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One of the world's largest makers of farm machinery, building tractors, combines, and precision-agriculture equipment under the Fendt, Massey Ferguson, and Valtra brands, sold through thousands of independent dealers in dozens of countries. The company was born in 1990, when four executives bought the North American operations of Deutz-Allis in a management buyout. Its name is an acronym for the "Allis-Gleaner Corporation," honoring the Allis-Chalmers tractor line and Gleaner combine heritage its founders acquired.
Q2 2026 net income fell 75.5% to $77.2M as tariff costs and a prior-year tax benefit dropped out
fell 75.5% from a year ago, ending the earnings recovery that began in Q3 2025. dipped 1.0% to $2,609.7M and was $1.08 as tariff-related costs and the absence of a prior-year $255.2M tax benefit weighed on results, while slipped 0.2 points to 24.7%. The company is back to thin profits with margin pressure still building.
Key takeaways
fell 75.5% to $77.2M from $314.8M a year earlier, driven by lower sales volumes, tariff-related manufacturing costs, and the prior-year quarter's $255.2M tax benefit from a legal entity reorganization that did not repeat.
What changed
Q2 2025 was flagged for PTx Trimble North America risk after the $351.0M 2024 charge; the FY2025 filing recorded no 2025 and this 10-Q cites no change, leaving intact at $1,898.8M.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income fell to $77.2M from $314.8M, driven by lower sales volumes, tariff costs, and a prior-year tax benefit.
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Consolidated decreased 1.0% to $2,609.7M in Q2 2026, with declines in EME, LATAM, and APA partially offset by North America growth.
contracted to 24.7% from 25.0% due to lower production volumes; six-month margin fell to 24.8% from 25.2% on higher manufacturing and tariff costs.
Q1 2026 flagged $350M Q2 share repurchases and their effect on cash ($514.9M) and equity ($4,296.5M); this filing does not report activity or updated cash/equity effects beyond quarter-end cash of $573.4M and equity of $4,080.6M.
The Q1 2026 watch item on tariff-related input costs and LATAM sales decline persisted: fell to 24.7% from 25.0% on lower volumes and tariff costs, and LATAM swung to a $21.8M loss from a $26.9M profit on lower tractor, implement, and combine volumes.
Remaining Grain & Protein asset sale proceeds beyond the $700M used for debt repayment were flagged through FY2025 and Q1 2026; this filing gives no update, indicating no further proceeds reported.
rose 11.4% from Q1 2026's $2,342.9M to $2,609.7M, but fell 1.0% , contrasting Q1's 14.3% year-over-year rise that ended four quarters of declines.
What to watch
Q3 2026 as tariff-related manufacturing costs and lower production volumes continue to pressure the 24.7% rate.
Any PTx Trimble North America disclosure in the next filing after no charge in 2024's $351.0M and none in 2025.
Q3 2026 LATAM results after the swing to a $21.8M loss from $26.9M profit on volume declines.
Q2 2026 execution and cash/equity impact after the $350M planned in Q1 and quarter-end cash of $573.4M.
rose to 12.9% of sales from 12.4% as sales declined faster than expenses; engineering expenses increased to 5.4% from 4.5% on product innovation investments.
North America loss from operations was flat at $24.5M as higher tariff-related costs were offset by IEEPA tariff refunds recognized in the period.
LATAM swung to a $21.8M loss from a $26.9M profit, driven by lower sales volumes in tractors, implements, and combines.
Cash used in operating activities was $245.0M in H1 2026 versus $153.5M provided in H1 2025, reflecting changes; the company expects modestly higher full-year .
Quantitative and Qualitative Disclosures About Market Risk
Foreign Currency Risk Management For quantitative and qualitative disclosures about market risks, see “Quantitative and Qualitative Disclosures About Market Risks” in Item 7A of Part II of our Annual Report on Form 10-K for the year ended December 31, 2025. As of the second quar…
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Foreign Currency Risk Management
For quantitative and qualitative disclosures about market risks, see “Quantitative and Qualitative Disclosures About Market Risks” in Item 7A of Part II of our Annual Report on Form 10-K for the year ended December 31, 2025. As of the second quarter of 2026, there have been no material changes in our exposure to market risks.
We are a party to various other legal claims and actions incidental to our business. These items are more fully discussed in Note 15 to our Condensed Consolidated Financial Statements.
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We are a party to various other legal claims and actions incidental to our business. These items are more fully discussed in Note 15 to our Condensed Consolidated Financial Statements.
There have been no material changes to our risks and uncertainties disclosed under “Risk Factors” in Item 1A of Part 1 of our Annual Report on Form 10-K for the year ended December 31, 2025. The risks and uncertainties described in our risk factors have the potential to material…
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There have been no material changes to our risks and uncertainties disclosed under “Risk Factors” in Item 1A of Part 1 of our Annual Report on Form 10-K for the year ended December 31, 2025. The risks and uncertainties described in our risk factors have the potential to materially affect our business, results of operations, financial condition and cash flows. These risks are not exclusive and additional risks to which we are subject include the factors mentioned under “Forward-Looking Statements” and the risks described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q.