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Jan 31, 2024

Titan Machinery Q4 2024 Earnings Report

Achieved record revenue and EPS, driven by growth across all legacy operating segments and the O'Connors acquisition.

Key Takeaways

Titan Machinery Inc. reported a strong performance for the fiscal fourth quarter and full year ended January 31, 2024, with revenue increasing to $852.1 million compared to $583.0 million in the fourth quarter last year. The company's net income was $24.0 million, or earnings per diluted share of $1.05, compared to net income of $18.1 million, or earnings per diluted share of $0.80, for the fourth quarter of last year.

Revenue increased to $852.1 million, compared to $583.0 million in the fourth quarter last year.

Equipment revenue was $714.0 million, compared to $471.0 million in the fourth quarter last year.

Net income was $24.0 million, or earnings per diluted share of $1.05, compared to $18.1 million, or earnings per diluted share of $0.80, for the fourth quarter last year.

The Company generated $45.3 million in EBITDA, reflecting an increase of 42.2% versus the $31.8 million generated in the fourth quarter of last year.

Total Revenue
$852M
Previous year: $583M
+46.2%
EPS
$1.05
Previous year: $0.81
+29.6%
Adjusted EBITDA
$45.3M
Gross Profit
$141M
Previous year: $109M
+29.6%
Cash and Equivalents
$38.1M
Previous year: $43.9M
-13.2%
Free Cash Flow
-$63.8M
Total Assets
$1.99B
Previous year: $1.19B
+67.6%

Titan Machinery

Titan Machinery

Titan Machinery Revenue by Segment

Forward Guidance

Looking ahead to fiscal 2025, the company is forecasting consolidated revenue growth primarily led by annualization of the O'Connors acquisition as well as steady growth in our parts and service business. They expect compression of equipment margins in this transition period and will continue investing in their customer care strategy. As such, they are setting expectations for earnings per share that they believe are appropriate and achievable.

Positive Outlook

  • Consolidated revenue growth led by annualization of the O'Connors acquisition.
  • Steady growth in parts and service business.
  • Business remains in a position of strength.
  • Expect to demonstrate the durability of earnings through this cycle.
  • Multi-year effort to implement greater efficiency across the organization.

Challenges Ahead

  • Expect compression of equipment margins in this transition period.
  • Shifting Ag cycle dynamics.
  • Forecasting consolidated revenue growth primarily led by annualization of the O'Connors acquisition
  • Setting expectations for earnings per share that are appropriate and achievable.
  • Investing in customer care strategy to build out additional service capacity across network.

Revenue & Expenses

Visualization of income flow from segment revenue to net income