Titan Machinery Reports $2.70 Billion Revenue Decline and $36.9 Million Net Loss for Fiscal Year 2025

Titan Machinery Inc. reported a total revenue of $2.70 billion for the fiscal year ending January 31, 2025, a decrease of 2.0% from $2.76 billion in the previous fiscal year. The decline was primarily driven by a 9.1% drop in same-store sales, which offset revenue growth from recent acquisitions, including the purchase of J.J. O’Connor & Sons Pty. Ltd. in October 2023. The company's equipment sales, which constitute the largest portion of its revenue, fell by 4.4% to $2.05 billion, while parts sales increased by 4.3% to $428.5 million, and service revenue rose by 14.5% to $180.1 million. However, rental and other revenue decreased by 3.8% to $43.3 million.

The company's gross profit for fiscal 2025 was $395.6 million, down 25.5% from $531.4 million in fiscal 2024, with the gross profit margin declining to 14.6% from 19.3%. This reduction was largely attributed to lower equipment margins due to increased inventory levels and softening demand. Operating expenses rose by 7.5% to $389.8 million, influenced by the costs associated with the O'Connors acquisition and other operational factors. Consequently, Titan Machinery reported a net loss of $36.9 million, compared to a net income of $112.4 million in the prior year.

Operationally, Titan Machinery maintained a workforce of 3,340 employees as of January 31, 2025, with 2,299 in the U.S., 731 in Europe, and 310 in Australia. The company operates 148 full-service stores across the U.S., Europe, and Australia, with significant geographic expansion noted in the Australian market following the O'Connors acquisition. The company has a history of growth through acquisitions, having completed approximately 60 since 2003, and continues to seek opportunities for dealership consolidation.

Looking ahead, Titan Machinery anticipates ongoing challenges in the agricultural and construction equipment markets, particularly due to fluctuating commodity prices and net farm income, which directly impact customer purchasing behavior. The company is focused on increasing same-store sales and market share while managing inventory levels effectively. Additionally, Titan Machinery is committed to leveraging its strategic relationships with suppliers, particularly CNH Industrial, to enhance its competitive position in the market. The company remains optimistic about its long-term growth strategy, which includes further acquisitions and expansion into new markets.