Core Viewpoint - Titan Machinery Inc. reported a significant decline in earnings per share (EPS) and revenues for the third quarter of fiscal 2025, reflecting challenges in the agricultural and construction equipment markets, while also facing increased costs and reduced margins [1][4][10]. Financial Performance - EPS for Q3 fiscal 2025 was 7 cents, a 95% decrease from $1.32 in the same quarter last year [1]. - Total revenues were $680 million, down 2.1% from $694 million in the prior year, but exceeded the consensus estimate of $669 million [1]. - Equipment revenues fell 5.1% year over year to $495 million, while parts revenues increased by 5.3% to $121 million [2]. - Service revenues rose 14.3% to $51 million, while rental revenues decreased by 1.6% to $12 million [2]. Cost and Margin Analysis - Cost of sales increased by 2.4% year over year to $569 million, leading to a gross profit decline of 20.2% to $110.5 million [4]. - Gross margin contracted to 16.3% from 19.9% in the previous year due to lower equipment margins and reduced retail demand [4]. - Operating expenses rose by 7% to $99 million, influenced by recent acquisitions [5]. - Adjusted EBITDA decreased by 70.7% year over year to $15 million, with an adjusted EBITDA margin of 2.2% compared to 7.2% in the prior year [5]. Segment Performance - Agriculture revenues fell 9.3% to $482 million, with a 10.8% decrease in same-store sales [6]. - Construction revenues increased by 10% to $85 million, driven by equipment deliveries and a 10% rise in same-store sales, but reported a loss before taxes of $0.94 million [7]. - Europe segment revenues dropped to $62 million from $85 million, resulting in a loss before taxes of $1.2 million [8]. - The newly reported Australia segment generated $50 million in revenues with a loss before taxes of $0.3 million [8]. Cash Flow and Balance Sheet - Cash used for operating activities was $56 million in the first nine months of fiscal 2025, down from $82 million in the prior-year period [9]. - The company ended the quarter with a cash balance of approximately $23 million [9]. Future Guidance - The company anticipates low demand for fiscal 2025 due to decreased net farm income and macroeconomic uncertainty, predicting a 5-10% decline in Agriculture segment revenues [10]. - Construction segment revenues are expected to fluctuate between a 2.5% decline and a 2.5% increase [10]. - Europe segment revenue growth is forecasted to decline by 20-25% [10]. - The Australia segment's revenue estimate has been updated to between $220 million and $230 million [11]. - The company expects EPS to range from a loss of 25 cents to earnings of 25 cents, down from an EPS of $4.93 in fiscal 2024 [11]. Stock Performance - Over the past year, Titan Machinery's shares have decreased by 38.2%, contrasting with a 29% growth in the industry [12].

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $679.8 million, a decrease of 2.1% compared to the prior year period [27] - Same-store sales decreased by 10.5%, driven by lower demand for equipment purchases [27] - Gross profit was $110 million, with a gross profit margin contracting by 360 basis points year-over-year to 16.3% [28] - Net income for Q3 2025 was $1.7 million or $0.07 per diluted share, compared to $30.2 million or $1.32 per diluted share in the prior year [33] Business Line Data and Key Metrics Changes - Agriculture segment sales decreased by 9.3% to $482 million, with a same-store sales decline of 10.8% [34] - Construction segment achieved a 10% same-store sales increase to $85.3 million, but pre-tax loss was $0.9 million compared to pre-tax income of $4.1 million in the prior year [35] - Europe segment sales decreased by 26.8% to $62.4 million, with a same-store sales decline of 27.1% [37] - Australia segment sales were $50.1 million with a pre-tax loss of $0.3 million [39] Market Data and Key Metrics Changes - Domestic agriculture segment faced softer demand due to lower net farm income and high input costs [11] - European operations, particularly in Romania, experienced weakened demand due to severe drought conditions [16] - Australia faced below-average rainfall and early frost, negatively impacting yields and demand [17] Company Strategy and Development Direction - The company is focused on managing inventory levels downward, achieving a reduction of approximately $115 million in total inventory during Q3 [13] - Proactive measures to enhance sales incentives are compressing equipment margins in the near term [14] - The company is evaluating various prudent measures for budgeting in fiscal 2026 while continuing to pursue growth initiatives [24] - Structural improvements have been made to enhance resilience, including footprint optimization and centralized inventory control [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry is experiencing softer demand conditions, but farmers entered this cycle with healthier fundamentals compared to previous downturns [20] - There is cautious optimism regarding the construction segment's outlook due to federal infrastructure support [19] - Management expressed confidence in navigating the current cycle more efficiently than in the past, with a focus on inventory reduction and customer care strategy [25] Other Important Information - The company anticipates further compression in equipment margins as it works through inventory reduction initiatives [47] - Full-year adjusted EPS guidance has been revised to approximately breakeven, reflecting challenges in Europe and Australia [45] Q&A Session Summary Question: Has farmer sentiment changed post-election? - Management noted that the completion of the election has provided more certainty for farmers, allowing better business planning [53] Question: What is the target days of inventory? - The target is to achieve about 2.5 times inventory turns over time, though this may not be achieved in fiscal 2026 [55][56] Question: Are there tangible effects of improved farmer sentiment? - There has been an increase in foot traffic and some positive sentiment due to better-than-expected yields, but challenges remain with commodity prices [60] Question: What is the outlook for inventory reductions in Q4? - Another decrease in inventory is expected in Q4, with ongoing efforts to manage both new and used equipment levels [70] Question: What support is being received from OEMs? - The company is receiving support from OEMs like Deere and CNH through pool funds and collaborative efforts to address inventory issues [73] Question: How does the company view the outlook for industry retail demand? - Management acknowledged the plausibility of significant contraction in industry retail demand as forecasted by Deere, and they are prepared to adjust inventory strategies accordingly [76]

Titan Machinery (TITN) came out with quarterly earnings of $0.07 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $1.32 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this agriculture and construction equipment seller would post earnings of $0.17 per share when it actually produced earnings of $0.17, delivering no surprise.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Ti ...

- Reduced Inventory by Approximately $115 Million, as Compared to Fiscal Second Quarter - - Updates Fiscal 2025 Modeling Assumptions - WEST FARGO, N.D., Nov. 26, 2024 (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 third quarter ended October 31, 2024. "Our third quarter results reflect a market cycle that is largely playing out as we anticipat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File No. 001-33866 TITAN MACHINERY INC. (Exact name of registrant as specified in its charter) Delaware 45-0357838 (State or Other ...

Titan Machinery Inc. (TITN) reported adjusted earnings per share (EPS) of 17 cents in second-quarter fiscal 2025 (ended Jul 31, 2024), in line with the Zacks Consensus Estimate. The bottom line fell from an EPS of $1.38 reported in the year-ago quarter due to weak agricultural demand. Total revenues in the reported quarter were $634 million, down 1.4% from the year-ago quarter, reflecting weak demand. The top line missed the consensus mark of $662 million. Equipment revenues fell 3.1% year over year to $465 ...

Titan Machinery Inc. (NASDAQ:TITN) Q2 2025 Earnings Conference Call August 29, 2024 8:30 AM ET Company Participants Jeff Sonnek - Investor Relations, ICR Bryan Knutson - President and Chief Executive Officer Bo Larsen - Chief Financial Officer and Treasurer Conference Call Participants Edward Jackson - Northland Securities Mircea Dobre - Baird Benjamin Klieve - Lake Street Capital Min Chung Cho - B. Riley Securities Matthew Raab - Craig-Hallum Operator Greetings, and welcome to Titan Machinery Inc. Second Q ...

Titan Machinery (TITN) came out with quarterly earnings of $0.17 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $1.38 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this agriculture and construction equipment seller would post earnings of $0.67 per share when it actually produced earnings of $0.41, delivering a surprise of -38.81%. Over the last four quarters, the company has surpassed consensus EPS estimates ...

Titan Machinery (TITN) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of a loss of $0.12 per share. This compares to earnings of $1.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 241.67%. A quarter ago, it was expected that this agriculture and construction equipment seller would post earnings of $0.67 per share when it actually produced earnings of $0.41, delivering a surprise o ...

WEST FARGO, N.D., Aug. 29, 2024 (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, 2024. "As previously announced, our second quarter results reflect the challenging market conditions that are impacting farmer sentiment and agriculture equipment sales," commented Bryan Knutson, Titan Machinery's President and Chief Ex ...