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Mar. 24, 2025 Source: Titan Machinery news release WEST FARGO, N.D. -- Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal fourth quarter and full year ended January 31, 2025. "Our fiscal fourth quarter results reflect a significant step forward in the execution of our inventory reduction initiative, particularly in our domestic Agriculture segment. We reduced inventory by approximately $304 million during the fourth quarter, bringing our total reduction since our fiscal second quarter peak to approximately $419 million," commented Bryan Knutson, Titan Machinery's President and Chief Executive Officer. "While this accelerated reduction came at the expense of our equipment margins in the short-run, this was a key lever that we felt was necessary to improve our position as we transition into fiscal 2026 with a more subdued demand environment. Looking ahead, we expect to make further headway on our equipment inventory initiatives both domestically and abroad this fiscal year. This will be comprised of a further reduction in absolute dollars and optimizing our product mix to best meet demand in this phase of the industry cycle." Mr. Knutson continued, "I'm incredibly proud of the entire Titan team for their focus on this initiative, which required coordination across all facets of our business, while not losing sight of our broader initiatives surrounding our customer care strategy, which delivered strong service revenue growth of 14.5% for the full fiscal year." Fiscal 2025 Full Year Results Revenue was $2.7 billion for fiscal 2025 compared to $2.8 billion for fiscal 2024. Net loss for fiscal 2025 was $36.9 million, or $1.63 loss per diluted share. This compares to prior year net income of $112.4 million, or $4.93 earnings per diluted share. Adjusted net loss, which excludes the net impact of items related to sale-leaseback financing expenses, was $29.7 million or $1.31 loss per diluted share for fiscal 2025. The Company generated adjusted EBITDA of $12.8 million in fiscal 2025 compared to EBITDA of $189.3 million in fiscal 2024. Balance Sheet and Cash Flow Cash at the end of the fourth quarter of fiscal 2025 was $35.9 million. Inventories were $1.1 billion as of January 31, 2025, down approximately $304.4 million from $1.4 billion as of October 31, 2024, and down approximately $419.1 million from peak inventory of $1.5 billion as of July 31, 2024. This reflects the Company's progress in executing its equipment inventory reduction initiative. Outstanding floorplan payables were $755.7 million on $1.5 billion total available floorplan and working capital lines of credit as of January 31, 2025, compared to $893.8 million outstanding floorplan payables as of January 31, 2024. For the fiscal year ended January 31, 2025, the Company's net cash provided by operating activities was $70.3 million, compared to net cash used by operating activities of $32.3 million for the fiscal year ended January 31, 2024. The increase in net cash provided by operating activities was primarily driven by a decrease in inventory and favorable collection of outstanding receivables, which was partially offset by a decrease in manufactured floorplan payables and net income for fiscal 2025 compared to the prior year period. Net cash used for financing activities was $23.6 million in fiscal year 2025, which compared to $188.6 million net cash provided by financing activities in fiscal year 2024. This change was primarily driven by a $220.8 million decrease in non-manufacturer floorplan payables, which represents the Company's other credit lines including its Bank Syndicate Agreement. To read the entire report click here. Tweet |
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