Titan Machinery Inc. · NASDAQ:TITN
Titan Machinery — Q3 2025 Earnings Presentation
23 slides from Titan Machinery's earnings presentation, Nov 26, 2024
Slide 1: Third Quarter FY2025 Earnings Conference Call
Third Quarter FY2025 Earnings Conference Call November 26, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Statements about our beliefs and expectations and statements containing the words “may,” “could,” “would,” “should,” “believe,” “expect,” “antic
Slide 3: Financial Overview
Financial Overview ▪ Third Quarter FY2025 Results • Revenue $679.8 Million • Pre-Tax Income $0.3 Million • Diluted Earnings Per Share $0.07 • Equipment inventory decreased $101 Million to $1.2 Billion as of October 31, 2024 vs. $1.3 Billion as of July, 2024 ▪ Conference Call Discussion Points • Fina
Slide 4: Agriculture Segment Overview
Agriculture Segment Overview Q3 FY25 Recap • Same-store sales decline of 10.8% (versus increase of 3.5% in prior year) ◦ Softer retail demand driven by lower net farm income • Anticipated equipment gross margin compression driven by aggressive approach to reduce inventories amid lower demand • Effic
Slide 5: Construction Segment Overview
Construction Segment Overview Q3 FY25 Recap • Same-store sales increase of 10.0% (versus decrease of 10.3% in prior year) ◦ Sales growth benefited from timing of equipment delivery • Equipment gross margin compression driven by high levels of inventory across the industry • Rental fleet dollar utili
Slide 6: Europe Segment Overview
Europe Segment Overview Q3 FY25 Recap • Same-store sales decline of 27.1% (versus decline of 7.5% in prior year) ◦ Weakening of retail demand accelerated following significant drought in Eastern Europe, particularly Romania, reducing certain crop yields to lowest levels in more than a decade ◦ Bulga
Slide 7: Australia Segment Overview
Australia Segment Overview Q3 FY25 Recap • Revenues of $50 million USD ◦ Well below average rainfall and an early frost event during the critical growing season reduced yields across footprint • Equipment gross margin normalization, as anticipated, driven by softening demand and high levels of inven
Slide 8: Third Quarter Revenue Analysis
Third Quarter Revenue Analysis (in millions of dollars) Q3 FY2025 Q3 FY2024 Change Total Revenue $679.8 $694.1 -2.1% Equipment $495.1 $521.8 -5.1% Parts $121.1 $115.0 +5.3% Service $51.1 $44.8 +14.2% Rental & Other $12.5 $12.6 -1.1% 8
Slide 9: Third Quarter Financials
Third Quarter Financials (in millions of dollars, except per share) Q3 FY2025 Q3 FY2024 Change Total Revenue $679.8 $694.1 -2.1% Gross Profit $110.5 $138.3 -20.1% Gross Profit Margin 16.3% 19.9% -360 bps Operating Expenses $98.8 $92.1 +7.3% Operating Expense as a % of Revenue 14.5% 13.3% +120 bps Im
Slide 10: Third Quarter Segment Overview
Third Quarter Segment Overview % of % of Change (in millions of dollars) Q3 FY2025 Q3 FY2024 Revenue Revenue ($) Revenue $679.8 $694.1 -2.1% Agriculture $482.0 $531.4 -9.3% Construction $85.3 $77.5 +10.0% Europe $62.4 $85.2 -26.8% Australia $50.1 N/A(2) N/A(2) Pre-Tax Income(1) $0.3 —% $40.5 5.8% -9
Slide 11: Nine Months Revenue Analysis
Nine Months Revenue Analysis First 9 Months First 9 Months (in millions of dollars) Change FY2025 FY2024 Total Revenue $1,942.2 $1,906.3 +1.9% Equipment $1,428.5 $1,431.3 -0.2% Parts $339.1 $320.1 +5.9% Service $143.5 $122.2 +17.4% Rental & Other $31.1 $32.8 -5.0% 11
Slide 12: Nine Months Financials
Nine Months Financials First 9 Months First 9 Months (in millions of dollars, except per share) Change FY2025 FY2024 Total Revenue $1,942.2 $1,906.3 +1.9% Gross Profit $344.6 $390.3 -11.7% Gross Profit Margin 17.7% 20.5% -280 bps Operating Expenses $293.1 $262.2 +11.8% Operating Expense as a % of Re
Slide 13: Nine Months Segment Overview
Nine Months Segment Overview First 9 Months % of First 9 Months % of (in millions of dollars) Change FY2025 Revenue FY2024 Revenue Revenue $1,942.2 $1,906.3 +1.9% Agriculture $1,353.7 $1,423.7 -4.9% Construction $237.0 $232.4 +2.0% Europe $195.6 $250.3 -21.8% Australia $155.9 N/A(2) N/A(2) Pre-Tax I
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights ▪ $23 Million of Cash ▪ 3Q25 vs. 2Q25: Equipment Inventory Decreased $101 Million to $1.2 Billion as of October 31, 2024 vs. $1.3 Billion as of July 31, 2024 • $104 Million decrease in new equipment and a $3 Million increase in used equipment (vs. July 31, 2024) ▪ YTD: Equip
Slide 15: Equipment Inventory Financing
Equipment Inventory Financing (1) (1) Non-Interest Bearing floorplan is equipment that is in its initial interest free financing period from the OEM (2) Excludes CNH Parts Note. (3) Equity is equipment inventory not financed with floorplan (4) Inventory turns are calculated by dividing cost of sales
Slide 16: FY2025 Outlook
FY2025 Outlook Previous Assumptions Current Assumptions Segment Revenue Agriculture Down 5% - Down 10% Down 5% - Down 10% Construction Down 2.5% - Up 2.5% Down 2.5% - Up 2.5% Europe Down 12% - Down 17% Down 20% - Down 25% Australia $230M - $250M USD $220M - $230M USD Diluted Earnings (Loss) Per Shar
Slide 17: Appendix
Appendix TITAN MACHINERY Power & Precision to Grow”
Slide 18: Operating Expenses & Absorption
(1) Operating Expenses & Absorption Operating Expenses Absorption Rate Absorption Rate without Floorplan Interest Expense $500 95% $450 90% $400 82.7% 82.9% 82.9% 85% $350 79.0% 82.2% 82.2% 80% $300 76.5% 79.2% Millions Rate 74.0% 77.7% $250 75% $200 72.0% 70% 69.8% $150 65% $100 60% $50 $— 55% FY20
Slide 19: Same Store Results
Same Store Results(1) Three Months Ended October 31, Percent Nine Months Ended October 31, Percent (in thousands of dollars) 2024 2023 Change 2024 2023 Change Same Store Sales Agriculture $ 474,011 $ 531,404 (10.8)% $ 1,330,582 $ 1,422,434 (6.5)% Construction $ 85,286 $ 77,508 10.0 % $ 236,970 $ 232
Slide 20: Adjusted Debt to Tangible Net Worth
Adjusted Debt to Tangible Net Worth Adjusted Debt Tangible Net Worth Adjusted Debt to Tangible Net Worth 4.5 $1,200 $1,100 4.0 $1,000 3.5 $900 3.0 $800 $700 Millions 2.5 Ratio $600 2.0 1.8 $500 1.6 1.8 1.5 $400 1.5 1.0 0.9 $300 1.0 1.0 $200 0.5 $100 $— — Q4 FY21 Q4 FY22 Q4 FY23 Q4 FY24 Q1 FY25 Q2 FY
Slide 21: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table Titan Machinery Inc. (in thousands, except per share data) Nine Months Ended October 31, 2024 2023 Adjusted Income Before Income Taxes Income Before Income Taxes $ 8,809 $ 117,483 Adjustments (1) Impact of sale-leaseback financing expense (2) 11,159 — Total Adjustments
Slide 22: Non-GAAP Reconciliation Table, continued
Non-GAAP Reconciliation Table, continued Titan Machinery Inc. (in thousands) Three Months Ended October 31, Nine Months Ended October 31, 2024 2023 2024 2023 EBITDA Net Income $ 1,713 $ 30,193 $ 6,850 $ 88,479 Adjustments Interest expense, net of interest income (1) 4,139 1,380 10,119 3,655 Provisio
Slide 23: Non-GAAP Reconciliation Tables, continued
Non-GAAP Reconciliation Tables, continued (in thousands, except per share data) Nine Months Ended October 31, 2024 2023 Adjusted Income Before Income Taxes - Agriculture Income Before Income Taxes $ 15,556 $ 92,311 Adjustments Impact of sale-leaseback financing expense (1) 6,067 — Total Adjustments