•
Jul 31, 2023

Titan Machinery Q2 2024 Earnings Report

Reported strong financial results with revenue and EPS increases, driven by acquisitions and same-store growth across all segments.

Key Takeaways

Titan Machinery Inc. reported a strong second quarter with a 29.4% increase in revenue to $642.6 million and a 25% increase in EPS to $1.38. The results were driven by acquisitions and same-store revenue growth across all three reporting segments.

Revenue increased by 29.4% to $642.6 million compared to the same quarter last year.

Earnings per share increased by 25% to $1.38.

Strategic acquisition of J.J. O'Connor & Sons Pty. Ltd., Australia's Leading Case IH Dealership Group.

The company is updating Fiscal Year 2024 Modeling Assumptions for Construction and International Segments.

Total Revenue
$643M
Previous year: $497M
+29.4%
EPS
$1.38
Previous year: $1.1
+25.5%
Gross Profit
$133M
Previous year: $103M
+29.9%
Cash and Equivalents
$52.8M
Previous year: $142M
-62.9%
Total Assets
$1.52B
Previous year: $1.08B
+40.7%

Titan Machinery

Titan Machinery

Titan Machinery Revenue by Segment

Forward Guidance

The Company is updating its previous expectations for Fiscal 2024 to reflect the year-to-date performance of its businesses.

Positive Outlook

  • Agriculture segment revenue up 20-25%
  • Construction segment revenue up 5-10%
  • Europe segment revenue up 5-10%
  • Australia (O'Connors) revenue $70-90 million
  • Diluted EPS $4.60 - $5.25

Challenges Ahead

  • The underlying assumption for diluted EPS in the range of $4.50 - $5.10 remains unchanged.
  • Includes an estimated loss of approximately $0.07 per share for the Company's Ukrainian subsidiary
  • Constraints on the availability of key equipment categories
  • Do not anticipate replenishment toward targeted minimum stocking levels for these equipment categories until at least the second half of calendar year 2024
  • International business in Europe is trending toward the low-end of our previous assumptions for revenue growth.

Revenue & Expenses

Visualization of income flow from segment revenue to net income