Titan Machinery Inc. Announces Results for Fiscal First Quarter Ended April 30, 2025

WEST FARGO, N.D., May 22, 2025 (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 first quarter ended April 30, 2025. "Our fiscal first quarter results demonstrated our ability to advance our short term goals in a challenging market environment, and while headwinds persist across the agricultural sector, our team remains focused on continuing to execute upon our initiative to optimize inventory and navigate through the trough of the cycle," commented Bryan Knutson, Titan Machinery's President and Chief Executive Officer. "The stronger than expected top-line performance during the fiscal first quarter primarily reflects the timing of delivery on pre-sold equipment, as opposed to an increase in demand, and does not change our overall expectations for the full fiscal year. We continue to anticipate a very subdued retail environment given the ongoing likelihood of weak farmer profitability, with government support programs remaining an important but still very much undefined variable. While challenges persist in the marketplace, our team's relentless focus on disciplined execution of our inventory reduction initiatives and our customer care strategy is allowing us to manage key variables of the business that will improve our position as we navigate this cycle." Fiscal 2026 First Quarter Results Consolidated Results For the first quarter of fiscal 2026, revenue was $594.3 million compared to $628.7 million in the first quarter of last year. Equipment revenue was $436.8 million for the first quarter of fiscal 2026, compared to $468.1 million in the first quarter last year. Parts revenue was $105.6 million for the first quarter of fiscal 2026, compared to $108.2 million in the first quarter last year. Revenue generated from service was $44.0 million for the first quarter of fiscal 2026, compared to $45.1 million in the first quarter last year. Revenue from rental and other was $7.9 million for the first quarter of fiscal 2026, compared to $7.3 million in the first quarter last year. Gross profit for the first quarter of fiscal 2026 was $90.9 million, compared to $121.8 million in the first quarter last year. The Company's gross profit margin was 15.3% in the first quarter of fiscal 2026, compared to 19.4% in the first quarter last year. The year-over-year decrease in gross profit margin was primarily due to lower equipment margins, driven by softer retail demand and the Company's initiatives to manage inventory to targeted levels. Operating expenses were $96.4 million for the first quarter of fiscal 2026, compared to $99.2 million in the first quarter last year. The decrease was primarily driven by lower variable expenses associated with the year-over-year decline in revenue and profitability. Operating expense as a percentage of revenue was 16.2% for the first quarter of fiscal 2026, compared to 15.8% of revenue in the first quarter last year. Floorplan interest expense and other interest expense was $11.1 million in the first quarter of fiscal 2026, compared to $9.5 million for the same period last year. The increase in interest expense is the result of higher long-term debt outstanding resulting from the Company's purchase of previously leased facilities, as well as an increase in facilities being financed with finance leases. Floorplan and other interest expense decreased 15.3% sequentially, reflecting the Company's continued efforts to optimize its inventory position. In the first quarter of fiscal 2026, net loss was $13.2 million, with loss per diluted share of $0.58, compared to net income of $9.4 million, with earnings per diluted share of $0.41, for the first quarter last year. EBITDA in the first quarter of fiscal 2026 was $2.6 million, compared to $30.9 million in the first quarter last year. Segment Results Agriculture Segment - Revenue for the first quarter of fiscal 2026 was $384.4 million, compared to $447.7 million in the first quarter last year, reflecting a same-store sales decrease of 14.1%. The revenue decrease resulted from a softening of demand for equipment, driven by the decline in net farm income and sustained high interest rates. Pre-tax loss for the first quarter of fiscal 2026 was $12.8 million, compared to $13.0 million of pre-tax income in the first quarter last year. Construction Segment - Revenue for the first quarter of fiscal 2026 was $72.1 million, compared to $71.5 million in the first quarter last year, reflecting a same-store sales increase of 0.9%. Pre-tax loss for the first quarter of fiscal 2026 was $4.2 million, compared to $0.3 million of pre-tax income in the first quarter last year. Europe Segment - Revenue for the first quarter of fiscal 2026 was $93.9 million, compared to $65.1 million in the first quarter last year, which includes a $2.1 million negative impact related to foreign currency fluctuations. Net of the effect of these foreign currency fluctuations, revenue increased $30.9 million, or 47.5%, largely driven by a stronger than expected response to European Union stimulus programs in Romania. Pre-tax income for the first quarter of fiscal 2026 was $4.7 million, compared to $1.4 million in the first quarter last year. Australia Segment - Revenue for the first quarter of fiscal 2026 was $44.0 million, compared to $44.4 million in the first quarter last year, which includes a $2.0 million negative impact related to foreign currency fluctuations. Net of the effect of these foreign currency fluctuations, revenue increased $1.6 million or 3.6%. Pre-tax loss for the first quarter of fiscal 2026 was $0.6 million, compared to $0.5 million in the first quarter last year. Balance Sheet and Cash Flow Cash at the end of the first quarter of fiscal 2026 was $21.5 million. Inventories were flat at $1.1 billion as of April 30, 2025 compared to January 31, 2025. Outstanding floorplan payables were $769.6 million on $1.5 billion total available floorplan and working capital lines of credit as of April 30, 2025, compared to $755.7 million outstanding floorplan payables as of January 31, 2025. For the three months ended April 30, 2025, the Company's net cash provided by operating activities was $6.2 million, compared to net cash used for operating activities of $32.4 million for the three months ended April 30, 2024. The change in cash from operating activities was primarily attributable to changes in inventory and a changing mix in floorplan financing, which was partially offset by a decrease in net income for the first three months of fiscal 2026 compared to the prior year period. Additional Management Commentary Mr. Knutson continued, "We are reiterating our full year diluted adjusted earnings per share guidance, as our consolidated performance is tracking within our expected range. Internationally, we are updating our segment revenue assumptions for both Europe and Australia given local dynamics, but we believe that absent unique variables, the broader agriculture sector remains challenged in the near-term given broad-based weakness in commodity prices, which is consistent with our base expectations. Looking ahead, the progression of our inventory reduction efforts remains core to our operating strategy to stabilize equipment margins and restore the business's earnings power." Fiscal 2026 Modeling Assumptions The following are the Company's current expectations for fiscal 2026 modeling assumptions: Previous Assumptions Current AssumptionsSegment Revenue Agriculture(1)Down 20% - Down 25% Down 20% - Down 25%ConstructionDown 5% - Down 10% Down 5% - Down 10%EuropeFlat - Up 5% Up 23% - Up 28%AustraliaDown 15% - Down 20% Down 20% - Down 25% Adjusted Diluted Loss Per Share(1)($1.25) - ($2.00) ($1.25) - ($2.00)(1)Includes the full year impact of the Farmers Implement and Irrigation acquisition, which closed in May 2025. Conference Call and Presentation Information The Company will host a conference call and audio webcast today 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) 389-0920. A telephone replay will be available approximately two hours after the call concludes and will be available through Thursday, June 5, 2025, by dialing (844) 512-2921 from the U.S., or (412) 317-6671 from international locations, and entering confirmation code 13753835. A copy of the presentation that will accompany the prepared remarks on the conference call is available on the Company’s website under Investor Relations at www.titanmachinery.com. An archive of the audio webcast will be available on the Company’s website under Investor Relations at www.titanmachinery.com for 30 days following the audio webcast. Non-GAAP Financial Measure This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules. As required by SEC rules, the Company has provided a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure in the schedule included in this press release. The Company believes that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating current period performance and in assessing future performance. For these reasons, internal management reporting also includes non-GAAP financial measures. Non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, the GAAP financial measures presented in this release and the Company's financial statements and other publicly filed reports. Non-GAAP financial measures presented in this release may not be comparable to similarly titled measures used by other companies. Investors are encouraged to review the reconciliations of any adjusted financial measures used in this release to their most directly comparable GAAP financial measures. The reconciliation is attached to this release. The table included in the Non-GAAP Reconciliations section reconcile EBITDA and adjusted EBITDA, for the periods presented, to their respective most directly comparable GAAP financial measure. About Titan Machinery Inc. Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, North Dakota, owns and operates a network of full service agricultural and construction equipment dealer locations in North America, Europe and Australia, servicing farmers, ranchers and commercial applicators. The network consists of US locations in Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, South Dakota, Washington, Wisconsin and Wyoming. The international network includes European stores located in Bulgaria, Germany, Romania, and Ukraine and Australian stores located in New South Wales, South Australia, and Victoria in Southeastern Australia. Our stores represent one or more of the CNH Industrial Brands, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, and CNH Industrial Capital. Additional information about Titan Machinery Inc. can be found at www.titanmachinery.com. Forward Looking Statements Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “potential,” “believe,” “estimate,” “expect,” “intend,” “may,” “could,” “will,” “plan,” “anticipate,” and similar words and expressions are intended to identify forward-looking statements. These statements are based upon the current beliefs and expectations of our management. Forward-looking statements made in this release, which include statements regarding modeling assumptions and expected results of operations for the fiscal year ending January 31, 2026, statements regarding the Company's ability to reduce inventory levels and enhance profitability, and may include statements regarding Agriculture, Construction, Europe and Australia segment initiatives and improvements, segment revenue realization, growth and profitability expectations, inventory availability and customer demand expectations, and agricultural and construction equipment industry conditions and trends, involve known and unknown risks and uncertainties that may cause Titan’s actual results in future periods to differ materially from the forecasted assumptions and expected results. These risks and uncertainties include, among other things, our ability to successfully integrate, and realize growth opportunities and synergies in connection with the O'Connors acquisition and the risk that we have assumed unforeseen or other liabilities in connection with the O'Connors acquisition. In addition, risks and uncertainties also include the impact of the Russia-Ukraine conflict on our Ukrainian operations, our substantial dependence on CNH Industrial including CNH Industrial's ability to design, manufacture and allocate inventory to our stores necessary to satisfy our customers' demands, supply chain disruptions impacting our suppliers, including CNH Industrial, the continued availability of organic growth and acquisition opportunities, potential difficulties integrating acquired stores, industry supply levels, fluctuating agriculture and construction industry economic conditions, the success of recently implemented initiatives within the Company’s operating segments, the uncertainty and fluctuating conditions in the capital and credit markets, difficulties in conducting international operations, foreign currency risks, governmental agriculture policies, seasonal fluctuations, the ability of the Company to manage inventory levels, weather conditions, disruption in receiving sufficient inventory financing, and increased competition in the geographic areas served. These and other risks are described in Titan’s filings with the Securities and Exchange Commission. Titan conducts its business in a highly competitive and rapidly changing environment. Accordingly, new risks and uncertainties may arise. It is not possible for management to predict all such risks and uncertainties, nor to assess the impact of all such risks and uncertainties on Titan’s business or the extent to which any individual risk or uncertainty, or combination of risks and uncertainties, may cause results to differ materially from those contained in any forward-looking statement. Other than as required by law, Titan disclaims any obligation to update such risks and uncertainties or to publicly announce revisions to any of the forward-looking statements contained in this release to reflect future events or developments. Investor Relations Contact: ICR, Inc.Jeff Sonnek, jeff.sonnek@icrinc.com646-277-1263 TITAN MACHINERY INC.Consolidated Condensed Balance Sheets(in thousands)(Unaudited) April 30, 2025 January 31, 2025Assets Current Assets Cash$21,514 $35,898 Receivables, net of allowance for expected credit losses 124,007 119,814 Inventories, net 1,099,394 1,108,672 Prepaid expenses and other 27,903 28,244 Total current assets 1,272,818 1,292,628 Noncurrent Assets Property and equipment, net of accumulated depreciation 376,917 379,690 Operating lease assets 29,222 27,935 Deferred income taxes 7,664 2,552 Goodwill 61,608 61,246 Intangible assets, net of accumulated amortization 48,300 48,306 Other 1,158 1,581 Total noncurrent assets 524,869 521,310 Total Assets$1,797,687 $1,813,938 Liabilities and Stockholders' Equity Current Liabilities Accounts payable$49,268 $37,166 Floorplan payable 769,613 755,698 Current maturities of long-term debt 11,354 10,920 Current operating lease liabilities 5,879 5,747 Deferred revenue 57,829 91,933 Accrued expenses and other 61,975 59,492 Total current liabilities 955,918 960,956 Long-Term Liabilities Long-term debt, less current maturities 153,900 157,767 Operating lease liabilities 26,586 25,588 Finance lease liabilities 44,279 44,894 Deferred income taxes 8,959 8,818 Other long-term liabilities 2,601 1,838 Total long-term liabilities 236,325 238,905 Stockholders' Equity Common stock — — Additional paid-in-capital 263,007 262,097 Retained earnings 347,110 360,314 Accumulated other comprehensive income (4,673) (8,334)Total stockholders' equity 605,444 614,077 Total Liabilities and Stockholders' Equity$1,797,687 $1,813,938 TITAN MACHINERY INC.Consolidated Condensed Statements of Operations(in thousands, except per share data)(Unaudited) Three Months Ended April 30, 2025 2024 Revenue Equipment$436,840 $468,089 Parts 105,629 108,226 Service 44,017 45,079 Rental and other 7,850 7,309 Total Revenue 594,336 628,703 Cost of Revenue Equipment 407,349 412,239 Parts 73,080 73,151 Service 16,609 16,776 Rental and other 6,363 4,782 Total Cost of Revenue 503,401 506,948 Gross Profit 90,935 121,755 Operating Expenses 96,404 99,158 Impairment of Intangible and Long-Lived Assets 266 — (Loss) Income from Operations (5,735) 22,597 Other Income (Expense) Interest and other (expense) income (488) (288)Floorplan interest expense (6,526) (7,064)Other interest expense (4,533) (2,459)(Loss) Income Before Income Taxes (17,282) 12,786 (Benefit) Provision for Income Taxes (4,078) 3,345 Net (Loss) Income$(13,204) $9,441 Diluted (Loss) Earnings per Share$(0.58) $0.41 Diluted Weighted Average Common Shares 22,669 22,546 TITAN MACHINERY INC.Consolidated Condensed Statements of Cash Flows(in thousands)(Unaudited) Three Months Ended April 30, 2025 2024 Operating Activities Net (loss) income$(13,204) $9,441 Adjustments to reconcile net (loss) income to net cash provided by operating activities Depreciation and amortization 8,915 8,715 Impairment 266 — Other, net (3,240) 4,313 Changes in assets and liabilities, net of effects of acquisitions Inventories 16,428 (137,760)Manufacturer floorplan payable 18,721 92,084 Receivables (3,828) 20,115 Other working capital (17,863) (29,262)Net Cash Provided by (Used for) Operating Activities 6,195 (32,354)Investing Activities Property and equipment purchases (7,988) (13,725)Proceeds from sale of property and equipment 2,432 950 Acquisition consideration, net of cash acquired — (260)Other, net 322 131 Net Cash Used for Investing Activities (5,234) (12,904)Financing Activities Net change in non-manufacturer floorplan payable (9,146) 46,442 Net proceeds/(payments) from long-term debt and finance leases (5,935) (2,567)Other, net (700) (794)Net Cash (Used for) Provided by Financing Activities (15,781) 43,081 Effect of Exchange Rate Changes on Cash 436 (205)Net Change in Cash (14,384) (2,382)Cash at Beginning of Period 35,898 38,066 Cash at End of Period$21,514 $35,684 TITAN MACHINERY INC.Segment Results(in thousands)(Unaudited) Three Months Ended April 30, 2025 2024 % ChangeRevenue Agriculture$384,386 $447,687 (14.1)%Construction 72,129 71,492 0.9%Europe 93,858 65,105 44.2%Australia 43,963 44,419 (1.0)%Total$594,336 $628,703 (5.5)% (Loss) Income Before Income Taxes Agriculture$(12,777) $13,045 n/mConstruction (4,180) 268 n/mEurope 4,710 1,350 248.9%Australia (561) (486) (15.4)%Segment (Loss) Income Before Income Taxes (12,808) 14,177 n/mShared Resources (4,474) (1,391) (221.6)%Total$(17,282) $12,786 n/m*n/m = not meaningful TITAN MACHINERY INC.Non-GAAP Reconciliations(in thousands, except per share data)(Unaudited) Three Months Ended April 30, 2025 2024 EBITDA Net (Loss) Income$(13,204) $9,441 Adjustments Interest expense, net of interest income 10,918 9,415 (Benefit) Provision for Income Taxes (4,078) 3,345 Depreciation and amortization 8,915 8,715 EBITDA$2,551 $30,916 Adjustments Floorplan interest expense (6,526) (7,064)Total Adjustments (6,526) (7,064)Adjusted EBITDA$(3,975) $23,852

Titan Machinery Inc. Announces Results for Fiscal First Quarter Ended April 30, 2025

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