TITN Beats Earnings Estimates in Q4, Anticipates Loss in Fiscal 2026

Titan Machinery Inc. TITN reported adjusted earnings per share (EPS) of $1.88 in fourth-quarter fiscal 2025 (ended Jan. 31, 2025), beating the Zacks Consensus Estimate of a loss of 87 cents per share. The bottom line surged 79% from EPS of $1.05 in the year-ago quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Including one-time items, TITN reported EPS of $1.93 in the fourth quarter of fiscal 2025 compared with $1.05 in the year-ago quarter.Titan Machinery Inc. Price, Consensus and EPS Surprise Titan Machinery Inc. price-consensus-eps-surprise-chart | Titan Machinery Inc. QuoteTitan Machinery’s Q4 Revenues Decline Y/YTotal revenues in the reported quarter were around $760 million, down 11% from the year-ago quarter’s $852 million. The top line, however, surpassed the consensus mark of $748 million.Equipment revenues fell 13% year over year to $622 million, and parts revenues dipped 1.6% to $89 million. Revenues generated from service were $36.6 million, up 4.3% from the year-ago quarter. Meanwhile, rental revenues edged down 0.6% year over year to $12.1 million.TITN Sees Gross Margin Contraction, Negative EBITDA in Q4The cost of sales rose 2.4% year over year to $569 million. Gross profit plunged 64% year over year to $51 million. The gross margin was 6.7%, a 990-basis point contraction from the year-ago quarter. The contraction resulted from lower equipment margins, (mainly on used equipment) due to softer retail demand. Titan Machinery's aggressive drive to reduce its equipment inventory to targeted levels contributed to the decline.Operating expenses decreased 3.6% from the year-ago quarter to $96.7 million due to lower variable expenses, due to the year-over-year decline in revenues and profitability. Adjusted EBITDA was a negative $46 million against a positive $45.3 million in the year-ago quarter. Titan Machinery’s Segment Performances in Q4Agriculture revenues fell 14% to $535 million from the prior-year quarter. Demand has been weak due to lower net farm income and sustained high interest rates. Same-store sales were down 15.5%, partially offset by contributions from the acquisition of Scott Supply in January 2024. The segment reported a loss before taxes of $55.3 million against the year-ago quarter’s income of $28.8 million, reflecting TITN’s accelerated inventory reduction measures.Construction revenues were $95 million in the fiscal fourth quarter, down 5.5% from the prior-year quarter. Same-store sales declined 5.5%, impacted by expected timing differences of equipment deliveries between the third and fourth quarter of fiscal 2025 compared with fiscal 2024. The segment reported a loss before taxes of $1.1 million against the year-ago quarter’s income of $4.6 million.The Europe segment’s revenues were $65 million, up from the year-ago quarter’s $62 million. The segment reported a loss before taxes of $1.8 million compared with the year-ago quarter’s loss of $0.6 million.TITN began reporting its Australia segment in the fourth quarter of fiscal 2024. The segment registered revenues of $65 million in the fourth quarter of fiscal 2025 compared with $70 million in the year-ago quarter. Income before taxes for the quarter was $2.3 million, lower than $4.1 million in the fourth quarter of fiscal 2024.TITN’s Cash Flow & Debt Position at FY25-EndCash used for operating activities was $70.3 million in fiscal 2025 compared with an outflow of $32.3 million in the prior fiscal. Titan Machinery ended fiscal 2025 with a cash balance of around $36 million, lower than $38 million held at the end of fiscal 2024.Long-term debt at the end of fiscal 2025 was $158 million, higher than $106 million at the end of fiscal 2024.TITN’s Fiscal 2025 ResultsTitan Machinery reported an adjusted loss of $1.31 per share against earnings of $4.93 per share in 2023. This excludes the net impact of items related to sale-leaseback financing expenses. The figure came in wider than the Zacks Consensus Estimate of a loss of 57 cents per share. Including one-time items, the loss was $1.63 per share in fiscal 2025 against an EPS of $4.93 in the prior fiscal.  TITN reported revenues of $2.7 billion for fiscal 2025, a 2% decline year over year. The top line beat the Zacks Consensus Estimate of $2.69 billion.Titan Machinery Anticipates Loss in Fiscal 2026The agriculture segment's revenues are predicted to decline in the band of 20-25% in fiscal 2026. The Construction segment’s revenues are expected to see a decline in the range of 5-10%. Europe’s revenues are expected to be flat to up 5% compared with fiscal 2025.The Australia segment's revenues are expected to be down 15-20%. The company is expected to report a loss in the range of $1.25-$2.00 per share in fiscal 2026 reflecting weak demand.TITN Stock’s Price Performance & Zacks RankIn the past year, shares of Titan Machinery have lost 45.2% against the industry’s 0.4% growth.Image Source: Zacks Investment ResearchTITN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Performances of Titan Machinery’s PeersDeere & Company DE reported first-quarter fiscal 2025 (ended Jan. 26, 2025) earnings of $3.19 per share, beating the Zacks Consensus Estimate of $3.13. However, the bottom line fell 49% from the prior-year quarter on lower shipment volumes.Net sales of equipment operations (comprising Agriculture and Turf, Construction, and Forestry) were $6.81 billion, down 35.1% from the prior-year quarter. Revenues missed the Zacks Consensus Estimate of $7.70 billion. Total net sales (including financial services and others) were $8.51 billion, down 30% from the year-earlier quarter.AGCO Corp. AGCO delivered an adjusted EPS of $1.97 in fourth-quarter 2024 compared with the prior-year quarter’s $3.78. However, the reported figure beat the Zacks Consensus Estimate for EPS of $1.80.Net sales decreased 24% year over year to $2.89 billion in the December-end quarter. The top line missed the Zacks Consensus Estimate of $3.16 billion. Excluding the unfavorable currency-translation impacts of 1.8%, net sales fell 22.2% year over year.CNH Industrial CNH reported a fourth-quarter 2024 adjusted EPS of 15 cents, which declined from 42 cents in the prior-year quarter. The figure also missed the Zacks Consensus Estimate for EPS of 19 cents.In the fourth quarter, consolidated sales declined nearly 28% from the year-ago level to $4.88 billion and missed the consensus mark of $4.89 billion. CNH’s net sales from industrial activities were $4.13 billion, down 31% due to lower shipment volumes.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.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 $803 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