Australia’s tractor and machinery market closed 2025 with mixed results across segments, according to the Tractor & Machinery Association (TMA). Total tractor sales for the year reached 9,521 units, down 7.0% from 2024’s 10,242 units, though the fourth quarter showed signs of stabilisation with December posting a rare year-on-year increase.
The fourth quarter delivered 2,609 tractors across October, November, and December, down just 2.5% compared to Q4 2024. More significantly, December recorded 926 tractor sales, up 1.0% year-on-year, marking the first monthly increase in several months and suggesting improved market conditions heading into 2026.
This report is based on official monthly data released by TMA and covers all major categories: 0-40 Hp, 40-100 Hp, 100-200 Hp, and 200+ Hp tractors, along with combine harvesters, balers, and out front mowers, for the full 2025 calendar year.
Fourth Quarter Shows Market Stabilisation
The final three months of 2025 demonstrated improving trends after a difficult first three quarters. December’s positive year-on-year result marked a significant shift from the sustained declines seen earlier in the year.
October delivered 985 tractors, down 6.0% year-on-year. November posted 698 units, down 2.5% compared to November 2024. December’s 926 sales, up 1.0%, brought the quarterly total to 2,609 units, representing a modest 2.5% decline that was substantially better than earlier quarters.
The improving trajectory through Q4 suggests buyers are becoming more comfortable committing to tractor purchases as economic conditions stabilise and farm confidence improves.
Tractor Sales Breakdown by Horsepower
0–40 Hp Tractors
The smallest tractor segment finished 2025 with 2,310 units sold, down 4.1% from 2024’s 2,410 units. However, the segment demonstrated strong recovery through Q4, particularly in December.
December sales reached 280 units, up 26.7% year-on-year, the strongest monthly performance of any segment during the quarter. October posted 221 units, up 0.5%, though November declined 14.6% to 176 units.
The segment’s year-end strength suggests demand remains solid for compact tractors used in lifestyle farming, hobby farms, and smaller agricultural operations. These buyers appear less affected by broader agricultural economic pressures than larger commercial operations.
40–100 Hp Tractors
The 40-100 Hp segment demonstrated the strongest performance in 2025, finishing the year as the only tractor category to post positive year-to-date results. Full-year sales reached 2,905 units, up 1.5% from 2024’s 2,861 units.
Q4 performance for the segment was particularly strong, with December posting 299 sales, up 19.6% year-on-year. November recorded 232 units, up 5.5%, while October contributed 276 units, up 2.6%. The segment’s resilience throughout 2025 confirms it as the most stable category in the market.
The 40-100 Hp segment represents the sweet spot for many farming operations, offering enough power for serious agricultural work while remaining accessible to smaller and medium-sized farms. This versatility likely explains its relative strength during a challenging year.
100–200 Hp Tractors
The 100-200 Hp commercial segment faced sustained headwinds throughout 2025, finishing with 2,707 sales, down 11.8% from 2024’s 3,070 units. This segment represents the workhorse category for many commercial farming operations.
Q4 showed mixed monthly results. November posted 193 units, up 9.7% year-on-year, providing a brief respite. However, October declined 17.6% to 309 units, while December fell 11.3% to 220 units. The quarterly total of 721 units represented a 10.2% decline from Q4 2024.
The segment’s weakness reflects cautious capital expenditure by commercial farming operations dealing with commodity price pressures, input cost inflation, and economic uncertainty affecting investment decisions.
200+ Hp Tractors
The largest tractor segment struggled most in 2025, with sales falling 15.9% to 1,599 units from 2024’s 1,901 units. These high-horsepower tractors represent significant capital investments, typically purchased by large commercial operations.
Q4 results were particularly challenging. December posted just 127 units, down 35.9% year-on-year, the steepest monthly decline of any segment in Q4. November recorded 97 units, down 14.9%, while October contributed 179 units, down 2.7%.
The segment’s weakness throughout 2025 indicates that operators of large-scale farming enterprises are deferring major equipment purchases, likely waiting for improved economic conditions or commodity price recovery before committing to expensive heavy-duty tractors.
Performance Across Other Key Machinery Categories
Combine Harvesters Finish Essentially Flat
Combine harvester sales closed 2025 at 693 units, down just 0.4% from 2024’s 696 units, representing remarkable stability given broader market weakness.
Q4 delivered mixed monthly results. October posted 257 units, up 23.6% year-on-year, the strongest monthly performance of the year. However, November collapsed 29.3% to just 53 units, while December contributed 43 units, up 4.9%. The volatile monthly swings reflect the specialised, seasonal nature of combine harvester purchases.
The near-flat full-year result suggests grain growers maintained harvest equipment investment despite challenges in other segments, likely driven by aging fleets requiring replacement regardless of economic conditions.
Balers Surge on Strong December
Baler sales delivered the standout performance of 2025, finishing at 666 units, up 13.5% from 2024’s 587 units. This represents the only equipment category beyond the 40-100 Hp tractor segment to post year-on-year growth.
Q4 was particularly strong. December recorded 98 balers sold, surging 127.9% compared to December 2024. October posted 204 units, up 74.4%, while November contributed 107 units, up 24.4%. Every Q4 month posted substantial double-digit growth.
The baler segment’s strength likely reflects hay and fodder production remaining profitable despite pressures in other agricultural sectors, with livestock operations maintaining feed production capacity through equipment upgrades.
Out Front Mowers Decline Continues
Out front mower sales finished 2025 at 6,716 units, down 19.4% from 2024’s 8,337 units. This segment includes zero-turn and commercial mowing equipment used in both agricultural and grounds maintenance applications.
Q4 showed declining trends throughout. October posted 691 units, down 19.0% year-on-year. November recorded 698 units, up 8.9%, providing brief respite. December finished with 723 units, down 14.3%.
The segment’s sustained weakness throughout 2025 suggests both agricultural and commercial grounds maintenance operators are deferring mower replacements, treating these purchases as more discretionary than core farming equipment like tractors.
Seasonal and Economic Considerations
Total tractor sales of 9,521 units for 2025 represents a 7.0% decline from 2024’s 10,242 units. However, this result still represents solid sales given economic headwinds affecting agricultural industries throughout the year.
The year began poorly and improved progressively through the second half. The pattern varied significantly by segment. The 40-100 Hp tractors bucked the trend entirely with positive growth, while the 200+ Hp segment suffered most with a 15.9% full-year decline.
The 0-40 Hp (down 4.1%) and 100-200 Hp (down 11.8%) segments fell between these extremes, with smaller tractors proving more resilient than larger commercial units throughout the year.
Outside tractors, balers posted impressive 13.5% growth, combine harvesters remained essentially flat (down 0.4%), while out front mowers declined 19.4%, reflecting their more discretionary nature for many buyers.
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The improving trend through Q4, culminating in December’s positive tractor result, provides grounds for cautious optimism about 2026. Whether this represents sustainable recovery or a temporary fluctuation will become clearer over the first quarter.
Several factors could support improved 2026 performance. Farm confidence may strengthen if commodity prices stabilise or improve. Deferred equipment purchases from 2025 could create pent-up demand. Aging tractor fleets may reach the point where replacement becomes necessary regardless of economic conditions.
However, challenges remain. Ongoing economic uncertainty could continue affecting capital expenditure decisions. Input cost inflation may persist, squeezing farm profit margins. Weather conditions and seasonal factors will influence purchasing patterns as they always do in agricultural machinery markets.
The 40-100 Hp segment’s 2025 growth demonstrates that demand remains solid when tractors match operational requirements and budgets. The challenge for manufacturers and dealers in 2026 will be translating this mid-segment strength into broader market recovery.
December’s positive result and the 40-100 Hp segment’s full-year growth suggest the Australian tractor market retains fundamental strength even during challenging periods. Buyers continue investing in equipment when it meets their needs and budgets, positioning the industry for potential recovery as conditions improve through 2026.
As 2026 unfolds, we’ll continue tracking trends across all tractor and machinery categories throughout the year. In the meantime, be sure to read our other market reports for a complete picture of Australia’s agricultural and automotive industries as we move into the new year.
Retain Media provides this data “as is” for informational purposes only and accepts no liability for decisions made based on this reporting. Users are encouraged to use this data as one of multiple data points in their market analysis.
