Titan Machinery (TITN) investor relations material

Executive summary

• Q3 FY2026 revenue was $644.5 million, down 5.2% year-over-year, with net income of $1.2 million and diluted EPS of $0.05.

• Gross profit margin improved to 17.2% from 16.3% YoY, driven by inventory optimization and better equipment margins.

• Achieved $98 million inventory reduction in the first nine months, raising the full-year target to $150 million, with improved inventory quality and mix.

• Select divestitures in the U.S. and Germany executed as part of footprint optimization, while dual-brand strategy expanded in Australia and the U.S.

• Parts and service businesses generated over half of gross profit, providing stability amid weak equipment demand.

Financial highlights

• Q3 gross profit was $111 million (+0.5% YoY), with gross margin at 17.2% and operating expenses at 15.6% of revenue.

• Net income was $1.2 million ($0.05 per diluted share), compared to $1.7 million ($0.07 per share) YoY.

• Equipment sales fell 7.1% YoY in Q3, while parts sales grew 1.0% and rental & other rose 6.8%.

• Floor plan and other interest expense declined to $10.9 million from $14.3 million YoY.

• Cash at quarter-end was $48.8 million; net cash from operating activities for nine months was $83.9 million.

Outlook and guidance

• FY2026 segment revenue expected: Agriculture down 15–20%, Construction down 5–10%, Europe up 35–40%, Australia down 20–25%.

• Adjusted diluted loss per share forecasted at $(1.50) to $(2.00), including a non-cash valuation allowance impacting tax expense by $0.35–$0.45 per share in Q4.

• Q4 equipment margins anticipated to moderate to ~7% due to less favorable mix and continued inventory optimization.

• Operating expenses expected to decrease YoY and be about 16% of sales for the full year.

• Reaffirmed adjusted diluted loss per share guidance of $1.50–$2 for the full year.