Excellent. Good morning, Brian, Damon. Great to see you both. Thanks for being here. We've got Damon Audia, Chief Financial Officer of AGCO. Brian Sorber, President of PTX. Maybe I'll start with you, Damon. For those newer to AGCO, maybe just share a little bit about what the company does, a little bit of the transition to where you guys are today, and talk about how technology is central to the strategy going forward.

Yeah, sure, Joe. So Agco is the largest pure play ag company in the industry. Last year we did just over $10 billion in revenue. We go to market really on the equipment side under three primary brands. We have our Fent brand, which is the premium or the best of the best, and then we have two more volume-orientated brands under the Massey Ferguson and Vultra brands. And then on the technology side that Brian will elaborate on, our PTX portfolio, which has really grown significantly with the acquisition or the joint venture that we did with Trimble a couple years ago through that technology stack that we sell to Agco, we sell to other OEMs, but also through a complete independent retrofit channel, have really allowed us as a company to focus on growing equipment and technology. And over the last couple years, we've done a couple significant things to really hone our focus on equipment and technology. That was the joint venture with Trimble that we did in 2024 and at the same time allowed us to divest our grain and protein business, which was a low margin, low growth business. So as we finish those two transactions, which is sort of the cornerstones of our refresh of our strategy, you started to see our financial performance transform significantly versus the prior downturn. So if I look at last year, we are at the low point of our industry. We're a very cyclical industry. Last year, we finished at around 85% or 86% of mid-cycle. We delivered an adjusted operating margin last year of 7.7%, which was almost double what we delivered the prior downturn. So a significant change in our profitability long-term, making ourselves less cyclical, more profit through the cycle. We also generated record free cash flow last year, 188% free cash flow conversion. So the strategy of being the most farmer-focused company has delivered benefits to our farmer with a record market share last year, record net promoter score, but also delivering significant value to our investors, given the financial profitability at the trough coupled with a strong free cash flow.

Excellent. Thanks, Damon. Brian, you're relatively new to Agco, but you've been in the industry and on the technology side of the industry for a really long time. Talk a little bit about Precision Ag in general and how it's become just an increasing area of importance and focus over the years. And talk about how that applies to Agco, in particular around the farmer first retrofit mixed fleet strategy that the company has.

Sure, sure. Yeah, I've been in Precision Ag for about 30 years. um when it started um it was really unknown territory this thought of putting a a gps receiver on the cab of a of a tractor or a combine or something like that was relatively unheard of uh since then it's morphed into a sophisticated industry still young you know in the grand scheme of things but uh what became very obvious is farmers have more and more increased pressure to create a profit for themselves both their input costs are high commodity prices are depressed that margin is smaller and smaller for a farmer and so to create those efficiencies to be able to get higher yields lower input costs it became very clear within the last 15-20 years that technology was maybe that one thing that could unlock those margins for a farmer so these pieces of equipment combines the sprayers the the tractors that are running around inside of the fields are no longer just large chunks of iron. They're very sophisticated pieces of equipment. And really here in the last five to seven years, we're seeing an exponential growth in the sophistication of the technology that are on these machines. And so cloud services, data platforms, AI, low-cost sensor technologies, these are all now prevalent inside of this industry. So it's been exciting to watch. I think from an AGCO perspective and with the PTX strategy, what we're putting together here is, I think, one of the most compelling value propositions for farmers. Most of that is because we're openly embracing a mixed fleet strategy, which means that we don't care if you have an AGCO piece of machinery, if you have a John Deere or Case New Holland. It really doesn't matter to us. We're going to put the best and the latest and greatest technology on that machine, really even if it's an older piece of equipment as well, so that farmers now can have access to all of the benefit, all of the ROI that Precision Ag offers without potentially having that large capital expenditure of a new piece of equipment. Got it. Excellent.

Damon, maybe back to you. A lot of the strategy was predicated on the Trimble JV, which you guys closed in 2024. Talk a little bit about that, both from a strategic standpoint, talk about the integration, talk about sort of the interplay of the transaction with the broader mixed fleet strategy that you guys are employing.

Yeah, so maybe I'll touch on the thesis of the acquisition, and then maybe I'll let Brian talk about how the Elite Dealer channel is really coming together. But when we looked at what we had prior to the joint venture with Trimble, we had a very strong retrofit mindset with our precision planting business. So, again, a cornerstone for our technology, as Brian alluded to, very much mixed fleet, retrofit, separate channel. And we looked at that brand and we looked out throughout the industry about what other technologies were out there that we felt we needed to have. As connectivity was becoming more and more relevant, as you think about autonomy and how that was evolving, we felt that we needed to have that sort of service provider. Trimble brought one of the most well-known mixed-fleet retrofit brands outside of precision planting. So bringing those two together really gave us a powerhouse of retrofit brands and retrofit technologies that really allowed us to accelerate our development. And so when we brought that under the fold here, there was a couple things that we wanted to focus on. One was synergies, both from a culture, from a product standpoint, and then from a growth standpoint. And if I think about where we are a year, year and a half into the joint venture here, I would say culturally, the teams have done exceptionally well in coming together. You took from the Trimble group, you took what was a ag company in a tech business, and you've transformed that and put a tech business in an ag company. And so as that group of engineers have joined our fold and they hear us talk about being farmer first, boots on the ground, they have really embraced the culture of being farmer first. So we've seen a lot of good cultural synergy between the two. When I look at the technologies, again, we were introducing five products or so a year. We had Target to try to be a little bit more than that. last year, 14 products that the PTX group came together, and we can talk about some of those, as Brian can elaborate, but that engine, that flywheel of innovation is definitely going even faster than what we had thought. From a cost synergy standpoint, when we announced the acquisition or the joint venture, we said we would have about $100 million of synergies after the third full year, about one-third of that coming from cost, two-thirds coming from revenue. Cost synergies, we are ahead of schedule. Given the industry has declined much more rapidly than we thought, it's really forced us as a company to revisit our cost structure. So by the end of this year, we should be in good shape of delivering that $33 million or so of cost savings. Revenue synergies, we said we'd get about two-thirds, so 60-some million of that coming through, bringing this precision planting dealer network coupled with Trimble's Vantage dealers together under what we now call elite dealers. And so that's bringing the full suite of technologies together. We've made great progress in building those elite dealers out. So last year, this time, we were around 40. We finished the end of the year just over 70. We'll add about another 50% to that this year. That is growing. So we feel like we're in a good position. Industry is not helping us right now, given where we are. But when we look at the synergy opportunity and revenue, we still feel good on our path to $2 billion here by 2029.

Brian, you mentioned data. Can you talk a little bit about how important data is in the broader ag ecosystem, how you guys use data, where you're sort of at on that journey? Maybe tie it back to, you know, the data you got as part of the Trimble transaction as well.

Yeah, ultimately data plays a critical part in precision ag and maybe more so than ever for a lot of different reasons. It's all about making decisions on the farm, management decisions, agronomic decisions for the following year, sometimes in real time. So where Precision Ag started was really an automation play. It was about taking an operator in a cab and doing more with the machine in an automated fashion. In the process of doing that, when you automate a process, even in the field, you generate a lot of data points just by doing that. It didn't take very long for the industry to realize that the data that was coming off of these machines could actually be leveraged for management decisions, you know, either later that year, that season, or even the following year. And so that value unlock was almost immediate. So the more the systems become sophisticated, the more sensors that are deployed on the machinery, the more data points that you're actually gathering. Now, if you start to bring in more of a modern twist on precision ag data, you have the opportunity to implement AI. And when you start to do that, now you can actually prompt the user or the farmer in even a more sophisticated way, a better decision, faster, gain even more efficiency, not only out of the machine, but out of the ground, out of the soil that he has. And so for us, data is not only critical, but we also felt from a strategic standpoint, we needed to democratize it for farmers. So following along with that mixed fleet approach, we wanted to make sure that our data could effectively create value for all farmers, regardless of what blend or colors of machinery that they had on the farm. So we released this last fall a product called Farm Engage. Farm Engage is our data platform that we got through the PTX Trimble JV. It's effectively task management and data acquisition through all platforms. So not only with PTX equipment, but if you have a John Deere tractor or a combine, even if you're a user of the John Deere Ops Center, Farm Engage now can be that top layer of data management over the entire farm, aggregate that data from all those different sources and present that back to the user in a meaningful way so that decisions can be made.

You mentioned autonomy. Talk a little bit about where autonomy sits in the ecosystem of ag and kind of where we're at from just an evolution of having fully autonomous equipment in the field.

Yeah, I think in many ways autonomy when it comes to the operator is the end game. So we're all on some sort of trajectory towards fully autonomous farm machinery. Another core technology that we picked up in the PTX Trimble JV was some of that platform approach towards autonomy. Now we've released our OutRun product, which is our autonomy solution. It's a retrofit autonomy solution, which means that you can fit it up to not only an Agco piece of machinery, but you can fit it up to a deer or anybody else's. What that does is that automatically puts you on a trajectory towards autonomous operation with the machine itself. That only tells one piece of the story. I mean, the obvious benefit is labor savings. You can run that machinery now 24-7. It doesn't have any of the constraints that labor would have in operation. But for PTX in general, or PTX specifically, it has a different piece to the strategy. When you look at precision planting, we have the most highly automated, most equipped planters in the world market leading technology on the planters the implement that's pulled behind the tractor now we've released our symphony vision and our symphony duo products for sprayers similar lots cameras sensors AI all deployed on the machine when you take implement technology like that that's so sophisticated and so highly automated and you couple it with a driverless tractor you now have unlocked the full capability of an autonomous platform So rather than just having a self-driving tractor that just runs around the field, you're actually unlocking the entire ecosystem. So it's a differentiator, especially when you couple it with the fact that we do it in a retrofit approach, mixed fleet, all of those things that are core to PTX, you can see how important autonomy is in the future and why the PTX Trimble JV was strategically so important for AGCO to do.

So, Joe, if we look back at our long-term goal, is our goal is to have an autonomous offering around the crop cycle by 2030. And so, as Brian alluded to, our outrun system today commercially available for the grain cart system. We also have, in early stage, the tillage, which will become commercializable this year, and fertilization. So further ahead, I know one of our competitors also has a target of autonomy around the crop cycle by 2030. They have tillage out. They've demoed tillage. The third one, I think, is still working on it. And so, again, a lot of investment, as Brian said, bringing Trimble coupled together with our JCA business, coupled with our precision planting business, really a lot of advancements in the autonomous cycle with at least three already sort of shown out to the world already.

So, Damon, let's just maybe translate that strategy to sort of what does it do for AGCO maybe by the end of this decade and kind of financial target-wise. How do you think about the overall technology portfolio as a percentage of ACCO's overall revenue base or whatever metrics you're sort of, you know, guiding towards?

Yeah. So if I think about it today, as I mentioned, we're just over $10 billion in revenue last year. If I look at the precision ag portion of the revenue, we would count about just under $900 million of PTX or technology-orientated revenue. And now there's three components in that. And Brian alluded to, we have about a third of that technology is what PTX sells to Agco. So that's going on to a Fent tractor, a Massy Ferguson, or a Vulture product coming out of our factory. We sell to 100 other OEMs around the world. So that technology, as Brian said, we want the best technology on the farms, regardless of what color equipment that farmer is using. So we have a second channel. About a third of that is going to other OEMs and then being sold into the dealers. And then we have this third channel, which is our retrofit channel. And, again, that's putting on that latest technology onto a piece of equipment that's already onto the field. That is a huge growth opportunity because the addressable market there is much larger. And as Brian alluded to, as we bring our technology into the marketplace, we bring it there first. We want those farmers to get comfortable with the technology. That market shrunk less than our other two technology or OEM channels, given the industry. Smaller investment for the farmers, faster payback for him or her. And so as they're dealing with challenging net farm incomes, it gives them the ability to invest a lower price point, get a faster payback, improve their yield, or lower their input costs. So big opportunity for us, and that's where we see the growth coming. If I think about 2029, which is where we have our 14% to 15% adjusted operating margin target, that will come through a couple different things. the portfolio transition that we've already done with Grain and Protein and the Trimble JV coming in, our restructuring actions, which by the end of this year will be run rating at about 175 to 200 million, and then our three portfolio drivers. One is our fence business growing in North and South America. Two is, and that's growing from just under a billion a year ago to 1.7 billion. Our parts business really leveraging farmer core e-commerce, growing from about $1.9 to $2.3 billion. And then more importantly, this PTX business that Brian is running, going from just under $900 million last year, growing to $2 billion. So when we think about where we are in the cycle, again, today it's single-digit percentage of our business. As we think about hitting that $2 billion at mid-cycle, you can start to think about that becoming sort of low to mid-teens revenue, again, depending on where we are in the equipment cycle, but becoming a much larger percentage of our business. And the mix of that business probably transitioning a little bit more from basic hardware sales to a larger percentage of that also having a little bit more of a reoccurring revenue stream because of the autonomy where the farmers are buying hours. some of the soil sampling, some of the farm-engaged farm management system, which have more reoccurring revenues attached to them, so that mix growing as well within that PTX portfolio of revenue.

I presume the margin profile of that $2 billion in the future is materially higher than the original equipment side. Is that how you think about it?

Yeah, absolutely. When we think about the PTX business overall, again, And the gross margin on those products are significantly higher than the corporate average today, given the industry cycle, because the incrementals and decrementals on those businesses are quite high. It's not where we want it to be today because you have a large cost structure. But as we think about the revenue opportunities and the margin, it's a huge part of our growth driver. We said going from where we are today to that 20-29 target, Those three growth drivers of parts, PTX, and FENT should add somewhere in the range of 150 to 200 basis points of margin growth to us.

That's great. Brian, maybe back to you. You talked about it's been a challenging time for farmers. Obviously, we've been in a multi-year down cycle. Commodity prices haven't helped.

So I'd say farmers globally are somewhat compressed at the moment. um talk about adoption rates and willingness from farmers to invest in what is you know been a really tough market um for them where are you seeing that happen is it on the new equipment side is on the retrofit how do you think about adoption of the retrofit product offering typically what we see is during a down cycle like we've been in in here lately in the trough so to speak on the capital equipment side of things usually won't suffer nearly as much of a setback on the retrofit side of the business you know the farmer is faced with a decision say i could do i could basically do nothing with my equipment i could retrofit my existing equipment even if it is two three years old and get that roi there which maybe stretches him for another two or three years worth of productivity before he decides to ultimately trade for a new piece of equipment and i think what farmers are looking at is they're they're seeing the benefit finally of precision ag you know seven eight ten years ago it was difficult for farmers to put a real tangible roi on precision ag because the yield gains and and some of the input savings were not as recognizable a lot of that is data you know our ability to actually expose to the farmer the the benefits through yield gains etc um now all of a sudden prove uh the promise that precision AG has had for many years. So I think from a willingness to invest, I think, is at an all-time high for farmers. It's just whether or not they can. It's the mechanics of making that investment. And in years like we're having right now, that's a tough decision to make. That's why I think the retrofit mixed-fleet approach is really important for us, because it does actually democratize data, autonomy, highly sophisticated automation, et cetera, all for farmers everywhere, which, when you look at it from an addressable market standpoint, we're a little bit different in the fact that we're actually trying to serve all farmers. It's a much larger pool of farmers globally that we're trying to reach into with the technologies that we have. And we're seeing some positive returns on that. And I think what we're seeing when we're comparing that to whole goods machinery sales, it's proving that out. That we're seeing the retrofit have a wider appeal.

So, Damon, maybe one for you on the competitive landscape. Obviously, you've got some big competitors out there that have a full suite of technology solutions. Talk about how you think about the PTX portfolio, vis-a-vis what Deere is doing or CNH, and how you think about your competitive position in the market.

Yeah, and I'll ask Brian to maybe elaborate, given he's living it every day. But, again, when I look at some of the unique differentiators of what we're offering versus the competition, PTX is a clear, unique opportunity of us versus the other two. I mean, all of us are driving technology. We're all pushing, and we could go around the crop cycle where we're maybe a step ahead. Others are maybe a step ahead. But generally speaking, we have the full suite of offering. I think the things that are unique, and Brian's elaborated on this, is when we talk about technology, we talk about the best-performing technology for the farmer, regardless of what he or she color of iron they're using. And so we really focus on that farmer first. We take our newest technology into that retrofit channel first. We don't try to perfect it before it goes on our new piece of equipment. We start in the field with some very progressive farmers who are looking to maximize their efficiency, drive improved yields or lower input costs, work on the field with them perfecting that product, and then a year or so later, we bring that into our new equipment channel. So a very different approach than how the competitors are doing it. The second one is the channel. Again, some of our competitors are using the term retrofit a lot more frequently than maybe what they did five years ago. So it's important when they use the term retrofit, retrofit for them is usually a newer vintage product, and it's usually their product, and it's usually sold, or it is sold, through the exact same channel as that new piece of equipment. So if you're looking at a retrofit for a planter, that dealer, as he or she's trying to make a sale to a farmer, is deciding, do I sell a brand new planter to that farmer, or do I sell him or her a much lower price point retrofit product to enhance their existing planter? because we have our new equipment channel going doing one thing and this ptx elite dealer channel doing something different that elite dealer is focused on productivity it's usually a seed salesperson agronomist a co-op who's closer to the farm trying to maximize the productivity for that farmer not necessarily trying to push a new piece of equipment and so because we have that different channel where they're out there selling the best technology again they're giving those farmers a better opportunity, and it really creates a unique differentiator of us versus the competition, and as Brian said, it opens up a much larger addressable market for us to get that technology into the hands of the farmers that the competitors don't necessarily have the option to do today.

I think in many ways the Agco PTX message is a breath of fresh air at the right time. Farmers don't like to be siloed. They don't like to be forced into any sort of decision. They like to have this freedom to farm, And I think what's happened here in the last several years as some of the competition strategy, which has been effective, trying to keep farmers inside of an ecosystem that is all one particular color when they don't feel like they have any other options, has largely worked. Enter AGCO PTX here in the last year or two, a much different message. Farm the way you want to farm. Buy the equipment that you want to buy. We'd love for you to buy a brand new Fent tractor from us. But in the meantime, we're going to take care of you. not just in terms of technology, but even our farmer core strategy, where we meet the farmer where he is. That's a real important part of the message. We'll come to the farm to service your tractor, regardless if you bought it from us or not. That's different than having the farmer go try to find a brick and mortar store to go transact business with, get his equipment serviced. We're going out there and meeting him exactly where he's at. At the same time, we also can upgrade all of his equipment, even though he didn't buy it from us. And I think that's a very refreshing message in the marketplace. And I think farmers are real hungry for that kind of option as they make some very difficult decisions with their CapEx and OpEx choices.

Yeah. Damon, one thing we haven't talked about, obviously tariffs have had a big impact, I'd say both on your side of the business and the demand side from a farmer, you know, selling their crop standpoint. How are you thinking about the tariff environment? How are you making decisions with all the uncertainty that exists out there today?

Yeah, so I think quite dynamic landscape, even with the ruling a couple weeks ago and how it sort of transformed sort of what was in place versus what's currently in place. We're digesting all the new news with the Supreme Court ruling. I think generally speaking, as I look at the cost to us, probably not a material change from what we communicated to our investors here on our fourth quarter call. So if I look at our absolute tariff costs in 2026, we're probably looking at somewhere in the range of 105 to 110 million of tariff costs. That's around 65 million of incremental costs this year versus last year. We're working through, again, if any changes, but sort of how we're managing that. We've tried to minimize that cost to the farmers where we can. So where we have alternative suppliers, where we've been able to do things to minimize the tariff costs, we've tried to do that. As we think about opportunities, we've been trying to spread our pricing as globally as possible. So if we think about the tariff costs, it was very much centralized here in North America. We understand farmers in North America have been very challenged. And so as we look at trying to offset that with price, we've tried to take a much more holistic approach around the world, seeing where do we have a stronger position where maybe we as a total company can offset that even if it can't be done here in the region where the cost is. So when you look at our guide for 2026, our pricing outlook is somewhere in the range of two to three percent. What we've said is if we hit the three percent mark, we will cover our inflationary headwinds and our incremental tariff cost on a dollar basis. So still margin dilutive, but we'll cover it on a dollar basis. If we only get the midpoint, it's about $50 million negative. But, again, that would come more holistically across our four major – our four regions versus doing it here in North America, just given the current position in the North American market.

Great. Brian, one more as we sort of get towards the end here. Obviously, you're, what, six months in the job? Seven months. Okay. How do you think about the milestones which define success for the Trimble joint venture over the next 24 months or so?

For me, it really is three things. There's first and foremost, it's innovation. So you've got some great technologies that we picked up and we control through that JV, both from Trimble as well as from precision planting. So I think it's finding leverage in our innovation pipeline, taking the best of the best of all these technologies, trying to put them into something that creates a lot of value for the farmer. And so that farmer-first philosophy that we have trickle into that innovation pipeline. So for me, that's critical. Maybe on equal par with that is actually leveraging our distribution channel. So obviously we picked up a lot of dealers from the Triple JV. We also have a lot of dealers from Precision Planting. It's about empowering that distribution layer to create even more value for the farmer as well, get across more technology, sell more across the whole portfolio, become experts at the technology on the leading edge. That elite dealer channel is really critical to our success, not only in terms of covering white space on the map. We've got 82% of arable acres covered already in our elite dealer network, which is great. But you really have to measure the penetration of that market as well, which is another metric for us that we watch very closely. We want to make sure those elite dealers are the best of the best. They're on the farm every single day. They're the trusted advisor to the farmer. We want that technology value proposition to carry along with an advice for seed, whatever it happens to be. And then finally, it's all about culture. And we have very different companies coming together under one umbrella in PTX to be able to unify that culture, get everybody on one singular mission moving forward in order to leverage even the team. You know, we have some of the most talented people inside of PTX. There's a certain leverage that you get when everybody realizes that the opportunity we have together is so much greater than they ever had in their respective companies where they grew up. When that aha moment happens culturally inside of the organization, that's when you really see innovation, sales activity, marketing, messaging, all of these things really manifest. And so those are the three things I would say are critical to PTX success moving forward and certainly an area of focus for me.

Excellent.

Fantastic. We're at time.

So great one then. Thank you guys. Really appreciate it.