Titan Machinery Sees 10% Rise in Construction Equipment Revenue
Though its construction business remains stable, the Case and New Holland dealer faces high inventory levels.
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Case and New Holland dealer Titan Machinery’s construction revenue was bright in an otherwise down third quarter, where each of the company’s segments besides construction saw year-over-year declines.
In its fiscal year 2025 third quarter, Titan Machinery reported $85.3 million in construction revenue, up 10.1% year-over-year from $77.5 million in last year’s third quarter. These results benefited from timing of equipment deliveries versus the second half of the previous fiscal year. However, the segment still reported a pre-tax loss of $0.9 million compared to a $4.1 million pre-tax income in last year’s third quarter.
Year-to-date construction revenue comes in at $237 million, up 2% compared to the same period last year. Titan Machinery’s construction segment is showing a $5.6 million pre-tax loss for the first nine months of the year.
President and CEO Bryan Knutson said during the earnings call, “Our performance reflects a more normalized demand environment, which was consistent with our expectations. We achieved a 10% same-store sales increase. However, much of that is timing-related, and we still generally expect our construction business to finish the year flattish compared to the prior year.”
Total revenue in the quarter was down 2.1% to $679.8 million, while year-to-date total revenue was up 1.9% to $1.94 billion. Titan Machinery’s agriculture revenue in the third quarter was down 9.3% or $49.4 million to $482 million.
Chief Financial Officer Bo Larsen added that while its construction segment remains stable, it currently faces higher inventory levels, though not as severe as the inventory levels seen in its agriculture division.
“Supply-chain catchup has driven inventory levels higher for both the construction industry as a whole and for Titan,” said Larsen. “While this isn't as acute as what we are experiencing in our agriculture segment, our inventory reduction strategy is nevertheless weighing on equipment margin in this segment as well.”
