Titan Machinery Posts Drop in Equipment Revenue, Expects Sales Rebound This Year

Titan Machinery, the world’s largest Case and New Holland dealer, reported losses in total revenue and construction-equipment revenue in its full 2026 fiscal year, but the company expects its construction business to improve slightly in the coming year.  

For its fourth quarter, Titan Machinery reported $641.8 million in total revenue, down 15.5% year-over-year. And for the full fiscal year, total revenue fell 10.2% to $2.43 billion.

Equipment revenue for the quarter fell 19.3% to $501.5 million, while service revenue came in at $36.1 million, down 1.4%. 

Looking at the full fiscal year, equipment revenue was down 13.5% to $1.77 billion, and service revenue was down 1.2% to $177.9 million.

Only revenue from Titan Machinery’s parts and “rental and other” categories showed a year-over-year increase in fourth-quarter revenue, rising 2% to $91.1 million and 8.3% to $13.1 million. 

But for the full year, only the “rental and other” showed year-over-year revenue improvement, rising 7.3% to $46.4 million. Parts revenue for the full year remained flat at $428.3 million.

Titan Machinery’s construction equipment segment saw fourth-quarter revenue fall 4.7% to $90.2 million, driven in part by lower equipment sales. The segment reported a pre-tax loss of $1 million in the quarter, down from a $1.1 million loss in the previous year’s fourth quarter. Construction equipment revenue was down even further when looking at the full fiscal year, falling 6.2% to $311 million.

In its agriculture equipment segment, Titan Machinery also reported a revenue loss, down 24% to $406.7 million, driven by softening demand as commodity prices remain low and interest rates remain high. Pre-lax loss in this segment for the quarter came in at $9.9 million versus a $55.3 million loss in the previous year’s fourth quarter. Full-year agriculture equipment revenue came in at $1.56 billion, down 17.5%.

Gross profit in the quarter rose 70.6% to $87 million, and gross profit margin rose from 6.7% to 13.5%. The company attributed these increases primarily to improving inventory conditions and deliberate inventory-reduction efforts. However, equipment margins in the quarter still faced pressure from softening demand and aging inventory. Gross profit for the full year fell 3.3% to $382.6 million.

The company reported a net loss in the quarter of $36.2 million, down from the net loss of $43.8 million reported in the previous fourth quarter. However, net loss for the full fiscal year rose to $54.2 million from $36.9 million in the previous year.

Looking ahead at its 2027 fiscal year, Titan Machinery is forecasting a flat to 5% increase in its construction equipment revenue. During the earnings call, Chief Financial Officer Bo Larsen said that forecast aligns with “the more favorable industry fundamentals that are benefiting from infrastructure and other sector-specific tailwinds.”

Titan Machinery expects to see a 15% to 20% decline in its agriculture equipment revenue in its 2027 fiscal year and an adjusted net loss in the $28 million to $40 million range.

Titan has locations in North Dakota, South Dakota, Iowa, Minnesota, Nebraska, Wyoming, Idaho, Wisconsin, Kansas and Colorado, as well as overseas in Romania, Bulgaria, Ukraine and Australia.