Titan Machinery reduces inventory despite sales slide amid ag weakness
Total revenue down 15.5% YoY
Equipment dealer Titan Machinery achieved “decisive execution” on inventory reduction in its fiscal 2026, with the company cutting inventory by $206 million during the year — well above its $150 million target — despite sales weakness due to the ag market slump.
Titan reduced total inventory by $625 million over the 18 months since inventories peaked in the second quarter of fiscal 2025, giving the company a “fundamentally stronger foundation” heading into fiscal 2027, President and Chief Executive Bryan Knutson said in today’s earnings release.
Even so, softer retail demand, high interest rates and lower commodity prices continued to pressure results, particularly in the agriculture segment.
By the numbers
West Fargo, N.D.-based Titan Machinery reported the following for its fiscal Q4 ended Jan. 31:
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Total revenue fell 15.5% year over year to $641.8 million;
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Equipment revenue declined 19.3% YoY to $501.5 million; and
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Gross profit rose to $87 million from $51 million a year earlier.
Segment results included:
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Agriculture revenue of $406.7 million, down 23.9% YoY, with same-store sales down 22.8% YoY;
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Construction revenue of $90.2 million, down 4.6% YoY;
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Europe revenue of $68.8 million, up 5.2% YoY; and
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Australia revenue of $76.1 million, up 16.7% YoY.
For the full fiscal year, Titan reported revenue of $2.4 billion, down 10.2% YoY, and net cash from operating activities of $137.5 million, up 95.6% YoY, according to the release. Titan expects fiscal 2027 agriculture revenue to decline 15% to 20%, Europe revenue to fall 20% to 25%, construction revenue to range from flat to up 5%, and Australia revenue to rise 10% to 15%.
MARKET REACTION: Shares of Titan Machinery [NASDAQ: TITN] were down 8.6% from market open to $14.23 as of market close today. It has a market capitalization of $356 million.
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