Consolidated revenue for the third quarter of fiscal 2025 was $679.8 million, a decrease from $694.1 million in the prior year period. This decline was primarily driven by a 10.8% same-store sales decrease in the Agriculture segment, which reported $482.0 million in revenue. The company's gross profit margin contracted to 16.3% from 19.9% in the prior year, largely due to lower equipment margins.
Titan Machinery reported a net income of $1.7 million, resulting in earnings per diluted share of $0.07, a significant reduction from $30.2 million and $1.32 per diluted share in the same period last year. Operating expenses increased to $98.8 million, partly due to acquisitions, while floorplan and other interest expense rose to $14.3 million from $5.5 million, reflecting higher interest-bearing inventory.
The company made progress on its inventory reduction initiatives, decreasing inventory by approximately $115 million from the fiscal second quarter, bringing total inventories to $1.4 billion. Management noted continued market headwinds, particularly in domestic Agriculture, and updated its fiscal 2025 modeling assumptions to reflect incremental weakening of demand in Europe and Australia, anticipating persistent equipment margin compression into the next fiscal year.
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