Titan Machinery’s Revenue Decreases in Fiscal 2026, But Rental Increases
Titan Machinery, a chain of full-service construction and agriculture stores and Case dealerships, posted $641.8 million revenue in the fiscal fourth quarter of 2025, compared to $759.9 million in the fiscal fourth quarter of 2024, a 15.5-percent year-over-year decline. The agriculture division dropped 23.9 percent from $534.7 million to $407.7 million, and the Construction division dipped 4.6 percent from $94.6 million to $90.2 million.
Titan’s European distributors increased revenue 5.2 percent from $65.4 million to $68.8 million, while its Australia division jumped 16.7 percent from $65.3 million to $76.1 million.
While overall revenue declined, the “rental and other” category increased from $12.1 million to $13.1 million, an 8.3-percent growth. And, according to Titan president and CEO Bryan Knutson, Titan is deliberately reducing its inventory.
“Our fiscal 2026 results represent a year of decisive execution on our inventory reduction initiative,” said Knutson. “For the full fiscal year, we reduced total inventory by $206 million, significantly exceeding our target of $150 million, and we did it while delivering stronger-than-anticipated equipment margins. That combination is something our entire team is extremely proud of achieving. Inventory levels peaked in the second quarter of fiscal 2025, and over the next 18 months we reduced total inventory by $625 million.
“We will continue to focus on optimizing the mix of our inventory, but do not have further targeted reduction from an overall inventory level perspective as we head into fiscal 2027. The work we put in this year to right-size our inventory gives us a fundamentally stronger foundation to operate from, and, and I’m confident it will prove to be a pivotal step in positioning Titan for the next phase of the cycle.”
Full fiscal year
Titan posted $2,427.1 million in total revenue compared to $2,702.1 million in fiscal 2024, a 10.2-percent decrease. The agriculture division decreased from $1,888.4 million to $1,557.8 million, a 17.5-percent dip. Construction revenue dropped 6.2 percent from $331.6 million to $311.0 million. The Europe division increased revenue 44.7 percent from $261 million to $377.7 million, and the Australia division decreased from $221.1 million to $180.5 million.
Rental numbers increase
“Rental and other” increased from $32.6 million to $35.1 million, a 7.7-percent hike.
"We are introducing modeling assumptions for fiscal 2027 that are consistent with industry forecasts that are calling for a further decline in North American large agriculture equipment volumes,” added Knutson. “Despite this challenging environment, our proactive actions have significantly improved our position as we approach the bottom of the cycle. Our outlook reflects continued margin pressure, particularly in the first half as we work through remaining aged inventory in select slower-moving categories. We are also working hard to deliver year-over-year reductions in operating expenses and expect continued year-over-year favorability with regard to floorplan interest expense. We believe it is prudent to set expectations appropriately in this environment and remain confident that as industry conditions stabilize, the aggressive actions we have taken will allow us to achieve more normalized levels of profitability at an accelerated pace."
Titan Machinery is No. 66 on the RER 100.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.