Titan Machinery Inc. reported fiscal third‑quarter 2026 results with revenue of $644.5 million, a 5.2% year‑over‑year decline from $679.8 million in the same period last year. Gross profit stood at $111.0 million, essentially flat compared with $110.5 million a year earlier, while net income was $1.2 million, translating to earnings per diluted share of $0.05—an impressive beat of $0.34 against the consensus estimate of a $0.29 loss per share.
Revenue decline was driven by a 12.3% drop in same‑store sales in the agriculture segment and a 16.9% decline in equipment sales, reflecting weaker demand amid lower commodity prices and higher financing costs. The European segment, however, grew 87.6% to $117 million, largely fueled by stimulus programs in Romania that boosted demand for new equipment.
Gross margin expanded to 17.2% from 16.3% year‑over‑year, driven by a higher mix of high‑margin parts and service revenue, which now accounts for more than half of gross profit. Inventory reductions of $98 million in the first nine months of fiscal 2026 helped lift margins, and management has raised its inventory‑reduction target to $150 million for the full year.
Management revised its fourth‑quarter guidance and reaffirmed a challenging outlook for fiscal 2026, while signaling a stronger position for fiscal 2027. The company remains confident that its inventory optimization and parts‑and‑service strategy will sustain profitability as market conditions improve.
CEO Bryan Knutson emphasized the progress of inventory optimization, noting that “nine months into the fiscal 2026, we are making meaningful progress on our inventory optimization initiatives, which will position us to emerge from this cycle leaner and stronger.” He also highlighted the divestiture of German dealership operations and the continued resilience of the parts and service business as key pillars of the company’s strategy.
The results underscore the dual nature of Titan’s operating environment: headwinds in domestic agriculture and construction demand contrast with tailwinds from parts and service revenue and European growth. The company’s focus on inventory reduction, cost discipline, and a high‑margin service model positions it to navigate current market softness while building a foundation for future recovery.
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