Farm machinery manufacturer AGCO has warned that potential natural gas and energy shortages across Europe could disrupt production and interrupt the supply of key components as geopolitical tensions continue to affect global markets.
The company, whose brands include Fendt, Massey Ferguson, Valtra and PTx, issued the warning alongside its second-quarter financial results, which showed mixed trading conditions across its global markets.
AGCO reported operating income of $140.7 million for the second quarter of 2026, a 14% decline compared with the same period last year. While retail tractor sales in Western Europe were 3% higher during the first half of the year, sales across many European markets remained below expectations.
Chief executive and chairman Eric Hansotia said: "Sales in Europe and Latin America progressed below our expectations."
He added that 'industry demand remains soft' across several key markets.
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In Western Europe, Hansotia said: "Industry conditions were mixed, as input costs, demand and capital allocation considerations influenced equipment purchases. Tractor demand showed relative stability year-to-date compared to prior year levels, but weakened during the second quarter."
AGCO also warned that the continuing conflicts in Ukraine and the Middle East had increased volatility in energy, logistics and agricultural input markets.
The company said there was "a potential for natural gas shortages, as well as shortages in other energy sources, throughout Europe which could negatively impact our production in Europe, both directly and through interrupting the supply of parts and components that we use."
It added: "It is unclear how long these conditions will continue, or whether they will worsen, and what the ultimate impact on our performance will be."
Hansotia also pointed to higher input costs, tariffs and challenging weather as factors affecting both farmers and machinery sales.
He said: "These factors are influencing crop development, yield expectations and ultimately farmers' decision making."
Despite current pressures, AGCO said it continues to see long-term opportunities in key agricultural markets, while investing in automation and artificial intelligence technologies to improve manufacturing efficiency and support customers.
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