Titan Machinery reported fiscal second quarter 2026 revenue of $546.4 million, a decrease from $633.7 million in the prior year. The gross profit margin was 17.1%, down from 17.7% in the same period last year, primarily due to lower equipment margins from softer retail demand and inventory management initiatives. The company posted a net loss of $6.0 million, or $0.26 per diluted share, compared to an adjusted net income of $4.0 million, or $0.17 per diluted share, in the prior year's second quarter.
The Agriculture segment's revenue decreased by 18.7% in same-store sales, resulting in a pre-tax loss of $12.3 million. The Europe segment continued its strong performance, with revenue increasing 38.1% net of foreign currency fluctuations to $98.1 million, driven by EU stimulus programs in Romania, and a pre-tax income of $5.1 million. Inventory levels remained flat at $1.1 billion as of July 31, 2025, compared to January 31, 2025, with a cumulative reduction of $365 million from peak levels.
Management reiterated its $100 million inventory reduction target for fiscal 2026 and expressed confidence in exceeding it, with most progress expected in the second half of the year. The company narrowed its adjusted diluted loss per share guidance to a range of ($1.50) to ($2.00) and revised its full-year consolidated equipment margin expectation to approximately 6.6%. Segment revenue expectations were updated, with domestic Agriculture now projected down 15-20% and Europe up 30-40%.
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