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Titan Machinery Earnings Beat Estimates in Q2, Revenues Fall Y/Y
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Key Takeaways
TITN reported Q2 loss of $0.26 per share, beating estimates but reversing from last year's earnings.
Revenues fell 13.8% y/y to $546M, with equipment sales down 19.1% and parts nearly flat.
Europe revenues jumped 44.1% with a strong currency impact, while Australia plunged 50.1% in Q2.
Titan Machinery Inc. (TITN - Free Report) reported an adjusted loss per share of 26 cents in the second-quarter fiscal 2026 (ended July 31, 2025), beating the Zacks Consensus Estimate of a loss of 56 cents. The company reported adjusted earnings of 17 cents per share in the year-ago quarter.
Including one-time items, the company had reported a loss of 19 cents in the year-ago quarter. There were no such items in the second quarter of fiscal 2026.
Total revenues in the reported quarter were $546 million, down 13.8% from the year-ago quarter, reflecting softer retail demand. The top line beat the consensus mark of $504 million.
Equipment revenues fell 19.1% year over year to $376 million, whereas parts revenues fell 0.5% to $109 million. Revenues generated from service were around $49 million in the reported quarter, up 3.2% from the year-ago quarter. Meanwhile, rental and other revenues were up 7.1% year over year to $12 million.
Titan Machinery Inc. Price, Consensus and EPS Surprise
Cost of sales fell 13.1% to $453 million from the prior-year quarter. Gross profit decreased 16.6% year over year to $94 million. The gross margin was 17.1%, down from 17.7% in the prior-year quarter.
Operating expenses decreased 2.6% year over year to $93 million due to lower variable expenses. Adjusted EBITDA came in at $5.6 million compared to the prior year quarter's $20.2 million.
Q2 Segmental Performance of Titan Machinery
Agriculture revenues fell 18.4% to $346 million from the prior-year quarter due to softer equipment demand. The segment’s income before taxes fell to $12.3 million from the prior-year quarter’s $0.6 million.
Construction revenues were $72 million in the fiscal second quarter, down 10.2% year over year. The segment reported income before taxes of $1.2 million, down from the prior-year quarter’s $4.9 million.
Europe revenues were $98 million, up 44.1% from the year-ago quarter’s $68 million, reflecting the positive impacts of foreign currency. The segment reported income before taxes of $5.1 million, which surged 121.7% from $2.3 million in the second quarter of fiscal 2024.
The Australia segment reported revenues of $31 million, down 50.1% year over year. It incurred a loss before taxes of $2.1 million in the second quarter of fiscal 2026 against the prior year’s income of $$1.4 million.
TITIN’s Cash Flow & Balance Sheet as of Q2 End
Cash used for operating activities was $50 million in the first half of fiscal 2026 compared with an outflow of $48 million in the prior-year period. Titan Machinery ended the reported quarter with a cash balance of around $33 million. The company’s long-term debt was $153 million compared with $158 million as of the fiscal 2025 end.
Titan Machinery Anticipates Loss in FY26
The Agriculture segment's revenues are anticipated to decline in the range of 15% to 20% compared with the prior stated expectation of 20% to 25% decline.
The Construction segment’s revenues for fiscal 2026 are expected to see a decline of 3-8% updated from the previous expected decline of 5-10%. Year-over-year revenue growth in Europe is projected at 30-40% compared with a growth of 23-28% mentioned earlier.
The Australia segment's revenues are expected to decline 20-25%.
The company expects to report a loss of $1.50-$2.00 per share in fiscal 2026, reflecting weak demand. The figure is updated from prior stated loss of $1.25-$2.00 per share.
TITN Stock's Price Performance
In the past year, shares of Titan Machinery have gained 38.2% compared with the industry’s growth of 15.8%.
Deere & Company (DE - Free Report) reported third-quarter fiscal 2025 (ended July 27) earnings of $4.75 per share, which beat the Zacks Consensus Estimate of $4.62. The bottom line, however, decreased 24% from the prior-year quarter on lower shipment volumes.
Net sales of equipment operations (comprising Agriculture, and Turf, Construction and Forestry) were $10.36 billion, down 9% year over year. However, net sales topped the Zacks Consensus Estimate of $10.26 billion. Total net sales (including financial services and others) were $12.02 billion, down 8.6% year over year.
AGCO Corp. (AGCO - Free Report) delivered adjusted earnings per share (EPS) of $1.35 in the second quarter of 2025 compared with the prior-year quarter’s $2.53. The reported figure topped the Zacks Consensus Estimate of $1.06.
AGCO’s net sales decreased 18.8% year over year to $2.36 billion in the June-end quarter. The top line beat the Zacks Consensus Estimate of $2.48 billion.
CNH Industrial N.V. (CNH - Free Report) reported second-quarter 2025 adjusted EPS of 17 cents, which declined from 38 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 16 cents.
In the second quarter, CNH’s net sales declined nearly 14% from the year-ago level to $4.71 billion but topped the Zacks Consensus Estimate of $4.53 billion. The company’s net sales from industrial activities came in at $4.02 billion, down 16% due to lower industry demand.
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Titan Machinery Earnings Beat Estimates in Q2, Revenues Fall Y/Y
Key Takeaways
Titan Machinery Inc. (TITN - Free Report) reported an adjusted loss per share of 26 cents in the second-quarter fiscal 2026 (ended July 31, 2025), beating the Zacks Consensus Estimate of a loss of 56 cents. The company reported adjusted earnings of 17 cents per share in the year-ago quarter.
Including one-time items, the company had reported a loss of 19 cents in the year-ago quarter. There were no such items in the second quarter of fiscal 2026.
Total revenues in the reported quarter were $546 million, down 13.8% from the year-ago quarter, reflecting softer retail demand. The top line beat the consensus mark of $504 million.
Equipment revenues fell 19.1% year over year to $376 million, whereas parts revenues fell 0.5% to $109 million. Revenues generated from service were around $49 million in the reported quarter, up 3.2% from the year-ago quarter. Meanwhile, rental and other revenues were up 7.1% year over year to $12 million.
Titan Machinery Inc. Price, Consensus and EPS Surprise
Titan Machinery Inc. price-consensus-eps-surprise-chart | Titan Machinery Inc. Quote
TITN’s Costs Rise, Margins Dip in Q2
Cost of sales fell 13.1% to $453 million from the prior-year quarter. Gross profit decreased 16.6% year over year to $94 million. The gross margin was 17.1%, down from 17.7% in the prior-year quarter.
Operating expenses decreased 2.6% year over year to $93 million due to lower variable expenses. Adjusted EBITDA came in at $5.6 million compared to the prior year quarter's $20.2 million.
Q2 Segmental Performance of Titan Machinery
Agriculture revenues fell 18.4% to $346 million from the prior-year quarter due to softer equipment demand. The segment’s income before taxes fell to $12.3 million from the prior-year quarter’s $0.6 million.
Construction revenues were $72 million in the fiscal second quarter, down 10.2% year over year. The segment reported income before taxes of $1.2 million, down from the prior-year quarter’s $4.9 million.
Europe revenues were $98 million, up 44.1% from the year-ago quarter’s $68 million, reflecting the positive impacts of foreign currency. The segment reported income before taxes of $5.1 million, which surged 121.7% from $2.3 million in the second quarter of fiscal 2024.
The Australia segment reported revenues of $31 million, down 50.1% year over year. It incurred a loss before taxes of $2.1 million in the second quarter of fiscal 2026 against the prior year’s income of $$1.4 million.
TITIN’s Cash Flow & Balance Sheet as of Q2 End
Cash used for operating activities was $50 million in the first half of fiscal 2026 compared with an outflow of $48 million in the prior-year period. Titan Machinery ended the reported quarter with a cash balance of around $33 million. The company’s long-term debt was $153 million compared with $158 million as of the fiscal 2025 end.
Titan Machinery Anticipates Loss in FY26
The Agriculture segment's revenues are anticipated to decline in the range of 15% to 20% compared with the prior stated expectation of 20% to 25% decline.
The Construction segment’s revenues for fiscal 2026 are expected to see a decline of 3-8% updated from the previous expected decline of 5-10%. Year-over-year revenue growth in Europe is projected at 30-40% compared with a growth of 23-28% mentioned earlier.
The Australia segment's revenues are expected to decline 20-25%.
The company expects to report a loss of $1.50-$2.00 per share in fiscal 2026, reflecting weak demand. The figure is updated from prior stated loss of $1.25-$2.00 per share.
TITN Stock's Price Performance
In the past year, shares of Titan Machinery have gained 38.2% compared with the industry’s growth of 15.8%.
Image Source: Zacks Investment Research
Titan Machinery’s Zacks Rank
TITN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Performances
Deere & Company (DE - Free Report) reported third-quarter fiscal 2025 (ended July 27) earnings of $4.75 per share, which beat the Zacks Consensus Estimate of $4.62. The bottom line, however, decreased 24% from the prior-year quarter on lower shipment volumes.
Net sales of equipment operations (comprising Agriculture, and Turf, Construction and Forestry) were $10.36 billion, down 9% year over year. However, net sales topped the Zacks Consensus Estimate of $10.26 billion. Total net sales (including financial services and others) were $12.02 billion, down 8.6% year over year.
AGCO Corp. (AGCO - Free Report) delivered adjusted earnings per share (EPS) of $1.35 in the second quarter of 2025 compared with the prior-year quarter’s $2.53. The reported figure topped the Zacks Consensus Estimate of $1.06.
AGCO’s net sales decreased 18.8% year over year to $2.36 billion in the June-end quarter. The top line beat the Zacks Consensus Estimate of $2.48 billion.
CNH Industrial N.V. (CNH - Free Report) reported second-quarter 2025 adjusted EPS of 17 cents, which declined from 38 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 16 cents.
In the second quarter, CNH’s net sales declined nearly 14% from the year-ago level to $4.71 billion but topped the Zacks Consensus Estimate of $4.53 billion. The company’s net sales from industrial activities came in at $4.02 billion, down 16% due to lower industry demand.