Titan Machinery reported fiscal first quarter 2026 revenue of $594.3 million, a 5.5% decrease from $628.7 million in the prior year. The company experienced a significant contraction in gross profit margin to 15.3% from 19.4% year-over-year, primarily due to lower equipment margins driven by softer retail demand. This resulted in a net loss of $13.2 million, or $0.58 per diluted share, compared to net income of $9.4 million and $0.41 per diluted share in the first quarter of fiscal 2025.
The Agriculture segment saw a 14.1% same-store sales decrease, leading to a pre-tax loss of $12.8 million. Conversely, the Europe segment was a bright spot, with revenue increasing 47.5% net of foreign currency fluctuations to $93.9 million, driven by European Union stimulus programs in Romania, and a pre-tax income of $4.7 million. Inventories remained flat at $1.1 billion as of April 30, 2025, compared to January 31, 2025.
Management reiterated its full-year diluted adjusted earnings per share guidance, indicating that consolidated performance is tracking within the expected range despite the challenging market. The company updated segment revenue assumptions, projecting domestic Agriculture revenue down 20-25% and Europe up 23-28%, while anticipating consolidated full-year fiscal 2026 equipment margin to be approximately 8%.
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