Titan Machinery Inc. Announces Results for Fiscal Second Quarter Ended July 31, 2025

- Reiterates $100 Million Inventory Reduction Target for Fiscal 2026 - - Updates Modeling Assumptions for Fiscal 2026 - WEST FARGO, N.D., Aug. 28, 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 second quarter ended July 31, 2025. “We produced solid second quarter results amid a challenging market environment, and remain focused on the execution of our operational plan to optimize inventory, ensuring we are in an improved position exiting this fiscal year," stated Bryan Knutson, Titan Machinery's President and Chief Executive Officer. "While we experienced a modest increase in inventory during the second quarter, our inventory levels have remained relatively consistent through the first half of the year, and in line with our previously communicated expectations. The quarterly increase was largely due to timing of OEM shipments ahead of deliveries to our end customers in the second half of this fiscal year. We are on track with our inventory reduction strategy, and we are positioned to exceed our initial $100 million target for the full year, with the majority of that progress still expected toward the end of the fiscal year. Importantly, our parts and service businesses continue to provide stability during this trough in the equipment cycle, as we remain focused on delivering best-in-class service and support for our customers." Fiscal 2026 Second Quarter Results Consolidated Results For the second quarter of fiscal 2026, revenue was $546.4 million compared to $633.7 million in the second quarter last year. Equipment revenue was $376.3 million for the second quarter of fiscal 2026, compared to $465.2 million in the second quarter last year. Parts revenue was $109.2 million for the second quarter of fiscal 2026, compared to $109.8 million in the second quarter last year. Service revenue was $48.8 million for the second quarter of fiscal 2026, compared to $47.3 million in the second quarter last year. Rental and other revenue was $12.1 million for the second quarter of fiscal 2026, compared to $11.4 million in the second quarter last year. Gross profit for the second quarter of fiscal 2026 was $93.6 million, compared to $112.4 million in the second quarter last year. The Company's gross profit margin was 17.1% in the second quarter of fiscal 2026, compared to 17.7% in the second 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 $92.7 million for the second quarter of fiscal 2026, compared to $95.2 million in the second quarter last year. The decrease was led by lower variable expenses associated with the year-over-year decline in revenue, as well as management's expense reduction efforts. Operating expense as a percentage of revenue was 17.0% for the second quarter of fiscal 2026, compared to 15.0% of revenue in the second quarter last year. Floorplan interest expense and other interest expense was $11.5 million in the second quarter of fiscal 2026, compared to $13.0 million for the same period last year. Floorplan interest expense decreased in the second quarter of fiscal 2026 compared to the same period last year due to lower interest-bearing inventory levels. In the second quarter of fiscal 2026, net loss was $6.0 million, with loss per diluted share of $0.26, compared to net loss of $4.3 million, with loss per diluted share of $0.19, for the same period last year. Results for the second quarter of fiscal 2025 included a non-cash sale-leaseback financing expense of approximately $8.3 million, or $0.36 per diluted share. Excluding this non-recurring item, adjusted net income for the prior year quarter was $4.0 million, or adjusted earnings per diluted share of $0.17. EBITDA in the second quarter of fiscal 2026 was $12.4 million, compared to $18.3 million in the second quarter last year. Segment Results Agriculture Segment - Revenue for the second quarter of fiscal 2026 was $345.8 million, compared to $424.0 million in the second quarter last year, reflecting a same-store sales decrease of 18.7%. The revenue decrease resulted from a softening of demand for equipment, driven by lower commodity prices and sustained high interest rates, both of which are reducing farmer profitability. Pre-tax loss for the second quarter of fiscal 2026 was $12.3 million, compared to $0.6 million of pre-tax income in the second quarter last year. Included in the results for the second quarter of fiscal 2025 was a $6.1 million non-cash sale-leaseback expense. Construction Segment - Revenue for the second quarter of fiscal 2026 was $72.0 million, compared to $80.2 million in the second quarter last year, reflecting a same-store sales decrease of 10.2%. The decrease was driven by lower equipment sales. Pre-tax loss for the second quarter of fiscal 2026 was $1.2 million, compared to pre-tax loss of $4.9 million in the second quarter last year. Included in the results for the second quarter of fiscal 2025 was a $5.1 million non-cash sale-leaseback expense. Europe Segment - Revenue for the second quarter of fiscal 2026 was $98.1 million, compared to $68.1 million in the second quarter last year, which includes a $4.1 million positive impact related to foreign currency fluctuations. Net of the effect of these foreign currency fluctuations, revenue increased $25.9 million, or 38.1%, largely driven by European Union stimulus programs in Romania. Pre-tax income for the second quarter of fiscal 2026 was $5.1 million, compared to pre-tax loss of $2.3 million in the second quarter last year. Australia Segment - Revenue for the second quarter of fiscal 2026 was $30.6 million, compared to $61.3 million in the second quarter last year, which includes a $0.9 million negative impact related to foreign currency fluctuations. Net of the effect of these foreign currency fluctuations, revenue decreased $29.8 million or 48.7%. The decrease was driven by the normalization of sprayer deliveries in fiscal 2026 after having caught up on a multi-year backlog of deliveries during fiscal 2025. Pre-tax loss for the second quarter of fiscal 2026 was $2.1 million, compared to pre-tax income of $1.4 million in the second quarter last year. Balance Sheet and Cash Flow Cash at the end of the second quarter of fiscal 2026 was $32.7 million. Inventories were flat at $1.1 billion as of July 31, 2025 compared to January 31, 2025. Outstanding floorplan payables were $852.2 million on $1.5 billion total available floorplan and working capital lines of credit as of July 31, 2025, compared to $755.7 million outstanding floorplan payables as of January 31, 2025. For the six months ended July 31, 2025, the Company's net cash provided by operating activities was $49.9 million, compared to net cash used for operating activities of $47.4 million for the six months ended July 31, 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 six months of fiscal 2026 compared to the prior year period. Additional Management Commentary Mr. Knutson continued, "Our proactive approach to optimizing inventory is helping drive equipment sales amid a weak demand backdrop, and this approach requires pricing concessions which are continuing to compress equipment margins. As such, we are adjusting our revenue modeling assumptions and narrowing our adjusted diluted loss per share guidance to a range of ($1.50) to ($2.00). These changes reflect our steadfast commitment to achieving the inventory reduction targets we set for this fiscal year. Our near-term efforts remain focused on ensuring we exit this fiscal year with more optimized levels of inventory so we can reaccelerate the business back toward normalized levels of earnings generation as swiftly as possible." 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 15% - Down 20%Construction Down 5% - Down 10% Down 3% - Down 8%Europe Up 23% - Up 28% Up 30% - Up 40%Australia Down 20% - Down 25% Down 20% - Down 25% Adjusted Diluted Loss Per Share (1) ($1.25) - ($2.00) ($1.50) - ($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, August 28, 2025, by dialing (844) 512-2921 from the U.S., or (412) 317-6671 from international locations, and entering confirmation code 13755311. 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 Measures and Adjusted Net (Loss) Income, Adjusted (Loss) Income before Income Taxes and Adjusted Diluted (Losses) Earnings per Share This press release and the attached financial tables contain a reconciliation of certain non-GAAP financial measures as defined under SEC rules. As required by SEC rules, the Company has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure in the schedule included in this press release, other than Adjusted Diluted Loss per Share for Fiscal 2026. 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 measures. A reconciliation of Adjusted Diluted Loss Per Share for fiscal 2026 is not available without unreasonable effort due to the variability and low visibility of factors that may impact comparable GAAP. 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) July 31, 2025 January 31, 2025Assets Current Assets Cash$32,675 $35,898 Receivables, net of allowance for expected credit losses 127,608 119,814 Inventories, net 1,140,000 1,108,672 Prepaid expenses and other 25,999 28,244 Total current assets 1,326,282 1,292,628 Noncurrent Assets Property and equipment, net of accumulated depreciation 377,897 379,690 Operating lease assets 48,210 27,935 Deferred income taxes 11,492 2,552 Goodwill 63,936 61,246 Intangible assets, net of accumulated amortization 48,983 48,306 Other 1,142 1,581 Total noncurrent assets 551,660 521,310 Total Assets$1,877,942 $1,813,938 Liabilities and Stockholders' Equity Current Liabilities Accounts payable$41,502 $37,166 Floorplan payable 852,225 755,698 Current maturities of long-term debt 11,432 10,920 Current operating lease liabilities 4,356 5,747 Deferred revenue 41,702 91,933 Accrued expenses and other 59,916 59,492 Total current liabilities 1,011,133 960,956 Long-Term Liabilities Long-term debt, less current maturities 153,058 157,767 Operating lease liabilities 46,082 25,588 Finance lease liabilities 44,570 44,894 Deferred income taxes 9,322 8,818 Other long-term liabilities 3,434 1,838 Total long-term liabilities 256,466 238,905 Stockholders' Equity Common stock — — Additional paid-in-capital 264,395 262,097 Retained earnings 341,110 360,314 Accumulated other comprehensive income (loss) 4,838 (8,334)Total stockholders' equity 610,343 614,077 Total Liabilities and Stockholders' Equity$1,877,942 $1,813,938 TITAN MACHINERY INC.Consolidated Condensed Statements of Operations(in thousands, except per share data)(Unaudited) Three Months Ended July 31, Six Months Ended July 31, 2025 2024 2025 2024 Revenue Equipment$376,262 $465,233 $813,102 $933,322 Parts 109,222 109,805 214,851 218,032 Service 48,800 47,268 92,817 92,346 Rental and other 12,142 11,368 19,993 18,676 Total Revenue 546,426 633,674 1,140,763 1,262,376 Cost of Revenue Equipment 351,406 422,236 758,755 834,476 Parts 74,573 74,239 147,653 147,390 Service 17,480 16,144 34,089 32,920 Rental and other 9,321 8,676 15,686 13,458 Total Cost of Revenue 452,780 521,295 956,183 1,028,244 Gross Profit 93,646 112,379 184,580 234,132 Operating Expenses 92,661 95,156 189,065 194,314 Impairment of Goodwill — 531 — 531 Impairment of Intangible and Long-Lived Assets 323 942 589 942 Income (Loss) from Operations 662 15,750 (5,074) 38,345 Other Income (Expense) Interest and other income (expense) 2,638 (7,048) 2,149 (7,335)Floorplan interest expense (6,812) (9,218) (13,338) (16,282)Other interest expense (4,724) (3,734) (9,256) (6,193)(Loss) Income Before Income Taxes (8,236) (4,250) (25,519) 8,535 (Benefit) Provision for Income Taxes (2,236) 54 (6,315) 3,399 Net (Loss) Income$(6,000) $(4,304) $(19,204) $5,136 Diluted (Losses) Earnings per Share$(0.26) $(0.19) $(0.85) $0.22 Diluted Weighted Average Common Shares 22,764 22,617 22,717 22,583 TITAN MACHINERY INC.Consolidated Condensed Statements of Cash Flows(in thousands)(Unaudited) Six Months Ended July 31, 2025 2024 Operating Activities Net (loss) income$(19,204) $5,136 Adjustments to reconcile net (loss) income to net cash provided by operating activities Depreciation and amortization 18,329 18,413 Impairment 589 1,473 Sale-leaseback financing expense — 11,159 Other, net (6,623) 5,676 Changes in assets and liabilities, net of effects of acquisitions Inventories (2,929) (242,113)Manufacturer floorplan payable 100,638 206,103 Receivables (4,199) 18,499 Other working capital (36,707) (71,713)Net Cash Provided by (Used for) Operating Activities 49,894 (47,367)Investing Activities Property and equipment purchases (15,655) (22,535)Proceeds from sale of property and equipment 3,829 1,198 Acquisition consideration, net of cash acquired (13,370) (260)Other, net 344 130 Net Cash Used for Investing Activities (24,852) (21,467)Financing Activities Net change in non-manufacturer floorplan payable (19,633) 78,965 Net proceeds/(payments) from long-term debt and finance leases (9,617) (11,853)Other, net (711) (4,701)Net Cash (Used for) Provided by Financing Activities (29,961) 62,411 Effect of Exchange Rate Changes on Cash 1,696 (424)Net Change in Cash (3,223) (6,847)Cash at Beginning of Period 35,898 38,066 Cash at End of Period$32,675 $31,219 TITAN MACHINERY INC.Segment Results(in thousands)(Unaudited) Three Months Ended July 31, Six Months Ended July 31, 2025 2024 % Change 2025 2024 % ChangeRevenue Agriculture$345,755 $424,036 (18.5)% $730,141 $871,721 (16.2)%Construction 71,987 80,191 (10.2)% 144,117 151,683 (5.0)%Europe 98,117 68,149 44.0% 191,975 133,254 44.1%Australia 30,567 61,298 (50.1)% 74,530 105,718 (29.5)%Total$546,426 $633,674 (13.8)% $1,140,763 $1,262,376 (9.6)% (Loss) Income Before Income Taxes Agriculture$(12,295) $635 n/m $(25,075) $13,680 n/mConstruction (1,216) (4,893) 75.1% (5,393) (4,625) n/mEurope 5,147 (2,270) n/m 9,857 (919) n/mAustralia (2,107) 1,362 n/m (2,669) 876 n/mSegment (Loss) Income Before Income Taxes (10,471) (5,166) (102.7)% (23,280) 9,012 n/mShared Resources 2,235 916 144.0% (2,239) (477) n/mTotal$(8,236) $(4,250) (93.8)% $(25,519) $8,535 n/m*n/m = not meaningful TITAN MACHINERY INC.Non-GAAP Reconciliations(in thousands, except per share data)(Unaudited) Three Months Ended July 31, Six Months Ended July 31, 2025 2024 2025 2024 Adjusted Net (Loss) Income Net (Loss) Income $(6,000) $(4,304) $(19,204) $5,136 Adjustments Impact of sale-leaseback financing expense (1) — 11,159 — 11,159 Total Pre-Tax Adjustments — 11,159 — 11,159 Less: Tax Effect of Adjustments (2) — (2,845) — (2,845)Total Adjustments — 8,314 — 8,314 Adjusted Net (Loss) Income $(6,000) $4,010 $(19,204) $13,450 Adjusted Diluted (Losses) Earnings Per Share Diluted (Losses) Earnings Per Share $(0.26) $(0.19) $(0.85) $0.22 Adjustments Impact of sale-leaseback financing expense (1) — 0.48 — 0.49 Total Pre-Tax Adjustments — 0.48 — 0.49 Less: Tax Effect of Adjustments (2) — (0.12) — (0.12)Total Adjustments — 0.36 — 0.37 Adjusted Diluted (Losses) Earnings Per Share $(0.26) $0.17 $(0.85) $0.59 Adjusted (Loss) Income Before Income Taxes (Loss) Income Before Income Taxes $(8,236) $(4,250) $(25,519) $8,535 Adjustments Impact of sale-leaseback financing expense (1) — 11,159 — 11,159 Total Adjustments — 11,159 — 11,159 Adjusted (Loss) Income Before Income Taxes $(8,236) $6,909 $(25,519) $19,694 Adjusted Income Before Income Taxes - Agriculture Income Before Income Taxes $(12,295) $635 $(25,075) $13,680 Adjustments Impact of sale-leaseback financing expense (1) — 6,067 — 6,067 Total Adjustments — 6,067 — 6,067 Adjusted Income Before Income Taxes $(12,295) $6,702 $(25,075) $19,747 Adjusted Income Before Income Taxes - Construction Income (Loss) Before Income Taxes $(1,216) $(4,893) $(5,393) $(4,625)Adjustments Impact of sale-leaseback financing expense (1) — 5,092 — 5,092 Total Adjustments — 5,092 — 5,092 Adjusted Income Before Income Taxes $(1,216) $199 $(5,393) $467 (1) Accounting impact of a non-cash, sale-leaseback financing expense related to the Company's umbrella purchase for 13 of its leased facilities.(2) The tax effect of U.S. related adjustments was calculated using a 25.5% tax rate, determined based on a 21% federal statutory rate and a 4.5% blended state income tax rate. EBITDA Net (Loss) Income $(6,000) $(4,304) $(19,204) $5,136 Adjustments Interest expense, net of interest income 4,442 3,629 8,834 5,980 Floorplan interest expense 6,812 9,218 13,338 16,282 (Benefit) Provision for Income Taxes (2,236) 54 (6,315) 3,399 Depreciation and amortization 9,414 9,698 18,329 18,413 EBITDA 12,432 18,295 14,982 49,210 Adjustments Floorplan interest expense (6,812) (9,218) (13,338) (16,282)Impact of sale-leaseback financing expense (1) — 11,159 — 11,159 Total Adjustments (6,812) 1,941 (13,338) (5,123)Adjusted EBITDA $5,620 $20,236 $1,644 $44,087 (1) Accounting impact of a non-cash, sale-leaseback financing expense related to the Company's umbrella purchase for 13 of its leased facilities.(2) The tax effect of U.S. related adjustments was calculated using a 25.5% tax rate, determined based on a 21% federal statutory rate and a 4.5% blended state income tax rate.

Titan Machinery Inc. Announces Results for Fiscal Second Quarter Ended July 31, 2025

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