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WEST FARGO, N.D. - Titan Machinery Inc. (NASDAQ:TITN) reported a wider-than-expected loss for its fiscal fourth quarter as the agricultural and construction equipment dealer accelerated inventory reduction efforts amid softening demand.
Shares of Titan Machinery rose 10.8% on Thursday following the earnings release, with investors seemingly engaging in a relief rally, as the stock has dropped nearly 50% in the past year.
The company posted an adjusted loss of $1.88 per share for the quarter ended January 31, significantly worse than analysts’ estimates of a $0.62 per share loss. Revenue fell 10.8% YoY to $759.9 million, but came in above expectations of $728.18 million.
Titan Machinery reduced inventory by approximately $304 million during the fourth quarter, bringing its total reduction since the fiscal second quarter peak to about $419 million. While this improved the company’s position heading into fiscal 2026, it came at the expense of equipment margins in the short-term.
"While this accelerated reduction came at the expense of our equipment margins in the short-run, this was a key lever that we felt was necessary to improve our position as we transition into fiscal 2026 with a more subdued demand environment," said CEO Bryan Knutson.
The company’s agriculture segment saw revenue decline 13.8% YoY to $534.7 million, reflecting softening demand driven by declining net farm income and high interest rates. The segment swung to a pre-tax loss of $55.3 million compared to $28.8 million in income a year ago.
For fiscal 2026, Titan expects agriculture segment revenue to decline 20-25%, in line with industry forecasts suggesting North American large agriculture equipment demand will be down about 30% YoY.
Lake Street Capital Markets maintained their Hold stock rating and $15.00 price target on Titan, commenting, "Q4’25 results beat on the top line as the company aggressively sold through inventory, but at the expense of margins to deliver a significant earnings miss... The FY26 guide calls for further compression on both the top and bottom line beyond consensus estimate."
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