Tractor and machinery sales turned broadly negative in the second quarter of 2026, with all four horsepower segments posting year-on-year declines for the first time this year. This marks a shift from Q1, when the 200+ Hp segment stood out as the market’s lone bright spot. That trend reversed sharply in Q2, and the divergence that defined the opening quarter has narrowed into a more uniform downturn.
This report offers a detailed breakdown of tractor and machinery sales for Q2 2026, drawing on monthly data provided by the Tractor and Machinery Association (TMA) and compiled by Kynetec.
Quarterly Overview and Market Trends
Total tractor sales for Q2 2026 reached 2,322 units across the three months (April 630, May 649, June 1,043). All three months recorded year-on-year declines, with April down 9.6%, May down 12.5% and June down 14.8%. The rate of decline deepened as the quarter progressed.
Year-to-date sales through June stand at 4,319 units, down 10.7% compared to 4,839 units sold in the first six months of 2025. This is a steeper year-on-year decline than the 8.2% recorded at the end of Q1, indicating the market weakened further rather than stabilising as the year has gone on.
Where Q1 was defined by a split market, with high horsepower tractors growing while compact tractors fell sharply, Q2 saw that pattern collapse. Every segment moved into negative territory against 2025, and the segment that had carried tractor and machinery sales in Q1 became the one holding it back in Q2.
Tractor Sales Breakdown by Horsepower
0-40 Hp Tractors Show Signs of Stabilising
Compact tractors, the weakest performer of Q1, posted a less severe Q2. Quarterly sales totalled 527 units (April 145, May 166, June 216), down 7.7% on the same quarter in 2025. May was the only month across the entire market to post a year-on-year gain, up 4.4%, before June returned to decline at 15.0%.
This is a meaningful improvement on the 24.2% year-to-date decline this segment carried at the end of Q1. While compact tractors remain in negative territory, the pace of contraction has eased noticeably, suggesting some of the pressure on lifestyle and hobby farm buyers may be lifting.
40-100 Hp and 100-200 Hp Tractors Both Lose Ground
The two mid-tier segments, which had been the market’s more resilient performers in Q1, both weakened in Q2. The 40-100 Hp segment sold 747 units for the quarter (April 172, May 202, June 373), down 9.6% year-on-year, compared with a 5.0% year-to-date decline at the end of Q1. The 100-200 Hp segment sold 689 units (April 175, May 192, June 322), down 13.2%, against a 6.8% decline through Q1.
Both segments showed a consistent pattern of monthly declines that grew larger through the quarter rather than easing, with 100-200 Hp in particular posting an 18.1% fall in June. This segment is popular among medium-sized commercial operations, and the acceleration in its decline may point to continued caution around capital spending among that buyer group.
200+ Hp Tractors Reverse Course Sharply
High horsepower tractors delivered Q1’s standout result and Q2’s steepest reversal. Quarterly sales fell to 359 units (April 138, May 89, June 132), down 23.9% year on year, a stark turnaround from the 9.2% growth this segment posted through the end of Q1. May was particularly weak, down 35% against the same month last year.
On a quarter-on-quarter basis, volumes in this segment fell 13.5% from Q1’s 415 units to Q2’s 359, even though cooler months typically see steadier trade activity than the early part of the year. The scale of the swing, from the market’s strongest segment to its weakest within a single quarter, suggests the broadacre spending that supported Q1 did not carry through, and may reflect the timing of large-ticket purchases being pulled forward rather than a sustained shift in demand.
Segment comparison, Apr to Jun 2025 vs Apr to Jun 2026
Performance Across Other Key Machinery Categories
Combine Harvesters Remain Subdued
Combine harvester sales stayed at low absolute volumes through Q2, totalling 56 units (April 8, May 5, June 43), down 28.2% year-on-year. This is a smaller decline than the 77.3% drop recorded through Q1, largely because the comparison base itself is thin at this point in the year. As with Q1, the low unit numbers mean these figures should be read with caution, given that harvester purchasing typically concentrates ahead of the Q3 harvest season rather than in the first half of the year.
Balers Continue a Run of Growth
Balers were the only category to post a year-on-year gain in Q2, with quarterly sales of 69 units (April 14, May 21, June 34), up 21.1% on the same quarter last year. This extends the growth trend already visible in Q1, when the segment finished the quarter up 20.6% year-to-date. On a quarter-on-quarter basis, volumes eased slightly from 76 units in Q1 to 69 in Q2, though the underlying year-on-year trend has held steady across both quarters, pointing to sustained investment in hay and fodder equipment among livestock operators.
Out Front Mowers Slip After a Strong Start to the Year
Mower sales softened in Q2, with quarterly volumes of 1,582 units (April 529, May 412, June 641), down 1.2% year-on-year. This follows an 8.1% year-to-date gain at the end of Q1, meaning the category has given back some of its early momentum. April and May both recorded declines before June rebounded with 11.9% growth, the strongest single month across any category this quarter. Quarter-on-quarter volumes fell from 1,852 units in Q1 to 1,582 in Q2, though this is consistent with the seasonal pattern of mower demand tapering through the cooler months.
Seasonal and Economic Considerations
The Q2 2026 data shows a market that has moved from divergence to broad-based softness. Total tractor sales fell 12.8% year-on-year for the quarter, and for the first time this year, every horsepower segment recorded a decline against the same period in 2025.
The reversal in the 200+ Hp segment is the standout story of the quarter. Where Q1 pointed to well-capitalised broadacre operators continuing to invest despite wider economic pressure, the Q2 result suggests that spending did not sustain into the following quarter. Whether this reflects a genuine pullback or simply the timing of large purchases landing in Q1 will likely become clearer over the coming quarter.
The Q2 result also sits well below the market’s own five-year benchmark, with total tractor sales tracking roughly 36% under the trailing five-year average for the quarter. This suggests the softness in Q2 reflects more than a short-term pullback in high horsepower spending.
Compact tractors offered the quarter’s more encouraging development, with the pace of decline easing considerably from the double-digit falls recorded in Q1. This may point to some stabilising demand among smaller and lifestyle operators, though one quarter of improvement is not yet a clear trend.
Balers remain the market’s most consistent performer, posting growth in both quarters of the year-to-date. Combine harvester volumes remain too low in absolute terms to draw firm conclusions ahead of the Q3 harvest period, when the bulk of annual sales in that category typically occur.
As always, monthly and quarterly comparisons should be treated with caution given the highly seasonal nature of agricultural equipment purchasing. Individual swings often reflect the timing of deliveries and seasonal planning rather than fundamental shifts in the market.
Trust Retain Media for Industry Insights
Q2 2026 marked a shift from the divergent picture seen in Q1, with tractor sales declining across every horsepower segment for the first time this year. The reversal in high horsepower tractor demand was the quarter’s defining development, while compact tractors showed early signs of a steadier footing after a difficult start to the year.
We will continue to monitor these trends and provide timely updates throughout the year. For more insights, be sure to read our latest market reports for ongoing coverage of Australia’s automotive and equipment markets, including caravans, trucks, agriculture, and more.
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.
