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Titan Machinery Q1 Earnings Beat Estimates on Better Equipment Margins
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Key Takeaways
TITN reported a Q1 loss of 55 cents per share, beating estimates, as revenues topped expectations.
The gross margin rose to 17.1% from 15.3% despite lower revenues, aided by aged inventory reductions.
TITN reaffirmed its FY27 assumptions, and maintained adjusted EBITDA and loss-per-share views.
Titan Machinery Inc. (TITN - Free Report) reported a loss per share of 55 cents in the first-quarter fiscal 2027 (ended April 30, 2026), narrower than the Zacks Consensus Estimate of a loss of 60 cents. The company reported a loss of 58 cents in the year-ago quarter.
Revenues of $522.4 million beat the consensus mark of $493 million by 5.91% but declined 12.1% year over year. The quarter benefited from stronger equipment margins tied to continued reductions in aged inventory, even as retail demand stayed soft.
Titan Machinery Inc. Price, Consensus and EPS Surprise
Titan Machinery posted equipment revenues of $364.7 million, down 16.5% from the year-ago quarter, reflecting weaker equipment demand across much of its footprint. Even so, the top line cleared expectations, supported by steadier performance outside equipment.
Parts revenues were $103.8 million, slipping 1.8% year over year, while service revenues of $43.8 million edged down 0.6%. Rental and other revenues rose 30% year over year to $10.2 million, providing a small but helpful offset to the equipment decline.
Titan Machinery's Margins Improve on Aged Inventory
TITN’s total cost of revenues declined 14% year over year to $433 million. Gross profit edged down 1.8% to $89 million, but the gross margin expanded to 17.1% from 15.3% in the year-ago quarter.
Operating expenses decreased 2.1% to $94.4 million from the prior-year quarter. Adjusted EBITDA was $1 million compared with $2.6 million a year earlier.
Q1 Segmental Performance of TITN
Titan Machinery’s Agriculture segment generated revenues of $344.2 million in the first quarter of fiscal 2027, down from $384.4 million a year ago, reflecting a same-store sales decline of 8.2% on softer equipment demand. The segment’s loss before taxes came in at $6.2 million compared with a loss before taxes of $12.8 million in the year-ago quarter.
Construction revenues were $67.5 million, down from $72.1 million in the prior-year quarter, reflecting a same-store sales decrease of 6.5% that was primarily tied to lower equipment sales. The segment’s loss before taxes narrowed to $0.6 million from a loss before taxes of $4.2 million a year ago.
Europe revenues were $60.4 million compared with $93.9 million in the year-ago quarter, including a $4.2-million benefit from foreign currency fluctuations. Excluding the currency benefit, revenues declined $37.7 million, or 40.2%, and the segment posted a loss before taxes of $0.9 million against income of $4.7 million a year ago.
The Australia segment reported revenues of $50 million compared with $44 million in the prior-year quarter. It incurred a loss before taxes of $1.8 million in the first quarter of fiscal 2027 compared with the prior year’s loss of $0.6 million.
Titan Machinery’s Cash Flow & Balance Sheet as of Q1 End
TITN’s net cash used for operating activities was $23.1 million for the first three months of fiscal 2027 compared with net cash provided by operating activities of $6.2 million in the year-ago period. Titan Machinery ended the quarter with cash of $29.6 million. Long-term debt (net of current maturities) was $150.5 million as of April 30, 2026, compared with $158.6 million as of Jan. 31, 2026.
TITN Reaffirms FY27 Modeling Assumptions
Titan Machinery reaffirmed its fiscal 2027 modeling assumptions, continuing to frame the year as one of demand softness and execution on inventory optimization. The company expects the Agriculture segment’s revenues to fall 15-20%, Construction is to be flat to up 5%, Europe will likely move down 20-25% and Australia is anticipated to grow 10-15%.
On profitability, Titan Machinery maintained its outlook for adjusted EBITDA of $17-$29 million and an adjusted diluted loss per share of $1.25-$1.75, which includes the full-year impacts of winding down its German business.
Titan Machinery Stock's Price Performance
In the past year, shares of the company have gained 5.9% against the industry’s decline of 2.1%.
Deere & Company (DE - Free Report) reported second-quarter fiscal 2026 (ended May 3, 2026) earnings of $6.55 per share, beating the Zacks Consensus Estimate of $5.81. However, the bottom line fell 1.4% from the prior-year quarter.
Net sales from Deere’s equipment operations were $11.78 billion in second-quarter fiscal 2026, up 5.4% from the year-ago quarter’s $11.17 billion, reflecting solid execution in Small Ag & Turf and Construction & Forestry. The top line beat the Zacks Consensus Estimate of $11.44 billion.
AGCO Corp. (AGCO - Free Report) reported an adjusted EPS of 94 cents in first-quarter 2026 compared with the prior-year quarter’s 41 cents. The reported figure topped the Zacks Consensus Estimate of 44 cents.
AGCO revenues increased 14.2% year over year to $2.34 billion in the March-end quarter. The top line beat the Zacks Consensus Estimate of $2.30 billion.
CNH Industrial N.V. (CNH - Free Report) registered first-quarter 2026 earnings of a penny per share, down 90% year over year. The reported number was in line with the Zacks Consensus Estimate.
CNH Industrial’s revenues were $3.83 billion, down 0.1% from the year-ago quarter. The top line beat the consensus estimate of $3.78 billion by 1.11%, aided by favorable currency impacts and pricing actions.
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Titan Machinery Q1 Earnings Beat Estimates on Better Equipment Margins
Key Takeaways
Titan Machinery Inc. (TITN - Free Report) reported a loss per share of 55 cents in the first-quarter fiscal 2027 (ended April 30, 2026), narrower than the Zacks Consensus Estimate of a loss of 60 cents. The company reported a loss of 58 cents in the year-ago quarter.
Revenues of $522.4 million beat the consensus mark of $493 million by 5.91% but declined 12.1% year over year. The quarter benefited from stronger equipment margins tied to continued reductions in aged inventory, even as retail demand stayed soft.
Titan Machinery Inc. Price, Consensus and EPS Surprise
Titan Machinery Inc. price-consensus-eps-surprise-chart | Titan Machinery Inc. Quote
Titan Machinery posted equipment revenues of $364.7 million, down 16.5% from the year-ago quarter, reflecting weaker equipment demand across much of its footprint. Even so, the top line cleared expectations, supported by steadier performance outside equipment.
Parts revenues were $103.8 million, slipping 1.8% year over year, while service revenues of $43.8 million edged down 0.6%. Rental and other revenues rose 30% year over year to $10.2 million, providing a small but helpful offset to the equipment decline.
Titan Machinery's Margins Improve on Aged Inventory
TITN’s total cost of revenues declined 14% year over year to $433 million. Gross profit edged down 1.8% to $89 million, but the gross margin expanded to 17.1% from 15.3% in the year-ago quarter.
Operating expenses decreased 2.1% to $94.4 million from the prior-year quarter. Adjusted EBITDA was $1 million compared with $2.6 million a year earlier.
Q1 Segmental Performance of TITN
Titan Machinery’s Agriculture segment generated revenues of $344.2 million in the first quarter of fiscal 2027, down from $384.4 million a year ago, reflecting a same-store sales decline of 8.2% on softer equipment demand. The segment’s loss before taxes came in at $6.2 million compared with a loss before taxes of $12.8 million in the year-ago quarter.
Construction revenues were $67.5 million, down from $72.1 million in the prior-year quarter, reflecting a same-store sales decrease of 6.5% that was primarily tied to lower equipment sales. The segment’s loss before taxes narrowed to $0.6 million from a loss before taxes of $4.2 million a year ago.
Europe revenues were $60.4 million compared with $93.9 million in the year-ago quarter, including a $4.2-million benefit from foreign currency fluctuations. Excluding the currency benefit, revenues declined $37.7 million, or 40.2%, and the segment posted a loss before taxes of $0.9 million against income of $4.7 million a year ago.
The Australia segment reported revenues of $50 million compared with $44 million in the prior-year quarter. It incurred a loss before taxes of $1.8 million in the first quarter of fiscal 2027 compared with the prior year’s loss of $0.6 million.
Titan Machinery’s Cash Flow & Balance Sheet as of Q1 End
TITN’s net cash used for operating activities was $23.1 million for the first three months of fiscal 2027 compared with net cash provided by operating activities of $6.2 million in the year-ago period. Titan Machinery ended the quarter with cash of $29.6 million. Long-term debt (net of current maturities) was $150.5 million as of April 30, 2026, compared with $158.6 million as of Jan. 31, 2026.
TITN Reaffirms FY27 Modeling Assumptions
Titan Machinery reaffirmed its fiscal 2027 modeling assumptions, continuing to frame the year as one of demand softness and execution on inventory optimization. The company expects the Agriculture segment’s revenues to fall 15-20%, Construction is to be flat to up 5%, Europe will likely move down 20-25% and Australia is anticipated to grow 10-15%.
On profitability, Titan Machinery maintained its outlook for adjusted EBITDA of $17-$29 million and an adjusted diluted loss per share of $1.25-$1.75, which includes the full-year impacts of winding down its German business.
Titan Machinery Stock's Price Performance
In the past year, shares of the company have gained 5.9% against the industry’s decline of 2.1%.
TITN’s Zacks Rank
Titan Machinery 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 second-quarter fiscal 2026 (ended May 3, 2026) earnings of $6.55 per share, beating the Zacks Consensus Estimate of $5.81. However, the bottom line fell 1.4% from the prior-year quarter.
Net sales from Deere’s equipment operations were $11.78 billion in second-quarter fiscal 2026, up 5.4% from the year-ago quarter’s $11.17 billion, reflecting solid execution in Small Ag & Turf and Construction & Forestry. The top line beat the Zacks Consensus Estimate of $11.44 billion.
AGCO Corp. (AGCO - Free Report) reported an adjusted EPS of 94 cents in first-quarter 2026 compared with the prior-year quarter’s 41 cents. The reported figure topped the Zacks Consensus Estimate of 44 cents.
AGCO revenues increased 14.2% year over year to $2.34 billion in the March-end quarter. The top line beat the Zacks Consensus Estimate of $2.30 billion.
CNH Industrial N.V. (CNH - Free Report) registered first-quarter 2026 earnings of a penny per share, down 90% year over year. The reported number was in line with the Zacks Consensus Estimate.
CNH Industrial’s revenues were $3.83 billion, down 0.1% from the year-ago quarter. The top line beat the consensus estimate of $3.78 billion by 1.11%, aided by favorable currency impacts and pricing actions.