Record Earnings and Business Growth Might Change the Case for Investing in Federal Agricultural Mortgage (AGM)
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Federal Agricultural Mortgage Corporation announced its third quarter 2025 results, reporting net income of US$55 million for the quarter and US$159.49 million for the nine months ended September 30, both higher than the prior year, alongside expanded business volume and a robust capital position.
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An exceptional increase in the Infrastructure Finance portfolio and carefully managed credit quality contributed to record core earnings and effective spreads despite ongoing macroeconomic challenges.
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We’ll explore how the company’s record earnings and business volume growth could impact its investment narrative and outlook.
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To be a Federal Agricultural Mortgage (Farmer Mac) shareholder, you have to believe in the benefits of its expanding presence in specialized finance for agriculture, rural infrastructure, and renewable energy. The latest results, featuring higher earnings and robust business volume, reinforce the current growth catalyst, but the most pressing risk remains rising credit loss provisions tied to new infrastructure and broadband segments. Overall, this quarter’s news does not materially change either narrative in the short-term.
Among recent announcements, Farmer Mac’s completion and expansion of its share repurchase program stands out. Coming alongside higher core earnings, buybacks highlight the company’s capital strength, which is a key support for business growth but does not directly offset sectoral credit risks or headwinds facing infrastructure portfolios.
On the other hand, investors need to watch for persistent increases in provisioning due to…
Read the full narrative on Federal Agricultural Mortgage (it’s free!)
Federal Agricultural Mortgage’s outlook anticipates $514.9 million in revenue and $239.2 million in earnings by 2028. This implies 11.8% annual revenue growth and a $52.9 million earnings increase from current earnings of $186.3 million.
Uncover how Federal Agricultural Mortgage’s forecasts yield a $226.00 fair value, a 43% upside to its current price.
Fair value estimates from five members of the Simply Wall St Community range from US$143,021 up to US$126,258,880. While community views run wide, the ongoing risk from credit losses in newer lending segments could mean a spectrum of potential outcomes for Farmer Mac’s future performance, check out how these views compare to your own.
