Raytheon awarded $71 million in Navy contracts for missile systems
Investing.com - Titan Machinery Inc. (NASDAQ:TITN) reported better-than-expected second quarter results on Thursday, as the agricultural and construction equipment dealer navigated a challenging market environment while making progress on its inventory reduction strategy.
The company posted a second quarter loss of $0.26 per share, significantly better than analyst expectations of a $0.48 per share loss.
Revenue came in at $546.4 million, exceeding the consensus estimate of $503.8 million but down 13.8% from $633.7 million in the same period last year.
"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," said Bryan Knutson, Titan Machinery’s President and Chief Executive Officer.
The company’s revenue decline was primarily driven by lower equipment sales across most segments, reflecting softer retail demand due to lower commodity prices and high interest rates affecting farmer profitability.
Equipment revenue fell to $376.3 million from $465.2 million a year ago, while parts and service revenues remained relatively stable at $109.2 million and $48.8 million, respectively.
Gross profit margin decreased to 17.1% from 17.7% in the prior year quarter, primarily due to lower equipment margins as the company implemented pricing concessions to manage inventory levels.
By segment, Agriculture revenue declined 18.5% YoY to $345.8 million, Construction revenue fell 10.2% to $72.0 million, and Australia revenue dropped 50.1% to $30.6 million.
However, the Europe segment showed strong performance with revenue increasing 44% to $98.1 million, driven by European Union stimulus programs in Romania.
"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," Knutson added.
Titan Machinery updated its fiscal 2026 guidance, now expecting an adjusted loss per share of $1.50 to $2.00, compared to its previous forecast of $1.25 to $2.00.
The company also adjusted its segment revenue expectations, with Agriculture now projected to decline 15-20% versus the previous 20-25% forecast, and Europe expected to grow 30-40%, up from the previous 23-28% projection.
The company reaffirmed its commitment to achieving its $100 million inventory reduction target for the fiscal year, with the majority of progress expected toward the end of the fiscal year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.