CORRECTION -- Titan Machinery Inc. Announces Results for Fiscal Fourth Quarter and Full Year Ended January 31, 2025
Rhea-AI Summary
Titan Machinery reported financial results for Q4 and full year FY2025, highlighting significant inventory reduction efforts. The company reduced inventory by $304 million in Q4, totaling $419 million since Q2 peak.
Q4 revenue was $759.9 million, down from $852.1 million year-over-year. The company reported a Q4 net loss of $43.8 million ($1.93 per diluted share), compared to net income of $24.0 million ($1.05 per share) last year. Service revenue showed strong growth of 14.5% for the full fiscal year.
For FY2025, total revenue was $2.7 billion with a net loss of $36.9 million. The company's inventory reduction initiatives, while impacting equipment margins, positioned them better for FY2026's expected subdued demand environment, with North American large agriculture equipment demand forecasted to decline approximately 30% year-over-year.
Positive
- Significant inventory reduction of $419 million since Q2 peak
- Service revenue grew 14.5% for full fiscal year
- Strong cash flow with $70.3 million provided by operating activities
- Available credit lines of $1.5 billion with $755.7 million in floorplan payables
Negative
- Q4 net loss of $43.8 million compared to $24.0 million profit last year
- Full year net loss of $36.9 million compared to $112.4 million profit in FY2024
- Q4 revenue declined 10.8% to $759.9 million year-over-year
- Gross profit margin decreased to 6.7% from 16.6% year-over-year
- Expected 30% decline in North American agriculture equipment demand for FY2026
News Market Reaction
On the day this news was published, TITN gained 12.90%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Achieved Approximately
- Service Revenue Increased
- Provides Fiscal 2026 Modeling Assumptions -
In a release issued earlier today by Titan Machinery Inc. (Nasdaq: TITN), please note that in the "Non-GAAP Reconciliations" table, the "Adjusted Diluted (Loss) Earnings per Share" has changed from
WEST FARGO, N.D., March 20, 2025 (GLOBE NEWSWIRE) -- Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal fourth quarter and full year ended January 31, 2025.
"Our fiscal fourth quarter results reflect a significant step forward in the execution of our inventory reduction initiative, particularly in our domestic Agriculture segment. We reduced inventory by approximately
Mr. Knutson continued, "I'm incredibly proud of the entire Titan team for their focus on this initiative, which required coordination across all facets of our business, while not losing sight of our broader initiatives surrounding our customer care strategy, which delivered strong service revenue growth of
Fiscal 2025 Fourth Quarter Results
Consolidated Results
For the fourth quarter of fiscal 2025, revenue was
Gross profit for the fourth quarter of fiscal 2025 was
Operating expenses were
Floorplan interest expense and other interest expense was
In the fourth quarter of fiscal 2025, net loss was
Adjusted EBITDA in the fourth quarter of fiscal 2025 was negative
Segment Results
Agriculture Segment - Revenue for the fourth quarter of fiscal 2025 was
Construction Segment - Revenue for the fourth quarter of fiscal 2025 was
Europe Segment - Revenue for the fourth quarter of fiscal 2025 was
Australia Segment - Revenue for the fourth quarter of fiscal 2025 was
Fiscal 2025 Full Year Results
Revenue was
Balance Sheet and Cash Flow
Cash at the end of the fourth quarter of fiscal 2025 was
For the fiscal year ended January 31, 2025, the Company’s net cash provided by operating activities was
Additional Management Commentary
Mr. Knutson concluded, "We are introducing modeling assumptions for fiscal 2026 that are consistent with industry forecasts which are suggesting that demand for North American large agriculture equipment will be down approximately
2026 Modeling Assumptions
The following are the Company's current expectations for fiscal 2026 modeling assumptions.
| Current Assumptions | |
| Segment Revenue | |
| Agriculture | Down |
| Construction | Down |
| Europe | Flat - Up |
| Australia | Down |
| Adjusted Diluted Loss Per Share | ( |
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, April 3, 2025, by dialing (844) 512-2921 from the U.S., or (412) 317-6671 from international locations, and entering confirmation code 13751822.
A copy of the presentation that will accompany the prepared remarks from 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
Within this release, the Company refers to certain adjusted financial measures, which have directly comparable GAAP financial measures as identified in this release. The Company believes that these 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. These 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 adjusted financial measures used in this release to their most directly comparable GAAP financial measures. These reconciliations are attached to this release. The tables included in the Non-GAAP Reconciliations section reconcile adjusted net income (loss), EBITDA and adjusted EBITDA, adjusted diluted earnings (loss) per share, and adjusted income (loss) before income taxes (all non-GAAP financial measures) for the periods presented, to their respective most directly comparable GAAP financial measures.
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 offer 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.com
Managing Director
646-277-1263
| TITAN MACHINERY INC. | ||||||
| Consolidated Condensed Balance Sheets | ||||||
| (in thousands) | ||||||
| (Unaudited) | ||||||
| January 31, 2025 | January 31, 2024 | |||||
| Assets | ||||||
| Current Assets | ||||||
| Cash | $ | 35,898 | $ | 38,066 | ||
| Receivables, net of allowance for expected credit losses | 119,814 | 153,657 | ||||
| Inventories | 1,108,672 | 1,303,030 | ||||
| Prepaid expenses and other | 28,244 | 24,262 | ||||
| Total current assets | 1,292,628 | 1,519,015 | ||||
| Noncurrent Assets | ||||||
| Property and equipment, net of accumulated depreciation | 379,690 | 298,774 | ||||
| Operating lease assets | 27,935 | 54,699 | ||||
| Deferred income taxes | 2,552 | 529 | ||||
| Goodwill | 61,246 | 64,105 | ||||
| Intangible assets, net of accumulated amortization | 48,306 | 53,356 | ||||
| Other | 1,581 | 1,783 | ||||
| Total noncurrent assets | 521,310 | 473,246 | ||||
| Total Assets | $ | 1,813,938 | $ | 1,992,261 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current Liabilities | ||||||
| Accounts payable | $ | 37,166 | $ | 43,846 | ||
| Floorplan payable | 755,698 | 893,846 | ||||
| Current maturities of long-term debt | 10,920 | 13,706 | ||||
| Current maturities of operating leases | 5,747 | 10,751 | ||||
| Deferred revenue | 91,933 | 115,852 | ||||
| Accrued expenses and other | 59,492 | 74,400 | ||||
| Total current liabilities | 960,956 | 1,152,401 | ||||
| Long-Term Liabilities | ||||||
| Long-term debt, less current maturities | 157,767 | 106,407 | ||||
| Operating lease liabilities | 25,588 | 50,964 | ||||
| Deferred income taxes | 8,818 | 22,607 | ||||
| Other long-term liabilities | 46,732 | 2,240 | ||||
| Total long-term liabilities | 238,905 | 182,218 | ||||
| Stockholders' Equity | ||||||
| Common stock | — | — | ||||
| Additional paid-in-capital | 262,097 | 258,657 | ||||
| Retained earnings | 360,314 | 397,225 | ||||
| Accumulated other comprehensive income (loss) | (8,334 | ) | 1,760 | |||
| Total stockholders' equity | 614,077 | 657,642 | ||||
| Total Liabilities and Stockholders' Equity | $ | 1,813,938 | $ | 1,992,261 | ||
| TITAN MACHINERY INC. | |||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended January 31, | Twelve Months Ended January 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue | |||||||||||||||
| Equipment | $ | 621,829 | $ | 714,044 | $ | 2,050,298 | $ | 2,145,316 | |||||||
| Parts | 89,339 | 90,763 | 428,457 | 410,841 | |||||||||||
| Service | 36,639 | 35,137 | 180,107 | 157,315 | |||||||||||
| Rental and other | 12,114 | 12,188 | 43,260 | 44,973 | |||||||||||
| Total Revenue | 759,921 | 852,132 | 2,702,122 | 2,758,445 | |||||||||||
| Cost of Revenue | |||||||||||||||
| Equipment | 619,981 | 626,898 | 1,912,803 | 1,864,558 | |||||||||||
| Parts | 63,302 | 63,146 | 294,233 | 279,921 | |||||||||||
| Service | 16,070 | 12,971 | 66,823 | 53,981 | |||||||||||
| Rental and other | 9,565 | 8,082 | 32,633 | 28,631 | |||||||||||
| Total Cost of Revenue | 708,918 | 711,097 | 2,306,492 | 2,227,091 | |||||||||||
| Gross Profit | 51,003 | 141,035 | 395,630 | 531,354 | |||||||||||
| Operating Expenses | 96,693 | 100,328 | 389,780 | 362,509 | |||||||||||
| Impairment of Goodwill | — | — | 531 | — | |||||||||||
| Impairment of Intangible and Long-Lived Assets | 105 | — | 1,311 | — | |||||||||||
| (Loss) Income from Operations | (45,795 | ) | 40,707 | 4,008 | 168,845 | ||||||||||
| Other Income (Expense) | |||||||||||||||
| Interest and other income (expense) | 62 | 2,173 | (4,178 | ) | 3,300 | ||||||||||
| Floorplan interest expense | (8,435 | ) | (6,028 | ) | (34,710 | ) | (13,802 | ) | |||||||
| Other interest expense | (4,626 | ) | (3,294 | ) | (15,105 | ) | (7,303 | ) | |||||||
| (Loss) Income Before Income Taxes | (58,794 | ) | 33,558 | (49,985 | ) | 151,040 | |||||||||
| (Benefit from) Provision for Income Taxes | (15,033 | ) | 9,595 | (13,074 | ) | 38,599 | |||||||||
| Net (Loss) Income | $ | (43,761 | ) | $ | 23,963 | $ | (36,911 | ) | $ | 112,441 | |||||
| Diluted (Loss) Earnings per Share | $ | 1.93 | $ | 1.05 | $ | (1.63 | ) | $ | 4.93 | ||||||
| Diluted Weighted Average Common Shares | 22,632 | 22,517 | 22,606 | 22,499 | |||||||||||
| TITAN MACHINERY INC. | |||||||
| Consolidated Condensed Statements of Cash Flows | |||||||
| (in thousands) | |||||||
| (Unaudited) | |||||||
| Year Ended January 31, | |||||||
| 2025 | 2024 | ||||||
| Operating Activities | |||||||
| Net (loss) income | $ | (36,911 | ) | $ | 112,441 | ||
| Adjustments to reconcile net (loss) income to net cash provided by (used for) operating activities | |||||||
| Depreciation and amortization | 38,601 | 31,479 | |||||
| Impairment | 1,842 | — | |||||
| Other, net | 7,256 | 12,941 | |||||
| Changes in assets and liabilities, net of effects of acquisitions | |||||||
| Inventories | 166,182 | (476,389 | ) | ||||
| Manufacturer floorplan payable | (82,724 | ) | 368,111 | ||||
| Other working capital | (23,955 | ) | (80,863 | ) | |||
| Net Cash Provided by (Used for) Operating Activities | 70,291 | (32,280 | ) | ||||
| Investing Activities | |||||||
| Property and equipment purchases | (51,845 | ) | (62,361 | ) | |||
| Proceeds from sale of property and equipment | 4,160 | 7,134 | |||||
| Acquisition consideration, net of cash acquired | (260 | ) | (107,548 | ) | |||
| Other, net | 199 | (597 | ) | ||||
| Net Cash Used for Investing Activities | (47,746 | ) | (163,372 | ) | |||
| Financing Activities | |||||||
| Net change in non-manufacturer floorplan payable | (37,694 | ) | 183,148 | ||||
| Net proceeds from long-term debt | 18,792 | 6,554 | |||||
| Other, net | (4,717 | ) | (1,125 | ) | |||
| Net Cash (Used for) Provided by Financing Activities | (23,619 | ) | 188,577 | ||||
| Effect of Exchange Rate Changes on Cash | (1,094 | ) | 1,228 | ||||
| Net Change in Cash | (2,168 | ) | (5,847 | ) | |||
| Cash at Beginning of Period | 38,066 | 43,913 | |||||
| Cash at End of Period | $ | 35,898 | $ | 38,066 | |||
| TITAN MACHINERY INC. | |||||||||||||||||||||
| Segment Results | |||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Three Months Ended January 31, | Twelve Months Ended January 31, | ||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||
| Revenue | |||||||||||||||||||||
| Agriculture | $ | 534,687 | $ | 620,593 | (13.8 | )% | $ | 1,888,428 | $ | 2,044,263 | (7.6 | )% | |||||||||
| Construction | 94,603 | 100,095 | (5.5 | )% | 331,574 | 332,463 | (0.3 | )% | |||||||||||||
| Europe | 65,368 | 61,635 | 6.1 | % | 261,005 | 311,910 | (16.3 | )% | |||||||||||||
| Australia | 65,263 | 69,809 | (6.5 | )% | 221,115 | 69,809 | N/M | ||||||||||||||
| Total | $ | 759,921 | $ | 852,132 | (10.8 | )% | $ | 2,702,122 | $ | 2,758,445 | (2.0 | )% | |||||||||
| Income (Loss) Before Income Taxes | |||||||||||||||||||||
| Agriculture | $ | (55,329 | ) | $ | 28,761 | N/M | $ | (39,773 | ) | $ | 121,072 | N/M | |||||||||
| Construction | (1,085 | ) | 4,599 | N/M | (6,652 | ) | 18,346 | N/M | |||||||||||||
| Europe | (1,779 | ) | (610 | ) | (191.6 | )% | (3,893 | ) | 16,487 | N/M | |||||||||||
| Australia | 2,311 | 4,115 | (43.8 | )% | 2,889 | 4,115 | N/M | ||||||||||||||
| Segment (loss) income before income taxes | (55,882 | ) | 36,865 | N/M | (47,429 | ) | 160,020 | (129.6 | )% | ||||||||||||
| Shared Resources | (2,912 | ) | (3,307 | ) | (11.9 | )% | (2,556 | ) | (8,980 | ) | (71.5 | )% | |||||||||
| Total | $ | (58,794 | ) | $ | 33,558 | N/M | $ | (49,985 | ) | $ | 151,040 | (133.1 | )% | ||||||||
| *N/M = not meaningful | |||||||||||||||||||||
| TITAN MACHINERY INC. | |||||||||||||
| Non-GAAP Reconciliations | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended January 31, | Twelve Months Ended January 31, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| Adjusted Net (Loss) Income | |||||||||||||
| Net (Loss) Income | $ | (43,761 | ) | $ | 23,963 | $ | (36,911 | ) | $ | 112,441 | |||
| Adjustments | |||||||||||||
| Impact of sale-leaseback financing expense (1) | (1,509 | ) | — | 9,650 | — | ||||||||
| Total Pre-Tax Adjustments | (1,509 | ) | — | 9,650 | — | ||||||||
| Tax Effect of Adjustments (2) | 385 | — | (2,460 | ) | — | ||||||||
| Total Adjustments | (1,124 | ) | — | 7,190 | — | ||||||||
| Adjusted Net (Loss) Income | $ | (44,885 | ) | $ | 23,963 | $ | (29,721 | ) | $ | 112,441 | |||
| Adjusted Diluted (Loss) Earnings per Share | |||||||||||||
| Diluted (Loss) Earnings per Share | $ | (1.93 | ) | $ | 1.05 | $ | (1.63 | ) | $ | 4.93 | |||
| Adjustments | |||||||||||||
| Impact of sale-leaseback financing expense (1) | (0.07 | ) | — | 0.43 | — | ||||||||
| Total Pre-Tax Adjustments | (0.07 | ) | — | 0.43 | — | ||||||||
| Tax Effect of Adjustments (2) | 0.02 | — | (0.11 | ) | — | ||||||||
| Total Adjustments | (0.05 | ) | — | 0.32 | — | ||||||||
| Adjusted Diluted (Loss) Earnings per Share | $ | (1.98 | ) | $ | 1.05 | $ | (1.31 | ) | $ | 4.93 | |||
| Adjusted (Loss) Income Before Income Taxes | |||||||||||||
| (Loss) Income Before Income Taxes | $ | (58,794 | ) | $ | 33,558 | $ | (49,985 | ) | $ | 151,040 | |||
| Adjustments | |||||||||||||
| Impact of sale-leaseback financing expense (1) | (1,509 | ) | — | 9,650 | — | ||||||||
| Total Adjustments | (1,509 | ) | — | 9,650 | — | ||||||||
| Adjusted (Loss) Income Before Income Taxes | $ | (60,303 | ) | $ | 33,558 | $ | (40,335 | ) | $ | 151,040 | |||
| EBITDA | |||||||||||||
| Net (Loss) Income | $ | (43,761 | ) | $ | 23,963 | $ | (36,911 | ) | $ | 112,441 | |||
| Adjustments | |||||||||||||
| Interest expense, net of interest income (3) | 4,369 | 3,104 | 14,489 | 6,759 | |||||||||
| (Benefit from) Provision for Income Taxes | (15,033 | ) | 9,595 | (13,074 | ) | 38,599 | |||||||
| Depreciation and amortization | 9,914 | 8,608 | 38,601 | 31,479 | |||||||||
| EBITDA | $ | (44,511 | ) | $ | 45,270 | $ | 3,105 | $ | 189,278 | ||||
| Adjustments | |||||||||||||
| Impact of sale-leaseback financing expense (1) | (1,509 | ) | — | 9,650 | — | ||||||||
| Total Adjustments | (1,509 | ) | — | 9,650 | — | ||||||||
| Adjusted EBITDA | $ | (46,020 | ) | $ | 45,270 | $ | 12,755 | $ | 189,278 | ||||
| (1) Accounting impact of a non-cash, sale-leaseback financing expense related to the Company's umbrella purchase for 13 of its leased facilities in fiscal year 2025. | |||||||||||||
| (2) The tax effect of U.S. related adjustments was calculated using a | |||||||||||||
| (3) The interest expense add back excludes floorplan interest expense, which was | |||||||||||||
FAQ
How much inventory did Titan Machinery (TITN) reduce in Q4 2025?
What was Titan Machinery's (TITN) Q4 2025 revenue and net loss?
How much did TITN's service revenue grow in fiscal year 2025?
What is TITN's market outlook for fiscal year 2026?
What was Titan Machinery's (TITN) full-year revenue for fiscal 2025?
