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Sep. 2, 2025 Source: Titan Machinery news release PDF Print View All Titan Machinery Inc. Announces Results for Fiscal Second Quarter Ended July 31, 2025 - Reiterates $100 Million Inventory Reduction Target for Fiscal 2026 - - Updates Modeling Assumptions for Fiscal 2026 - WEST FARGO, N.D. -- Titan Machinery Inc. (Nasdaq: TITN) ("Titan" or the "Company"), a leading network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal second quarter ended July 31, 2025. "We produced solid second quarter results amid a challenging market environment, and remain focused on the execution of our operational plan to optimize inventory, ensuring we are in an improved position exiting this fiscal year," stated Bryan Knutson, Titan Machinery's President and Chief Executive Officer. "While we experienced a modest increase in inventory during the second quarter, our inventory levels have remained relatively consistent through the first half of the year, and in line with our previously communicated expectations. "The quarterly increase was largely due to timing of OEM shipments ahead of deliveries to our end customers in the second half of this fiscal year. We are on track with our inventory reduction strategy, and we are positioned to exceed our initial $100 million target for the full year, with the majority of that progress still expected toward the end of the fiscal year. Importantly, our parts and service businesses continue to provide stability during this trough in the equipment cycle, as we remain focused on delivering best-in-class service and support for our customers." Fiscal 2026 Second Quarter Results Consolidated Results For the second quarter of fiscal 2026, revenue was $546.4 million compared to $633.7 million in the second quarter last year. Equipment revenue was $376.3 million for the second quarter of fiscal 2026, compared to $465.2 million in the second quarter last year. Parts revenue was $109.2 million for the second quarter of fiscal 2026, compared to $109.8 million in the second quarter last year. Service revenue was $48.8 million for the second quarter of fiscal 2026, compared to $47.3 million in the second quarter last year. Rental and other revenue was $12.1 million for the second quarter of fiscal 2026, compared to $11.4 million in the second quarter last year. Gross profit for the second quarter of fiscal 2026 was $93.6 million, compared to $112.4 million in the second quarter last year. The Company's gross profit margin was 17.1% in the second quarter of fiscal 2026, compared to 17.7% in the second quarter last year. The year-over-year decrease in gross profit margin was primarily due to lower equipment margins, driven by softer retail demand and the Company's initiatives to manage inventory to targeted levels. Operating expenses were $92.7 million for the second quarter of fiscal 2026, compared to $95.2 million in the second quarter last year. The decrease was led by lower variable expenses associated with the year-over-year decline in revenue, as well as management's expense reduction efforts. Operating expense as a percentage of revenue was 17.0% for the second quarter of fiscal 2026, compared to 15.0% of revenue in the second quarter last year. Floorplan interest expense and other interest expense was $11.5 million in the second quarter of fiscal 2026, compared to $13.0 million for the same period last year. Floorplan interest expense decreased in the second quarter of fiscal 2026 compared to the same period last year due to lower interest-bearing inventory levels. In the second quarter of fiscal 2026, net loss was $6.0 million, with loss per diluted share of $0.26, compared to net loss of $4.3 million, with loss per diluted share of $0.19, for the same period last year. Results for the second quarter of fiscal 2025 included a non-cash sale-leaseback financing expense of approximately $8.3 million, or $0.36 per diluted share. Excluding this non-recurring item, adjusted net income for the prior year quarter was $4.0 million, or adjusted earnings per diluted share of $0.17. EBITDA in the second quarter of fiscal 2026 was $12.4 million, compared to $18.3 million in the second quarter last year. To read the entire report click here. Tweet |
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