TITN

Interested in Titan Machinery Inc.? Here are five stocks we like better. Revenue and earnings weakened: Fiscal Q2 revenue fell 9.2% to $496.4 million, while the net loss widened to $9.2 million, or $0.40 per share. Adjusted EBITDA declined to $4.6 million from $5.6 million. Margin improvements mitigated lower demand: Gross margin expanded to 18.6% as equipment margins improved through aged-inventory reductions and better inventory mix. Floor-plan interest expense also fell 30% to $8.1 million. Outlook was maintained: Titan reaffirmed fiscal 2027 adjusted EBITDA guidance of $17 million to $29 million and an adjusted diluted loss-per-share range of $1.25 to $1.75, while expecting continued weakness in domestic agriculture and Europe but growth in construction and Australia. Massive Upside Forecasted In Alta Equipment Group Titan Machinery (NASDAQ:TITN) reported a second-quarter fiscal 2027 net loss as revenue declined amid continued weakness in agricultural equipment demand, though the company said inventory-management efforts supported improved equipment margins and lower floor-plan interest expense. For the quarter ended July 31, 2026, Titan recorded total revenue of $496.4 million, down from $546.4 million a year earlier, reflecting a 6.2% same-store sales decline. Net loss was $9.2 million, or $0.40 per share, compared with a net loss of $6 million, or $0.26 per share, in the prior-year quarter. The prior-year result included a $2.2 million tax benefit that did not recur because of a tax valuation allowance established in the fourth quarter of the prior fiscal year. → Boarding Call: EHang Secures First-Mover Altitude Adjusted EBITDA was $4.6 million, compared with $5.6 million a year earlier. Chief Executive Officer Bryan Knutson said quarterly results were largely in line with the company’s expectations. He highlighted continued improvement in agricultural equipment margins, which he attributed to actions including reducing aged inventory, improving inventory mix and strengthening inventory-management processes. → Medtronic’s Stars Are Aligning for a Price Recovery Gross profit was essentially unchanged at $92.4 million despite the revenue decline. Gross margin expanded 150 basis points year over year to 18.6%, according to Chief Financial Officer Bo Larsen. Equipment margins increased 190 basis points to 8.5%, supported by healthier inventory and a higher consolidated mix of parts and service revenue. “These margin improvements are being driven by actions within our control rather than any meaningful improvement in underlying industry demand,” Knutson said. → Dutch Bros Sell-Off Creates a Growth Opportunity Operating expenses rose modestly to $94.1 million, primarily due to variable expenses associated with sales initiatives and efforts to clear aged inventory. Larsen said headcount and discretionary spending remained below prior-year levels. Floor-plan and other interest expense fell 30% to $8.1 million from $11.5 million, reflecting lower interest-bearing inventory levels. Domestic agriculture segment sales totaled $310.2 million, with same-store sales down 8.4%. Equipment revenue declined 13.5%, although it came in modestly ahead of management’s expectations. The segment’s pre-tax loss improved by $9 million to $3.3 million as stronger equipment margins helped offset lower demand. Knutson said grower profitability remains under pressure because corn and soybean prices, despite recent gains, remain below levels that would support a meaningful broad-based equipment-demand recovery. Elevated input costs also continue to weigh on farm economics. Titan said first-half domestic agriculture results benefited from earlier-than-expected factory shipments of pre-sold equipment. The timing accelerated deliveries to customers and strengthened first-half comparisons, but management expects it to create relative year-over-year headwinds in the second half. During the question-and-answer session, Knutson said the recent rise in commodity prices was encouraging but emphasized that cash prices vary based on local basis levels. He said sustained commodity-price improvement, farmer profitability and forward contracting into 2027 could support a more material pickup in buying activity next year. Larsen said domestic agriculture equipment margins were 6.7% in the first half, compared with 3.1% a year earlier. The company expects full-year domestic agriculture equipment margins of about 6.9%, while noting its normal range is generally 8% to 11% or 12%, depending on market conditions. Titan’s construction segment posted same-store sales growth of 9.2% to $78.6 million, driven primarily by higher equipment sales. Pre-tax income improved to $0.4 million from a pre-tax loss of $1.2 million a year earlier. Management cited infrastructure investment and data center projects as sources of demand that helped offset softer purchases from agricultural customers. Europe was the company’s weakest segment. Sales fell to $66.1 million, including a $1.1 million benefit from foreign currency fluctuations. On a constant-currency basis, revenue decreased about 34%. Germany accounted for approximately $11 million, or roughly one-third, of the year-over-year revenue decline as Titan continues to wind down operations there. The balance of Europe’s decline reflected weaker equipment demand against a strong prior-year comparison in Romania, which had benefited from European Union stimulus programs. The Europe segment reported a pre-tax loss of $1.3 million, compared with pre-tax income of $5.1 million a year earlier. Knutson said low commodity prices, higher operating costs, geopolitical uncertainty, poor crop conditions in some regions and weaker farmer sentiment have caused European customers to delay equipment purchases. Australia sales rose 36% to $41.4 million, including a $3.9 million foreign-currency benefit. Constant-currency revenue increased 22.5%, aided by the addition of the New Holland brand at six locations in the prior fall. The segment’s pre-tax loss widened to $3.4 million from $2.1 million. Larsen said Australia’s profitability was affected by softer equipment margins as the company works through aged inventory. However, management expects better rainfall, improved crop-yield prospects and strengthening farmer sentiment to support demand in the second half. Titan reaffirmed its full-year adjusted EBITDA outlook of $17 million to $29 million and its adjusted diluted loss-per-share outlook of $1.25 to $1.75. Domestic agriculture revenue is expected to decline 15% to 20%, toward the 15% end of the range. Construction revenue is now expected to increase 5% to 10%. Europe revenue is expected to fall 30% to 40%, including about $44 million tied to the German wind-down. Australia revenue is expected to rise 15% to 20%, near the high end of the range, with foreign-currency translation expected to contribute about 8% growth for the full year. The company expects consolidated equipment margin of approximately 8.3% for fiscal 2027, up from 7.3% in fiscal 2026. It also expects operating expenses to decline year over year and represent roughly 17.5% to 18% of sales, while floor-plan interest expense is projected to fall about 30% for the full year. At quarter end, Titan had approximately $30 million in cash, total inventory of $931.5 million and an adjusted debt-to-tangible-net-worth ratio of 1.6 times, below its bank covenant of 3.5 times. Larsen said used equipment inventory was down $40 million year to date, while domestic agriculture inventory was down $16 million despite the challenging market. Titan Machinery, Inc is a leading full-service dealer specializing in the sale, rental, and servicing of agricultural and construction equipment. The company represents major brands such as Caterpillar, Case IH and New Holland, offering new and pre-owned tractors, combines, excavators, loaders and other heavy machinery. In addition to equipment sales, Titan provides parts distribution, preventative maintenance and field service support to help customers maximize uptime and productivity. Beyond equipment transactions, Titan Machinery offers a comprehensive suite of support services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Titan Machinery Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Image source: The Motley Fool. Thursday, Aug. 27, 2026 at 8:30 a.m. ET President and Chief Executive Officer - Bryan Knutson Chief Financial Officer - Bo Larsen Operator: Greetings. Welcome to Titan Machinery Inc. Second Quarter Fiscal 2027 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Jeff Sonnek with ICR. Thank you. You may begin. Jeff Sonnek: Thank you. Welcome to the Titan Machinery Second Quarter Fiscal 2027 Earnings Conference Call. On the call today from the company are Bryan Knutson, President and Chief Executive Officer; and Bo Larsen, Chief Financial Officer. By now, everyone should have access to the earnings release for the fiscal second quarter ended July 31, 2026, which is also available on Titan's Investor Relations website at ir.titanmachinery.com. In addition, we're providing a supplemental presentation to accompany today's prepared remarks, along with webcast and replay information, which can also be found on Titan's Investor Relations website within the Events & Presentations section. We would like to remind everyone that the prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. The statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. These forward-looking statements are based on management's current expectations and involve inherent risks and uncertainties, including those identified in the forward-looking statements section of today's earnings release and the company's filings with the SEC, including the Risk Factors section of Titan's most recently filed annual report on Form 10-K and quarterly reports on Form 10-Q. These risks and uncertainties could cause actual results to differ materially from those projected in any forward-looking statements. Except as may be required by applicable law, Titan assumes no obligation to update any forward-looking statements that may be made in today's release or call. Please note that during today's call, we may discuss non-GAAP financial measures, including results on an adjusted basis. We believe these adjusted financial measures can facilitate a more complete analysis and greater transparency into Titan's ongoing financial performance, particularly when comparing underlying results from period to period. We have included reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measure in today's release and supplemental presentation. At the conclusion of our prepared remarks, we will open the call to take your questions. And with that, I'd now like to introduce the company's President and CEO, Bryan Knutson. Please go ahead, Bryan. Bryan Knutson: Thank you, Jeff. I'll begin today's call with a review of our second quarter results and then provide an update on what we are seeing across each of our business segments before turning the call over to Bo for his financial review and updated outlook assumptions. Overall, our second quarter results were largely in line with our expectations, and I am pleased with the continued progress our team is making on the operational priorities we established heading into FY 2027. The highlight of the quarter was the continued improvement in equipment margins across our agricultural business, which contributed to a 190 basis point increase in consolidated gross margin compared to the prior year period. This improvement reflects the work our team has done over the last 2 years to reduce aged inventory, improve inventory mix and strengthen inventory management processes across our organization. Importantly, these margin improvements are being driven by actions within our control, rather than any meaningful improvement in underlying industry demand. While the agricultural market remains challenged, our business is becoming healthier, more efficient and better positioned to perform through the cycle. I would like to thank and recognize our employees across the organization for their disciplined execution of our initiatives. Turning to the broader agricultural environment. Customer profitability remains under pressure. Despite recent trends upward, commodity prices for key crops such as corn and soybeans continue to sit below levels that would support a meaningful rebound in equipment demand, while elevated input costs remain a headwind for many producers. As a result, customers continue to make equipment replacement decisions cautiously and remain highly focused on preserving cash. While this environment remains difficult, we continue to believe the industry is working through the trough of this cycle in 2026. Dealer inventory levels across the market have improved significantly over the last 2 years, equipment fleets continue to age and the long-term fundamentals supporting agricultural production remain intact. We also continue to support initiatives that improve demand for corn and soybean products, including higher ethanol blends, renewable diesel and sustainable aviation fuel. Over time, stronger demand for those commodities should be supportive of healthier and sustainable farm income and equipment demand. Despite the challenges facing the industry, parts and service continue to provide an important foundation within our business. This doesn't happen without a lot of hard work, especially because the current lack of grower profitability causes more of a fix-on-fail maintenance mentality, causing customers to delay discretionary maintenance and repairs where possible. This dynamic highlights the importance of our customer care strategy and the investments we continue to make in supporting our customers and earning their business. Now turning to more specifics on each segment. In Domestic Ag, the environment for our grower customers remain very challenging due to the factors I discussed earlier. As a reminder, our top line results through the first half of the fiscal year were higher than internal expectations due to earlier than anticipated shipments of presold equipment from the factories, which resulted in a pull forward of our deliveries to customers relative to prior expectations. This timing shift strengthened first half results, but is expected to contribute to some relative headwinds to year-on-year comparisons in the back half of the fiscal year. Yields generally look good across much of our footprint, though dry conditions in July and August will translate to yield reductions in some areas. This is something our team is monitoring closely as we anticipate what year-end buying will look like. Our Construction segment performed well during the quarter. Activity related to infrastructure investment and data center projects remains healthy across much of our footprint, and is providing support for improved equipment demand. These end markets have helped offset softer activity from agricultural customers who also purchase construction equipment. Overall, we continue to view the underlying fundamentals for our Construction business as stable and reasonably healthy. Within our Europe segment, results came in below our expectations. Part of the year-over-year decline was anticipated as we wind down our German operations and we anticipated some decline in Romania after last year's robust results. However, market conditions across the region have also become more challenging than we anticipated entering the year. Low commodity prices, elevated operating costs, broader geopolitical uncertainty, poor crop conditions in certain areas and weaker farmer sentiment have led many customers to delay equipment purchasing decisions. As a result of these factors, we are adjusting our expectations downward for Europe for the remainder of FY '27. In Australia, equipment demand is being influenced by the same global dynamics pressuring our other ag markets, but with sharper increases in input costs, particularly diesel fuel and fertilizer, given the lack of in-country production. Helping offset this has been healthy rainfall and the resulting prospect for improved yields across much of our footprint, which is translating to improved customer sentiment and should help increase equipment demand as we progress through the second half of the year. In closing, I'm extremely proud of the progress our team continues to make in the face of a challenging demand environment. However, inventory levels across the industry are getting healthier, and fundamentals are starting to suggest that 2026 could be the bottom of this ag cycle. As for Titan, we continue to execute in the areas that we can control. Inventory quality is improving, equipment margins are strengthening and our operating model continues to become more efficient. While we remain disciplined in our view of near-term demand, the actions we have taken over the past several years have positioned Titan Machinery to execute effectively and remain resilient through the remainder of this cycle and to capitalize on opportunities as the industry conditions improve. With that, I will turn the call over to Bo. Bo Larsen: Thanks, Bryan, and good morning, everyone. Starting with our consolidated results for the FY '27 second quarter. Total revenue was $496.4 million compared to $546.4 million in the prior year period, reflecting a 6.2% decrease in same-store sales. Despite the sales headwinds in the second quarter, gross profit was essentially flat at $92.4 million, resulting in gross profit margin expansion of 150 basis points to 18.6%. This year-over-year improvement primarily reflects stronger equipment margins, which improved 190 basis points year-over-year to 8.5%, driven by the continued improvement in inventory health alongside a higher mix of parts and service revenue in our consolidated totals. Our operating expenses of $94.1 million were up modestly year-over-year. This is largely a function of higher variable expenses tied to our sales initiatives, including those in support of clearing aged inventory. However, the key message is that our head count and discretionary spending continue to be down year-over-year as a result of disciplined expense management, which speaks to our efforts to control what we can and position ourselves for the other side of this cycle. Floorplan and other interest expense decreased 30% to $8.1 million from last year's $11.5 million, reflecting the significant reduction in interest-bearing inventory levels over the past year. In the second quarter of FY '27, net loss was $9.2 million or $0.40 per share. This compared to a net loss of $6 million or $0.26 per share in the prior year period, which included a $2.2 million tax benefit that didn't repeat this year, given the tax valuation allowance that we put on in Q4 of last year. Absent last year's tax benefit, net loss was very similar year-over-year despite the lower sales volume. Adjusted EBITDA was $4.6 million compared to $5.6 million last year. Now turning to a brief overview of our segment results for the second quarter. Domestic Ag segment sales of $310.2 million reflected a same-store sales decrease of 8.4%, driven by softer equipment demand compared to the prior year. Equipment revenue in this segment came in modestly ahead of our expectations for the quarter and was down 13.5%, while parts and service revenues tracked closely to our expectations. Segment pretax loss improved by $9 million to $3.3 million versus the prior year period, reflecting the actions we have taken to accelerate inventory reductions and the resulting improvement in equipment margins that we have achieved. In our Construction segment, same-store sales increased by 9.2% to $78.6 million, primarily due to higher equipment sales. Equipment margins remained strong relative to the prior year, reflecting healthier inventory and improved industry conditions across our Construction footprint. Pretax income improved to $0.4 million compared to a pretax loss of $1.2 million in the second quarter of the prior year. In our Europe segment, sales declined to $66.1 million for the quarter, which included a $1.1 million net benefit related to foreign currency fluctuations. On a constant currency basis, revenue decreased approximately 34%. As we noted last quarter, the wind-down of our German operations is a meaningful portion of the year-over-year decline in this segment, and will continue to be through the balance of the year. Germany contributed approximately $11 million or about 1/3 of the year-over-year revenue decline in the second quarter, with the balance attributed to lower equipment demand in the current year period against a strong prior year comp, which benefited from the European Union's stimulus programs in Romania. Pretax loss for the segment was $1.3 million compared to a pretax income of $5.1 million in the second quarter of last year. In our Australian segment, sales increased 36% to $41.4 million and included a $3.9 million net benefit related to foreign currency fluctuations. On a constant currency basis, revenue increased $6.9 million or 22.5%, with the current period benefiting from contributions from our addition of the New Holland brand to 6 of our rooftops in the fall of last year. Pretax loss for the segment was $3.4 million compared to a pretax loss of $2.1 million in the second quarter of last year. Now on to our balance sheet and inventory position. We had cash of approximately $30 million and an adjusted debt to tangible net worth ratio of 1.6x as of July 31, 2026, which is well below our bank covenant of 3.5x. Total inventory at quarter end was $931.5 million, a modest increase of $28 million compared to year-end. This increase was very much in line with our expectations and reflects the normal seasonal cadence of inventory flows. As Bryan noted, our focus in FY '27 remains on reducing aged inventory, mix optimization and increasing inventory turns, all of which we continue to expect to see improvement throughout the rest of the year. Turning to our FY '27 modeling assumptions. We are reaffirming our overall profitability outlook for the year, while updating a number of our segment revenue assumptions to reflect our year-to-date performance and our current expectations for the balance of the year. We continue to expect our Domestic Agriculture segment to be down in the range of 15% to 20%, though at this point, we'd expect it to be closer to the 15% range. In Construction, we are raising our outlook for growth in the range of up 5% to 10%, reflecting the momentum we're seeing from infrastructure, data center and otherwise generally improved demand in our footprint. In Europe, we are revising our outlook to a decrease of 30% to 40% and widening the range to reflect the uncertainty we're seeing in the region. A meaningful portion of that decline, or about $44 million, continues to be driven by the wind down of our German operations, with the balance reflecting broader softness across the rest of the region. In Australia, we are raising our outlook for growth to be in the range of about 15% to 20%, and we expect full year results to be closer to the high end of the range around that 20% growth mark. Reported results for Australia are benefiting from favorable foreign currency translation, and that alone is expected to provide 8% growth for the full year. From a margin perspective, we expect consolidated full year equipment margin to be approximately 8.3%, which compares to 7.3% in FY '26. I'd note that through the first half of the year, we are at 8.2%, which speaks to the impact of our inventory initiatives and our confidence in delivering against this full year expectation across the balance of the year. Full year operating expenses will decrease year-over-year despite our continued investment in our customer care strategy, which is supporting stability in our parts and service businesses. We expect operating expenses to be approximately 17.5% to 18% of sales. On floorplan interest expense, given the great progress on the health of our inventory, we now expect to achieve a year-over-year decline of approximately 30% for the full fiscal year. Bringing it all together, we are reaffirming our full year adjusted EBITDA range of $17 million to $29 million, and our adjusted diluted loss per share range of $1.25 to $1.75. In summary, our second quarter results reflect the continued progress we're making on inventory health and our operational priorities as we progress through the bottom of this cycle. We remain focused on executing the initiatives within our control to position us well when industry conditions inflect. This concludes our prepared comments. Operator, we are now ready for the question-and-answer session of our call. Operator: [Operator Instructions] Our first question is from Liam Burke with B. Riley Securities. Liam Burke: The headlines in the turmoil in the Black Sea with not only shipment, obviously, you've discussed the implications in Europe. Does that have a ripple effect on other of the markets that you're serving, particularly the U.S., either good or bad? Bryan Knutson: Yes, certainly, a lot of small grain especially comes out of that area between Ukraine and Russia and both have been heavily impacted. And so we are certainly monitoring that closely with our Ukraine customers. They are having difficulty moving grain for sure. And so we're stocking appropriately manage inventories appropriately in Ukraine as we go forward here based on what we're anticipating for sales out of that region over the rest of the year and into next year due to the impact there. But on the other hand, definitely a positive for U.S., a positive for us in our Australia footprint. We're anticipating, especially wheat and other small grain prices, to continue to be on the rise here, and that continues to be a positive for them. Liam Burke: Terrific. And we sort of look at a benchmark of corn pricing of $5, and starting to think that the Agriculture segment begins to benefit at -- corn at $5 and above. It's now in sort of the $5.50 area. How long does it have to stay there in order for the Agriculture segment to start being comfortable with loosening the purse strings? Bryan Knutson: Yes. Maybe first, just to clarify how the basis impacts that, Liam. Just in the Midwest or depending on an area's distance from major ports or shipping route, and so on that basis will vary. In the Midwest here, we have a pretty large basis. So always important to differentiate the futures price versus the cash grain price. And that can be anywhere from like right now, $0.30 to $0.50 in some of our areas of Iowa and Nebraska, all the way up to almost $1 in Minnesota and about $0.80 to $0.90 in North Dakota, as an example right now. So that's that basis spread that essentially for cash grain price today, you'd have to subtract off of there. But to your question, this definitely a run here lately in commodity prices. Yesterday was a really big day. We anticipate further increases here as the Pro Farmer Tour continues, certainly, they're seeing that the previously anticipated yields aren't there and that the drought conditions and some of the fertilizer impact has certainly impacted the crop along with other weather events all over the globe. So that's helping with the ending stocks and the stock-to-use ratio predictions as well as you've heard us talk a lot about other uses for the crops. And so we're starting to see the fruits of some of that with the renewable fuels and more E15 adoption and purchasing as well as biodiesel and the additional crushing plants have been coming online. You look at some other positives with now selling soybean meal over to Europe. It's a really big positive in the purchases recently from China here. And I think you're going to see more of that. Even though we're getting pretty well into the year here before the end of the year, I think you'll see a fair amount more opportunity for purchases from China, both soybeans and U.S. corn as well. So there's some of those more structural fundamentals that we're really starting to see the positivity around it as we look at the renewable fuels standards for next year, as we -- and that also is going to bode well. So we'll continue to monitor the weather closely. That's what's driving it up here like yesterday and as the crop continues to come in and then see how weather patterns develop next year. But basically, also to your question, these recent movements look very encouraging for getting our farmers into the black for 2026 here. And then when could we start to see the impact of that of '27 or a material impact to it, I should say. If these can sustain and they'll do forward contracting into '27 and put together a good crop and then anticipate that buying would really pick up then. Operator: Our next question is from Steve Dyer with Craig-Hallum Capital Group. Matthew Raab: This is Matthew Raab on for Steve. Maybe picking up where you left off there, Bryan. Maybe where we stand from a U.S. ag perspective and what your current thoughts are into next year? Deere commented last week that their EOPs are up in the mid-single-digit range. We'll see where that actually ends up, but at least moving in the right direction? Maybe Bryan or Bo give you the opportunity to comment on that, and whether you're hearing similar or different across your stores as we look into next year. Bryan Knutson: Yes. And generally, we're seeing the same as the OEMs on that front. And again, it's early. I know Deanna commented on that on Deere's call, too, that both -- all the OEMs tend to come out earlier with the seasonal spring equipment like the planters and sprayers and so those we're a little further into, but still not done with those yet either. So we'll kind of see how that wraps up and then certainly, a little way to go here yet on the bulk of it which is the tractors and combines and -- but early indications are basically in line with what they're seeing. And then just as a reminder for us, we also have our inventory sales, too, which will be a big indicator as well. So hopefully, this run continues in the commodity prices here, which with some of the Section 179 incentives out there and stuff that could be a benefit for growers here if they get into a profitability scenario. So yes, again, the -- there's a lot of structural fundamentals, though, out there that I want to reiterate and point to besides the -- just some of the recent gains we're seeing in commodity prices that are more so tied to the weather. But as we look at the -- again, as I mentioned, with biofuels and just really looking at the livestock markets right now and they've had -- our livestock producers have had good prices here for quite a while. So early in that run, if we go all the way back to last year, they're paying down debt and hesitant to spend some of that money, but that's been a good run now. And then also just replacement demand. As we get in and look to 27, if we can, again, continue commodity prices up in some of these structural things that support commodity prices, there's also those structural benefits within our business that the fleet just continues to age here. We've been at really low industry volumes now for a long time. FY '27, we'll start out looking at roughly 25% below where we were like 10 years ago for industry volumes. And so that just continues to age the fleet and put more hours on and exacerbate the need to trade. And if they don't, it bodes well for our parts and service. Matthew Raab: Very helpful. And then maybe from an equipment gross margin perspective, it was 100 bps higher in Q1, nearly 200 in Q2. But I'm curious how the Domestic Ag segment looks and how you think that trends through the second half? And then I know you don't have a guide out for fiscal year '28, but directionally, how should we think about that stepping off point from the second half into next year from a margin perspective? Bo Larsen: Yes. So I've been really pleased specifically with our Domestic Ag margins for the first half of the year. Domestic Ag equipment margin of 6.7%. Last year was unusually compressed, that was down at like 3.1%, so we're up significantly at 360 basis points. But last year, right, we still had a lot of those factors that we were having to work through and make progress on from an inventory perspective. And then we saw that margin inflect in the second half of the year. So it's been really good to see that it's continued to go up. Generally speaking, our guide, I mentioned first half was 6.7%, generally expecting about 6.9% for full year Domestic Ag equipment margin. So expecting a little bit more improvement, but not to the same extent as the first half of the year. Again, really pleased with where we're at from an inventory health perspective but still have some work to do. As a reminder, we generally would prescribe a range of Domestic Ag equipment margins in terms of a normal range between, call it, 8% and 11% or 12%. Those higher ends really in peak conditions and the lower end, really below mid-cycle. But just as a reminder, right, this year, we're 50% of the average of the last 25 years. So to get us inching closer to the 7% and on the way to 8%, when we're so far below average, that's been really pleasing. As we continue to make progress, I would expect that margins slowly march upwards toward that 8%. But I think we do need a bit of a lift on those industry volumes. We don't need to get anywhere near mid-cycle, but we're half of it right now or half of the historical average, I should say. So as we make progress there, we'll get into the lower end of that range. And yes, we'll continue to see how expectations develop for demand heading into next year. Matthew Raab: That's great. And then maybe if I can squeeze one more in here. How are you thinking about Q3 versus Q4, fairly even between the quarters? Or are there some differences that we should know? Bo Larsen: Yes. And I appreciate the question there, too. And before I directly answer that, I just want to say, we had some of the commentary in terms of timing of shipments from OEMs and the deliveries to customers, and that's partly because of the differences there. So Domestic Ag, in the first half of the year, equipment sales was down about 13.5%. Our guide is implying more that equipment sales in the back half of the year is down more like 20%, which would bring the full year at 17% and kind of right in the middle of the expected range from an industry volume perspective of down 15% to 20%, right? So that's partly why we were calling that out. We're definitely expecting that. We've been really expecting that kind of all year. But yes, overall, from a consolidated perspective, across segments, across revenue streams, expecting Q4 to be a little stronger than Q3, but pretty balanced there. And yes, as we're looking at ag, which -- or Domestic Ag, which is about 70% of that business, there is a bit of a change there on the equipment sales side of things. And that's -- we want to call that out to make sure people understood what we were expecting to see. Operator: Our next question is from Mig Dobre with Baird. Mircea Dobre: I want to talk about Australia a little bit. I know we don't spend a lot of time focusing here, but you've had good growth, and I understand some of that is FX, but even if we take FX out, you've had good growth. You're guiding for growth. And at the same time, we're looking at pretty soft pretax margins here. We're looking at a loss. So I guess I'm trying to understand really the moving pieces here in terms of what is causing this drag on margins? And what do you think needs to happen here in order to get this to breakeven or better? Bo Larsen: Yes. So from a full year perspective, for Australia, we're expecting a total pretax loss of low single digits. So extrapolating the Q2 results would kind of overemphasize what that would be. But really, this year, it's softer equipment margins for Australia. We've really been working on their aging profile. They -- each of the regions, obviously, has a little bit different timing. Generally speaking, Australia a little bit further behind. Equipment takes longer to get in the country. They caught up later, right? So then they sold through their backlog. So then their aging is a bit later, and they're just working through all of that. Additionally, the first half of the year here, I would say, farmer sentiment was pretty weak and demand was really soft. We saw TIVs pulling back to multi-decade lows in some cases. That said, rainfall has been really good across our footprint. Generally speaking, we're expecting some really nice yields. We've started to see farmer sentiment pick up. That is baked into the expectations on the growth side. But to answer the question, the pullback in profitability, the equipment margin driven, it was us attacking aging. We like the progress we're making there. Still have some work to do there this year, but definitely expect that to work back up next year and then kind of see improved profitability profile without necessarily calling what demand is going to look like. Mircea Dobre: I'm sorry, I don't think I understand your comments here in terms of what improved the margins on a go-forward basis and... Bo Larsen: It is simply working through the aged -- it's working through the aged inventory. Just like we saw on the U.S. side, I'd just say that their timing is behind the U.S. Mircea Dobre: And then I guess my follow-up, just conceptually here. You've expanded into Europe. You're obviously reworking the footprint there, what you're doing in Germany. You've expanded into Australia. Thus far, we haven't really seen any profits out of this Australian business flow through. I guess the bigger picture question that I'm wondering here is, do you view the geographic expansion as an asset for the company? And is there an argument to be made that refocusing towards expanding within Canada or the U.S. proper is actually more conducive to generating superior longer-term returns? Bo Larsen: Yes. So I feel proud about -- we both feel proud about the work that we've done on the footprint and focusing down right and divesting of Germany. We've divested out some outlying locations on the U.S. side to really be focusing on the Upper Midwest. Within Australia, I think you'll see that focus as well, and we're recently getting dual-branded in 6 of the 15 locations. But yes, for sure, we're excited about the pipeline on the U.S. side in the Upper Midwest, really focusing on that density dollar for dollar when those opportunities present themselves, that's where we want it to be. At the same time, yes, we're happy with and absolutely considered Australia an asset. The timing, obviously, wasn't favorable relative to us buying and then really demand conditions across the globe getting softer, right? But what we're measuring ourselves against right now is troughs, multi-decade low industry demand, both on the U.S., well everywhere, right? So as that normalizes, that will improve. But I would say, for sure, considering that a strong asset for the future that will generate returns for shareholders, but absolutely focused on the Upper Midwest and the United States and really want to continue to see M&A activity there. That is dollar for dollar, the most impactful, and it's going to leverage the synergies we have here and everything we're investing in from a customer care strategy perspective. We've talked about this at length, right, sharing parts, sharing equipment, leaner balance sheets, all of that good stuff, the more that we continue to execute on that in the Upper Midwest here though, I think the stronger the profitability will look going forward. Operator: [Operator Instructions] Our next question is from David Raso with Evercore ISI. David Raso: Can you clarify a little bit, when you say early -- earlier than anticipated shipments of presold equipment, can you just explain why and any quantification of how much that was and how much earlier than you did expect it to arrive? And then thinking about some of the comments about maybe some of the economics here to get some of your customers back into the black? When we think of bonus depreciation buying at year-end, how you're thinking of managing your inventory? Are you getting quote activity in a different way the last few weeks? Because obviously, that swing to profitability puts [ in decent ] position to think about using bonus depreciation more. And I don't think I heard you comment about your own inventory management. Has anything changed with the recent improved economics out there for the farmer? Bryan Knutson: Yes. Thank you, David. I'll take just a couple of those high level and then let Bo follow up with some more details. Yes. So to your question on the farmer economics and recent activity picking up. We've definitely seen some of that, especially at this juncture on the used equipment. This time of year is typically a little slower time as you look at farmers are just either finishing wheat harvest or about to start corn and soybean harvest, as an example. And so as we plan well out with them and often work with hand-in-hand with them, it's -- the goal is to try to have them ready to go by right now with what they have. So therefore, you don't typically see -- if it were going the other way, we wouldn't see a lot done either the other way at this time of year. So as we start to get through harvest and then that's where we'll see if this continues, some of the benefits of that. As far as the timing of orders from the factories, there's obviously a lot of components that go into this very complex technology, advanced equipment, a lot of different suppliers that the OEMs are getting components from and so on. So with anything, when we do presales or when we order inventory and we work very closely with the factories. And on the lead times, and of course, they are always their best predictions, but it's certainly not uncommon to have those fluctuate plus or minus a month depending on, again, how deliveries work through from their suppliers and how their build schedules are going and so forth. And so just from our suppliers, they essentially shipped us some of these a little earlier than requested and anticipated. And then the growers, typically -- and the contractors want them as soon as possible. So it's just generally standard process that we get them in here and do what we do to them, which is a lot of predelivery and inspection and finishing some of the technology and so forth and then get them turned around and delivered to the customers. So that's what that was specifically. Bo Larsen: Yes. And I would just say, like not trying to overstate that. So I mean just think about, again, the split. First half of the year, Domestic Ag revenue is down 13.5%, second half we're seeing 20%. It's not that we're saying demand is softening for the second half of the year. There are just some timing differences there. And thus, we were not down as much in the first half as we will be in the second. But it's really been -- for Domestic Ag, there's been -- it's as anticipated, right? I don't think anybody has changed large ag expectation of down 15% to 20%. It just, yes, seems to be exactly as advertised. And in some ways, in this environment, it's been comforting. Clearly, the improvement in commodity prices, does that pick up year-end buying, a lot of that, when it comes down to depreciation, they don't know what things look like until they get late November to December. That's when you would see who is in the black. And then is that driving some incremental behavior where they're showing up on the lot and looking at stuff they might want to buy. And then generally, from an overall inventory perspective, I would say, as conditions are improving, it's not -- I wouldn't say it's necessarily changing how we're managing inventory. And first, just a couple of points as well. I'll take the opportunity since we're talking about it. We were expecting inventory generally flat, pretty much is. So we certainly usually have some seasonal build here and heading into the fall, getting some combines to land on the balance sheet. We'll get those turned around to customers. But there's plenty of evidence that things are continuing to work in the right direction. I definitely highlight from a year-to-date perspective, used equipment is down $40 million. That's a huge plus for us. A lot of that was focused on getting aging down. New equipment is up like $60 million. That speaks to the mix, right? We're getting that stuff landed and ready to deliver to customers ahead of harvest, for example. Total ag inventory, which is Domestic Ag inventory, which, of course, we're talking about the softest market in several decades, that inventory is down actually $16 million this year. And then from a strength perspective, we've talked about Construction and demand conditions improving and the inventory there is up $30 million. So I think everything we're doing is working and things continue to trend in the right direction. We continue to see those decreases on the floorplan interest perspective. We're convinced that we want to continue to drive higher presale rates, get our turns up closer and tighter around the 2.5x turns. And in order to do that, we are changing the way we've done some things in the past, and we're more aggressive on how we look at the aging profile for use and what we need to do to move that. We're looking more at how we leverage our footprint and not have to have the same stock inventory in every location, right, leveraging the fact that we can go down the road to the next dealership if somebody is wanting to get in the cab on something. So we're purposely building towards what we think is a leaner, meaner balance sheet that really helps de-risk some of the profitability volatility that we've seen in the last cycle and combine that with what we're doing from a customer care perspective. We're getting really excited about what we think we can do here when demand inflects. And that's what we're working on a lot on the daily basis here. We're not necessarily talking a lot about it. Inventory tends to get the oxygen here as well as the current demand environment, but we're excited to show what we can do based on everything we're building towards and the moves we've made here over the last 2 years. David Raso: That was all very helpful. On my way out the door here, can we just ask about pricing a little bit? What are you seeing large ag versus small, and I am thinking more domestic market on new and used? Bryan Knutson: Yes. On the new side, relatively flat, a little bit of list price increases, maybe generally offset by a little bit of programming. On the used side, I think you've heard all the OEMs comment lately about the divergence now coming to an end here from the new-to-use spread. In other words, used values stabilizing that -- almost catching a falling knife scenario we had going on in '24 and throughout most of '25 as well. Again, the used market, kind of finding a bottom here and stabilizing, yet to converge, though. So again, I think as we talk about farmer profitability and we look at the long-term fundamentals and commodity prices and so on, we'll need to get that for a while yet and sustain for a while yet in order to see the used prices come up a bit more. That -- again, there's a lot of healthy things in play there as we've been an early mover in reducing our inventories and reducing our aged inventory as Bo indicated, especially around the used side. Other dealers that have been a little behind have been working through that now in '26 and are on a really good pace and trajectory to, very possibly by the end of the year, have that generally cleaned up. So as our peers and the rest of the industry gets that cleaned up, that also will bode well for used prices as well and as that market tightens in. All that should start to bring used values up more, which is actually what we need to decrease or diminish some of that spread that we saw happen over the last few years here on the new-to-used trade differences. So again, that will also bode well for trading as we go into next year and industry volume potential. Operator: There are no further questions at this time. I would like to turn the call back over to management for closing remarks. Bryan Knutson: Yes. Thank you to all of you for your interest in Titan Machinery. And again, thanks to all our employees for a tremendous execution on our controllables here. And thank you to all our contractors and farmers that we serve and what we believe to be the 2 most noble industries in the world and wish them the best building and feeding the world here as we go forward. Thanks again, everyone. We look forward to talking to you on our next call. Operator: Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation. Before you buy stock in Titan Machinery, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Titan Machinery wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 31, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Titan Machinery (TITN) Q2 2027 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a 190 basis point increase in equipment margins, resulting from a two-year strategic effort to reduce aged inventory and optimize mix rather than a recovery in market demand. Domestic Agriculture remains in a cyclical trough as low commodity prices and high input costs drive a 'fix-on-fail' maintenance mentality among growers, delaying discretionary repairs. The Construction segment provided a strategic offset to agricultural weakness, supported by robust infrastructure investment and data center projects across the domestic footprint. Management attributed the first-half revenue strength to earlier-than-anticipated shipments of presold equipment from factories, which pulled forward deliveries originally expected for the back half of the year. International operations faced significant headwinds, particularly in Europe due to geopolitical uncertainty and the strategic wind-down of German operations, while Australia saw improved sentiment following healthy rainfall. Operational efficiency improved through disciplined expense management, including reductions in headcount and discretionary spending to preserve resilience through the bottom of the cycle. Management reaffirmed full-year adjusted EBITDA guidance, assuming that calendar 2026 represents the bottom of the current agricultural cycle with industry volumes approximately 25% below levels from 10 years ago. Revenue expectations for the Construction segment were raised to 5% to 10% growth, while Europe was revised downward to a 30% to 40% decrease due to regional uncertainty and the German exit. Floorplan interest expense is projected to decline by approximately 30% for the full year, reflecting the successful reduction of interest-bearing inventory levels. Future equipment demand is contingent on commodity prices sustaining recent gains to move growers 'into the black,' which would support year-end buying and forward contracting for 2027. The company is transitioning to a 'leaner' balance sheet model, leveraging its footprint to share inventory across locations rather than stocking identical units at every rooftop. The wind-down of German operations accounted for approximately one-third of the revenue decline in the Europe segment during the second quarter. A tax valuation allowance implemented in the prior year's fourth quarter resulted in the absence of a repeating tax benefit, impacting year-over-year net loss comparisons. Inventory quality is improving, with used equipment inventory down $40 million year-to-date, though new equipment inventory rose $60 million to prepare for seasonal harvest deliveries. Geopolitical instability in the Black Sea region continues to disrupt grain shipments for Ukraine customers, necessitating cautious inventory management in that specific market. Management noted that while Ukraine customers face difficulty moving grain, the disruption is a positive driver for wheat and small grain prices in the U.S. and Australia. The company is stocking inventory in Ukraine specifically to match anticipated sales volumes given the regional constraints. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that while futures prices are rising, the 'basis' (local cash price spread) remains a critical factor for farmer profitability in the Midwest. Recent price movements are encouraging for 2026 profitability, but a material impact on equipment buying likely requires sustained prices into 2027 to support forward contracting. Domestic Ag equipment margins reached 6.7% in the first half, up from 3.1% last year, with a full-year target of approximately 6.9%. Management expects margins to eventually march toward a normal range of 8% to 12% as industry volumes normalize from current multi-decade lows. Management defended the Australia segment as a long-term asset despite current losses, citing recent dual-branding initiatives in 6 of 15 locations. The company remains prioritized on M&A that increases density in the U.S. Upper Midwest, which offers the highest synergy potential for parts and equipment sharing. The 'falling knife' scenario for used equipment values seen in 2024 and 2025 appears to be finding a bottom as industry-wide aged inventory is cleared. Management expects the spread between new and used prices to diminish as peer dealers finish cleaning up their balance sheets by the end of the year.

- Gross Margin Expanded 150 bps y/y as Inventory Actions Continue to Drive Margin Recovery - - Updates Fiscal 2027 Segment Modeling Assumptions; Reaffirms Profitability Outlook - WEST FARGO, N.D., Aug. 27, 2026 (GLOBE NEWSWIRE) -- 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, 2026. "Our fiscal 2027 second quarter results reflect continued progress on improving inventory health, with equipment margins in our Agriculture segment coming in modestly ahead of our expectations for the quarter, which are helping drive a lift in consolidated gross margin in the face of a difficult revenue environment," stated Bryan Knutson, Titan Machinery's President and Chief Executive Officer. "At the same time, overall demand across our North American Agriculture business played out largely as we anticipated and fundamentals are suggesting that calendar year 2026 could be the bottom of this cycle. Our team remains focused on the areas within our control and I'm confident that the actions we have taken over the past two years position Titan favorably as agricultural fundamentals eventually recover." Fiscal 2027 Second Quarter Results Consolidated Results For the second quarter of fiscal 2027, revenue was $496.4 million compared to $546.4 million in the second quarter last year. Equipment revenue was $328.5 million for the second quarter of fiscal 2027, compared to $376.3 million in the second quarter last year. Parts revenue was $106.6 million for the second quarter of fiscal 2027, compared to $109.2 million in the second quarter last year. Service revenue was $46.4 million for the second quarter of fiscal 2027, compared to $48.8 million in the second quarter last year. Rental and other revenue was $14.8 million for the second quarter of fiscal 2027, compared to $12.1 million in the second quarter last year. Gross profit for the second quarter of fiscal 2027 was $92.4 million, compared to $93.6 million in the second quarter last year. Gross profit margin was 18.6% in the second quarter of fiscal 2027, compared to 17.1% in the second quarter last year. The year-over-year improvement in gross profit margin primarily reflects stronger equipment margins given continued reductions in aged inventory, alongside a higher mix of parts and service revenue. Operating expenses increased to $94.1 million for the second quarter of fiscal 2027, compared to $92.7 million in the second quarter last year. Operating expenses as a percentage of revenue were 19.0% for the second quarter of fiscal 2027, compared to 17.0% of revenue in the second quarter last year. Floorplan interest expense and other interest expense decreased to $8.1 million in the second quarter of fiscal 2027, compared to $11.5 million for the same period last year. The decrease was driven by lower interest-bearing inventory levels. In the second quarter of fiscal 2027, net loss was $9.2 million, with loss per diluted share of $0.40, compared to a net loss of $6.0 million, with loss per diluted share of $0.26, for the same period last year. Adjusted EBITDA in the second quarter of fiscal 2027 was $4.6 million, compared to $5.6 million in the second quarter last year. Segment Results Agriculture Segment - Revenue for the second quarter of fiscal 2027 was $310.2 million, compared to $345.8 million in the second quarter last year, reflecting a same-store sales decrease of 8.4%. The decrease resulted from softer demand for equipment compared to the prior year period, driven by continued pressure on grower profitability. Pre-tax loss for the second quarter of fiscal 2027 improved to $3.3 million, compared to $12.3 million in the second quarter last year. Construction Segment - Revenue for the second quarter of fiscal 2027 was $78.6 million, compared to $72.0 million in the second quarter last year, reflecting a same-store sales increase of 9.2%, which was primarily due to higher equipment sales. Pre-tax income for the second quarter of fiscal 2027 improved to $0.4 million, compared to pre-tax loss of $1.2 million in the second quarter last year. Europe Segment - Revenue for the second quarter of fiscal 2027 was $66.1 million, including a $1.1 million benefit related to foreign currency fluctuations versus the prior year period, compared to $98.1 million in the second quarter last year. Net of the effect of these foreign currency fluctuations, revenue decreased $33.1 million, or 33.7%. The wind-down of the Company's German operations contributed approximately $11 million of the year-over-year revenue decrease in the quarter. The remainder of the decrease was primarily due to lower equipment demand compared to the prior year period, which had been driven by stronger sales resulting from European Union stimulus programs in Romania. Pre-tax loss for the second quarter of fiscal 2027 was $1.3 million, compared to pre-tax income of $5.1 million in the second quarter last year. Australia Segment - Revenue for the second quarter of fiscal 2027 was $41.4 million, including a $3.9 million benefit related to foreign currency fluctuations versus the prior year period, compared to $30.6 million in the second quarter last year. Net of the effect of these foreign currency fluctuations, revenue increased $6.9 million, or 22.5%. Pre-tax loss for the second quarter of fiscal 2027 was $3.4 million, compared to $2.1 million in the second quarter last year. Balance Sheet and Cash Flow Cash at the end of the second quarter of fiscal 2027 was $29.5 million. Total inventories increased by $28.4 million to $931.5 million as of second quarter end, as compared to January 31, 2026. Equipment inventories increased by $21.7 million to $746.9 million as of second quarter end, as compared to January 31, 2026. Outstanding floorplan payables were $623.6 million on $1.5 billion total available floorplan and working capital lines of credit as of July 31, 2026, compared to $553.8 million outstanding floorplan payables as of January 31, 2026. For the six months ended July 31, 2026, the Company's net cash used for operating activities was $25.1 million, compared to net cash provided by operating activities of $49.9 million for the six months ended July 31, 2025. The change in cash from operating activities was primarily attributable to timing of inventory receipts and changing mix in floorplan financing, which was partially offset by receivable collections compared to the prior year period. Additional Management Commentary Mr. Knutson continued, "Over the past two years, our team has meaningfully reshaped our inventory position and has worked hard to manage our cost structure against inflationary pressures, and that work continues to give us a stronger foundation to manage through this cycle. As a result, we are reiterating our fiscal 2027 EPS modeling assumptions. However, we are making several updates to our segment revenue assumptions for fiscal 2027 to reflect current conditions. In Construction, we continue to see the tailwinds from increased activity in our footprint, including data center and other infrastructure projects, and in Australia healthy moisture levels are leading to higher yield expectations and improving farmer sentiment. However, we are revising down our Europe segment revenue outlook given a deterioration in regional sentiment which has resulted in softer demand for equipment than previously anticipated. Overall, I'm proud of how our team continues to execute in a difficult environment, and confident that approach positions us to deliver stronger profitability as conditions improve." Fiscal 2027 Modeling Assumptions The Company reaffirms its previously issued profitability guidance while updating its segment revenue modeling assumptions; the following is a summary of its current expectations for fiscal 2027 modeling assumptions: Conference Call and Presentation Information The Company will host a conference call and audio webcast today at 7:30 a.m. Central time (8:30 a.m. Eastern time). Investors interested in participating in the live call can dial (877) 704-4453 from the U.S. International callers can dial (201) 389-0920. A telephone replay will be available approximately two hours after the call concludes and will be available through Sunday, September 27, 2026, by dialing (844) 512-2921 from the U.S., or (412) 317-6671 from international locations, and entering confirmation code 13760009. A copy of the presentation that will accompany the prepared remarks on the conference call is available on the Company’s website under Investor Relations at www.titanmachinery.com. An archive of the audio webcast will be available on the Company’s website under Investor Relations at www.titanmachinery.com for 30 days following the audio webcast. Non-GAAP Financial MeasuresThis press release and the attached financial tables contain a reconciliation of certain non-GAAP financial measures as defined under Securities and Exchange Commission (“SEC”) rules. As required by SEC rules, the Company has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure in the schedule included in this press release. The Company believes that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating current period performance and in assessing future performance. For these reasons, internal management reporting also includes non-GAAP financial measures. Non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, the GAAP financial measures presented in this release and the Company's financial statements and other publicly filed reports. Non-GAAP financial measures presented in this release may not be comparable to similarly titled measures used by other companies. Investors are encouraged to review the reconciliations of any adjusted financial measures used in this release to their most directly comparable GAAP financial measures. The reconciliation is attached to this release. The table included in the Non-GAAP Reconciliations section reconciles EBITDA and adjusted EBITDA to their most directly comparable financial measure. A reconciliation of Adjusted EBITDA, Adjusted Consolidated Pre-tax Loss, Adjusted Net Loss and Adjusted Diluted Loss Per Share, in each case for fiscal 2027 modeling assumptions, is not available without unreasonable effort due to the variability and low visibility of the factors that may impact the comparable GAAP financial measures. About Titan Machinery Inc. Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, North Dakota, owns and operates a network of full service agricultural and construction equipment dealer locations in North America, Europe and Australia, servicing farmers, ranchers and commercial applicators. The network consists of US locations in Colorado, Idaho, Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming. The international network includes European stores located in Bulgaria, Romania, and Ukraine and Australian stores located in New South Wales, South Australia, and Victoria in Southeastern Australia. Our stores offer one or more of the CNH Industrial Brands, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, and CNH Industrial Capital. Additional information about Titan Machinery Inc. can be found at www.titanmachinery.com. Forward-Looking Statements Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “potential,” “believe,” “estimate,” “expect,” “intend,” “may,” “could,” “will,” “plan,” “anticipate,” and similar words and expressions are intended to identify forward-looking statements. These statements are based upon the current beliefs and expectations of our management. Forward-looking statements made in this release, which include statements regarding fiscal 2027 modeling assumptions and expected results of operations for the fiscal year ending January 31, 2027, and may include statements regarding Agriculture, Construction, Europe and Australia segment initiatives and improvements, segment revenue realization, growth and profitability expectations, inventory availability and customer demand expectations, and agricultural and construction equipment industry conditions and trends, involve known and unknown risks and uncertainties that may cause Titan’s actual results in future periods to differ materially from the forecasted assumptions and expected results. These risks and uncertainties include, among other things, the impact of the Russia-Ukraine conflict on our Ukrainian operations, our substantial dependence on CNH Industrial including CNH Industrial's ability to design, manufacture and allocate inventory to our stores necessary to satisfy our customers' demands, supply chain disruptions impacting our suppliers, including CNH Industrial, the continued availability of organic growth and acquisition opportunities, potential difficulties integrating acquired stores, industry supply levels, fluctuating agriculture and construction industry economic conditions, the success of recently implemented initiatives within the Company’s operating segments, the uncertainty and fluctuating conditions in the capital and credit markets, difficulties in conducting international operations, foreign currency risks, governmental agriculture policies, seasonal fluctuations, the ability of the Company to manage inventory levels, weather conditions, disruption in receiving sufficient inventory financing, and increased competition in the geographic areas served. These and other risks are described in Titan’s filings with the SEC. Titan conducts its business in a highly competitive and rapidly changing environment. Accordingly, new risks and uncertainties may arise. It is not possible for management to predict all such risks and uncertainties, nor to assess the impact of all such risks and uncertainties on Titan’s business or the extent to which any individual risk or uncertainty, or combination of risks and uncertainties, may cause results to differ materially from those contained in any forward-looking statement. Other than as required by law, Titan disclaims any obligation to update such risks and uncertainties or to publicly announce revisions to any of the forward-looking statements contained in this release to reflect future events or developments. Investor Relations Contact: ICR, Inc.Jeff Sonnek, [email protected]

Titan Machinery Inc. (NASDAQ:TITN) shares fell 2.07% in pre-market trading on Thursday after the agricultural and construction equipment dealer reported a wider-than-expected second-quarter loss, although revenue came in ahead of Wall Street forecasts. The company recorded a loss of $0.40 per share, compared with analyst expectations for a loss of $0.35. Revenue reached $496.4 million, exceeding the consensus estimate of $486.51 million. Sales were nevertheless 9.2% lower than the $546.4 million reported in the corresponding period last year, primarily reflecting softer equipment demand as pressure on grower profitability continued. Despite the weaker sales environment, Titan Machinery recorded an improvement in gross profitability. Gross margin expanded by 150 basis points to 18.6% from 17.1% a year earlier. The increase reflected stronger equipment margins as the company continued reducing aged inventory, alongside a greater contribution from higher-margin parts and service revenue. “Our fiscal 2027 second quarter results reflect continued progress on improving inventory health, with equipment margins in our Agriculture segment coming in modestly ahead of our expectations for the quarter,” stated Bryan Knutson, President and Chief Executive Officer. Titan also benefited from lower financing costs. Floorplan and other interest expense declined to $8.1 million from $11.5 million, reflecting a reduction in interest-bearing inventory. Performance varied across Titan Machinery’s geographic and operating segments during the quarter. Agriculture generated revenue of $310.2 million, down 10.3% year over year, while same-store sales declined 8.4%. Construction delivered stronger results, with revenue increasing 9.2% to $78.6 million as equipment sales improved. Australia also recorded substantial growth, with revenue climbing 35.5% to $41.4 million. European revenue fell 32.6% to $66.1 million, reflecting more challenging conditions in that market. Operating expenses increased to $94.1 million from $92.7 million in the corresponding quarter last year. As a percentage of revenue, expenses rose to 19.0% from 17.0%, partly reflecting the lower overall sales base. The improvement in gross margin and reduction in inventory-related interest expense nevertheless highlighted progress in Titan Machinery’s efforts to strengthen inventory efficiency and manage costs through the current equipment cycle. For fiscal 2027, Titan Machinery reaffirmed its forecast for an adjusted diluted loss per share of between $1.25 and $1.75. The range encompasses the current analyst consensus for a loss of $1.45 per share. The company also revised its expectations for individual business segments. Construction revenue is now forecast to increase between 5% and 10%, an improvement from the previous outlook of flat growth to a 5% increase. For Europe, Titan now expects revenue to decline between 30% and 40%, compared with its earlier forecast for a decrease of 20% to 25%. Although the second-quarter earnings result fell short of expectations, the revenue beat, expanding gross margin, lower inventory financing costs and stronger outlook for the Construction segment provided evidence of progress as Titan Machinery continues to work through challenging agricultural equipment market conditions. Titan Machinery stock price

For the quarter ended July 2026, Titan Machinery (TITN) reported revenue of $496.38 million, down 9.2% over the same period last year. EPS came in at -$0.40, compared to -$0.26 in the year-ago quarter. The reported revenue represents a surprise of +1.51% over the Zacks Consensus Estimate of $489.03 million. With the consensus EPS estimate being -$0.33, the EPS surprise was -21.21%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Titan Machinery performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Service: $46.44 million compared to the $48.88 million average estimate based on two analysts. Revenue- Equipment: $328.5 million compared to the $315.52 million average estimate based on two analysts. Revenue- Rental and other: $14.83 million compared to the $12.73 million average estimate based on two analysts. Revenue- Parts: $106.61 million versus $111.91 million estimated by two analysts on average. Gross Profit- Equipment: $28 million versus $23.66 million estimated by two analysts on average. Gross Profit- Rental and other: $3.95 million compared to the $3.22 million average estimate based on two analysts. Gross Profit- Service: $28.13 million versus $29.87 million estimated by two analysts on average. Gross Profit- Parts: $32.33 million compared to the $34.14 million average estimate based on two analysts. View all Key Company Metrics for Titan Machinery here>>> Shares of Titan Machinery have returned +4.4% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Titan Machinery Inc. (TITN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: $496.4 million, down from $546.4 million in the prior year period, reflecting a 6.2% decrease in same-store sales. Gross Profit: Essentially flat at $92.4 million, with gross profit margin expanding 150 basis points to 18.6%. Equipment Margin: Improved 190 basis points year-over-year to 8.5%. Operating Expenses: $94.1 million, up modestly year-over-year. Floorplan and Other Interest Expense: Decreased 30% to $8.1 million from $11.5 million in the prior year. Net Loss: $9.2 million or $0.40 per share, compared to a net loss of $6 million or $0.26 per share in the prior year period. Adjusted EBITDA: $4.6 million compared to $5.6 million last year. Domestic Ag Segment Sales: $310.2 million, with a same-store sales decrease of 8.4%. Domestic Ag Segment Pretax Loss: Improved by $9 million to $3.3 million versus the prior year period. Construction Segment Sales: Same-store sales increased 9.2% to $78.6 million. Construction Segment Pretax Income: Improved to $0.4 million compared to a pretax loss of $1.2 million in the prior year. Europe Segment Sales: Declined to $66.1 million, with a constant currency revenue decrease of approximately 34%. Europe Segment Pretax Loss: $1.3 million compared to pretax income of $5.1 million in the prior year. Australia Segment Sales: Increased 36% to $41.4 million, with constant currency revenue up 22.5%. Australia Segment Pretax Loss: $3.4 million compared to a pretax loss of $2.1 million in the prior year. Total Inventory: $931.5 million at quarter end, a modest increase of $28 million compared to year-end. Cash: Approximately $30 million as of July 31, 2026. Adjusted Debt to Tangible Net Worth Ratio: 1.6 times, well below the bank covenant of 3.5 times. Warning! GuruFocus has detected 5 Warning Signs with TITN. Is TITN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Consolidated gross margin expanded by 190 basis points year-over-year, driven by improved equipment margins and a higher mix of parts and service revenue. Domestic Ag segment pretax loss improved by $9 million year-over-year, reflecting successful inventory reduction initiatives and stronger equipment margins. Construction segment performed well, with same-store sales up 9.2% and pretax income turning positive, supported by infrastructure and data center projects. Floorplan and other interest expense decreased 30% year-over-year due to significant reduction in interest-bearing inventory levels. Australia segment saw strong growth, with constant currency revenue up 22.5%, benefiting from the addition of the New Holland brand and improved customer sentiment from healthy rainfall. Europe segment results came in below expectations, with constant currency revenue down approximately 34%, due to challenging market conditions, geopolitical uncertainty, and weaker farmer sentiment. Consolidated net loss widened to $9.2 million from $6.0 million in the prior year, with adjusted EBITDA declining to $4.6 million from $5.6 million. Domestic Ag same-store sales decreased 8.4%, and equipment revenue was down 13.5%, reflecting continued soft demand in the agricultural market. Australia segment reported a pretax loss of $3.4 million, wider than the prior year's loss, due to softer equipment margins and ongoing work to clear aged inventory. The company expects headwinds in the back half of the fiscal year due to a pull-forward of equipment deliveries, with Domestic Ag equipment sales projected to decline about 20% in the second half. Q: How is the turmoil in the Black Sea region impacting your markets, and what is the outlook for the Agriculture segment given recent commodity price movements?A: Bryan Knutson (President and CEO) noted that the Black Sea conflict is heavily impacting grain movement for customers in Ukraine, leading to careful inventory management there. Conversely, it is a positive for US and Australian markets, with anticipated increases in wheat and other small grain prices. Regarding farmer purchasing, he clarified that while corn futures are around $5.50, the local cash price is lower due to basis differences (ranging from $0.30 to over $1.00 depending on location). The recent rally in commodity prices, driven by weather and global events, is encouraging for farmer profitability in 2026. If these prices sustain, allowing farmers to forward contract for 2027, a material impact on equipment buying could be seen then. Q: Can you provide more detail on the equipment margin performance and the outlook for the second half of the fiscal year?A: Robert Larsen (CFO) reported that Domestic Ag equipment margins were 6.7% in the first half, a significant 360 basis point improvement from the 3.1% seen in the prior year period. He expects full-year Domestic Ag equipment margins to be around 6.9%, implying a slower pace of improvement in the back half. He reiterated that the normal range for these margins is 8% to 12%, and while the company is pleased with the progress, reaching the lower end of that range will require a lift in industry volumes, which are currently at half the historical average. Q: How should we think about the revenue cadence between Q3 and Q4, and what is driving the differences?A: Robert Larsen (CFO) explained that the company expects Q4 to be slightly stronger than Q3. He highlighted a key timing shift in Domestic Ag, where first-half equipment sales were down 13.5%, but the full-year guide implies a steeper decline of about 20% in the back half. This is due to earlier-than-anticipated shipments of presold equipment from factories, which pulled deliveries into the first half and creates a tougher comparison for the second half of the year. Q: What are the moving pieces behind the losses in the Australian segment, and what needs to happen to reach breakeven?A: Robert Larsen (CFO) attributed the current losses to softer equipment margins as the company works through its aged inventory, a process that is behind the US in timing. While farmer sentiment was weak in the first half, recent healthy rainfall is expected to produce good yields and improve demand. The company expects a full-year pretax loss in the low single digits for Australia but anticipates the profitability profile to improve next year as the inventory work is completed. Q: Is the geographic expansion into Europe and Australia an asset, or would refocusing on the US and Canada generate better returns?A: Robert Larsen (CFO) defended the international footprint, calling Australia a "strong asset for the future" despite the unfavorable timing of the market downturn. He emphasized that the company is focused on divesting underperforming locations, like Germany, and concentrating on density in the Upper Midwest. While M&A in the US is considered the most impactful use of capital, the company remains committed to its Australian operations and expects them to generate shareholder returns as industry conditions normalize. Q: Can you clarify the earlier-than-anticipated shipments and how the recent improvement in farmer economics is affecting inventory management and year-end buying?A: Bryan Knutson (CEO) explained that the early shipments were due to factory lead times fluctuating by a month or more, and since customers want equipment as soon as possible, the company delivered it immediately. Robert Larsen (CFO) added that the company is not changing its inventory strategy based on the recent commodity price rally, as year-end buying decisions are typically made in late November and December. He highlighted that year-to-date, used equipment inventory is down $40 million, new equipment is up $60 million, and total Domestic Ag inventory is down $16 million, reflecting a focus on improving mix and reducing aged stock. Q: What are you seeing in terms of pricing for new and used equipment?A: Bryan Knutson (CEO) stated that new equipment pricing is relatively flat, with list price increases generally offset by promotional programming. On the used side, he noted that values are stabilizing and finding a bottom, which is ending the divergence between new and used prices. However, the spread has not yet converged. He believes that as other dealers finish cleaning up their aged inventory, used prices will firm up further, which should support increased trading activity and industry volumes next year. Q: What are your current thoughts on the US ag market heading into next year, and are you seeing similar trends to what the OEMs have commented on?A: Bryan Knutson (CEO) confirmed that the company is seeing similar trends to the OEMs, with early order books for seasonal equipment like planters and sprayers moving in the right direction. He reiterated that the long-term structural fundamentals are positive, including aging fleets, strong livestock markets, and growing demand for biofuels. He believes that if commodity prices can sustain their recent gains, it could provide a significant boost to farmer profitability and equipment demand heading into fiscal 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance slightly exceeded expectations due to the timing of equipment deliveries and earlier-than-anticipated improvements in equipment margins. Management attributes margin expansion to disciplined efforts in clearing aged inventory, which has declined every month so far this year. The underlying demand environment remains challenged as low commodity prices and high input costs keep grower profitability below breakeven. Parts and service businesses provided critical stability, reflecting successful customer engagement despite a 'fix-as-fail' mentality among many growers. Strategic focus has shifted from absolute inventory reduction to mix optimization to prepare for the next phase of the industry cycle. Domestic Ag remains the primary headwind, while Construction demand is supported by a healthy baseline of infrastructure and data center activity. Full-year guidance is reaffirmed, assuming that early Q1 delivery strength will balance out over the remainder of the fiscal year. Management expects consolidated equipment margins to reach approximately 8.4% for the full year, up from 7.3% in the prior year. Floorplan interest expense is projected to decline by approximately 25% year-over-year due to healthier inventory levels and improved turns. The upcoming presale order period starting this month is identified as a critical indicator for second-half activity and grower sentiment. Operating expenses are expected to be approximately 17% of sales as the company balances cost discipline with investments in customer care. Completed the wind-down of German operations in Q1, marking a milestone in European footprint optimization. Australian customers face disproportionate pressure from diesel and fertilizer cost spikes following Middle East conflicts, though rainfall is improving growing conditions. Romania faces difficult year-over-year comparisons as the company laps the prior year's European Union subvention program activity. Aged equipment inventory continues to be a primary leading indicator for sustained margin recovery as the company navigates trough industry volumes. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that used equipment values have stabilized after nearly two years of sequential declines. New equipment price increases from OEMs have moderated to a stable 1% to 2% range following post-COVID spikes. The current 'fix-as-fail' approach is leading to an older fleet with higher engine hours, which management believes will drive a stronger trade cycle when demand normalizes. Current parts and service strength is viewed as a bridge to future machine sales as growers eventually return to normalized purchasing patterns. While Q1 margins were 7.8%, management is maintaining an 8.4% full-year target due to the 'trough-type' environment and lowest industry volumes in decades. Domestic Ag margins improved to 6% in Q1 (vs. 5.25% expected), but Management anticipates a flatter margin profile for the remaining quarters, with expectations set between 6.5% and upwards of 7%.

Titan Machinery Inc. TITN used its first-quarter fiscal 2027 earnings call to argue that inventory cleanup is finally showing up in margins, even as farm demand remains weak. Management’s message was less about the quarter’s modest beat and more about being positioned for the next phase of the cycle. The company posted adjusted loss of $0.55 per share, narrower than the Zacks Consensus Estimate of $0.6 by 8.3%. Revenues of $522.4 million beat the consensus mark of $493.2 million by 5.9%. Still, executives kept full-year assumptions unchanged and emphasized that the demand backdrop has not improved. Titan Machinery Inc. price-consensus-eps-surprise-chart | Titan Machinery Inc. Quote Bryan Knutson, president and chief executive officer, said first-quarter results came in slightly ahead of internal expectations because equipment margin improvement arrived sooner than anticipated. He tied that progress directly to the company’s work clearing aged inventory over the past several quarters. Revenues fell 12.1% year over year, but gross profit margin expanded 180 basis points to 17.1%. Equipment margin rose about 100 basis points to 7.8%, giving management evidence that mix and inventory discipline are starting to offset softer sales volumes. That dynamic shaped the call’s central takeaway. Titan Machinery framed the quarter as proof that execution can protect profitability at the bottom of the equipment cycle, even before end-market demand turns meaningfully higher. Knutson said the company’s focus has shifted from absolute inventory reduction to mix optimization. Total inventory ended the quarter at $914.8 million, up modestly from year-end in line with seasonal patterns, but he stressed that aged equipment inventory continued to decline month by month. Bo Larsen, chief financial officer and treasurer, said lower interest-bearing inventory helped reduce floorplan and other interest expense by 26% year over year to $8.2 million. He also noted Titan ended April with about $30 million in cash and an adjusted debt-to-tangible net worth ratio of 1.6X, well below its covenant threshold. Management’s posture here was disciplined rather than aggressive. Executives made clear that healthier inventory turns and a cleaner aging profile remain the most important operational levers supporting margin recovery in fiscal 2027. Knutson described conditions in domestic agriculture as very challenging, with commodity prices still below breakeven for many producers. He said pressure on grower profitability continues to suppress equipment demand, even though recent corn-price improvement and policy support remain important variables to watch. He also pointed to a “fix-as-fail” customer mindset, with growers pushing existing assets harder instead of making broader maintenance or replacement decisions. Even so, Titan’s parts and service business stayed steady, which management presented as evidence that customer relationships are holding up at trough volumes. Outside North American agriculture, the tone was mixed. Construction demand remains supported by infrastructure and data center work, Europe faces difficult comparisons after prior-year Romanian subsidy activity, and Australia is dealing with elevated diesel and fertilizer costs despite better rainfall conditions. Larsen reaffirmed all fiscal 2027 modeling assumptions introduced last quarter. Titan still expects agriculture revenues to decline 15% to 20%, construction to range from flat to up 5%, Europe to decline 20% to 25% and Australia to rise 10% to 15%. The company also maintained its full-year equipment margin outlook of about 8.4%, operating expenses near 17% of sales, and a roughly 25% decline in floorplan interest expense. Adjusted EBITDA guidance stayed at $17 million to $29 million, while adjusted loss per share remained projected at $1.25 to $1.75. The unchanged outlook was one of the clearest signals on the call. Management acknowledged a better-than-expected first quarter but refused to read it as a broader demand inflection. A B. Riley Securities analyst asked about the pricing environment, and Knutson said used equipment values have stabilized after a prolonged decline. He added that new equipment price increases from major manufacturers are now running in the low-single-digit range, leaving farmer profitability, not price volatility, as the bigger constraint on demand. The same analyst also pressed on whether delayed maintenance and heavier use of existing equipment could help future replacement demand. Knutson answered affirmatively, saying older fleets and higher machine hours should support both parts and service activity and the eventual machine trade cycle. A Robert W. Baird analyst asked about first-quarter delivery pull-forwards and the potential for equipment margins to move above guidance. Larsen said the delivery timing benefit should mostly offset in the back half, while margin improvement is arriving earlier than expected but in a flatter pattern than initially modeled. By the end of the call, management’s tone was constructive on execution and cautious on demand. Knutson repeatedly returned to inventory health, customer care and operating discipline as the company’s way to preserve earnings power until end markets recover. That framing left investors with a clear read on Titan Machinery’s current priorities. The company is not signaling a near-term rebound in agricultural spending, but it is arguing that internal cleanup work is making the business more resilient at the bottom of the cycle. TITN carries a Zacks Rank #3 (Hold), along with a Value Score of B, Growth Score of A, Momentum Score of C and VGM Score of A. Under the Zacks framework, higher grades such as A and B indicate more favorable value, growth or combined style characteristics, while the Zacks Rank remains the primary screen for expected performance over the next one to three months. A Zacks Rank #3 does not carry the same positive implication as a Zacks Rank #1 (Strong Buy) or 2 (Buy), even with an attractive Style Score. The current mix points to supportive growth and VGM characteristics, but the rank can change as earnings estimate revisions adjust after the quarter’s results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Titan Machinery Inc. (TITN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research