Major agricultural machinery manufacturers report lower revenues, but not all is bad

Media reports suggest that the prospects for this year are not very good for the major manufacturers of agricultural machinery. And while the first quarter was a really bad one for them, things are expected to pick up a little this year.

Agco Corp (AGCO), which owns the „Massey Ferguson“, „Fendt“ and „Valtra“ brands, has announced a 34% drop in sales in the first quarter of this year, Its competitor „CNH Industrial NV“, which owns the „Case IH“ and „New Holland“ brands, forecasts that revenues from the agricultural machinery market could fall by 12–20% in 2025. US producers are not faring any better, with still-low grain prices, farmers' reticence to invest, and the US tariff and trade war with the rest of the world cited as some of the barriers to revenue growth.

Analysts and producers fear that if this situation persists, there will be no way to absorb the loss of income.

And yet, the shares of the major machinery manufacturers are rising on the international market. Last Thursday, AGCO recorded a 13% rise, CNH – 8.7%, and „Deere & Co“ – 4.7%.

Interestingly, the agricultural machinery market has been under pressure since 2022, when manufacturers recorded record sales. Experts at „Farmprogress.com“ explain that this year could be the last bad year for manufacturers. The market is expected to bottom out this year and rebound in 2026. However, if the US President continues with his trade wars, the situation could worsen, especially if China imposes retaliatory tariffs on the US.

„The biggest buyer of their products (China) is at the epicentre of the trade war“,  AGCO CEO Eric Hansotiau has said in an interview.

AGCO expects revenue growth in South America and Asia-Pacific in 2025, with the North American market expected to rebound later.