Based on their latest earnings releases, the Recent Winter earnings results of the Top 5 Publicly Traded Truckload Freight companies by YoY Quarter Revenues decreased by -5% on average across the board in the October-December quarter.
Of the publicly traded Agricultural equipment companies who released Winter 2023 earnings results, the following top 5 companies by market cap decreased quarterly revenues -5% YoY on average: Deere & Company, Mahindra & Mahindra, Kubota Corp, CNH Industrial, and AGCO Corp.
**Only Mahindra & Mahindra’s consolidated Farm equipment revenue included
***Only Kubota’s Farm equipment and engines revenue included
+Only CNH’s Agricultural revenues included
(Revenue 3yr CAGR of DE, M&M, 6236, and CNHI only include revenue segments mentioned above)
The following sections are covered in this report [Click to Skip Ahead]:
- Biggest Publicly Traded Agricultural Equipment Companies by Market Share
- Top Agricultural Equipment Companies by Revenue Growth
- Top Agricultural Equipment Companies by Earnings (EPS) Growth
Company revenues, earnings, and stock forecasts covered:
- Deere & Company (DE) Stock Forecast
- Mahindra & Mahindra (M&M) Stock Forecast
- Kubota Corp (6326) Stock Forecast
- CNH Industrial (CNHI) Stock Forecast
- AGCO Corp (AGCO) Stock Forecast
The list below only includes the revenue of top 5 Agricultural Equipment companies by market capitalization of >$5Bn. The next section will include TTM revenues of all >$1Bn market cap publicly traded agricultural equipment companies.
| Company | December 2022 | December 2023 | YOY |
| Deere & Company (P&P Ag/Small Ag & Turf revenues) | $8,199 | $7,274 | -11.00% |
| Mahindra & Mahindra (Consolidated FES revenues) | $1,029 | $1,030 | 0.09% |
| Kubota Corp (Farm Equipment and Engines revenues) | $3,108 | $3,044 | -2.05% |
| CNH Industrial (Agricultural revenues) | $5,369 | $4,947 | -7.85% |
| AGCO Corp | $3,898 | $3,800 | -2.51% |
Deere & Company reported a -4% decrease in YoY net sales and revenues in their latest Q4, 2023. The production and Precision Agriculture segment saw a –7 % decrease in revenues compared to the same quarter last year, while the Small Agriculture and Turf segment reported a decrease of –19 % in net sales. Management is expecting fleet (equipment) replenishment to moderate as agricultural fundamentals normalize from record levels of 2022 and 2023. The decrease in revenues was mainly due to lower shipment volumes which was partially offset by price realization.
Mahindra & Mahindra saw overall quarterly revenue increase by 15% YoY, but consolidated farm equipment revenues remained almost flat in both currencies (INR and USD). Total tractors sold decreased by -4%. However, management reported the business increased its Tractor market share by 80bps to 41.8% in India, which is the highest since the fiscal year 2019.
Kubota Corp recorded a 5.3% increase YoY quarterly revenues however, the Farm Equipment and Engines segment reported a -2.05% decrease in revenues. Sales of tractors increased thanks to dealers replenishing their inventories however, sales in Thailand continued suffering purchase postponement caused by unfavorable weather.
CNH Industrial reported a -5% YoY decrease in Q4, 2023 net sales with the Agricultural segment also down by -7.85% in revenues. Overall shipment volumes of small and large tractors are down on all markets especially in South America region where a -8% decline was reported. The management expects cost reduction programs to improve through-cycle margins.
AGCO Corp saw YoY quarterly revenues decrease by -2.5%, with regional equipment sales volumes lowest in South America decreasing -38% and highest in APA (Asia/Pacific/Africa) which increased 11.3% Management reiterated their focus on primary growth initiatives for further driving operation efficiencies as they expect continued softness of industry demand.
Key Takeaway
The latest quarter earnings showed a deceleration in demand for agricultural equipment worldwide. The near global crop production of 2023 resulted in increased grain inventories, which retreated commodity prices from very high levels seen in 2022. The outlook across the agricultural equipment industry is expected to be soft as dealers have fully restocked, which will give way to lower sales volume expectations in 2024.
Biggest Publicly Traded Agricultural Equipment Companies by Market Share
The chart below shows the list of publicly traded Agricultural Equipment companies with meaningful market caps of >$1Bn as of April 2024.
**Only Kubota’s Farm equipment and engines revenue included
***Only CNH’s Agricultural revenues included
+Only Mahindra & Mahindra’s consolidated Farm equipment revenue included
Leading the group is Deere & Company with roughly 40.6% market share, followed Kubota Corp with 21.8%, and just behind is CNH Industrial with 18.6% of Trailing Twelve Months (TTM) revenue share of all publicly traded agricultural equipment companies.
| Company | Revenues (TTM in thousands) | Mkt Share |
| Deere & Company | $39,846,000 | 40.6% |
| Kubota Corp | $21,425,761 | 21.8% |
| CNH Industrial | $18,148,000 | 18.6% |
| AGCO Corp | $14,176,700 | 14.4% |
| Mahindra & Mahindra | $3,935,903 | 4.0% |
| Lindsay Corp | $644,561 | 0.7% |
Top Agricultural Equipment Companies by Revenue Growth
In the previous three fiscal years, AGCO Corp lead ahead among its peers in the agricultural equipment industry with 13.75% CAGR.
On the other hand, AGCO Corp is still leading in its industry in boosting its YoY annual revenue growth of 13.90% from 2022-2023.
Kubota Corp takes the number two spot in 3yr CAGR (Yen currency) with 9.58%, while trailing behind is Lindsay Corp and Mahindra & Mahindra (Rupee currency) with 8.58% and 7.25% 3yr CAGR, respectively.
| Company | 3yr CAGR | 1yr Growth YOY |
| AGCO Corp | 13.75% | 13.90% |
| Kubota Corp (Farm Equipment and Engines revenues) | 9.58% | 9.66% |
| Lindsay Corp | 8.58% | -13.70% |
| Mahindra & Mahindra (Consolidated FES revenues) | 7.25% | 2.00% |
| Deere & Company (P&P Ag/Small Ag & Turf revenues) | 6.70% | 5.98% |
| CNH Industrial (Agricultural revenues) | 6.03% | 0.99% |
Key Takeaway
Recent data shows the start of deceleration in earnings of top publicly traded agricultural equipment companies compared to record highs in previous years. Most companies expect equipment industry sales to decline 10%- 15% but will differ geographically, with the overall trend pointing to continued softness in the industry.
USDA updated its 2024 net cash farm income forecast as global supply and demand estimates. U.S. net cash farm income is forecasted to be down over 20% from 2023 levels, albeit up from November estimates.
Top Agricultural Equipment Companies by Earnings (EPS) Growth
In the previous three fiscal years, Mahindra & Mahindra, Inc. saw the highest 3-year compounded annual growth of 143.10% in earnings per share.
Among the companies in the graph below, Kubota Corp. had the highest 1-year EPS YOY growth rate of 53.93%.
Includes overall earnings aside from Agricultural equipment segments
The highest 3-year EPS CAGR companies in the list are Mahindra & Mahindra at 143.10%, CNH Industrial at 111.03%, and Deere & Company at 45.62%.
| Company | 3yr EPS CAGR | 1yr EPS YOY |
| Mahindra & Mahindra | 143.10% | 12.70% |
| CNH Industrial | 111.03% | 18.12% |
| Deere & Company | 46.62% | 27.82% |
| AGCO Corp | 40.38% | 31.68% |
| Kubota Corp | 23.99% | 53.93% |
Agricultural Equipment Companies Revenue, Earnings and Stock Forecast (Quarter ending December 2023)
| Company | YOY EPS Forecast |
| Deere & Company | -21.31% |
| Mahindra & Mahindra Limited | -10.52% |
| Kubota Corp | -5.25% |
| CNH Industrial N.V. | -24.94% |
| AGCO Corp | -33.89% |
Deere & Company (DE) Revenue, Earnings, and Stock Forecast
Deere & Company’s revenue over the latest Trailing Twelve Month period was $60.8 billion. Deere & Company’s earnings (Net Income) over the latest Trailing Twelve Month period was $10.0 billion.
The Wall Street consensus for Deere & Company’s EPS (earnings per share) projection for the next quarter is $7.95. The company’s TTM (trailing twelve months) Earnings Per Share was $34.6 as of the quarter ending January 28, 2024.
Deere & Company is expected to see a contraction in earnings per share of -21.31% YOY in the next quarter based on the consensus of stock market analyst forecasts.
Mahindra & Mahindra Limited (M&M) Revenue, Earnings, and Stock Forecast
Mahindra & Mahindra’s revenue over the latest Trailing Twelve Month period was $0.83 billion. Mahindra & Mahindra’s earnings (Net Income) over the latest Trailing Twelve Month period was $0.23 billion.
The Wall Street consensus for Mahindra & Mahindra’s EPS (earnings per share) projection for the next quarter is $0.17. The company’s TTM (trailing twelve months) Earnings Per Share was $0.19 as of the quarter ending December 30, 2023.
Mahindra & Mahindra is expected to see an expansion in earnings per share of -10.52% YOY in the next quarter based on the consensus of stock market analyst forecasts.
Kubota Corp (6326) Revenue, Earnings, and Stock Forecast
Kubota Corp’s revenue over the latest Trailing Twelve Month period was $20.9 billion. Kubota Corp’s earnings (Net Income) over the latest Trailing Twelve Month period was $1.6 billion.
The Wall Street consensus for Kubota Corp’s EPS (earnings per share) projection for the next quarter is $2.03. The company’s TTM (trailing twelve months) Earnings Per Share was $2.04 as of the quarter ending December 30, 2023.
Kubota Corp is expected to see a contraction in earnings per share of -5.25% YOY in the next quarter based on the consensus of stock market analyst forecasts.
CNH Industrial N.V. (CNHI) Revenue, Earnings, and Stock Forecast
CNH Industrial’s revenue over the latest Trailing Twelve Month period was $24.7 billion. CNH Industrial’s earnings (Net Income) over the latest Trailing Twelve Month period was $2.4 billion.
The Wall Street consensus for CNH Industrial’s EPS (earnings per share) projection for the next quarter is $0.26. The company’s TTM (trailing twelve months) Earnings Per Share was $1.78 as of the quarter ending December 30, 2023.
CNH Industrial N.V. is expected to see a contraction in earnings per share of -24.94% YOY in the next quarter based on the consensus of stock market analyst forecasts.
AGCO Corp (AGCO) Revenue, Earnings, and Stock Forecast
AGCO Corp’s revenue over the latest Trailing Twelve Month period was $14.4 billion. AGCO Corp’s earnings (Net Income) over the latest Trailing Twelve Month period was $1.2 billion.
The Wall Street consensus for AGCO Corp’s EPS (earnings per share) projection for the next quarter is $2.32. The company’s TTM (trailing twelve months) Earnings Per Share was $15.66 as of the quarter ending December 30, 2023.
AGCO Corp is expected to see a contraction in earnings per share of -33.89% YOY in the next quarter based on the consensus of stock market analyst forecasts.
Methodology
All data mentioned here in this article was sourced from publicly available filings and releases, and processed by investment newsletter provider, Sather Research, LLC.
Stock forecasts and analyst consensus EPS growth estimates were sourced from data provided by Seeking Alpha.
Contact Seoshin Chil at [email protected] for any further commentary, concerns, questions, or feedback. Alternatively, you can get in touch with the company during business hours through our contact page, or call 888-978-1348 from Monday – Friday; 9AM EST – 5:00 PM EST.
Seoshin Chil
Seoshin is an active sailor in offshore windfarm vessels but has a passion for studying great businesses and investing in them. Being always at sea does not stop him from doing so!
