Titan Machinery Holds Its Own in Fiscal First Quarter 2026
Titan Machinery posted $594.3 million in its fiscal first quarter of 2026, compared to $628.7 in the fiscal first quarter a year ago, a 5.5-percent decrease. Rental and other increased to $7.85 million compared to $7.3 million last year, a 7.5-percent increase. Equipment sales revenue totaled $436.8 compared to $468.1 last year, a 6.7-percent decrease.
Parts revenue declined slightly from $108.2 million in fiscal Q125 to $105.6, a 2.4-percent dip, while service revenue decreased from $45.08 million to $44.02, a 2.4-percent decline.
"Our fiscal first quarter results demonstrated our ability to advance our short-term goals in a challenging market environment, and while headwinds persist across the agricultural sector, our team remains focused on continuing to execute upon our initiative to optimize inventory and navigate through the trough of the cycle," said Bryan Knutson, Titan Machinery's president and CEO. "The stronger than expected top-line performance during the fiscal first quarter primarily reflects the timing of delivery on pre-sold equipment, as opposed to an increase in demand, and does not change our overall expectations for the full fiscal year. We continue to anticipate a very subdued retail environment given the ongoing likelihood of weak farmer profitability, with government support programs remaining an important but still very much undefined variable. While challenges persist in the marketplace, our team's relentless focus on disciplined execution of our inventory reduction initiatives and our customer care strategy is allowing us to manage key variables of the business that will improve our position as we navigate this cycle."
In Titan’s agricultural segment, revenue for the first quarter of fiscal 2026 was $384.4 million, compared to $447.7 million in the first quarter last year, reflecting a same-store sales decrease of 14.1 percent. The revenue decrease resulted from a softening of demand for equipment, driven by the decline in net farm income and sustained high interest rates.
Construction segment rises
In the Construction segment, revenue for the first quarter was $72.1 million compared to $71.5 million a year ago, a 0.9-percent increase.
In Titan’s European division, revenue increased from $65.1 million to $93.9 million in this year’s first quarter, a 44.2-percent jump. The increase is largely driven by a stronger-than-expected response to European Union stimulus programs in Romania.
In Australia, revenue was $44 million compared to $44.4 million in the first quarter last year, which includes a $2 million negative impact related to foreign currency fluctuations. Net of the effect of these foreign currency fluctuations, revenue increased $1.6 million or 3.6 percent.
Knutson added, "We are reiterating our full year diluted adjusted earnings per share guidance, as our consolidated performance is tracking within our expected range. Internationally, we are updating our segment revenue assumptions for both Europe and Australia given local dynamics, but we believe that absent unique variables, the broader agriculture sector remains challenged in the near-term given broad-based weakness in commodity prices, which is consistent with our base expectations. Looking ahead, the progression of our inventory reduction efforts remains core to our operating strategy to stabilize equipment margins and restore the business's earnings power."
Titan Machinery is headquartered in West Fargo, N.D.
