Case IH dealership group Titan Machinery released preliminary 2Q results for fiscal 2025 on Aug. 14, ahead of the quarter close on Aug. 31. Revenue for the quarter is expected to be about $643 million, flat vs. the same period of fiscal year 2024.
Titan said this reflects lower than expected equipment revenues due to incrementally softer retail demand.
"Commodity prices for most key cash crops in our footprint have steadily declined since the beginning of the year and retreated by an additional 10-20% in the second quarter,” said Titan CEO BJ Knutson. “As we navigate the current contractionary cycle, we are focused on reducing inventory levels, particularly used equipment, implementing cost controls and supporting our customer care strategy to grow our parts and service businesses.”
“The biggest issue is equipment margin, now expected near historical lows, this is occurring in the early innings of attempted inventory destocking; to us this means the stock is still not de-risked with pressure (margin, EPS) extending through FY26,” said Baird analyst Mircea (Mig) Dobre in a note to investors.