Titan Machinery Revenue Declines as Company Strategically Reduces Inventory

Titan Machinery, a construction equipment and agricultural dealer, posted total revenue of $759.9 million in the three-month period ended January 31, compared to $852.1 million in the same period a year ago, a 10.8-percent year-over-year decrease. Equipment sales in the period were $621.8 million, compared to $714.0 in the year-ago period, a 12.9-percent decline.

Rental and other revenue was largely flat, dropping from $12.2 million to $12.1 million. Service revenue increased from $35.1 million to $36.6 million, a 4.3-percent rise, while parts revenue declined from $90.8 million to $89.3 million, a 1.6-percent dip.

For the full fiscal year, total revenue declined at a lesser pace than the period, dropping from $2,758.4 million to $2,702.1 million, a 2-percent decrease. Rental and other declined slightly year over year, from $45 million to $43.2 million, a 3.8-percent skid. Equipment sales revenue went from $2,145.3 million to $2,050.3 million, a 4.4-percent decrease. Parts revenue increased from $410.8 million to $428.5 million, a 4.3-percent increase. Service revenue increased from $157.3 million to $180.1 million, a 14.5-percent increase.

"Our fiscal fourth quarter results reflect a significant step forward in the execution of our inventory reduction initiative, particularly in our domestic Agriculture segment,” said Bryan Knutson, Titan Machinery’s president and CEO. “We reduced inventory by approximately $304 million during the fourth quarter, bringing our total reduction since our fiscal second quarter peak to approximately $419 million. While this accelerated reduction came at the expense of our equipment margins in the short-run, this was a key lever that we felt was necessary to improve our position as we transition into fiscal 2026 with a more subdued demand environment. Looking ahead, we expect to make further headway on our equipment inventory initiatives both domestically and abroad this fiscal year. This will be comprised of a further reduction in absolute dollars and optimizing our product mix to best meet demand in this phase of the industry cycle.

"I'm incredibly proud of the entire Titan team for their focus on this initiative, which required coordination across all facets of our business, while not losing sight of our broader initiatives surrounding our customer care strategy, which delivered strong service revenue growth of 14.5 percent for the full fiscal year."

Headquartered in West Fargo, N.D., Titan Machinery is No. 66 on the RER 100.