Titan Machinery (TITN) 28th Annual ICR Conference 2026 summary

Business model and strategic footprint

• Consolidated CNH dealership network by acquiring neighboring dealerships and centralizing back-office functions in West Fargo, ND.

• Expanded operations to Europe and Australia, focusing on efficiency and customer service.

• Footprint density enables faster service and multiple customer touchpoints, supporting M&A strategy.

• Dual-branding (Case IH and New Holland) under one roof is a key profitability driver.

• Recent divestiture in Germany aligns with focus on core strengths and sustained profitability.

Revenue and profitability drivers

• Equipment sales account for about 75% of revenue, while parts and service contribute just under 25%.

• Parts and service generate at least 50% of gross profit, and up to two-thirds during down cycles.

• Service gross margins are in the low 60% range; parts in the low 30%; equipment margins are single-digit.

• Customer care and uptime are central to differentiation and profitability.

M&A strategy and market cycles

• M&A sourcing relies on strong industry relationships and proactive outreach to neighboring dealers.

• Down cycles increase seller interest due to profitability pressures and lack of succession plans.

• Focus remains on increasing density within the core footprint rather than expanding borders.

• Valuations are based on tangible assets, with limited goodwill, providing fair exits for sellers.