Titan Machinery posts $0.40 loss per share as revenue falls to $496.4 million in fiscal Q2
WEST FARGO, Aug 27. Titan Machinery Inc. (Nasdaq: TITN) reported a net loss of $9.2 million, or $0.40 per diluted share, for the fiscal second quarter ended July 31, 2026, the company disclosed in an 8-K filing. Revenue was $496.4 million, down from $546.4 million in the same period last year. Gross profit margin widened 150 basis points to 18.6% from 17.1%, the release shows, as continued reductions in aged inventory lifted equipment margins.
Key takeaways
- Titan Machinery reported a fiscal Q2 (ended July 31, 2026) net loss of $9.2 million, or $0.40 per diluted share.
- Revenue fell to $496.4 million from $546.4 million a year earlier, while gross profit margin widened 150 basis points to 18.6%.
- Adjusted EBITDA declined to $4.6 million from $5.6 million, and equipment revenue dropped to $328.5 million from $376.3 million.
- Agriculture revenue fell to $310.2 million with same-store sales down 8.4%, while Construction revenue rose to $78.6 million with same-store sales up 9.2%.
- CEO Bryan Knutson reaffirmed fiscal 2027 EPS modeling assumptions while revising Europe segment revenue lower due to weaker regional sentiment and demand.
WEST FARGO, Aug 27. Titan Machinery Inc. (Nasdaq: TITN) reported a net loss of $9.2 million, or $0.40 per diluted share, for the fiscal second quarter ended July 31, 2026, the company disclosed in an 8-K filing. Revenue was $496.4 million, down from $546.4 million in the same period last year. Gross profit margin widened 150 basis points to 18.6% from 17.1%, the release shows, as continued reductions in aged inventory lifted equipment margins.
Equipment revenue fell to $328.5 million from $376.3 million. Parts revenue was $106.6 million, compared to $109.2 million a year earlier. Adjusted EBITDA declined to $4.6 million from $5.6 million. Floorplan and other interest expense decreased to $8.1 million from $11.5 million, driven by lower interest-bearing inventory levels, the company said.
Segment results
Agriculture, the segment with the highest revenue in the quarter, reported $310.2 million, down from $345.8 million a year earlier, with same-store sales declining 8.4%, according to the filing. The segment's pre-tax loss narrowed to $3.3 million from $12.3 million. Construction revenue rose to $78.6 million from $72.0 million, with same-store sales up 9.2%; pre-tax income was $0.4 million, compared to a pre-tax loss of $1.2 million a year earlier.
Europe revenue fell to $66.1 million from $98.1 million. Net of a $1.1 million foreign currency benefit, the decline was $33.1 million, or 33.7%, the filing shows. The wind-down of German operations contributed approximately $11 million of that decrease. The segment swung to a pre-tax loss of $1.3 million from pre-tax income of $5.1 million. Australia revenue rose to $41.4 million from $30.6 million; net of a $3.9 million currency benefit, the increase was $6.9 million, or 22.5%.
Inventory and outlook
Cash at quarter-end was $29.5 million. Total inventories were $931.5 million as of July 31, 2026, up $28.4 million from January 31, 2026. Equipment inventories were $746.9 million, an increase of $21.7 million over that period. Outstanding floorplan payables were $623.6 million on $1.5 billion in available credit lines. For the six months ended July 31, 2026, net cash used for operating activities was $25.1 million, compared to net cash provided of $49.9 million in the prior-year period.
President and Chief Executive Officer Bryan Knutson said the company is reaffirming its fiscal 2027 earnings-per-share modeling assumptions while revising Europe segment revenue lower, citing deterioration in regional sentiment and softer equipment demand than previously anticipated. Knutson said Construction continues to benefit from data center and infrastructure activity in the company's footprint, and that healthy moisture levels in Australia are raising yield expectations and improving farmer sentiment.