Titan Machinery (TITN) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 saw disciplined execution in a challenging demand environment, with inventory reduced by over $200 million, more than doubling the original target and strengthening the operational foundation.

• Revenue for fiscal 2026 was $2.4 billion, down from $2.7 billion in fiscal 2025, reflecting softer demand and industry headwinds.

• Adjusted net loss for fiscal 2026 was $50.6 million ($2.22 per share), with a net loss of $54.2 million ($2.38 per share), including a $17.8 million non-cash tax valuation allowance.

• Adjusted EBITDA improved to $13.9 million in fiscal 2026 from $12.8 million in fiscal 2025.

• Parts and service now generate over half of gross profit, providing stability amid equipment cycle lows.

Financial highlights

• Q4 revenue was $641.8 million, down 14.6% year-over-year, mainly due to weaker demand in domestic ag, construction, and Europe, partially offset by Australia.

• Q4 gross profit margin improved to 13.5% from 6.7% year-over-year, due to lapsing inventory impairments.

• Q4 net loss was $36.2 million ($1.59 per share), including a $0.78 non-cash tax valuation allowance; adjusted net loss was $32.5 million ($1.43 per share), improved from $44.9 million loss last year.

• Cash at year-end was $28 million; inventories decreased by $205.6 million to $903.1 million.

• Adjusted EBITDA for FY2026 was $13.9 million.

Outlook and guidance

• Fiscal 2027 guidance: adjusted loss of $1.25–$1.75 per share, improved from $2.22 loss in fiscal 2026.

• Adjusted EBITDA expected at $17–$29 million, up from $13.9 million in fiscal 2026.

• Domestic ag revenue expected down 15–20%; construction flat to up 5%; Europe down 20–25% due to Germany exit and Romania normalization; Australia up 10–15%.

• Equipment margin expected to improve to 8.4% from 7.3% in fiscal 2026.

• Operating expenses and floor plan interest expense expected to decline year-over-year.

• U.S. tax rate expected near zero due to valuation allowance; total tax expense guided at $0–$1 million.

• CapEx (excluding rental fleet) guided at ~$15 million.