Core Insights - Titan Machinery achieved a cumulative inventory reduction of $206 million in fiscal 2026, surpassing its target of $150 million, while also delivering stronger-than-expected equipment margins [1][2] - The company is introducing modeling assumptions for fiscal 2027, anticipating a decline in North American large agriculture equipment volumes [18] Fiscal 2026 Fourth Quarter Results - Revenue for the fourth quarter was $641.8 million, down from $759.9 million in the same quarter last year [3] - Equipment revenue decreased to $501.5 million from $621.8 million year-over-year [3] - Gross profit increased to $87.0 million, with a gross profit margin of 13.5%, compared to 6.7% in the previous year [4] - Operating expenses were $95.7 million, slightly down from $96.7 million year-over-year [5] - The net loss for the fourth quarter was $36.2 million, or $1.59 loss per diluted share, an improvement from a net loss of $43.8 million, or $1.93 loss per diluted share, in the prior year [7] Segment Performance - Agriculture segment revenue was $406.7 million, down 22.8% year-over-year, with a pre-tax loss of $9.9 million, improved from a loss of $55.3 million [10] - Construction segment revenue was $90.2 million, down 4.6%, with a pre-tax loss of $1.0 million, slightly improved from a loss of $1.1 million [11] - Europe segment revenue increased to $68.8 million, with a pre-tax income of $1.8 million, compared to a pre-tax loss of $1.8 million in the previous year [12] - Australia segment revenue rose to $76.1 million, with pre-tax income of $2.5 million, up from $2.3 million [13] Fiscal 2026 Full Year Results - Total revenue for fiscal 2026 was $2.4 billion, down from $2.7 billion in fiscal 2025 [14] - The net loss for the year was $54.2 million, or $2.38 loss per diluted share, compared to a net loss of $36.9 million, or $1.63 loss per diluted share, in the prior year [14] - Adjusted net loss for fiscal 2026 was $50.6 million, or $2.22 loss per diluted share, compared to an adjusted net loss of $29.7 million, or $1.31 loss per diluted share, in the previous year [15] Balance Sheet and Cash Flow - Cash at the end of the fourth quarter was $28.2 million, with total inventories decreasing by $205.6 million to $903.1 million [16] - Net cash provided by operating activities was $137.5 million, significantly up from $70.3 million in the previous year [17] 2027 Modeling Assumptions - Agriculture segment revenue is expected to decline by 15% to 20%, while construction segment revenue is projected to remain flat to increase by 5% [20] - Adjusted EBITDA is anticipated to be between $17.0 million and $29.0 million, with an adjusted net loss expected to range from $28.0 million to $40.0 million [20]