AGCO CORP /DE 8-K

What Happened

• On February 5, 2026, AGCO Corporation (AGCO) issued a press release (attached as Exhibit 99.1) reporting its financial results for the quarter and year ended December 31, 2025. The release presents both GAAP results and multiple non‑GAAP (adjusted) measures and includes reconciliations for the historical non‑GAAP items.

Key Details

• Filing date and periods: Press release filed Feb 5, 2026; results cover the three months and year ended December 31, 2025.
• Non‑GAAP adjustments: AGCO provides adjusted income from operations, operating margin, net income and EPS that exclude restructuring and business‑optimization expenses, amortization of PTx Trimble acquired intangibles, impairment charges, transaction-related costs, gains/losses on sale of businesses, gain on sale of investment in affiliate (sale of TAFE), and discrete tax items.
• Significant transactions disclosed: Transaction costs tied to the divestiture of the majority of AGCO’s Grain & Protein (G&P) business and to the formation of the PTx Trimble joint venture were recorded in 2025; AGCO also recorded a gain on sale of investment in affiliate related to TAFE.
• Cash metrics: AGCO defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment, and free cash flow conversion as that free cash flow divided by the company’s adjusted net income.
• Reconciliation notes: AGCO provided reconciliations for historical non‑GAAP measures but said it does not provide a quantitative reconciliation for forward‑looking non‑GAAP measures due to the difficulty of reliably estimating certain components.

Why It Matters

• Investors should note AGCO is highlighting adjusted results to show underlying recurring performance while excluding one‑time items (restructuring, transaction costs, gains/losses on divestitures, etc.). These adjustments affect reported operating margin, net income and EPS and can materially change how results are interpreted.
• The disclosed transaction activity (G&P divestiture, PTx Trimble JV formation, and sale of TAFE stake) and related costs/gains are material drivers of 2025 results and cash flows; free cash flow definitions and reconciliations are provided to help assess cash generation after capital spending.
• Retail investors should review the press release exhibit and the provided reconciliations to compare GAAP vs. adjusted metrics and to understand the impact of these non‑recurring items on profitability and cash generation.