Titan Machinery(US:TITN) Globenewswireยท2025-03-20 17:45Core 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]