Titan Machinery Inc. (NASDAQ:TITN) delivered stronger-than-anticipated third-quarter fiscal 2026 results on Tuesday, lifting the stock 4.01% in pre-market trading even as the broader agriculture market continues to struggle.
For the quarter ended October 31, 2025, the equipment dealer reported earnings per share of $0.05, well ahead of analyst expectations for a loss of $0.29. Revenue reached $644.5 million, beating forecasts of $599.18 million, though sales were still down 5.2% from $679.8 million a year earlier.
The company also made notable progress on cost and inventory management. Titan reduced inventories by $98 million over the first nine months of fiscal 2026, prompting executives to raise their full-year reduction target from $100 million to $150 million.
“Equipment margins beat expectations for the quarter driven by a more favorable sales mix and our improved inventory position,” said Bryan Knutson, Titan’s President and Chief Executive Officer. “Despite a challenging environment for the agriculture industry, our parts and service businesses continue to provide critical stability — keeping us closely engaged with our customers.”
Titan’s agriculture division — its largest segment — continued to feel pressure, with same-store sales dropping 12.3% to $420.9 million as lower crop prices and elevated borrowing costs dampened demand. The construction business also weakened, with same-store revenue sliding 10.1% to $76.7 million.
In contrast, Titan’s European operations provided a bright spot. Revenue in the region surged 87.6% to $117 million, boosted by EU-funded agricultural stimulus programs in Romania.
The company reaffirmed its fiscal 2026 adjusted diluted loss per share outlook of ($1.50) to ($2.00), while cautioning that a non-cash valuation allowance expected in Q4 will lift tax expense by ($0.35) to ($0.45) per share.
Gross margin improved to 17.2%, up from 16.3% in the same period last year, supported by stronger product mix and a $3.7 million accrual tied to anticipated benefits from manufacturer incentive programs.