Construction and agricultural dealership Titan Machinery posted $668.8 million in revenue for the third quarter of fiscal 2023 compared to $454 million in the third quarter of 2021, a 47.3-percent upswing. Equipment sales were $509 million compared to $329.8 million in the third quarter a year ago, a 54.3-percent hike. Parts sales were $108.7 million compared to $80.5 million in the year-ago quarter, a 35-percent uptick. Rental revenue was $12.1 million for the quarter, compared to $11.6 million a year ago, a more modest 4.3-percent increase.
Gross profit for the third quarter was $139.6 million, compared to $92.5 million last year, a 50.9-percent jump. Gross profit margin was 20.9 percent compared to 20.4 percent a year ago, primarily because of stronger equipment margins, which were partially offset by revenue mix.
“We delivered another consecutive quarter of record financial results, with third quarter earnings per share of $1.82,” said Titan Machinery chairman and CEO David Meyer. “The ongoing strength of the agriculture sector combined with our customer-centric focus drove consolidated revenue growth of 47 percent, which was supported by strong contribution across each of our revenue streams – equipment, parts and service. Our business continues to operate with great efficiency, allowing us to drive significant operating leverage on the higher levels of revenue that we have achieved. This is demonstrated in our record consolidated pre-tax margin of 8.2 percent that we delivered in the fiscal third quarter, with each of our operating segments experiencing pre-tax margin expansion. Given these strong third quarter results, coupled with our expectations for the solid market fundamentals continuing through the fourth quarter, we are increasing our earnings per share modeling assumption for fiscal year 2023 to a midpoint of $4.70 per share.”
The Agriculture Segment was the star for Titan Machinery with $493.3 million in revenue in the fiscal third quarter, compared to $281.5 million in the year-ago quarter, a 75.2-percent jump, partly from organic growth as well as the acquisitions of Jaycox Implement in December 2021, Mark’s Machinery in April 2022, and Heartland Ag Systems in August 2022.
Modest increase in Construction
The Construction Segment posted $86.4 million in third quarter revenue, compared to $79.7 million in the year-ago frame, an 8.4-percent increase. Growth was driven by a same-store sales increase of 34.2 percent, primarily because of increased equipment demand.
For the first nine months of the fiscal year, Titan’s revenue was $1,626.3 million compared to $1,204.3 million in the first nine months of fiscal 2022, a 35-percent jump. Rental revenue increased from $27.9 million to $28.9 million, a 3.6-percent increase.
Titan Machinery, based in West Fargo, N.D., is No. 70 on the RER 100. It is a dealer for a number of equipment lines, primarily Case Construction and Agriculture and New Holland.
