Titan Machinery hits $2.8B revenue record in fiscal 2024
Inventories increased to $1.3B, up more than 18% YoY
Equipment dealer Titan Machinery reported record revenue of $2.8 billion for fiscal 2024 as inventories and floorplan use rose.
Each of Titan’s operating segments grew in the fiscal year, which ended Jan. 31, with equipment revenue notching a sharp increase.
“In addition to strong retail sales activity during the quarter, our domestic team met demand through improving the pace of customer deliveries following a concerted effort to complete pre-delivery inspections of new machinery — this focus can be seen in the high volume of equipment that was delivered in the quarter,” Chief Executive Bryan Knutson said in a fourth-quarter earnings release today.
FLASHBACK: West Fargo, N.D.-based Titan Machinery bought Australian dealer group J.J. O’Connor & Sons for $63 million in the second quarter, using its $45 million syndicated bank floorplan facility to finance the deal. For 2025, Knutson said Titan is forecasting “consolidated revenue growth primarily led by annualization of the O’Connor acquisition as well as steady growth in our parts and service business.”
Titan Machinery said in a regulatory filing with the U.S. Securities and Exchange Commission that its increase in inventory included $110.1 million attributed to acquisitions made in fiscal 2024, including the O’Connor deal.
BY THE NUMBERS
- Titan’s equipment inventory increased 18.3% year over year to $1.3 billion as of Jan. 31. The jump represents includes of $375.6 million in new equipment, $182.3 million in used equipment and $38.6 million in parts inventory.
- Floorplan payables were $893.8 million on $1.4 billion total available floorplan, up from $258.4 million last year. The company said a $160.8 million increase in non-manufacturer floorplan payables drove its net cash provided by financing activities upward.
- Floorplan interest expense rose to $13.8 million in fiscal 2024, up from $1.9 million the year prior.
- Annual rental revenue was roughly $44.9 million, up 10.4% from the year prior.
- The cost of rental revenue increased to $28.6 million from $25.3 million a year ago.
Agriculture revenue grows, construction remains up
For the fourth quarter, Titan Machinery continued growing agricultural. The company’s agricultural revenue was $620.6 million in Q4, up 40.8% YoY. For the year, agricultural revenue was up 27.6%.
The company bought dealers Pioneer Farm Equipment in February 2023 and Scott Supply in January 2024 and both acquisitions bolstered its agricultural segment’s bottom line.
Nationwide. used farm inventory was up 40% in February, according to analysts at Sandhills Global. Asking and auction values remain mixed.
Construction continues to grow
Construction — which remains a market segment lenders are most confident in, according to an Equipment Leasing and Finance Association survey — also expanded, with revenue for Q4 growing 17.6% to $100.1 million. For the year, construction revenue grew 7.8% to $322. million.
Titan noted in its SEC filing that the construction increase was driven in part by a 17.7% rise in same-store sales, which “resulted from the timing of equipment deliveries which shifted some revenue into the fourth quarter of this year as compared to the timing of deliveries to customers in the second half of last year.”
The company forecasts the agricultural market will remain flat or grow up to 5% in fiscal 2025. Construction is expected to grow 3% to 8% annually in the coming year.
Shares of Titan Machinery [NASDAQ:TITN] were trading at $25.03 as of market close, down roughly 6.8% since market open. The company has a market capitalization of $572 million.
Registration is now open for Equipment Finance Connect, the nation’s only dealer-centric equipment lending and leasing event, which will take place May 5-7 in Nashville, Tenn. Learn about the event and free dealer registration at EquipmentFinanceConnect.com.
