Esther Oshina

Esther Oshina, on behalf of Angel Castillo, asked about the quarterly cadence of tariff impacts for 2026, specifically whether they would be more heavily weighted in the first or second half. She also inquired about any limiting factors preventing AGCO from underproducing further to address excess inventory.

Answer

Eric Hansotia, Chairman, President, and CEO, explained that the $65 million incremental tariff impact for 2026 would be heavily weighted in the first half, with the balance rolling into Q3 and Q4 being somewhat neutral, due to the timing of tariffs in the previous year and inventory levels. He clarified that there are no inhibitors to reducing production, but the complexity of AGCO's full product portfolio means different product lines (planters, combines, various horsepower tractors) have varying dynamics that influence production adjustments and dealer inventory levels.