Titan Machinery Inc. TITN reported adjusted loss per share of $1.98 in fourth-quarter fiscal 2025 (ended Jan. 31, 2025), missing the Zacks Consensus Estimate of a loss of 87 cents per share. The company had reported earnings per share of $1.05 in the year-ago quarter.

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Including one-time items, TITN reported a loss per share of $1.93 in the fourth quarter of fiscal 2025 compared with earnings of $1.05 per share in the year-ago quarter.

Titan Machinery’s Q4 Revenues Decline Y/Y

Total revenues in the reported quarter were around $760 million, down 11% from the year-ago quarter’s $852 million. The top line, however, surpassed the consensus mark of $748 million.

Equipment revenues fell 13% year over year to $622 million, and parts revenues dipped 1.6% to $89 million. Revenues generated from service were $36.6 million, up 4.3% from the year-ago quarter. Meanwhile, rental revenues edged down 0.6% year over year to $12.1 million.

TITN Sees Gross Margin Contraction, Negative EBITDA in Q4

The cost of sales dipped 0.3% year over year to $709 million. Gross profit plunged 64% year over year to $51 million. The gross margin was 6.7%, a 990-basis point contraction from the year-ago quarter. The contraction resulted from lower equipment margins, (mainly on used equipment) due to softer retail demand. Titan Machinery's aggressive drive to reduce its equipment inventory to targeted levels contributed to the decline.

Operating expenses decreased 3.6% from the year-ago quarter to $96.7 million due to lower variable expenses, attributed to the year-over-year decline in revenues and profitability. Adjusted EBITDA was a negative $46 million against a positive $45.3 million in the year-ago quarter. 

Titan Machinery’s Segment Performances in Q4

Agriculture revenues fell 14% to $535 million from the prior-year quarter. Demand has been weak due to lower net farm income and sustained high interest rates. Same-store sales were down 15.5%, partially offset by contributions from the acquisition of Scott Supply in January 2024. The segment reported a loss before taxes of $55.3 million against the year-ago quarter’s income of $28.8 million, reflecting TITN’s accelerated inventory reduction measures.

Construction revenues were $95 million in the fiscal fourth quarter, down 5.5% from the prior-year quarter. Same-store sales declined 5.5%, impacted by expected timing differences of equipment deliveries between the third and fourth quarter of fiscal 2025 compared with fiscal 2024. The segment reported a loss before taxes of $1.1 million against the year-ago quarter’s income of $4.6 million.

The Europe segment’s revenues were $65 million, up from the year-ago quarter’s $62 million. The segment reported a loss before taxes of $1.8 million compared with the year-ago quarter’s loss of $0.6 million.

The Australia segment registered revenues of $65 million in the fourth quarter of fiscal 2025 compared with $70 million in the year-ago quarter. Income before taxes for the quarter was $2.3 million, lower than $4.1 million in the fourth quarter of fiscal 2024.

TITN’s Cash Flow & Debt Position at FY25-End

Cash flow from operating activities was $70.3 million in fiscal 2025 compared with an outflow of $32.3 million in the prior fiscal. Titan Machinery ended fiscal 2025 with a cash balance of around $36 million, lower than $38 million held at the end of fiscal 2024. Long-term debt at the end of fiscal 2025 was $158 million, higher than $106 million at the end of fiscal 2024.

TITN’s Fiscal 2025 Results

Titan Machinery reported an adjusted loss of $1.31 per share in fiscal 2025 against earnings of $4.93 per share in fiscal 2024. This excludes the net impact of items related to sale-leaseback financing expenses. The figure came in wider than the Zacks Consensus Estimate of a loss of 57 cents per share. 

Including one-time items, the loss was $1.63 per share in fiscal 2025 against an EPS of $4.93 in the prior fiscal.  

TITN reported revenues of $2.7 billion for fiscal 2025, a 2% decline year over year. The top line beat the Zacks Consensus Estimate of $2.69 billion.

Titan Machinery Anticipates Loss in Fiscal 2026

The agriculture segment's revenues are predicted to decline in the band of 20-25% in fiscal 2026. The Construction segment’s revenues are expected to see a decline in the range of 5-10%. Europe’s revenues are expected to be flat to up 5% compared with fiscal 2025. The Australia segment's revenues are expected to be down 15-20%.

The company expects to report a loss in the range of $1.25-$2.00 per share in fiscal 2026 reflecting weak demand.

TITN Stock’s Price Performance & Zacks Rank

In the past year, shares of Titan Machinery have lost 33.6% compared with the industry’s 1.8% dip.

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TITN currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Performances of Titan Machinery’s Peers

Deere & Company DE reported first-quarter fiscal 2025 (ended Jan. 26, 2025) earnings of $3.19 per share, beating the Zacks Consensus Estimate of $3.13. However, the bottom line fell 49% from the prior-year quarter on lower shipment volumes.

Net sales of equipment operations (comprising Agriculture and Turf, Construction, and Forestry) were $6.81 billion, down 35.1% from the prior-year quarter. Revenues missed the Zacks Consensus Estimate of $7.70 billion. Total net sales (including financial services and others) were $8.51 billion, down 30% from the year-earlier quarter.

AGCO Corp. AGCO delivered an adjusted EPS of $1.97 in fourth-quarter 2024 compared with the prior-year quarter’s $3.78. However, the reported figure beat the Zacks Consensus Estimate for EPS of $1.80.

Net sales decreased 24% year over year to $2.89 billion in the December-end quarter. The top line missed the Zacks Consensus Estimate of $3.16 billion. Excluding the unfavorable currency-translation impacts of 1.8%, net sales fell 22.2% year over year.

CNH Industrial CNH reported a fourth-quarter 2024 adjusted EPS of 15 cents, which declined from 42 cents in the prior-year quarter. The figure also missed the Zacks Consensus Estimate for EPS of 19 cents.

In the fourth quarter, consolidated sales declined nearly 28% from the year-ago level to $4.88 billion and missed the consensus mark of $4.89 billion. CNH’s net sales from industrial activities were $4.13 billion, down 31% due to lower shipment volumes.

(We are reissuing this article to correct a mistake. The original article, issued on March 20, should no longer be relied upon.)

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