Titan Machinery (TITN) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 revenue declined 13.8% year-over-year to $546.4 million amid challenging market conditions and softening equipment demand, especially in Agriculture and Australia, while Europe outperformed due to EU stimulus in Romania.

• Net loss for Q2 FY2026 was $6.0 million ($0.26 per diluted share), compared to a net loss of $4.3 million ($0.19 per share) in the prior year; adjusted net income for prior year was $4.0 million ($0.17 per share) excluding a non-cash sale-leaseback expense.

• Inventory levels remained flat at $1.1 billion through the first half, with a $100 million+ reduction target reiterated for fiscal 2026 and most progress expected in the second half.

• Customer care, 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 $12.4 million, down from $18.3 million year-over-year.

Financial highlights

• Q2 FY2026 revenue was $546.4 million (down 13.8% year-over-year); gross profit was $93.6 million (margin 17.1%, down from 17.7%); operating expenses decreased 2.6% to $92.7 million but rose to 17.0% of revenue.

• Net loss for Q2 was $6.0 million; six-month net loss was $19.2 million.

• Equipment sales dropped 19.1% year-over-year, while parts and service revenues remained relatively stable.

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

• Cash at quarter-end was $32.7 million; net cash from operating activities for the first six months was $49.9 million, reversing a $47.4 million outflow last year.

Outlook and guidance

• Adjusted diluted loss per share guidance for FY2026 narrowed to ($1.50)–($2.00).

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

• Equipment margins expected to remain subdued for the rest of FY2026, with consolidated full-year equipment margin guidance at 6.6%.

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

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