Titan Machinery Inc. (NASDAQ:TITN) reported first-quarter results on Tuesday that exceeded revenue expectations but missed profit forecasts, while maintaining a full-year outlook that remains well below Wall Street projections.
Shares of the agricultural and construction equipment dealer rose modestly, gaining 0.59% in premarket trading following the earnings release.
For the quarter ended April 30, 2026, Titan Machinery reported a loss of $0.55 per share, compared with analyst expectations for a loss of $0.49 per share. Revenue totaled $522.4 million, surpassing the consensus estimate of $490.8 million, although sales were down 12.1% from $594.3 million in the same period last year.
The company reaffirmed its fiscal 2027 guidance for an adjusted diluted loss per share of between $1.25 and $1.75. That outlook remains significantly below analyst expectations, which had called for earnings of approximately $1.15 per share.
Equipment sales declined 16.5% year-over-year to $364.7 million. Parts revenue slipped slightly to $103.8 million from $105.6 million a year earlier, while service revenue was broadly unchanged at $43.8 million.
Despite lower sales, profitability improved. Gross profit margin increased to 17.1% from 15.3% in the prior-year quarter, supported by stronger equipment margins as the company continued reducing aged inventory.
“Our fiscal 2027 first quarter results reflect continued progress on the inventory optimization and margin improvement priorities we established coming into the year,” stated Bryan Knutson, President and Chief Executive Officer. “Equipment margins exceeded our internal expectations during the quarter, driven by our progress in reducing aged inventory within our Agriculture segment.”
The Agriculture segment generated revenue of $344.2 million, a decline of 10.4% from the prior year, while same-store sales fell 8.2%. However, the segment’s pre-tax loss improved to $6.2 million from $12.8 million in the corresponding period a year earlier.
The company’s European operations recorded the sharpest slowdown, with revenue falling 35.6% to $60.4 million. Titan attributed the decline primarily to softer equipment demand following the expiration of European Union stimulus programmes in Romania.
Operating expenses decreased to $94.4 million from $96.4 million a year earlier. Floorplan and other interest expenses also declined, falling to $8.2 million from $11.1 million, reflecting lower inventory levels across the business.
Net loss for the quarter narrowed slightly to $12.6 million, compared with a net loss of $13.2 million in the same quarter of fiscal 2026.
Looking ahead, Titan expects fiscal 2027 revenue in its Agriculture segment to decline between 15% and 20%, while European revenue is projected to fall between 20% and 25%. Construction segment revenue is forecast to range from flat to up 5%, while Australian operations are expected to deliver growth of 10% to 15%.
The company projects adjusted EBITDA for fiscal 2027 of between $17.0 million and $29.0 million.