Titan Machinery (TITN) investor relations material

Executive summary

• Q2 FY2026 revenue declined 13.8% year-over-year to $546.4M, with a net loss of $6.0M ($0.26/share), reflecting lower equipment demand and margins, especially in Agriculture and Australia, while Europe posted strong growth due to EU stimulus in Romania.

• Inventory levels remained flat at $1.1B through the first half, with a $100M+ reduction target reiterated for fiscal 2026 and $365M reduction from peak levels achieved.

• Parts and service businesses provided stability, generating over half of gross profit dollars while representing about a quarter of revenue.

• EBITDA for Q2 FY2026 was $12.4M, down from $18.3M year-over-year.

Financial highlights

• Q2 FY2026 revenue was $546.4M (down 13.8% year-over-year); gross profit was $93.6M (margin 17.1%), down from $112.4M (margin 17.7%) last year, mainly due to lower equipment margins.

• Operating expenses decreased 2.6% to $92.7M, but as a percentage of revenue increased to 17.0% from 15.0% year-over-year.

• Adjusted EBITDA for Q2 was $5.6M, down from $20.2M in the prior year.

• Net loss was $6.0M, or $0.26 per diluted share, compared to adjusted net income of $4.0M, or $0.17 per share, last year.

Outlook and guidance

• Equipment margins expected to remain subdued for the rest of FY2026, with consolidated full-year equipment margin now forecast at 6.6%, down 100 bps from prior guidance.

• Revenue guidance updated: Agriculture down 15–20%, Construction down 3–8%, Europe up 30–40%, Australia down 20–25%.

• Adjusted diluted loss per share guidance narrowed to $1.50–$2.00.

• Inventory reduction remains a top priority, with most progress expected in the latter half of the year.