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

Rhea-AI Summary

Titan Machinery (Nasdaq: TITN) reported its fiscal Q2 2026 results, with revenue declining to $546.4 million from $633.7 million year-over-year. The company posted a net loss of $6.0 million, or $0.26 per diluted share, compared to a net loss of $4.3 million in the prior year.

Key financial metrics include gross profit of $93.6 million with a 17.1% margin, and EBITDA of $12.4 million. The Agriculture segment saw an 18.7% same-store sales decrease, while the Europe segment showed strong growth of 38.1%. The company maintains its $100 million inventory reduction target for fiscal 2026 and has updated its guidance, now expecting an adjusted diluted loss per share of ($1.50) to ($2.00).

The company's performance was impacted by lower commodity prices and high interest rates affecting farmer profitability, leading to softer retail demand and compressed equipment margins.

Positive

• Strong Europe segment performance with 38.1% revenue growth
• Stable parts and service business providing operational stability
• On track to exceed $100 million inventory reduction target
• Improved cash flow with $49.9 million provided by operating activities in H1

Negative

• Revenue declined 13.8% year-over-year to $546.4 million
• Net loss increased to $6.0 million from $4.3 million year-over-year
• Agriculture segment same-store sales decreased 18.7%
• Gross profit margin compressed to 17.1% from 17.7%
• Operating expenses as percentage of revenue increased to 17.0% from 15.0%
• Guidance lowered with wider expected losses

Insights

Financial Analyst

Titan Machinery reported weak Q2 results with declining revenues and margins amid agricultural downturn, though progressing on inventory reduction targets.

Titan Machinery's Q2 results reveal significant headwinds in the agricultural equipment market, with consolidated revenue declining 13.8% year-over-year to $546.4 million. This deterioration was primarily driven by a 18.7% same-store sales decrease in their core Agriculture segment, which fell to $345.8 million from $424.0 million last year. The company swung to a quarterly net loss of $6.0 million ($0.26 per diluted share), compared to an adjusted net income of $4.0 million ($0.17 per share) in the prior year period after excluding a one-time sale-leaseback expense.

The earnings deterioration stems from multiple factors: lower equipment sales volumes, compressed equipment margins due to pricing concessions to move inventory, and higher operating expenses as a percentage of revenue (increasing from 15.0% to 17.0%). Gross profit margins contracted by 60 basis points to 17.1%, reflecting the challenging market conditions and inventory reduction initiatives.

Despite these challenges, there are some stabilizing elements in Titan's business model. Parts revenue remained nearly flat at $109.2 million, while service revenue actually increased slightly to $48.8 million. These higher-margin segments are providing critical stability during what management describes as a "trough in the equipment cycle." The European segment was a bright spot, growing 38.1% organically, benefiting from EU stimulus programs in Romania.

Looking forward, management has adjusted their fiscal 2026 outlook, narrowing their projected adjusted diluted loss per share to ($1.50) to ($2.00). They've updated segment revenue projections, with slightly improved outlooks for Agriculture and Construction, while raising Europe segment expectations significantly. The company remains focused on its $100 million inventory reduction target, which they now believe they can exceed by fiscal year-end, though most progress will come in the latter half of the year.

The inventory situation bears watching - while flat compared to January, there was a "modest increase" during Q2 due to OEM shipment timing. This suggests the company still faces challenges in aligning inventory with current demand levels, particularly as agricultural equipment demand remains soft due to lower commodity prices and high interest rates reducing farmer profitability.

- 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 Assumptions
Segment 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.com
646-277-1263

TITAN MACHINERY INC.
Consolidated Condensed Balance Sheets
(in thousands)
(Unaudited)
	July 31, 2025			January 31, 2025
Assets
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			% Change
Revenue
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/m
Construction		(1,216	)			(4,893	)		75.1	%			(5,393	)			(4,625	)		n/m
Europe		5,147				(2,270	)		n/m				9,857				(919	)		n/m
Australia		(2,107	)			1,362			n/m				(2,669	)			876			n/m
Segment (Loss) Income Before Income Taxes		(10,471	)			(5,166	)		(102.7)	%			(23,280	)			9,012			n/m
Shared Resources		2,235				916			144.0	%			(2,239	)			(477	)		n/m
Total	$	(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.

FAQ

What were Titan Machinery's (TITN) Q2 2026 earnings results?

Titan Machinery reported revenue of $546.4 million and a net loss of $6.0 million ($0.26 per share) in Q2 2026, compared to revenue of $633.7 million and a net loss of $4.3 million in Q2 2025.

How did Titan Machinery's different segments perform in Q2 2026?

The Agriculture segment saw an 18.7% same-store sales decrease, Construction segment declined 10.2%, Europe segment grew 38.1%, and Australia segment decreased 48.7%.

What is Titan Machinery's inventory reduction target for fiscal 2026?

Titan Machinery maintains its $100 million inventory reduction target for fiscal 2026, with the majority of progress expected toward the end of the fiscal year.

What is Titan Machinery's updated earnings guidance for fiscal 2026?

Titan Machinery updated its adjusted diluted loss per share guidance to ($1.50) to ($2.00) for fiscal 2026, reflecting continued pressure on equipment margins.

How much cash does Titan Machinery have on its balance sheet?

Titan Machinery reported $32.7 million in cash at the end of Q2 2026, with inventories stable at $1.1 billion and $852.2 million in outstanding floorplan payables.