Titan Machinery Inc., a network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal third quarter ended October 31, 2025.
"Our third quarter results demonstrate continued progress on our inventory optimization initiatives, with cumulative inventory reductions of $98 million through the first nine months of the fiscal year, positioning us to increase our reduction target from $100 million up to $150 million for the full year fiscal 2026," stated Bryan Knutson, Titan's President and Chief Executive Officer. "Equipment margins beat expectations for the quarter driven by a more favorable sales mix and our improved inventory position, though we expect margins to moderate a bit in the fourth quarter as we look to continue our inventory optimization efforts. Additionally, as part of our broader footprint optimization strategy, we made select divestitures both domestically and in Germany, allowing us to focus our resources in markets where we can better leverage our operational expertise while delivering improved returns for our shareholders. Despite a challenging environment for the agriculture industry, our parts and service businesses continue to provide critical stability - keeping us closely engaged with our customers. We remain focused on positioning the business to emerge from this cycle stronger and better prepared for improved market conditions."
Commenting on the results in a note to investors, Baird analyst Mircea (Mig) Dobre noted that Titan reported good destocking progress and said “used inventory reduction is notable, lowering the risk of write-downs.” Total inventories fell by $129.3 million sequentially, or by 11.3%, to $1.011 billion (–28.5% year-over-year). “Equipment inventories (down 32% year-over-year) have been reduced by $98 million through 9 months; notably, used inventories have been reduced by $96 billion, which is important since used inventories carry the highest write-down risk,” he wrote. “Management upped its equipment inventory reduction target to $150 million for FY26 (previously $100 million).”
For the third quarter of fiscal 2026, revenue was $644.5 million compared to $679.8 million in the third quarter last year. Equipment revenue was $459.9 million for the third quarter of fiscal 2026, compared to $495.1 million in the third quarter last year. Parts revenue was $122.3 million for the third quarter of fiscal 2026, compared to $121.1 million in the third quarter last year. Service revenue was $48.9 million for the third quarter of fiscal 2026, compared to $51.1 million in the third quarter last year. Rental and other revenue was $13.3 million for the third quarter of fiscal 2026, compared to $12.5 million in the third quarter last year.