Titan Machinery (TITN) Q4 2025 earnings summary

Executive summary

• Q4 revenue was $759.9 million, down 10.8–12% year-over-year, with a gross profit of $51 million and a margin of 6.7%, reflecting lower equipment margins due to aggressive inventory actions.

• Full-year FY2025 revenue was $2.7 billion, down 2% from FY2024, with a net loss of $36.9 million and adjusted net loss of $29.7 million, compared to $112.4 million net income in FY2024.

• Achieved a $304 million sequential inventory reduction in Q4, totaling $393–419 million since Q2 peak, exceeding targets and improving operational flexibility.

• Service revenue grew 14.5% for the full year, reflecting focus on customer care initiatives.

• FY25 marked by decisive inventory management, cost controls, and a shift toward optimizing inventory mix and recurring revenue streams.

Financial highlights

• Q4 same-store sales declined 12–15.5%, partially offset by the Scott Supply acquisition.

• Operating expenses for FY2025 increased 7.5% to $389.8 million; Q4 operating expense as a percentage of revenue was 12.7%.

• Floorplan and other interest expense for FY2025 was $49.8 million, with Q4 at $13.1 million.

• Adjusted EBITDA for FY2025 was $12.8 million, down sharply from $189.3 million in FY2024.

• Cash at year-end was $36 million; adjusted debt-to-tangible net worth ratio was 1.8x.

Outlook and guidance

• FY26 guidance: adjusted diluted loss per share of $1.25–$2.00; further $100 million inventory reduction targeted.

• Domestic Ag revenue expected to decline 20–25%, with large Ag volume down ~30% year-over-year; Parts and Service expected flat to modest growth.

• Construction segment revenue expected down 5–10%; Europe flat to up 5%; Australia down 15–20%.

• FY26 equipment margin expected at 7.7% (Ag at 5.4%), with gradual improvement through the year.

• Operating expenses projected at $380 million (17.3% of sales), with lower first-half spend due to commission structure.