Titan Machinery, the largest Case and New Holland dealer in the world, has reported more revenue and gross income declines in its second fiscal quarter.
Total revenue in Titan Machinery’s fiscal year 2026 second quarter was down 14% year-over-year to $546.4 million compared to $633.7 million in the previous second quarter. For the first six months of the fiscal year, total revenue fell 10% to $1.1 billion.
Equipment revenue came in at $376.3 million in the second quarter, down 26% year-over-year, and fell 13% to $813.1 million in the first half of the fiscal year.
Service revenue was one of the few segments to see an increase in the quarter, up 3% to $48.8 million, though parts revenue dropped fell than 1% to $109.2 million. For the first half of the year, service revenue was up less than 1% to $92.8 million, and parts revenue was down 1.4% to $214.9 million.
Rental and other revenue rose 6% to $12.1 million in the quarter and rose 7% for the first half of the year to $20 million.
Titan Machinery brought in $93.6 million in gross profit for the quarter, down 17% year-over-year to $93.6%. Gross margin fell year-over-year from 17.7% to 17.1%, attributed primarily to lower equipment margins and initiatives to lower inventory levels. Gross profit was down 21% for the first six months of the fiscal year to $184.6 million.
Titan Machinery’s total equipment inventory was valued at $953.5 million as of July 31, up 3% from $925.8 million as of January 31 of this year.
Bryan Knutson, Titan Machinery's president and CEO, attributed the inventory value increase to timing of OEM shipments ahead of deliveries to end customers and said the company remains on track with its inventory reduction strategy target of $100 million.
Looking at the company’s construction segment, revenue in the quarter fell 10% to $72 million due to lower equipment sales. First six months construction revenue was down 5% year-over-year to $144.1 million.
Titan Machinery’s construction business reported a loss before taxes of $1.2 million in the second quarter vs. a $4.9 million loss in its previous second quarter. For the first six months of the year, construction loss before income taxes came in at $5.4 million vs. $4.6 million one year ago.
Full fiscal year construction revenue is forecast to decline 3% to 8% year-over-year.
