Titan Machinery Inc., a leading network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal third quarter ended October 31, 2024.
"Our third quarter results reflect a market cycle that is largely playing out as we anticipated within our domestic Agriculture segment," commented Bryan Knutson, Titan Machinery's President and Chief Executive Officer.
"While we continue to face headwinds impacting the broader agricultural equipment sector, we are seeing positive results from our inventory reduction initiatives with a third quarter reduction of approximately $115 million. We remain focused on executing our strategy to accelerate inventory reductions and to achieve targeted inventory levels as we work through next fiscal year. We remain confident that this strategic approach will support our broader goal of enhancing our profitability through the market cycle. In the meantime, our unwavering commitment to our customer care strategy continues to generate meaningful growth in our recurring service business."
Commenting on Titan's results, Baird analyst Mig Dobre said, "Pressure likely amplifies in FY26. A slight decline in new equipment inventories is a small step in the right direction, more needs to be done in FY26 ($400 million) in a U.S. ag demand environment that is likely quite a bit worse than FY25. This likely leads to more pressure on margin (discounting, impact from lower used equipment prices) and earnings. TITN has limited levers available to stabilize earnings (SG&A to some extent), but destocking in a down market can only be done at the expense of profitability."
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