Titan Machinery (TITN) investor relations material

Executive summary

• Q2 FY2027 revenue was $496.4M, down 9.2% year-over-year, with a net loss of $9.2M ($0.40 per share), as Agriculture and Europe segments declined while Construction and Australia grew.

• Gross margin improved by 150 basis points to 18.6% due to higher equipment margins, favorable sales mix, and inventory actions.

• Adjusted EBITDA was $4.6M, down from $5.6M in the prior year.

• Operational priorities included inventory management, margin improvement, and efficiency gains, strengthening the business despite industry challenges.

• Market conditions remain difficult, especially in agriculture, but the company is positioned to capitalize as the cycle turns.

Financial highlights

• Q2 FY2027 total revenue: $496.4M (down 9.2% year-over-year); gross profit: $92.4M (down 1.3% year-over-year); gross margin up to 18.6%.

• Net loss: $9.2M ($0.40 per share) vs. $6.0M ($0.26 per share) prior year; prior year included a $2.2M tax benefit.

• Adjusted EBITDA: $4.6M (down from $5.6M prior year).

• Operating expenses rose to $94.1M (19.0% of revenue) from $92.7M (17.0% of revenue) year-over-year.

• Floorplan and other interest expense decreased to $8.1M from $11.5M, reflecting lower interest-bearing inventory.

Outlook and guidance

• Fiscal 2027 guidance reaffirmed: adjusted EBITDA $17M–$29M; adjusted diluted loss per share ($1.25)–($1.75).

• Agriculture revenue expected down 15%-20%, Construction up 5%-10%, Europe down 30%-40%, Australia up 15%-20%.

• Full-year equipment margin expected at 8.3%, up from 7.3% in FY2026.

• German business wind-down to significantly reduce Europe segment revenue.

• Liquidity expected to remain sufficient for operational and capital needs for at least the next 12 months.