Titan Machinery Earnings Beat Estimates in Q2, Revenues Fall Y/Y

Titan Machinery Inc.  TITN reported an adjusted loss per share of 26 cents in the second-quarter fiscal 2026 (ended July 31, 2025), beating the Zacks Consensus Estimate of a loss of 56 cents. The company reported adjusted earnings of 17 cents per share in the year-ago quarter. Including one-time items, the company had reported a loss of 19 cents in the year-ago quarter. There were no such items in the second quarter of fiscal 2026.Total revenues in the reported quarter were $546 million, down 13.8% from the year-ago quarter, reflecting softer retail demand. The top line beat the consensus mark of $504 million. Equipment revenues fell 19.1% year over year to $376 million, whereas parts revenues fell 0.5% to $109 million. Revenues generated from service were around $49 million in the reported quarter, up 3.2% from the year-ago quarter. Meanwhile, rental and other revenues were up 7.1% year over year to $12 million.Titan Machinery Inc. Price, Consensus and EPS Surprise  Titan Machinery Inc. price-consensus-eps-surprise-chart | Titan Machinery Inc. QuoteTITN’s Costs Rise, Margins Dip in Q2Cost of sales fell 13.1% to $453 million from the prior-year quarter. Gross profit decreased 16.6% year over year to $94 million. The gross margin was 17.1%, down from 17.7% in the prior-year quarter.Operating expenses decreased 2.6% year over year to $93 million due to lower variable expenses. Adjusted EBITDA came in at $5.6 million compared to the prior year quarter's $20.2 million.Q2 Segmental Performance of Titan MachineryAgriculture revenues fell 18.4% to $346 million from the prior-year quarter due to softer equipment demand. The segment’s income before taxes fell to $12.3 million from the prior-year quarter’s $0.6 million.Construction revenues were $72 million in the fiscal second quarter, down 10.2% year over year. The segment reported income before taxes of $1.2 million, down from the prior-year quarter’s $4.9 million.Europe revenues were $98 million, up 44.1% from the year-ago quarter’s $68 million, reflecting the positive impacts of foreign currency. The segment reported income before taxes of $5.1 million, which surged 121.7% from $2.3 million in the second quarter of fiscal 2024.The Australia segment reported revenues of $31 million, down 50.1% year over year. It incurred a loss before taxes of $2.1 million in the second quarter of fiscal 2026 against the prior year’s income of $$1.4 million.TITIN’s Cash Flow & Balance Sheet as of Q2 EndCash used for operating activities was $50 million in the first half of fiscal 2026 compared with an outflow of $48 million in the prior-year period. Titan Machinery ended the reported quarter with a cash balance of around $33 million. The company’s long-term debt was $153 million compared with $158 million as of the fiscal 2025 end.Titan Machinery Anticipates Loss in FY26The Agriculture segment's revenues are anticipated to decline in the range of 15% to 20% compared with the prior stated expectation of 20% to 25% decline. The Construction segment’s revenues for fiscal 2026 are expected to see a decline of 3-8% updated from the previous expected decline of 5-10%. Year-over-year revenue growth in Europe is projected at 30-40% compared with a growth of 23-28% mentioned earlier.The Australia segment's revenues are expected to decline 20-25%.The company expects to report a loss of $1.50-$2.00 per share in fiscal 2026, reflecting weak demand. The figure is updated from prior stated loss of $1.25-$2.00 per share.TITN Stock's Price PerformanceIn the past year, shares of Titan Machinery have gained 38.2% compared with the industry’s growth of 15.8%. Image Source: Zacks Investment Research Titan Machinery’s Zacks RankTITN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Peer PerformancesDeere & Company DE reported third-quarter fiscal 2025 (ended July 27) earnings of $4.75 per share, which beat the Zacks Consensus Estimate of $4.62. The bottom line, however, decreased 24% from the prior-year quarter on lower shipment volumes.Net sales of equipment operations (comprising Agriculture, and Turf, Construction and Forestry) were $10.36 billion, down 9% year over year. However, net sales topped the Zacks Consensus Estimate of $10.26 billion. Total net sales (including financial services and others) were $12.02 billion, down 8.6% year over year.AGCO Corp. AGCO delivered adjusted earnings per share (EPS) of $1.35 in the second quarter of 2025 compared with the prior-year quarter’s $2.53. The reported figure topped the Zacks Consensus Estimate of $1.06.AGCO’s net sales decreased 18.8% year over year to $2.36 billion in the June-end quarter. The top line beat the Zacks Consensus Estimate of $2.48 billion. CNH Industrial N.V. CNH reported second-quarter 2025 adjusted EPS of 17 cents, which declined from 38 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 16 cents.In the second quarter, CNH’s net sales declined nearly 14% from the year-ago level to $4.71 billion but topped the Zacks Consensus Estimate of $4.53 billion. The company’s net sales from industrial activities came in at $4.02 billion, down 16% due to lower industry demand.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report CNH Industrial N.V. (CNH): Free Stock Analysis Report Titan Machinery Inc. (TITN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks