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Titan Machinery
🇺🇸 NASDAQ:TITN
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•
Oct 31, 2024

Titan Machinery Q3 2025 Earnings Report

Reported decrease in revenue and net income due to softening demand and lower equipment margins, but made progress in inventory reduction.

Key Takeaways

Titan Machinery Inc. reported a decrease in revenue and net income for the third quarter of fiscal 2025, primarily driven by softening demand in the agriculture segment and lower equipment margins. However, the company successfully reduced inventory by approximately $115 million compared to the previous quarter and saw growth in parts and service revenue.

Revenue decreased to $679.8 million compared to $694.1 million in the same quarter last year.

Net income significantly decreased to $1.7 million, or $0.07 per diluted share, compared to $30.2 million, or $1.32 per diluted share, in the prior year.

Gross profit margin declined to 16.3% due to lower equipment margins.

Inventory reduced by approximately $115 million compared to the second quarter of fiscal 2025.

Total Revenue
$680M
Previous year: $694M
-2.1%
EPS
$0.07
Previous year: $1.32
-94.7%
Gross Profit
$110M
Previous year: $138M
-20.1%
Cash and Equivalents
$23.4M
Previous year: $70M
-66.5%
Free Cash Flow
$114M
Previous year: -$97.3M
-217.2%
Total Assets
$2.11B
Previous year: $1.65B
+27.9%

Titan Machinery

Titan Machinery

Titan Machinery Revenue by Segment

Forward Guidance

Titan Machinery is adjusting its fiscal 2025 modeling assumptions to reflect weakening demand in its Europe and Australia businesses due to dry conditions impacting yields and grower profitability. The company's expectations for its domestic Agriculture and Construction segments remain intact.

Positive Outlook

  • Focus on executing strategy to accelerate inventory reductions.
  • Commitment to customer care strategy generating growth in recurring service business.
  • Expectations for domestic Agriculture and Construction segments remain intact.
  • Actively working to reduce inventory levels.
  • Progress in executing equipment inventory strategy.

Challenges Ahead

  • Seeing incremental weakening of demand within Europe and Australia businesses.
  • Lowering revenue assumptions for international segments.
  • Ongoing equipment margin compression expected to persist throughout the next fiscal year.
  • Unusually dry conditions during the critical growing period reducing yields and grower profitability.
  • Taking into account the corresponding impacts on consolidated earnings per share.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Titan Machinery