Titan Machinery agriculture revenue falls 19%

Equipment dealer Titan Machinery took a loss in the second quarter of its fiscal 2026 amid agriculture industry woes, economic uncertainty and low sales margins.  

Decreased agriculture segment revenue reflects weak farmer sentiment as low commodity prices continue to strain equipment demand, Titan Machinery President and Chief Executive Bryan Knutson said during today’s earnings call.  

The company expects agriculture revenue to drop 15% to 20% in fiscal 2026, but there are some “encouraging developments with timely moisture across much of our footprint, which has improved crop health and yield outlook for the current growing season,” Knutson said. 

“Additionally, the reinstatement of 100% bonus depreciation is also a positive as it provides an offset opportunity for those growers who do find themselves in a taxable income position at the end of the year,” he said. 

BY THE NUMBERS: West Fargo, N.D.-based Titan Machinery reported the following inventory and floorplan results in its fiscal Q2 ending July 31: 

• Equipment inventory totaled $1.1 billion, up 2.8% year over year; 
• Floorplan payables increased 12.8% YoY to $852.2 million;  
• Floorplan interest expense dropped 26.1% YoY to $6.8 billion; and 
• Equipment inventory turn rate was 1.7, unchanged YoY. 

Other Q2 results included: 

• Net loss of $6 million, compared with a $4.3 million loss a year prior; 
• Total revenue declined 13.8% YoY to $546.4 million; 
• Agriculture segment revenue dropped 18.5% YoY to $345.8 million;  
• Construction segment revenue totaled $72 million, down 10.2% YoY; 
• Equipment revenue fell 19.1% YoY to $376.3 million; 
• Rental and other revenue rose 6.8% YoY to $12.1 million;  
• Rental fleet assets totaled $72 million, down 11.1% YoY; and 
• Rental fleet dollar utilization fell 2.3 percentage points YoY to 22.4%. 

The decline in construction revenue came as economic uncertainty hindered capital expenditures, Knutson said. Nonetheless, a slew of infrastructure projects “continue to provide a base level of demand that supports relative stability in this segment,” he said. 

FUTURE LOOK: Despite the uptick in equipment inventory, which was attributed to an influx of OEM shipments ahead of planned deliveries, the company remains confident that it will reach its inventory reduction target of $100 million for the full year, Knutson said. 

Titan aims to achieve this goal by placing a “heightened focus on optimizing our used equipment portfolio,” Knutson said. However, this strategy entails continued pricing concessions and low sales margins for the remainder of fiscal 2026, Chief Financial Officer Bo Larsen said during the call. 

As a result, the company anticipates a diluted loss per share of $1.50 to $2 in fiscal 2026, he said. 

MARKET REACTION: Shares of Titan Machinery [NASDAQ: TITN] were down 6.3% from market open to $19.68 as of market close today. It has a market capitalization of $447.2 million.  

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