Titan Machinery Inc. (NASDAQ:TITN) posted second-quarter results on Thursday that came in ahead of analyst expectations, as the farm and construction equipment dealer continued working through a difficult market while advancing its inventory reduction strategy.
The company reported a net loss of $0.26 per share, narrower than the projected $0.48 per share loss. Revenue reached $546.4 million, topping the consensus estimate of $503.8 million but marking a 13.8% decline from $633.7 million a year earlier.
“We produced solid second quarter results amid a challenging market environment, and remain focused on the execution of our operational plan to optimize inventory, ensuring we are in an improved position exiting this fiscal year,” said Bryan Knutson, Titan Machinery’s President and Chief Executive Officer.
The revenue decline was largely attributed to weaker equipment sales, reflecting subdued retail demand as lower crop prices and high interest rates pressured farmers’ profitability.
Equipment revenue dropped to $376.3 million from $465.2 million a year earlier, while parts revenue held steady at $109.2 million and service revenue came in at $48.8 million.
Gross margin narrowed to 17.1% from 17.7% in the prior-year quarter, with the decline tied to slimmer equipment margins as the company offered pricing concessions to move inventory.
By segment, Agriculture sales fell 18.5% year-over-year to $345.8 million, Construction revenue slipped 10.2% to $72 million, and Australian operations plunged 50.1% to $30.6 million. In contrast, Europe delivered robust growth, with sales climbing 44% to $98.1 million, supported by EU stimulus funding in Romania.
“Our proactive approach to optimizing inventory is helping drive equipment sales amid a weak demand backdrop, and this approach requires pricing concessions which are continuing to compress equipment margins,” Knutson added.
Looking ahead, Titan Machinery narrowed its fiscal 2026 outlook for adjusted losses to a range of $1.50 to $2.00 per share, compared with its prior forecast of $1.25 to $2.00. The company also revised its segment guidance, now projecting Agriculture revenue to decline 15–20% (versus the earlier 20–25% forecast) and Europe to grow 30–40% (up from 23–28%).
Titan reaffirmed its goal of cutting $100 million in inventory by year-end, with most of the progress expected in the latter part of the fiscal year.
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