Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, today released its financial results for the fiscal fourth quarter and full year ended January 31, 2025.
For the fourth quarter of fiscal 2025, Titan Machinery posted revenue of $759.9 million, down from $852.1 million in the same period last year. Equipment revenue also saw a decline, totaling $621.8 million compared to $714.0 million in the fourth quarter of fiscal 2024. Parts revenue for the quarter was $89.3 million, slightly down from $90.8 million in the previous year. Service revenue grew to $36.6 million, a modest increase from $35.1 million in Q4 2024, while rental and other revenue remained nearly unchanged at $12.1 million compared to $12.2 million last year.
Gross profit for the fourth quarter was $51.0 million, a significant decrease from $141.0 million during the same period last year. Gross profit margin dropped to 6.7% from 16.6%, primarily due to lower equipment margins, particularly on used equipment, driven by softer retail demand and the company’s accelerated inventory reduction efforts.
Operating expenses decreased to $96.7 million from $100.3 million, reflecting lower variable expenses tied to the reduction in revenue and profitability. However, operating expenses as a percentage of revenue increased slightly to 12.7% compared to 11.8% in the same quarter of fiscal 2024.
The company also saw a rise in floorplan interest expense and other interest expenses, which totaled $13.1 million for the quarter, up from $9.3 million in the prior year. On a sequential basis, however, these expenses decreased by 8.5% as Titan Machinery worked to reduce interest-bearing inventory.
The company reported a net loss of $43.8 million for the fourth quarter, or a loss of $1.93 per diluted share, compared to a net income of $24.0 million, or $1.05 per diluted share, for the same quarter last year. Adjusted net loss, excluding certain expenses, was $44.9 million or $1.88 per diluted share.
In the company’s statement, Titan Machinery’s President and CEO Bryan Knutson highlighted the company’s progress on its inventory reduction initiative, particularly in the domestic agriculture segment. “We reduced inventory by approximately $304 million during the fourth quarter, bringing our total reduction since our fiscal second-quarter peak to approximately $419 million,” said Knutson. “Although this came at the expense of equipment margins, it was a necessary step to improve our position as we enter fiscal 2026 with a more subdued demand environment.”
Looking ahead, Knutson expressed confidence in the company’s ongoing efforts to reduce inventory and optimize its product mix to meet demand in a shifting industry cycle. Additionally, he noted strong service revenue growth of 14.5% for the full fiscal year, driven by Titan Machinery’s commitment to customer care.
The company has also provided its fiscal 2026 modeling assumptions, anticipating further progress in its inventory reduction strategy.