Agco raises long-term financial targets

Agco (AGCO) announced new financial targets to investors at its 2024 Analyst Meeting as it “remains focused on driving enhanced durability and profitability through the cycle.” By 2029, Agco is targeting to improve adjusted mid-cycle adjusted operating margins to 14%-15%; Outgrow the industry by 4%-5% annually; Annually deliver free cash flow conversion of 75%-100%; Expand net sales of Fendt in North and South America to $1.7 billion as the company continues to roll out a full line of Fendt products; Grow parts net sales to $2.3B while increasing market share of genuine AGCO parts; Deliver precision ag net sales of $2.0B. “Our Farmer-First strategy has served us well since its launch in 2021, driving us to deliver even more innovative solutions for farmers through our differentiated portfolio of leading brands. We are achieving higher highs and higher lows through the cycle, reinforcing our commitment to creating a more resilient business focused on high-margin opportunities and positioning us for sustainable and profitable growth,” said Eric Hansotia, Agco’s Chairman, President and Chief Executive Officer.