WEST FARGO, N.D., May 08, 2025 (GLOBE NEWSWIRE) -- Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, announced today it will release financial results for the first quarter April 30, 2025, on Thursday, May 22, 2025, followed by an investor conference call 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) 389-0 ...

Financial Performance and Market Conditions - The company's financial performance is highly dependent on CNH Industrial's reputation and product competitiveness in the agricultural and construction equipment sectors[93]. - The agricultural equipment market is currently experiencing a downturn, leading to significant reductions in revenues and profitability for the company[109]. - Inflationary pressures and higher interest rates have made equipment purchases less affordable, contributing to a depressed agricultural equipment market and significantly decreased revenue in fiscal 2025[112]. - A significant drop in net farm income or weather disruptions could lead to an oversupply of equipment, negatively affecting sales prices and margins[123]. - Seasonal fluctuations in agricultural and construction equipment sales can significantly impact quarterly results and cash flow[131]. - Changes in tax legislation, such as the 15% global minimum tax, could adversely affect the company's financial results[132]. Operational Risks and Challenges - Supply chain disruptions have previously caused variability in product lead times, impacting inventory balances from quarter to quarter[118]. - The company is subject to risks from international operations, including compliance with foreign laws and fluctuations in currency exchange rates[120]. - The competitive landscape is challenging, with aggressive pricing strategies from competitors affecting profit margins[114]. - Changes in CNH Industrial's operating practices could adversely affect the company's business and results of operations[100]. - The ongoing Russian-Ukraine conflict has significantly disrupted operations in Ukraine, with potential asset write-offs and revenue losses if operations cease[121]. - The company faces risks in its growth strategy, particularly regarding acquisitions, which may not yield expected revenue growth or profitability[139]. - A shortage of qualified service technicians could negatively impact customer service and increase compensation expenses, affecting gross margins[143]. Financial Management and Debt - As of January 31, 2025, the company’s indebtedness includes floorplan financing and long-term debt, which could limit operational flexibility and increase vulnerability to economic conditions[126]. - The company expects to rely on cash flow from operations and borrowings to fund operations, but future performance is uncertain due to various external factors[127]. - As of January 31, 2025, total floorplan payables outstanding were $755.7 million, with $453.3 million at variable interest rates[272]. Currency and Interest Rate Risks - The company attempts to manage foreign currency exchange rate risk through derivative financial instruments, primarily foreign exchange forward contracts[273]. - A hypothetical 10% increase or decrease in foreign exchange rates would not have a material impact on the company's results of operations or cash flows[274]. - A one percentage point increase in interest rates for the next 12 months would decrease pre-tax earnings and cash flow by approximately $4.5 million, while a decrease would increase them by the same amount[272]. - The company is exposed to various market risks, including changes in interest rates and foreign currency exchange rates[271]. Inventory and Asset Management - The company’s inventory management is critical, as equipment inventory represents a substantial portion of total assets, impacting sales and financing costs[122]. - The company has experienced downward adjustments in used equipment values, impacting cost of goods sold and operating income[124]. Cybersecurity and Data Protection - The company maintains cyber risk insurance, but it may not cover all losses from future breaches, and past cybersecurity incidents have not materially impacted financial position[150]. - The efficient operation of the business relies on information technology systems for financial reporting and regulatory compliance, making data security critical[148]. - The European Union General Data Protection Regulation imposes stringent data protection requirements, which could lead to significant penalties for noncompliance[149]. Dealer Agreements and Support - CNH Industrial's financial and marketing support is crucial for the company's competitiveness in the market[95]. - The company's dealer agreements impose significant obligations, including maintaining adequate facilities and workforce to service customer needs[101].

Core Insights - Titan Machinery Inc. reported an adjusted loss per share of $1.98 for Q4 fiscal 2025, missing the consensus estimate of a loss of $0.87 per share, compared to earnings of $1.05 in the same quarter last year [1][10] - Total revenues for fiscal 2025 were $2.7 billion, a 2% decline year over year, but exceeded the consensus estimate of $2.69 billion [11] - The company anticipates further losses in fiscal 2026, projecting a loss per share between $1.25 and $2.00 due to weak demand across segments [12] Financial Performance - In Q4 fiscal 2025, Titan Machinery's total revenues were approximately $760 million, down 11% from $852 million in the prior year, although it surpassed the consensus estimate of $748 million [3] - Equipment revenues fell 13% year over year to $622 million, while parts revenues decreased by 1.6% to $89 million; service revenues increased by 4.3% to $36.6 million [3] - Gross profit plummeted 64% year over year to $51 million, with a gross margin of 6.7%, reflecting a 990-basis point contraction from the previous year [4] Segment Analysis - Agriculture segment revenues declined 14% to $535 million, with same-store sales down 15.5%, leading to a loss before taxes of $55.3 million [6] - Construction segment revenues were $95 million, down 5.5%, with a loss before taxes of $1.1 million [7] - The Europe segment's revenues increased to $65 million from $62 million, but it reported a loss before taxes of $1.8 million [8] Cash Flow and Debt - Cash flow from operating activities was $70.3 million in fiscal 2025, compared to an outflow of $32.3 million in the previous fiscal year [9] - The company ended fiscal 2025 with a cash balance of approximately $36 million, down from $38 million at the end of fiscal 2024, while long-term debt rose to $158 million from $106 million [9] Stock Performance - Over the past year, Titan Machinery's shares have decreased by 33.6%, contrasting with a 1.8% decline in the industry [13]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $759.9 million, a 12% decrease from $852.1 million in the prior year period [24] - Gross profit for Q4 2025 was $51 million, down from $141 million in the prior year, with a gross profit margin of 6.7% [24][25] - Adjusted net loss for Q4 2025 was $44.9 million or $1.98 per diluted share, compared to a net income of $24 million or $1.05 per diluted share in the prior year [27][33] Business Line Data and Key Metrics Changes - Agriculture segment sales decreased by 13.8% to $534.7 million, with same-store sales declining by 15.5% [28] - Construction segment same-store sales decreased by 5.5% to $94.6 million, maintaining an equipment margin above 10% [29] - European segment sales increased by 6.1% to $65.4 million, with a same-store sales increase of 5.7% [30] - Australia segment sales were $65.3 million, down from $69.8 million, with a same-store sales decrease of 6.5% [31] Market Data and Key Metrics Changes - North American large ag equipment demand is expected to decline by approximately 30% in calendar 2025 [14] - European operations faced challenges due to lower commodity prices and high interest rates, with expectations for modest revenue growth in FY 2026 [16] - Australian market dynamics are similar to the domestic ag segment, with expected revenue down by 15% to 20% [42] Company Strategy and Development Direction - The company is focusing on inventory optimization and transitioning from general inventory reduction to optimizing inventory mix [11][12] - Emphasis on enhancing service business and customer care strategy to drive growth [12][22] - The company aims to strengthen its foundation through improved inventory management and corporate controls [20][22] Management's Comments on Operating Environment and Future Outlook - Management expects continued market headwinds in the near term but believes improvements made will position the company to navigate the current cycle [22] - The outlook for fiscal 2026 includes expectations of revenue declines across segments, particularly in agriculture and construction [37][40] - Management is monitoring government assistance programs and their potential impact on demand [62] Other Important Information - The company achieved a significant inventory reduction of $304 million in Q4, totaling $419 million since inventory peaked [10][35] - Adjusted debt to tangible net worth ratio was 1.8 times, well below the bank covenant of 3.5 times [35] Q&A Session Summary Question: Service margin performance - Management expects service margin to improve year-over-year due to efficiencies from the new ERP system [54] Question: Inventory reduction methods - Most inventory reduction was achieved through the company's dealer network, with minimal reliance on auctions [57][59] Question: Impact of tariffs on business - Management is closely monitoring tariffs and their potential impact on demand, especially in relation to government assistance programs [62] Question: Government assistance and demand behavior - Management believes the current government assistance could positively influence demand, but commodity prices remain the primary driver for equipment purchases [71][73] Question: Optimal inventory levels - Management is targeting a further $100 million reduction in inventory, with flexibility to adjust based on demand [78][106] Question: SG&A guidance for fiscal 2026 - SG&A expenses are expected to decrease to about $380 million, approximately 17.3% of sales [92][94]

Core Insights - Titan Machinery Inc. reported a significant inventory reduction of approximately $304 million in the fiscal fourth quarter, totaling $419 million since the peak in the fiscal second quarter [1][3] - Service revenue increased by 14.5% for the full fiscal year 2025, or 7.1% on a same-store basis [1][3] - The company provided modeling assumptions for fiscal 2026, anticipating a decline in demand for large agricultural equipment by approximately 30% year-over-year [17] Financial Performance - For the fourth quarter of fiscal 2025, total revenue was $759.9 million, down from $852.1 million in the same quarter last year [4] - Equipment revenue decreased to $621.8 million from $714.0 million year-over-year [4] - Gross profit for the fourth quarter was $51.0 million, a significant drop from $141.0 million in the previous year, resulting in a gross profit margin of 6.7% compared to 16.6% [5] Operating Expenses and Losses - Operating expenses were $96.7 million for the fourth quarter, down from $100.3 million year-over-year [6] - The net loss for the fourth quarter was $43.8 million, translating to a loss per diluted share of $1.93, compared to a net income of $24.0 million and earnings per diluted share of $1.05 in the same quarter last year [8][9] - Adjusted EBITDA for the fourth quarter was negative $46.0 million, compared to positive $45.3 million in the previous year [9] Segment Performance - The Agriculture segment reported revenue of $534.7 million, down from $620.6 million, with a same-store sales decrease of 15.5% [10] - The Construction segment's revenue was $94.6 million, a decrease from $100.1 million, reflecting a same-store sales decrease of 5.5% [11] - The Europe segment saw revenue increase to $65.4 million from $61.6 million, while the Australia segment's revenue decreased to $65.3 million from $69.8 million [12][13] Full Year Results - For fiscal 2025, total revenue was $2.7 billion, down from $2.8 billion in fiscal 2024 [14] - The net loss for the full year was $36.9 million, or $1.63 loss per diluted share, compared to a net income of $112.4 million, or $4.93 earnings per diluted share in the prior year [14] - Adjusted net loss for fiscal 2025 was $29.7 million, or $1.31 loss per diluted share [14] Balance Sheet and Cash Flow - Cash at the end of the fourth quarter was $35.9 million, with inventories at $1.1 billion, down from $1.4 billion as of October 31, 2024 [15] - The company generated net cash provided by operating activities of $70.3 million for fiscal 2025, compared to net cash used of $32.3 million in the previous year [16] 2026 Modeling Assumptions - The company expects Agriculture segment revenue to decline by 20% to 25%, Construction by 5% to 10%, Europe to remain flat to increase by 5%, and Australia to decline by 15% to 20% [19] - Adjusted diluted loss per share is projected to be between $1.25 and $2.00 [19]

Titan Machinery (TITN) Q4 2025 Earnings Call March 20, 2025 08:30 AM ET Company Participants Jeff Sonnek - MD, ICR, Inc.Bryan Knutson - President & CEOBo Larsen - CFO & Treasurer Conference Call Participants Edward Jackson - MD & Senior Research AnalystMircea Dobre - Associate Director of Research & Senior Research AnalystBen Klieve - Senior Research AnalystMatthew Raab - Equity Research Analyst Operator Greetings, and welcome to the Titan Machinery Fourth Quarter Fiscal twenty twenty five Earnings Call. At ...

Core Insights - Titan Machinery Inc. reported a significant inventory reduction of approximately $304 million in the fiscal fourth quarter, totaling $419 million since the peak in the fiscal second quarter [1][3] - Service revenue increased by 14.5% for the full fiscal year 2025, or 7.1% on a same-store basis [1][3] - The company provided modeling assumptions for fiscal 2026, anticipating a decline in demand for North American large agriculture equipment by approximately 30% year-over-year [17][18] Financial Performance - For the fourth quarter of fiscal 2025, total revenue was $759.9 million, down from $852.1 million in the same quarter last year [4] - Equipment revenue decreased to $621.8 million from $714.0 million year-over-year, while parts revenue slightly declined to $89.3 million from $90.8 million [4] - Gross profit for the fourth quarter was $51.0 million, a significant drop from $141.0 million in the previous year, resulting in a gross profit margin of 6.7% compared to 16.6% [5] Operating Expenses and Losses - Operating expenses were $96.7 million for the fourth quarter, down from $100.3 million year-over-year, but operating expense as a percentage of revenue increased to 12.7% from 11.8% [6] - The company reported a net loss of $43.8 million for the fourth quarter, compared to a net income of $24.0 million in the same period last year [8] - Adjusted EBITDA was negative $46.0 million, contrasting with positive EBITDA of $45.3 million in the fourth quarter of the previous year [9] Segment Performance - The Agriculture segment's revenue for the fourth quarter was $534.7 million, down from $620.6 million, reflecting a same-store sales decrease of 15.5% [10] - The Construction segment's revenue decreased to $94.6 million from $100.1 million, with a same-store sales decrease of 5.5% [11] - The Europe segment saw revenue increase to $65.4 million from $61.6 million, while the Australia segment's revenue decreased to $65.3 million from $69.8 million [12][13] Full Year Results - For fiscal 2025, total revenue was $2.7 billion, down from $2.8 billion in fiscal 2024, with a net loss of $36.9 million compared to a net income of $112.4 million in the prior year [14] - Adjusted net loss for fiscal 2025 was $29.7 million, or $1.31 loss per diluted share [14] - The company generated adjusted EBITDA of $12.8 million in fiscal 2025, a significant decrease from $189.3 million in fiscal 2024 [14] Balance Sheet and Cash Flow - Cash at the end of the fourth quarter was $35.9 million, with inventories at $1.1 billion, down approximately $419 million from the peak inventory of $1.5 billion [15] - Net cash provided by operating activities was $70.3 million for fiscal 2025, compared to net cash used of $32.3 million in fiscal 2024 [16] 2026 Modeling Assumptions - The company expects segment revenue for fiscal 2026 to decline, with Agriculture down 20% to 25%, Construction down 5% to 10%, Europe flat to up 5%, and Australia down 15% to 20% [20] - Adjusted diluted loss per share is projected to be between $1.25 and $2.00 [20]

Core Viewpoint - Titan Machinery Inc. is set to release its financial results for the fourth quarter and full year ended January 31, 2025, on March 20, 2025, followed by an investor conference call [1] Company Overview - Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota, operating a network of full-service agricultural and construction equipment dealer locations across North America, Europe, and Australia [4] - The company services farmers, ranchers, and commercial applicators, with U.S. locations in multiple states including Colorado, Idaho, and Minnesota, and international locations in Bulgaria, Germany, Romania, Ukraine, and Australia [4] - Titan Machinery represents various CNH Industrial Brands, including Case IH, New Holland Agriculture, and Case Construction [4] Investor Participation - Investors can participate in the live conference call by dialing specific numbers for U.S. and international callers, with a telephone replay available for a limited time after the call [2] - A live webcast of the call will also be available on the company's Investor Relations website, archived for 30 days [3]

Core Insights - Titan Machinery Inc. will participate in a fireside chat at the 2025 ICR Conference scheduled for January 13-15, 2025 [1][2] - The fireside chat is set for January 14, 2025, at 8:30 am Eastern Time, with a live audio webcast available [2] Company Overview - Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota [3] - The company operates a network of full-service agricultural and construction equipment dealer locations across North America, Europe, and Australia [3] - The U.S. locations span multiple states including Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, South Dakota, Washington, Wisconsin, and Wyoming [3] - Internationally, Titan Machinery has stores in Bulgaria, Germany, Romania, Ukraine, and Australia [3] - The company represents various CNH Industrial Brands, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, and CNH Industrial Capital [3]

Financial Performance - Total revenue for the three months ended October 31, 2024, was $679.8 million, a decrease of 2.3% compared to $694.1 million for the same period in 2023[15] - Net income for the three months ended October 31, 2024, was $1.7 million, down 94.3% from $30.2 million in the same period last year[15] - Gross profit for the three months ended October 31, 2024, was $110.5 million, a decline of 20.1% compared to $138.3 million for the same period in 2023[15] - Operating expenses increased to $98.8 million for the three months ended October 31, 2024, up 7.2% from $92.1 million in the same period last year[15] - The company reported a gross profit margin of 16.3% for the three months ended October 31, 2024, compared to 19.9% for the same period in 2023[15] - Earnings per share for the three months ended October 31, 2024, was $0.07, a significant decrease from $1.32 in the same period last year[15] - The company reported a comprehensive income of $7.5 million for the three months ended October 31, 2024, compared to $28.3 million for the same period in 2023[16] - Net income for the nine months ended October 31, 2024, was $6,850,000, compared to $88,479,000 for the same period in the previous year, indicating a significant decline[20] - The company reported a significant decrease in inventories, with a change of $(114,485,000) for the nine months ended October 31, 2024, compared to $(358,837,000) in the previous year[20] - Net income for the three months ended October 31, 2024, was $1.676 million, compared to $29.728 million for the same period in 2023, reflecting a significant decrease[28] - Total revenue for the three months ended October 31, 2024, was $531.404 million, compared to $694.115 million for the same period in 2023, indicating a decline of approximately 23.5%[31] Assets and Liabilities - Total current assets increased to $1.6 billion as of October 31, 2024, compared to $1.5 billion as of January 31, 2024[11] - Total liabilities increased to $1.8 billion as of October 31, 2024, compared to $1.6 billion as of January 31, 2024[11] - The company’s total stockholders' equity rose to $668.2 million as of October 31, 2024, compared to $657.6 million as of January 31, 2024[11] - Total stockholders' equity as of October 31, 2024, was $668,200,000, an increase from $625,833,000 at the end of the previous fiscal year[18] - The company’s total assets as of October 31, 2024, were $2.1 billion, an increase from $1.99 billion as of January 31, 2024[78] Cash Flow and Expenses - The company reported a net cash used for operating activities of $56,195,000 for the nine months ended October 31, 2024, compared to $82,061,000 in the same period last year[20] - Cash at the end of the period was $23,420,000, down from $69,981,000 at the end of the previous year[20] - Stock-based compensation expense for the nine months ended October 31, 2024, was $3,203,000, up from $2,339,000 in the prior year[20] - The company’s cash paid for income taxes during the period was $5,887,000, compared to $28,890,000 in the previous year[20] - Net cash used for operating activities was $56.2 million for the first nine months of fiscal 2025, a decrease from $82.1 million in the same period last year[129] - Net cash used for investing activities decreased to $29.4 million for the first nine months of fiscal 2025, down from $64.1 million in the same period last year[130] - Net cash provided by financing activities was $71.0 million for the first nine months of fiscal 2025, compared to $170.3 million in the same period last year[130] Segment Performance - Agriculture segment revenue for the three months ended October 31, 2024, was $482.0 million, down from $531.4 million in the same period of 2023, a decrease of approximately 9.3%[76] - The Company’s Europe segment revenue for the three months ended October 31, 2024, was $62.4 million, down from $85.2 million in the same period of 2023, a decline of approximately 26.8%[76] - The Construction segment revenue increased by 10.0% to $85.3 million, but the segment reported a loss before income taxes of $0.9 million compared to a profit of $4.1 million in the prior year[101] - The Australia segment, newly entered in October 2023, reported revenue of $50.1 million with a loss before income taxes of $0.3 million for Q3 fiscal 2025[104] - Agriculture segment revenue decreased by $69.9 million or 4.9%, while the construction segment saw a revenue increase of $4.6 million or 2.0%[116] - Europe segment revenue decreased by 21.8%, resulting in a loss before income taxes of $2.1 million for the first nine months of fiscal 2025, compared to a profit of $17.1 million in the same period last year[120] - The Australia segment generated $155.9 million in revenue for the first nine months of fiscal 2025, with an income before income taxes of $0.6 million[120] Acquisitions and Impairments - The Company acquired O'Connors for a total cash consideration of $66.5 million on October 2, 2023, which included 15 dealership locations in Australia[67] - The acquisition of O'Connors resulted in net assets acquired valued at $66.5 million, with goodwill recognized amounting to $24.3 million[70] - The company recognized an impairment charge of $0.3 million for long-lived assets, with $0.2 million in the Agriculture segment and $0.1 million in the Construction segment for the three months ended October 31, 2024[43] - The company recognized $0.5 million of impairment expense related to goodwill and $1.2 million related to other intangible and long-lived assets in the first nine months of fiscal 2025[110] Interest and Financing - As of October 31, 2024, the company had total floorplan and working capital lines of credit amounting to $1.5 billion, including a $875.0 million credit facility with CNH Industrial[53] - The interest-bearing U.S. floorplan payables had a variable interest rate ranging from 7.21% to 10.09% as of October 31, 2024, compared to 7.22% to 10.70% as of January 31, 2024[54] - The effective interest rate on U.S. borrowings ranges from 0.75% to 1.25% for Base Rate Loans and 1.75% to 2.25% for SOFR Rate Loans[53] - The company recorded a foreign currency contract loss of $114, compared to a loss of $1,006 in the same period of the previous year[60] - The total accumulated other comprehensive income as of October 31, 2024, was $3.1 million, reflecting a foreign currency adjustment gain of $403[61] Taxation - The effective tax rate for the three months ended October 31, 2024, was 522.9%, compared to 25.4% for the same period in 2023[65] - The effective tax rate for Q3 fiscal 2025 was 522.9%, significantly higher than 25.4% in the same period last year, primarily due to discrete items and changes in income mix[96] - The effective tax rate for the first nine months of fiscal 2025 was 22.2%, down from 24.7% in the same period last year, primarily due to discrete items and the mix of domestic and foreign income[112] Market Conditions - The U.S. Department of Agriculture forecasts a 4.4% decrease in net farm income for calendar year 2024, following a 19.5% decline in 2023, impacting demand for agricultural equipment[81] - A one percentage point change in interest rates for the next 12-month period would impact pre-tax earnings and cash flow by approximately $5.9 million[136] - A hypothetical 10% increase or decrease in foreign exchange rates would not have a material impact on the company's results of operations or cash flows[137] - The company is exposed to both transactional and translational foreign currency exchange rate risks[137]