Core Insights - Titan Machinery Inc. reported an adjusted loss per share of 26 cents for Q2 fiscal 2026, which was better than the Zacks Consensus Estimate of a 56 cents loss, but a reversal from the adjusted earnings of 17 cents per share in the same quarter last year [1][8] - Total revenues for the quarter were $546 million, down 13.8% year-over-year, but exceeded the consensus estimate of $504 million [2][8] - The company anticipates a loss of $1.50 to $2.00 per share for fiscal 2026, reflecting weak demand, which is an update from the previous expectation of a loss of $1.25 to $2.00 per share [9] Revenue Breakdown - Equipment revenues decreased by 19.1% year-over-year to $376 million, while parts revenues fell slightly by 0.5% to $109 million [2] - Service revenues increased by 3.2% year-over-year to approximately $49 million, and rental and other revenues rose by 7.1% to $12 million [2] - Agriculture segment revenues fell 18.4% to $346 million, and construction revenues were down 10.2% to $72 million [4] Segment Performance - Europe revenues increased by 44.1% year-over-year to $98 million, driven by favorable foreign currency impacts, with income before taxes rising 121.7% to $5.1 million [5] - The Australia segment reported a significant decline in revenues, down 50.1% year-over-year to $31 million, resulting in a loss before taxes of $2.1 million [5] Cost and Margin Analysis - Cost of sales decreased by 13.1% to $453 million, while gross profit fell 16.6% year-over-year to $94 million, leading to a gross margin of 17.1%, down from 17.7% in the prior year [3] - Operating expenses decreased by 2.6% year-over-year to $93 million, attributed to lower variable expenses [3] - Adjusted EBITDA was reported at $5.6 million, a decline from $20.2 million in the prior year [3] Cash Flow and Balance Sheet - Cash used for operating activities was $50 million in the first half of fiscal 2026, compared to an outflow of $48 million in the same period last year [6] - The company ended the quarter with a cash balance of approximately $33 million and long-term debt of $153 million, down from $158 million at the end of fiscal 2025 [6] Future Outlook - The Agriculture segment's revenue decline is now expected to be between 15% to 20%, an improvement from the previous forecast of 20% to 25% [7] - The Construction segment's revenues are anticipated to decline by 3% to 8%, updated from a previous estimate of 5% to 10% [9] - Year-over-year revenue growth in Europe is projected at 30% to 40%, an increase from the earlier estimate of 23% to 28% [9] Stock Performance - Over the past year, Titan Machinery's shares have increased by 38.2%, outperforming the industry's growth of 15.8% [10]

Titan Machinery Inc. (NASDAQ:TITN) Q2 2026 Earnings Call August 28, 2025 8:30 AM ET Company Participants Bryan J. Knutson - President, CEO & Director Robert Larsen - CFO & Treasurer Conference Call Participants Benjamin David Klieve - Lake Street Capital Markets, LLC, Research Division Edward Randolph Jackson - Northland Capital Markets, Research Division Laura Maher - Unidentified Company Matthew Joseph Raab - Craig-Hallum Capital Group LLC, Research Division Mircea Dobre - Robert W. Baird & Co. Incorporat ...

Titan Machinery (TITN) Q2 2026 Earnings Call August 28, 2025 08:30 AM ET Company ParticipantsJeff Sonnek - Managing DirectorBryan Knutson - President, CEO & DirectorBo Larsen - CFO & TreasurerLaura Maher - Equity Research Associate - Diversified IndustrialsConference Call ParticipantsBen Klieve - Senior Equity Research AnalystMircea Dobre - Associate Director - Research & Senior Research AnalystTed Jackson - MD & Senior Research AnalystMatthew Raab - Equity Research AnalystOperatorGreetings, and welcome to ...

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $546.4 million, a 14% decrease from $633.7 million in the prior year period [14] - Gross profit decreased to $93.6 million from $112.4 million, with a gross profit margin of 17.1% compared to 17.7% in the prior year [14] - The net loss for the quarter was $6 million, translating to a loss per diluted share of $0.26, compared to adjusted net income of $4 million or adjusted diluted earnings per share of $0.17 for the same period last year [15] Business Line Data and Key Metrics Changes - Domestic Agriculture segment saw a same-store sales decrease of 18.7% to $345.8 million, with a pretax loss of $12.3 million compared to adjusted pretax income of $6.7 million in the prior year [16] - Construction segment's same-store sales decreased 10.2% to $72 million, resulting in a pretax loss of $1.2 million compared to adjusted pretax income of $200,000 in the prior year [16] - Europe segment experienced a 44% increase in same-store sales to $98.1 million, with a pretax income of $5.1 million compared to a pretax loss of $2.3 million in the prior year [16] - Australia segment's same-store sales decreased 50.1% to $30.6 million, with a pretax loss of $2.1 million compared to pretax income of $1.4 million in the prior year [16] Market Data and Key Metrics Changes - Farmer sentiment in the domestic agriculture market remains cautious due to low commodity prices, with net income heavily dependent on uncertain government support programs [10] - The European segment is performing well, particularly in Romania, driven by EU stimulus programs [11] - The Australian market is tracking similarly to North American agriculture, with industry volumes below prior trough levels [12] Company Strategy and Development Direction - The company is focused on inventory reduction initiatives, targeting a reduction of $100 million for the fiscal year, with expectations to exceed this target [7][18] - The strategy includes optimizing the used equipment portfolio and enhancing customer experience through a customer care initiative [9] - The company aims to emerge from the current cycle stronger and better positioned for fiscal 2027 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving inventory reduction targets and improving equipment margins in the future [19] - The company expects subdued equipment margins through the rest of fiscal 2026, with a revised full-year equipment margin expectation of approximately 6.6% [22] - Management highlighted the importance of government support and crop health for the agriculture segment's performance [10][11] Other Important Information - The company reduced inventory by approximately $365 million over the past year [13] - Cash on hand was $33 million, with an adjusted debt to tangible net worth ratio of 1.8 as of July 31, 2025 [18] Q&A Session Summary Question: Conditions for achieving historic equipment margin range - Management discussed the need for mix optimization, pricing discipline, and geographic optimization to improve margins [25][27][30] Question: Impact of net farm income on equipment margins - Management emphasized the importance of net farm income, which is influenced by yield, price, and government payments [34] Question: Clarification on equipment margin expectations - Management confirmed that the consolidated total equipment margin is expected to be 6.6%, with domestic agriculture margins at 3.8% for the full year [38][39] Question: Inventory reduction goals - Management indicated confidence in exceeding the $100 million inventory reduction target, with internal goals set higher [46] Question: OEM pricing and cost pressures - Management noted that OEMs are discussing price increases of 2% to 4%, and the company is working closely with suppliers to manage these costs [52] Question: Floor planning arrangements and tariff impacts - Management stated that floor plan interest expense has not been significantly impacted by tariffs, focusing instead on minimizing stock inventory [78] Question: OEM incentives and revenue guidance - Management provided insights on expected OEM incentives and revenue consistency between Q3 and Q4, with a noted mix change affecting profitability [82][84] Question: Pending farm bill and farmer support - Management highlighted ongoing debates around the farm bill, emphasizing the need for permanent support and funding for research in crop utilization [90][92]

分组1 - Titan Machinery reported a quarterly loss of $0.26 per share, better than the Zacks Consensus Estimate of a loss of $0.56, representing an earnings surprise of +53.57% [1] - The company posted revenues of $546.43 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 8.40%, but down from $633.67 million year-over-year [2] - Titan Machinery shares have increased approximately 48.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 10.2% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.31 on revenues of $570.39 million, and for the current fiscal year, it is -$1.81 on revenues of $2.27 billion [7] - The Automotive - Retail and Whole Sales industry, to which Titan Machinery belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook [8]

Second Quarter FY2026 Earnings Conference Call August 28, 2025 Safe Harbor Statement Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws. Statements about our beliefs and expectations and statements containing the words "may," "could," "would," "should," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," "intend" and similar expressions may constitute forward-looking statements. Except for historical in ...

Core Viewpoint - Titan Machinery Inc. reported a net loss of $6.0 million for the second quarter of fiscal 2026, reflecting challenges in the agricultural and construction equipment markets, while maintaining a focus on inventory reduction and operational optimization [2][7][16]. Financial Performance - Revenue for the second quarter of fiscal 2026 was $546.4 million, down from $633.7 million in the same quarter last year, representing a decrease of 13.8% [3][34]. - Equipment revenue decreased to $376.3 million from $465.2 million year-over-year, a decline of 19.1% [3][34]. - Parts revenue remained relatively stable at $109.2 million compared to $109.8 million last year, while service revenue increased to $48.8 million from $47.3 million [3][34]. - Gross profit for the quarter was $93.6 million, down from $112.4 million, with a gross profit margin of 17.1%, slightly lower than 17.7% in the previous year [4][34]. Operating Expenses and Losses - Operating expenses were reduced to $92.7 million from $95.2 million year-over-year, with operating expenses as a percentage of revenue increasing to 17.0% from 15.0% [5][34]. - The company reported a net loss of $6.0 million, or a loss per diluted share of $0.26, compared to a net loss of $4.3 million, or $0.19 per diluted share, in the same period last year [7][34]. Segment Performance - The Agriculture segment saw revenue decline to $345.8 million, down 18.7% year-over-year, with a pre-tax loss of $12.3 million compared to a pre-tax income of $0.6 million last year [10][34]. - The Construction segment's revenue decreased to $72.0 million, down 10.2%, with a pre-tax loss of $1.2 million, an improvement from a loss of $4.9 million in the previous year [11][34]. - The Europe segment experienced significant growth, with revenue increasing to $98.1 million, up 44.0%, and a pre-tax income of $5.1 million compared to a loss of $2.3 million last year [12][34]. - The Australia segment's revenue fell to $30.6 million, down 50.1%, with a pre-tax loss of $2.1 million compared to a pre-tax income of $1.4 million last year [13][34]. Inventory and Cash Flow - The company reiterated its target to reduce inventory by $100 million for fiscal 2026, with inventory levels remaining flat at $1.1 billion as of July 31, 2025 [2][14]. - Cash at the end of the second quarter was $32.7 million, with net cash provided by operating activities amounting to $49.9 million, a significant improvement from a net cash used of $47.4 million in the same period last year [14][15]. Future Outlook - The company adjusted its revenue modeling assumptions for fiscal 2026, expecting a decrease in Agriculture segment revenue of 15% to 20%, and an increase in Europe segment revenue of 30% to 40% [17][16]. - The adjusted diluted loss per share guidance was narrowed to a range of ($1.50) to ($2.00) [18][16].

Core Viewpoint - Titan Machinery Inc. will release its financial results for the second quarter on August 28, 2025, followed by an investor conference call [1] Group 1: Financial Results Announcement - The financial results for the second quarter ending July 31, 2025, will be announced on August 28, 2025 [1] - An investor conference call is scheduled for 7:30 a.m. Central time (8:30 a.m. Eastern time) on the same day [1] Group 2: Participation Details - Investors can participate in the live call by dialing (877) 704-4453 from the U.S. or (201) 389-0920 for international callers [2] - A telephone replay will be available approximately three hours after the call and will last until September 28, 2025 [2] Group 3: Webcast Information - A live webcast of the conference call will be available on the Investor Relations section of the company's website [3] - The webcast will be archived for 30 days for later access [3] Group 4: Company Overview - Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota [4] - The company operates a network of full-service agricultural and construction equipment dealer locations across North America, Europe, and Australia [4] - The network includes U.S. locations in multiple states and international locations in Bulgaria, Germany, Romania, Ukraine, and Australia [4]

Financial Performance - For the first quarter of fiscal 2026, the company reported a net loss of $13.2 million, or $0.58 per diluted share, compared to a net income of $9.4 million, or $0.41 per diluted share in the same period of fiscal 2025[65]. - Total revenue for the first quarter of fiscal 2026 decreased by 5.5% or $34.4 million, primarily due to challenging industry conditions and a projected 23.6% decline in net farm income compared to 2022[76]. - Gross profit for the first quarter of fiscal 2026 decreased by 25.3% or $30.8 million, with a gross profit margin declining to 15.3% from 19.4% in the prior year quarter[78]. - The company reported a loss before income taxes of $17.3 million for the first quarter of fiscal 2026, compared to an income of $12.8 million in the same period of fiscal 2025[86]. - Net cash provided by operating activities was $6.2 million for the first three months of fiscal 2026, a significant improvement from a net cash used of $32.4 million in the prior year[101]. Revenue Breakdown - Total revenue for the first quarter of fiscal 2026 was $594.3 million, a decrease of 5.5% compared to $628.7 million in the same period of fiscal 2025[86]. - Agriculture segment revenue decreased by 14.1% to $384.4 million, primarily due to lower equipment sales driven by challenging industry conditions[87]. - Equipment revenue for the first quarter of fiscal 2026 was $436.8 million, a decrease of 6.7% compared to $468.1 million in the same period of fiscal 2025[76]. - Parts revenue decreased by 2.4% to $105.6 million, while service revenue also saw a decline of 2.4% to $44.0 million in the first quarter of fiscal 2026[76]. - The construction segment reported a revenue increase of 0.9% to $72.1 million, but incurred a loss before income taxes of $4.2 million[89][90]. Operating Metrics - The absorption rate for the company decreased to 75.5% in the first quarter of fiscal 2026, down from 77.1% in the same period last year, primarily due to lower gross profit[79]. - Operating expenses decreased by 2.8% to $96.4 million, but as a percentage of revenue, operating expenses increased to 16.2% from 15.8% year-over-year[80]. - The gross profit margin for equipment sales dropped significantly to 6.8% from 11.9% in the prior year, reflecting lower equipment margins driven by softer retail demand[78]. - Equipment inventory turnover decreased from 2.0 times to 1.7 times over the rolling 12 months ended April 30, 2025, indicating a decline in demand[97]. Segment Performance - The company operates through four reportable segments: Agriculture, Construction, Europe, and Australia, with principal revenue sources including new and used equipment sales, parts sales, service, and equipment rental[61]. - Europe segment revenue increased by 44.2% to $93.9 million, attributed to higher equipment demand from EU stimulus programs[91]. - Shared Resources loss before income taxes was $4.5 million for the first quarter of fiscal 2026, compared to a loss of $1.4 million in the same period last year[94]. Tax and Debt - The effective tax rate improved to 23.6% in the first quarter of fiscal 2026 from 26.2% in the same period of fiscal 2025[83]. - Total long-term debt, including finance lease obligations, was $211.2 million, primarily fixed rate debt[109]. Foreign Currency Risk - The company manages foreign currency exchange rate risk through derivative financial instruments, primarily foreign exchange forward contracts[110]. - A hypothetical 10% increase or decrease in foreign exchange rates would not have a material impact on results of operations or cash flows[110]. - The Ukrainian subsidiary had $1.0 million of net monetary assets denominated in Ukrainian hryvnia (UAH) as of April 30, 2025[110]. - The continuation of the Russia/Ukraine conflict could lead to significant UAH devaluations or more stringent payment controls in the future[110]. - Fluctuating foreign currency exchange rates may adversely impact results of operations, cash flows, and net investment in foreign operations[111].

Core Insights - Momentum investing focuses on "buying high and selling higher" rather than traditional "buying low and selling high" strategies [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [3] Company Analysis: Titan Machinery (TITN) - Titan Machinery has seen a price increase of 21% over the past four weeks, indicating growing investor interest [4] - The stock has gained 33.4% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - TITN has a beta of 1.35, suggesting it moves 35% higher than the market in either direction, indicating fast-paced momentum [5] - The stock holds a Momentum Score of B, suggesting it is an opportune time to invest [6] - An upward trend in earnings estimate revisions has earned TITN a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - TITN is trading at a Price-to-Sales ratio of 0.18, indicating it is relatively undervalued, as investors pay only 18 cents for each dollar of sales [7] Investment Opportunities - TITN appears to have significant potential for growth at a fast pace, alongside other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [8] - There are over 45 Zacks Premium Screens available for investors to identify winning stock picks based on their personal investing styles [9]