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]

Core Viewpoint - Titan Machinery Inc. reported a narrower loss in Q1 fiscal 2026 compared to expectations, but overall revenues and margins declined significantly, indicating ongoing challenges in demand and profitability [1][2][3]. Financial Performance - The company incurred a loss of 58 cents per share in Q1 fiscal 2026, better than the Zacks Consensus Estimate of a loss of 79 cents, but down from earnings of 41 cents per share in the same quarter last year [1]. - Total revenues for Q1 were $594 million, a decrease of 5.5% year-over-year, yet surpassing the consensus estimate of $463 million [2]. - Equipment revenues fell 6.7% to $437 million, parts revenues decreased 2.4% to $106 million, and service revenues were down 2.4% to $44 million. Rental revenues increased slightly to $7.9 million from $7.3 million [2]. Margin Analysis - Gross profit declined 25.4% year-over-year to $91 million, with a gross margin of 15.3%, down from 19.4% in the prior year, attributed to lower equipment margins due to high inventory levels and weak demand [3]. Operating Expenses - Operating expenses decreased by 2.8% to $96 million, but the company reported a loss from operations of $5.7 million compared to a profit of $22.6 million in the previous year [4]. - Adjusted EBITDA was negative $3.9 million, a significant drop from the prior year's adjusted EBITDA of $24 million [4]. Segment Performance - Agriculture revenues fell 14.1% to $384 million, with a loss before taxes of $13 million compared to a profit of $13 million in the previous year [5]. - Construction revenues increased slightly by 0.9% to $72 million, but the segment incurred a loss before taxes of $4 million [6]. - Europe revenues surged 44.2% to $94 million, with income before taxes rising to $4.7 million from $1.4 million [6]. - The Australia segment reported revenues of $44 million, down 1% year-over-year, with a loss before taxes of $0.5 million [7]. Cash Flow and Debt - The company experienced a cash outflow of $6 million from operating activities, contrasting with an inflow of $32 million in the same quarter last year [8]. - At the end of Q1, Titan Machinery had a cash balance of $21.5 million, down from $36 million at the end of fiscal 2025, and long-term debt decreased to $154 million from $158 million [8]. Future Outlook - The company anticipates a revenue decline of 20-25% in the agriculture segment and 5-10% in the construction segment for fiscal 2026, while expecting a revenue increase of 23-28% in Europe and a decline of 20-25% in Australia [9]. - Titan Machinery projects a loss of $1.25-$2.00 per share for fiscal 2026, reflecting ongoing weak demand [10]. Stock Performance - Over the past year, Titan Machinery's shares have increased by 7.9%, compared to an 11.6% increase in the industry [11].

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $594.3 million, down from $628.7 million in the prior year, reflecting a 5.5% decrease in same-store sales [18] - Gross profit decreased to $90.9 million from $121.8 million, with a gross profit margin of 15.3% [18] - Net loss for the quarter was $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 previous year [20] Business Line Data and Key Metrics Changes - Agriculture segment revenue decreased by 14.1% to $384.4 million, with a pretax loss of $12.8 million compared to pretax income of $13 million in the prior year [20] - Construction segment saw a slight increase in same-store sales by 0.9% to $72.1 million, but reported a pretax loss of $4.2 million compared to a pretax income of $0.3 million last year [21] - European segment revenue increased by 44.2% to $93.9 million, with a pretax income of $4.7 million compared to $1.4 million in the prior year [21] - Australia segment same-store sales decreased by 1% to $44 million, with a pretax loss of $0.6 million compared to a loss of $0.5 million last year [22] Market Data and Key Metrics Changes - Domestic agriculture market remains subdued, with farmers in a wait-and-see mode influenced by commodity prices and government aid [11][12] - European market, particularly Romania, benefited from EU stimulus funds, leading to increased buying activity [14] - Australian market conditions are similar to the domestic agriculture segment, with lower new order activity due to dry conditions and low commodity prices [15][16] Company Strategy and Development Direction - The company is focused on optimizing inventory and managing through the current market cycle, with a target of reducing equipment inventory by $100 million [24][25] - The customer care initiative is emphasized, with parts and service expected to contribute significantly to revenue and gross profit [10] - The company anticipates a challenging back half of the year but remains committed to disciplined execution and improving inventory health [16][29] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing headwinds in the agricultural sector, with weak farmer profitability and uncertain government support impacting demand [9][10] - The construction segment shows more stability compared to agriculture, with contractors starting to fill their project backlogs [38][40] - Management expressed cautious optimism regarding the agricultural sector, citing recent government payments and favorable weather conditions as potential stabilizers [34][35] Other Important Information - The company closed on an acquisition of two stores to expand its presence in Eastern South Dakota [13] - The adjusted debt to tangible net worth ratio was 1.8, well below the bank covenant of 3.5 times [23] Q&A Session Summary Question: Is there any positive outlook on the agricultural sector? - Management indicated that some government payments have started to come through, providing stability, but overall conditions remain challenging [34] Question: How is the construction sector performing amid macro uncertainties? - Management noted that while the construction environment is cautious, there is more positivity compared to agriculture, with contractors seeing improved backlogs [38][40] Question: What programs is the USDA looking to implement for additional support? - Management explained that USDA programs are focused on natural disaster relief and specific allocations to support the agricultural industry [46][48] Question: Are inventories expected to remain flattish in Europe? - Management confirmed that inventory levels in Europe are expected to remain stable, with a focus on reducing aged inventory in North America [58][60] Question: What is the outlook for same-store sales in agriculture for Q2? - Management expects same-store sales in agriculture to be down approximately 30% year-over-year for Q2, with a challenging back half of the year anticipated [75][76]

Financial Data and Key Metrics Changes - Total revenue for Q1 fiscal 2026 was $594.3 million, a decrease of 5.5% from $628.7 million in the prior year period [17] - Gross profit decreased to $90.9 million from $121.8 million, with a gross profit margin of 15.3% [17] - Net loss for Q1 was $13.2 million, or $0.58 per diluted share, compared to net income of $9.4 million, or $0.41 per diluted share in the previous year [19] Business Line Data and Key Metrics Changes - Agriculture segment revenue decreased by 14.1% to $384.4 million, with a pretax loss of $12.8 million compared to pretax income of $13 million in the prior year [19] - Construction segment saw a slight increase in same store sales by 0.9% to $72.1 million, but reported a pretax loss of $4.2 million compared to pretax income of $0.3 million last year [20] - European segment revenue increased by 44.2% to $93.9 million, with a pretax income of $4.7 million compared to $1.4 million in the prior year [20] - Australia segment revenue decreased by 1% to $44 million, with a pretax loss of $0.6 million compared to a loss of $0.5 million last year [21] Market Data and Key Metrics Changes - Domestic agriculture market remains subdued, with farmers in a wait-and-see mode due to commodity prices and government aid uncertainty [10][11] - European market, particularly Romania, benefited from EU stimulus funds, leading to increased buying activity [13] - Australian market conditions are similar to the domestic agriculture segment, with lower new order activity due to dry conditions and low commodity prices [15] Company Strategy and Development Direction - The company is focused on optimizing inventory and managing through the current market cycle, with a target of reducing equipment inventory by $100 million [22][23] - The strategy includes leveraging parts and service revenue, which is expected to contribute significantly to gross profit despite equipment sales pressures [9][27] - The company aims to emerge from the current down market as a stronger entity, emphasizing customer service and operational efficiency [16] Management's Comments on Operating Environment and Future Outlook - Management anticipates a subdued retail environment due to weak farmer profitability and undefined government support programs [6][7] - The company expects continued challenges in the agriculture segment, with revenue projected to decline by 20% to 25% for the full year [24] - For the construction segment, revenue is expected to decline by 5% to 10%, while the European segment is projected to grow by 23% to 28% [25][26] Other Important Information - The company has successfully reduced equipment inventory by approximately $13 million sequentially, with a cumulative reduction of $406 million from peak levels [22] - The adjusted debt to tangible net worth ratio was 1.8, well below the bank covenant of 3.5 times [22] Q&A Session Summary Question: Is there any positive outlook on the agricultural sector? - Management noted that some government payments have started to come through, providing stability, but the overall outlook remains challenging [32] Question: How is the construction sector performing? - Management indicated that while the construction sector is cautious, there is more optimism compared to agriculture, with contractors starting to fill their project backlogs [36][38] Question: What is the status of government support programs? - The USDA is looking to provide additional funding for natural disaster relief, which could help stabilize the agricultural sector [42][44] Question: Are there specific areas where inventory needs to be reduced? - Management highlighted that the focus is on reducing used inventory levels, particularly in the agriculture segment, while maintaining a healthy inventory mix [56][57] Question: What are the expectations for same store sales in agriculture? - Management expects same store sales in agriculture to be down about 30% year over year for Q2, with a challenging back half of the year anticipated [72]

Group 1 - Titan Machinery reported a quarterly loss of $0.58 per share, better than the Zacks Consensus Estimate of a loss of $0.79, and compared to earnings of $0.41 per share a year ago, representing an earnings surprise of 26.58% [1] - The company posted revenues of $594.34 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 28.37%, although this is a decrease from year-ago revenues of $628.7 million [2] - Titan Machinery shares have increased approximately 41.1% since the beginning of the year, contrasting with the S&P 500's decline of -0.6% [3] Group 2 - The earnings outlook for Titan Machinery is mixed, with the current consensus EPS estimate for the coming quarter at -$0.61 on revenues of $518.02 million, and -$1.86 on revenues of $2.18 billion for the current fiscal year [7] - The Zacks Industry Rank for Automotive - Retail and Whole Sales is in the top 22% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Total revenue decreased by 5.5% from $628.7 million in Q1 FY2025 to $594.3 million in Q1 FY2026 [25, 27, 29] - Gross profit decreased by 25.4% from $121.8 million to $90.9 million [27] - The company reported a pre-tax loss of $17.3 million in Q1 FY2026, compared to a pre-tax income of $12.8 million in Q1 FY2025 [8, 29] - Diluted loss per share was $0.58, compared to diluted earnings per share of $0.41 in the prior year [8, 27] Segment Performance - Agriculture segment revenue decreased by 14.1% [29] - Construction segment revenue increased by 0.9% [17, 29] - Europe segment revenue increased significantly by 44.2% [20, 29] - Australia segment revenue decreased by 0.9% [24, 29] Inventory and Balance Sheet - Equipment inventory decreased by $12.5 million from January 31, 2025, to April 30, 2025 [32] - Equipment inventory decreased $405.5 million from peak in Second Quarter (July 31, 2024) [32] - The company targets inventory reduction of approximately $100 million in fiscal year 2026 [32] Outlook - Agriculture segment revenue is expected to be down 20% to 25% for FY26 [12, 40] - Construction segment revenue is expected to be down 5% to 10% for FY26 [17, 40] - Europe segment revenue is expected to be up 23% to 28% for FY26 [20, 40] - Australia segment revenue is expected to be down 20% to 25% for FY26 [24, 40]

Core Insights - Titan Machinery Inc. reported a revenue decline in the first quarter of fiscal 2026, with total revenue at $594.3 million, down from $628.7 million in the same period last year, indicating a 5.5% decrease [3][32] - The company anticipates continued challenges in the agricultural sector due to weak farmer profitability and high interest rates, which are expected to impact overall demand [2][14] - The company is focusing on inventory optimization and customer care strategies to navigate the current market conditions [2][14] Financial Performance - Equipment revenue for the first quarter of fiscal 2026 was $436.8 million, down from $468.1 million year-over-year [3][31] - Gross profit decreased to $90.9 million, with a gross profit margin of 15.3%, down from 19.4% in the previous year [4][7] - Operating expenses were reduced to $96.4 million, compared to $99.2 million in the same quarter last year, but operating expense as a percentage of revenue increased to 16.2% [5][7] Segment Performance - Agriculture segment revenue fell to $384.4 million, a 14.1% decrease, with a pre-tax loss of $12.8 million compared to a pre-tax income of $13.0 million last year [8][31] - Construction segment revenue slightly increased to $72.1 million, reflecting a 0.9% same-store sales increase, but incurred a pre-tax loss of $4.2 million [9][31] - Europe segment revenue surged to $93.9 million, a 44.2% increase, driven by EU stimulus programs, with pre-tax income rising to $4.7 million [10][31] Cash Flow and Balance Sheet - Cash at the end of the first quarter was $21.5 million, with inventories remaining flat at $1.1 billion [12][29] - The company reported net cash provided by operating activities of $6.2 million, a significant improvement from a net cash used of $32.4 million in the same period last year [13][29] - Outstanding floorplan payables increased to $769.6 million, up from $755.7 million at the end of January 2025 [12][29] Future Outlook - The company reiterated its full-year diluted adjusted earnings per share guidance, maintaining expectations for subdued retail conditions in the agricultural sector [14][15] - Segment revenue assumptions for Europe and Australia have been updated, reflecting local market dynamics, while agriculture remains challenged [14][15]

Acquisition Details - Titan Machinery Inc. has completed the acquisition of the dealership assets of Farmers Implement & Irrigation, aligning with its strategic growth initiatives [1][2] - Farmers Implement & Irrigation, a New Holland dealership, has two locations in South Dakota and generated revenues of $20 million in 2024 [2][3] - The acquisition enhances Titan Machinery's New Holland presence in eastern South Dakota [3] Financial Guidance - For fiscal 2026, the agriculture segment's revenues are expected to decline by 20-25%, while the construction segment's revenues are projected to decrease by 5-10% [4] - The company anticipates a loss of $1.25 to $2.00 per share in fiscal 2026, indicating weak demand [4] Stock Performance - Over the past year, Titan Machinery's shares have decreased by 9.6%, contrasting with the industry's growth of 13.5% [5] Earnings Expectations - Titan Machinery is set to report its first-quarter fiscal 2026 earnings, with a consensus estimate of a loss of 79 cents per share, compared to earnings of 41 cents per share in the same quarter last year [9] - The revenue estimate for the first quarter is pegged at $493 million, reflecting a year-over-year growth of 26.4% [9]