Titan Machinery floorplan payable drops 25% YoY

Equipment dealer Titan Machinery decreased its floorplan use in its fiscal first quarter 2026 as inventory reductions and mix optimization led to a reduction in floorplan payables and floorplan expense. 

Floorplan and other interest expenses fell 15.3% sequentially due to inventory reduction, with further declines expected as optimization continues into the next fiscal year, Bo Larsen, chief financial officer at Titan Machinery, said during the company’s earnings call today. 

“We’re talking about historically low equipment margins for ourselves in domestic ag, so to the extent that there’s more support there, it helps support the view that we have, or potentially, a little bit of upside in terms of where revenue could be,” he said. “Overall, the priority is inventory reduction and we’re doing what we need to and just working with our partners on support so that we can all get there as efficiently as possible.” 

By the numbers

Titan Machinery’s equipment inventory, floorplan payable and floorplan expense decreased in Q1 2026, which ended April 30, according to its earnings presentation. Other Q1 highlights:  

• A loss of $13.2 million, compared to earnings of $9.4 million last year; 

• Equipment inventory declined to $1.1 billion, down 23.1% year over year; 

• Floorplan payables were $769.6 million, down 24.9% YoY; 

• Floorplan interest expense was $6.5 million, down 7.6% YoY; and 

• Equipment inventory turn rate declined to 1.7, down 15% YoY. 

Q1 product segment results included: 

• Agriculture segment revenues decreased 14.1% YoY to $384.4 million; 

• Construction revenues inched up to $72.1 million, up 0.9% YoY; and 

• Q1 equipment and rental results included: 

• Total revenue declined 5.5% YoY to $594.3 million; 

• Equipment revenue decreased 6.7% YoY to $436.8 million; 

• Rental and other revenue rose 7.4% YoY to $7.9 million; 

• Rental fleet assets dipped 7.4% to $75 million; and 

• Rental fleet dollar utilization landed at 20.1%, down 160 basis points YoY. 

Meanwhile, in Europe, same-store sales increased 44% as stimulus activity benefited Europe and reduced the overall decline in revenues, Titan Machinery President and Chief Executive Bryan Knutson said during the earnings call. 

“Our European segment was a bright spot, particularly in Romania, where EU stimulus funds have increased buying activity, which we expect will extend through September,” he said. “While we anticipate a lift, the degree to which was hard to determine, however, it is clear that support will be meaningful for our operations in Romania.” 

Future look 

The outlook for the construction and agriculture segments is forecasted to be down in all segments except Europe, headed into the rest of the fiscal year, Larsen said. 

“Construction is coming off of some really good years and for us record years and we’re talking about kind of a modest step back off of that given some of the uncertainty in the higher interest rate environment,” he said. While overall performance is down slightly, construction remains in a significantly stronger position than agriculture, which is experiencing historically low volumes and trough-level activity, Larsen added. 

MARKET REACTION: Shares of Titan Machinery (NASDAQ: TITN) were up 0.95% or 19 cents from market open to $20.13 as of market close today. Titan Machinery has a market capitalization of $450.50 million.