Construction and agricultural equipment dealer Titan Machinery posted $454 million in fiscal third quarter 2022 revenue compared to $360.9 million in the third quarter of fiscal 2021, a 25.8 percent increase. The fiscal third quarter ended Oct. 31.
Equipment sales were $329.8 million compared to $240.9 million a year ago, a 36.9-percent leap. Parts sales were $80.5 million compared to $76.8 million a year ago, a 4.8-percent increase.
Rental revenue was $11.6 million for the third quarter of fiscal 2022 compared to $12.5 million in the third quarter a year ago, a 7.2-percent year-over-year decrease. Rental revenue dropped because of a decrease in inventory rentals, a reduced rental fleet, and the January 2021 divestiture of Titan’s construction stores in Arizona. While the fleet was smaller compared to the previous year, dollar utilization of the fleet improved to 31.4 percent in the quarter.
Gross profit for the third quarter was $92.5 million compared to $72.6 million in the fiscal third quarter a year ago. The company’s gross profit margin increased to 20.4 percent in the third quarter of fiscal 2022, compared to 20.1 percent a year ago.
"The ongoing strength of the broader agriculture sector continues to fuel demand for equipment across our business and equipment revenue grew 37 percent on a consolidated basis in the third quarter,” said David Meyer, Titan Machinery chairman and CEO. “The combination of our larger base of revenues, healthy inventory position, and lean infrastructure has allowed for powerful operating leverage that drove a 109 percent increase in pre-tax income for the quarter. At the segment level, this operating leverage is visible in our Agriculture segment, which benefited from better-than-expected crop yields across our footprint, and produced a pre-tax margin of 7 percent, which is a record quarterly high margin for the segment. Our Construction and International segments are also generating strong gains in profitability, each producing another solid quarter and building upon the improvements made fiscal year-to-date. We are excited about finishing the fiscal year on a strong note after a successful harvest and construction season and will continue to work toward delivering the unmatched customer service that Titan Machinery is known for."
Based in Fargo, N.D., Titan Machinery represents a variety of brands but is predominantly a dealer for the CNHi family of brands, including Case IH, Case Construction, New Holland Agriculture and New Holland Construction.
Titan Machinery is No. 77 on the RER 100.