Titan Machinery (TITN) investor relations material

Executive summary

• Fiscal Q1 2027 revenue was $522.4M, down 12.1% year-over-year, reflecting softer demand, especially in Agriculture and Europe, while Australia grew 14.3% due to the Bellevue Machinery acquisition.

• Gross profit margin improved to 17.1% from 15.3% year-over-year, driven by better equipment margins and a higher mix of parts and service revenue.

• Net loss improved to $12.6M ($0.55 per diluted share) from $13.2M ($0.58 per share) in the prior year, aided by disciplined cost management and margin gains.

• Management reaffirmed FY27 guidance, expecting continued demand softness across most regions, with operational execution and customer care initiatives providing stability.

Financial highlights

• Equipment revenue fell 16.5% year-over-year to $364.7M; parts and service revenues were relatively stable, while rental and other revenue increased 30%.

• Total gross profit was $89.3M, slightly down from $90.9M, but gross margin expanded 180 basis points to 17.1%.

• Operating expenses declined to $94.4M from $96.4M, but as a percentage of revenue increased to 18.1% from 16.2%.

• Floorplan and other interest expense dropped to $8.2M from $11.1M, reflecting lower inventory levels.

• Adjusted EBITDA was $1.0M, down from $2.6M in the prior year.

Outlook and guidance

• Full-year guidance reaffirmed: Adjusted EBITDA range of $17M–$29M; adjusted diluted loss per share of $1.25–$1.75; adjusted net loss between $28M and $40M.

• Segment revenue assumptions: Agriculture down 15–20%, Construction flat to up 5%, Europe down 20–25%, Australia up 10–15%.

• German business wind-down to reduce revenue from $53.9M in FY26 to ~$9.5M in FY27.

• Operating expenses expected to be about 17% of sales, with continued investment in customer care.

• Floor plan interest expense expected to decline 25% year-over-year.