Titan Machinery Inc. (NASDAQ: TITN) posted a second-quarter loss of $0.40 per share, missing analyst estimates of $0.35, as revenue declined 9.2% year-over-year to $496.4 million. The company’s stock fell 2.07% in pre-market trading following the results.
Revenue totaled $496.4 million, exceeding the consensus estimate of $486.51 million, though down from $546.4 million in the same period last year. Gross margin expanded by 150 basis points to 18.6%, driven by stronger equipment margins and a higher mix of parts and service revenue. Operating expenses rose to $94.1 million, representing 19.0% of revenue, compared with $92.7 million (17.0% of revenue) in the prior year. Floorplan and other interest expenses decreased to $8.1 million from $11.5 million.
Segment performance varied, with the agriculture segment generating $310.2 million in revenue, a 10.3% decline year-over-year, while same-store sales fell 8.4%. The construction segment reported revenue of $78.6 million, up 9.2% from the prior year. Europe saw a 32.6% revenue decline to $66.1 million, while Australia’s revenue increased 35.5% to $41.4 million.
Titan reaffirmed its fiscal 2027 adjusted diluted loss per share guidance of $1.25 to $1.75, compared with the analyst consensus of $1.45. The company raised its construction segment guidance to an increase of 5% to 10%, up from a previous range of flat to up 5%, and lowered its Europe segment guidance to a decline of 30% to 40%, from a prior range of down 20% to 25%.
Bryan Knutson, President and Chief Executive Officer, noted that the quarter’s results reflected progress in improving inventory health, with equipment margins in the agriculture segment modestly ahead of expectations.
