WEST FARGO, N.D., — Titan Machinery Inc., a network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal fourth quarter and full year ended Jan. 31, 2026.
"Our fiscal 2026 results represent a year of decisive execution on our inventory reduction initiative. 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," commented Bryan Knutson, Titan Machinery's president and CEO. "We will continue to focus on optimizing the mix of our inventory but do not have further targeted reductions 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 I'm confident it will prove to be a pivotal step in positioning Titan for the next phase of the cycle."
Following Titan's earning call with investors, Mircea (Mig) Dobre with Baird noted, "There are no plans for an additional targeted destock in FY27 though management noted a focus on optimizing inventory mix."
He went on to note that "FY27 guidance incorporates a sustained decline in the U.S., with Europe also set to become a headwind after acting as a partial earnings stabilizer in FY26. These dynamics (coupled with minimal upside elsewhere) are set to keep earnings under pressure.
"While guidance did de-risk the year to some extent (it is difficult to see much downside to the initial guide), upside is also limited as visibility into demand recovery remains elusive. Another loss making year means tangible book value continues eroding and this remains the key valuation anchoring point ... multiple expansion (on lower TBV) will require tangible signs of cyclical/earnings reacceleration."
Fiscal 2026 Fourth Quarter Results
Consolidated Results
For the fourth quarter of fiscal 2026, revenue was $641.8 million, compared to $759.9 million in the fourth quarter of last year. Equipment revenue was $501.5 million for the fourth quarter of fiscal 2026, compared to $621.8 million in the fourth quarter last year. Parts revenue was $91.1 million for the fourth quarter of fiscal 2026, compared to $89.3 million in the fourth quarter last year. Revenue generated from service was $36.1 million for the fourth quarter of fiscal 2026, compared to $36.6 million in the fourth quarter last year. Revenue from rental and other was $13.1 million for the fourth quarter of fiscal 2026, compared to $12.1 million in the fourth quarter last year.
Gross profit for the fourth quarter of fiscal 2026 was $87.0 million compared to $51.0 million in the fourth quarter last year. The Company's gross profit margin was 13.5% in the fourth quarter of fiscal 2026, compared to 6.7% in the fourth quarter last year. The year-over-year improvement primarily reflects the lapsing of inventory impairments and other inventory reduction efforts in the fourth quarter of the prior year that significantly compressed equipment margins. Equipment margins in the fiscal 2026 fourth quarter continued to face pressure from softer retail demand and remaining aged inventory; however, margins have improved as inventory levels have returned to healthier levels.
Operating expenses were $95.7 million for the fourth quarter of fiscal 2026, compared to $96.7 million in the fourth quarter last year. Operating expense as a percentage of revenue was 14.9% for the fourth quarter of fiscal 2026, compared to 12.7% of revenue in the fourth quarter last year.
Floorplan interest expense and other interest expense was $9.6 million for the fourth quarter of fiscal 2026, compared to $13.1 million for the same period last year. Floorplan interest expense decreased in the fourth quarter of fiscal 2026 compared to the same period last year due to the decrease in interest-bearing inventory levels.
In the fourth quarter of fiscal 2026, net loss was $36.2 million, with loss per diluted share of $1.59, which includes a recognition of a non-cash valuation allowance on US deferred tax assets that resulted in an increase in tax expense of $17.8 million or $0.78 per diluted share, which was greater than the Company's initial expectation. This compares to net loss of $43.8 million, with loss per diluted share of $1.93, for the fourth quarter of last year.
Adjusted net loss, which excludes restructuring and impairment charges related to wind-down activities in Germany, was $32.5 million or $1.43 loss per diluted share in the fourth quarter of fiscal 2026. This compares to an adjusted net loss of $44.9 million, or $1.98 loss per diluted share for the fourth quarter of the prior year, which excluded the net impact of sale-leaseback financing expenses.
Adjusted EBITDA in the fourth quarter of fiscal 2026 was negative $5.0 million, an improvement of $41.0 million compared to negative $46.0 million of adjusted EBITDA generated in the fourth quarter of last year.
Segment Results
Agriculture Segment - Revenue for the fourth quarter of fiscal 2026 was $406.7 million, compared to $534.7 million in the fourth quarter last year, reflecting a same-store sales decrease of 22.8%. The revenue decrease resulted from softening demand for equipment, driven by lower commodity prices and sustained high interest rates, both of which are reducing farmer profitability. Pre-tax loss for the fourth quarter of fiscal 2026 was $9.9 million, compared to a pre-tax loss of $55.3 million in the fourth quarter of the prior year. Improvements in segment and consolidated profitability measures are being driven by material progress in the Company's inventory reduction and optimization initiatives.
Construction Segment - Revenue for the fourth quarter of fiscal 2026 was $90.2 million, compared to $94.6 million in the fourth quarter last year, reflecting a same-store sales decrease of 4.6%, which was primarily due to lower equipment sales. Pre-tax loss for the fourth quarter of fiscal 2026 was $1.0 million, compared to a pre-tax loss of $1.1 million in the fourth quarter last year.
Europe Segment - Revenue for the fourth quarter of fiscal 2026 was $68.8 million, compared to $65.4 million in the fourth quarter last year, and includes a $4.3 million benefit related to foreign currency fluctuations versus the prior year period. Net of the effect of these foreign currency fluctuations, revenue decreased $0.9 million or 1.4%. Pre-tax income for the fourth quarter of fiscal 2026 was $1.8 million, compared to a pre-tax loss of $1.8 million in the fourth quarter of the prior year. Excluding restructuring and impairment charges associated with wind-down activities in Germany, adjusted pre-tax income for the fourth quarter of fiscal 2026 was $5.4 million; the comparable prior year period did not contain any adjustments.
Australia Segment - Revenue for the fourth quarter of fiscal 2026 was $76.1 million, compared to $65.3 million in the fourth quarter last year, and includes a negligible impact related to foreign currency fluctuations. Pre-tax income for the fourth quarter of fiscal 2026 was $2.5 million, compared to pre-tax income of $2.3 million in the fourth quarter last year.
Fiscal 2026 Full Year Results
Revenue was $2.4 billion for fiscal 2026 compared to $2.7 billion for fiscal 2025.
Net loss for fiscal 2026 was $54.2 million, or $2.38 loss per diluted share, which includes the recognition of a non-cash valuation allowance on US deferred tax assets that resulted in an increase in tax expense of $17.8 million or $0.78 per diluted share. This compares to a prior year net loss of $36.9 million, or $1.63 per diluted share.
Adjusted net loss, which excludes restructuring and impairment charges related to wind-down activities in Germany, was $50.6 million or $2.22 loss per diluted share for fiscal 2026. This compares to an adjusted net loss of $29.7 million, or $1.31 loss per diluted share for the prior year, which excluded the net impact of sale-leaseback financing expenses.
Source: Titan MachineryBalance Sheet & Cashflow
Cash at the end of the fourth quarter of fiscal 2026 was $28.2 million. Total inventories decreased by $205.6 million to $903.1 million as of year-end, as compared to January 31, 2025. Equipment inventories decreased by $200.6 million in the year ended January 31, 2026. Outstanding floorplan payables were $553.8 million on $1.5 billion total available floorplan and working capital lines of credit as of January 31, 2026, compared to $755.7 million outstanding floorplan payables as of January 31, 2025.
For the fiscal year ended January 31, 2026, the Company's net cash provided by operating activities was $137.5 million, compared to net cash provided by operating activities of $70.3 million for the fiscal year ended January 31, 2025. The change in cash from operating activities was primarily attributable to lower inventory and timing of payment in our accounts payable and accrued liabilities, which was partially offset by the changing mix in floorplan financing compared to the prior year period.
Additional Management Commentary
Mr. Knutson concluded, "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. 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."
Related Content
Special Coverage: Titan Machinery’s Investor Day
