Titan Machinery reported that its fiscal year 2025 revenues were down 2% to $2.7 billion and for the fourth quarter revenues were down 10.8% to $759.9 million.

In its agriculture segment, Titan reported that revenue for the fourth quarter of fiscal 2025 was $534.7 million, compared to $620.6 million in the fourth quarter last year.

While revenues were down, the Case IH dealership group made considerable progress in destocking its equipment inventory. During the fourth quarter, Titan achieved $304 million of inventory reduction.

Following the earnings call on March 20, Baird analyst Mig Dobre said, “For a dealer, the key risk in a downturn rests with excess inventory (particularly used) and the potential writedowns and margin compression needed in order to clear machines off the lot – 4Q was a great example. Titan has made real progress in 4Q, destocking $300 million in equipment inventories (well ahead of the $100 million expected).”  

He goes on to say that “Titan has now destocked $400 million of equipment over the past two quarters with inventories now just 13% above pre-Covid levels adjusting for store count and OEM pricing.”  

Another positive, in the ag segment service achieved 8.2% same-store sales growth for the full year.

Looking ahead to fiscal year 2026, Titan expects stable parts and service business in its ag segment, despite industry decline for wholegoods. Ag segment revenues are forecast to be down 20-25% in fiscal year 2026 and the dealership group expects to see additional equipment inventory reduction, shifting its focus to optimization of product mix to ensure optimal inventory.

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