorized by the Company’s Board of Directors from time to time. 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 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. 22 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) Dividends 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. 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. 11. NET INCOME PER COMMON SHARE Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during each period. 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 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: Net income attributable to AGCO Corporation $ 77.2 $ 314.8 $ 132.2 $ 325.3 Weighted average number of common shares outstanding 71.1 74.6 71.8 74.6 Basic net income per share attributable to AGCO Corporation $ 1.08 $ 4.22 $ 1.84 $ 4.36 Diluted net income per share: Net income attributable to AGCO Corporation $ 77.2 $ 314.8 $ 132.2 $ 325.3 Weighted average number of common shares outstanding 71.1 74.6 71.8 74.6 Dilutive SSARs and RSUs 0.1 — 0.1 — 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 12. INCOME TAXES 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. 23 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) The Company maintains a valuation allowance to reserve a portion of its net deferred tax assets in the United States and certain foreign jurisdictions. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company regularly assesses the likelihood that its deferred tax assets will be recovered from estimated future taxable income and available tax planning strategies and has determined that all adjustments to the valuation allowances have been deemed appropriate. In making this assessment, all available evidence was considered including the current economic climate, as well as reasonable tax planning strategies. The Company believes it is more likely than not that it will realize its remaining net deferred tax assets, net of the valuation allowance, in future years. 13. 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 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 Service cost $ 1.5 $ 1.9 $ 3.0 $ 3.7 Interest cost 6.6 6.7 13.2 13.3 Expected return on plan assets ( 7.4 ) ( 6.5 ) ( 14.9 ) ( 12.8 ) Amortization of net actuarial losses 2.2 2.3 4.5 4.4 Amortization of prior service cost 0.4 0.4 0.8 0.8 Net periodic pension cost $ 3.3 $ 4.8 $ 6.6 $ 9.4 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 Net periodic postretirement benefit cost $ 0.7 $ 0.3 $ 1.2 $ 0.8 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 Condensed Consolidated Statements of Operations. 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. 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. 24 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 14. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company categorizes its assets and liabilities into one of three levels based on the assumptions used in valuing the asset or liability. Estimates of fair value for financial assets and liabilities are based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Model-derived valuations in which one or more significant inputs are unobservable. The Company categorizes its pension plan assets into one of the three levels of the fair value hierarchy, except for those measured using the net asset value per share (or its equivalent) practical expedient. The Company enters into foreign currency and interest rate swap contracts. The fair values of the Company’s derivative instruments are determined using discounted cash flow valuation models. The significant inputs used in these models are readily available in public markets, or can be derived from observable market transactions, and therefore have been classified as Level 2. Inputs used in these discounted cash flow valuation models for derivative instruments include the applicable exchange rates, forward rates or interest rates. Such models used for option contracts also use implied volatility. 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 June 30, 2026 and December 31, 2025 are summarized below (in millions): As of June 30, 2026 Level 1 Level 2 Level 3 Total Derivative assets $ — $ 7.6 $ — $ 7.6 Derivative liabilities — 45.5 — 45.5 As of December 31, 2025 Level 1 Level 2 Level 3 Total Derivative assets $ — $ 20.2 $ — $ 20.2 Derivative liabilities — 48.4 — 48.4 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 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. 25 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 15. COMMITMENTS AND CONTINGENCIES Leases 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) Finance Leases Operating Leases (1) Finance Leases 2026 $ 27.9 $ 0.3 $ 55.5 $ 0.6 2027 44.2 0.5 40.5 0.4 2028 34.9 0.4 31.8 0.3 2029 25.2 0.4 23.5 0.3 2030 12.1 0.3 11.0 0.2 Thereafter 39.8 6.2 37.5 6.0 Total lease payments 184.1 8.1 199.8 7.8 Less: imputed interest (2) ( 28.7 ) ( 2.0 ) ( 29.9 ) ( 2.0 ) Present value of leased liabilities $ 155.4 $ 6.1 $ 169.9 $ 5.8 ____________________________________ (1) Operating lease payments include options to extend or terminate at the Company's sole discretion, which are included in the determination of lease term when they are reasonably certain to be exercised. (2) Calculated for each lease using either the implicit interest rate or the incremental borrowing rate, when the implicit interest rate is not readily available. Off-Balance Sheet Arrangements Guarantees 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 to 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. Losses under such guarantees historically have been insignificant. The Company believes the credit risk associated with these guarantees is not material. 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. Other The Company sells a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. The Company also sells certain accounts receivable under factoring arrangements to financial institutions around the world. The Company accounts for the sale of such receivables as off-balance sheet transactions. Refer to Note 2 for discussion of the Company’s accounts receivable sales agreements. 26 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) Contingencies The Company is a party to various other legal claims and actions incidental to its business. The Company believes that none of these claims or actions, either individually or in the aggregate, are material to its business or financial statements as a whole, including its results of operations and financial condition. 16. REVENUE Contract Liabilities Contract liabilities primarily 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 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 June 30, 2026 and December 31, 2025 (in millions): June 30, 2026 December 31, 2025 Contract liabilities $ 376.9 $ 386.1 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 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 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. 27 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) Disaggregated Revenue : 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 Consolidated 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 28 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 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) Europe/Middle East Asia/Pacific/Africa Consolidated Primary geographical markets: United States $ 302.5 $ — $ — $ — $ 302.5 Canada 91.4 — — — 91.4 Brazil — 222.8 — — 222.8 Other South America — 78.8 — — 78.8 Germany — — 465.6 — 465.6 France — — 316.5 — 316.5 United Kingdom and Ireland — — 144.2 — 144.2 Finland and Scandinavia — — 211.2 — 211.2 Italy — — 108.3 — 108.3 Other Europe — — 441.1 — 441.1 Middle East and Algeria — — 88.0 — 88.0 Africa — — — 29.4 29.4 Asia — — — 50.6 50.6 Australia and New Zealand — — — 55.8 55.8 Mexico, Central America and Caribbean — 28.8 — — 28.8 $ 393.9 $ 330.4 $ 1,774.9 $ 135.8 $ 2,635.0 Major products: Tractors $ 135.1 $ 214.0 $ 1,259.2 $ 89.9 $ 1,698.2 Replacement parts 105.8 44.5 327.9 24.2 502.4 Grain storage and protein production systems — — — 0.2 0.2 Combines, application equipment and other machinery 153.0 71.9 187.8 21.5 434.2 $ 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. 29 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 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 30 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 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 Asia/Pacific/Africa Consolidated Primary geographical markets: United States $ 595.3 $ — $ — $ — $ 595.3 Canada 168.1 — — — 168.1 Brazil — 392.1 — — 392.1 Other South America — 136.5 — — 136.5 Germany — — 759.5 — 759.5 France — — 587.2 — 587.2 United Kingdom and Ireland — — 252.2 — 252.2 Finland and Scandinavia — — 383.1 — 383.1 Italy — — 174.2 — 174.2 Other Europe — — 787.9 — 787.9 Middle East and Algeria — — 161.3 — 161.3 Africa — — — 44.7 44.7 Asia — — — 83.7 83.7 Australia and New Zealand — — — 101.9 101.9 Mexico, Central America and Caribbean — 57.8 — — 57.8 $ 763.4 $ 586.4 $ 3,105.4 $ 230.3 $ 4,685.5 Major products: Tractors $ 259.2 $ 379.7 $ 2,169.5 $ 143.9 $ 2,952.3 Replacement parts 189.2 86.7 612.2 46.9 935.0 Grain storage and protein production systems — — — 1.1 1.1 Combines, application equipment and other machinery 315.0 120.0 323.7 38.4 797.1 $ 763.4 $ 586.4 $ 3,105.4 $ 230.3 $ 4,685.5 _________________________________ (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. 31 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) 17. SEGMENT REPORTING The Company has four operating segments which are also its reportable segments which consist of the North America, Latin America, Europe/Middle East and Asia/Pacific/Africa regions. 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. The Company’s reportable segments are geography based and distribute a full range of agricultural machinery and precision agriculture technology. The Company’s Chief Operating Decision Maker (“CODM”), Eric P. Hansotia, Chairman of the Board, President and Chief Executive Officer, evaluates segment performance primarily based on income from operations. The CODM utilizes income from operations to evaluate each segment’s performance including the allocation of resources. Sales for each segment are based on the location of the third-party customer. The Company’s selling, general and administrative expenses and engineering expenses are generally charged to each segment based on the region and division where the expenses are incurred. 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 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 2026 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 2025 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 32 Table of Contents Notes to Condensed Consolidated Financial Statements - Continued (unaudited) Six Months Ended June 30, North America Latin America Europe/Middle East Asia/Pacific/Africa Total Segments 2026 Net sales $ 877.9 $ 483.0 $ 3,333.2 $ 258.5 $ 4,952.6 Cost of goods sold 717.0 439.9 2,361.9 206.5 3,725.3 Selling, general and administrative expenses 159.3 78.1 288.6 32.2 558.2 Engineering expenses 77.1 27.7 163.5 5.5 273.8 Income (loss) from operations $ ( 75.5 ) $ ( 62.7 ) $ 519.2 $ 14.3 $ 395.3 Depreciation $ 30.2 $ 18.8 $ 78.0 $ 6.8 $ 133.8 Capital expenditures 14.7 16.2 68.6 2.3 101.8 2025 Net sales $ 763.4 $ 586.4 $ 3,105.4 $ 230.3 $ 4,685.5 Cost of goods sold 581.0 470.9 2,270.1 184.3 3,506.3 Selling, general and administrative expenses 163.5 65.8 275.3 34.4 539.0 Engineering expenses 68.3 16.3 144.3 4.9 233.8 Income (loss) from operations $ ( 49.4 ) $ 33.4 $ 415.7 $ 6.7 $ 406.4 Depreciation $ 29.0 $ 16.2 $ 74.0 $ 5.4 $ 124.6 Capital expenditures 9.1 18.1 61.6 1.6 90.4 Assets As of June 30, 2026 $ 1,354.9 $ 1,217.4 $ 3,160.6 $ 613.4 $ 6,346.3 As of December 31, 2025 1,303.9 1,158.0 2,907.6 606.6 5,976.1 A reconciliation from the segment information to the consolidated balances for income from operations is set forth below (in millions): 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 ) Amortization of intangibles ( 17.1 ) ( 15.7 ) ( 34.0 ) ( 31.0 ) Stock compensation expense ( 17.1 ) ( 10.3 ) ( 27.4 ) ( 17.4 ) Restructuring and business optimization expenses ( 11.2 ) ( 15.6 ) ( 21.2 ) ( 28.6 ) Consolidated income from operations $ 140.7 $ 164.0 $ 221.4 $ 213.4 33 Table of Contents