Titan Machinery Inc. · NASDAQ:TITN
Titan Machinery — Q4 2025 Earnings Presentation
23 slides from Titan Machinery's earnings presentation, Mar 20, 2025
Slide 1: Fourth Quarter FY2025 Earnings Conference Call
Fourth Quarter FY2025 Earnings Conference Call March 20, 2025
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 ▪ Fourth Quarter FY 2025 Results • Revenue $759.9 Million • Pre-Tax Loss $58.8 Million • Adjusted Pre-Tax Loss $60.3 Million (1) • Diluted Loss per Share $1.93 • Adjusted Diluted Loss Per Share $1.88 (1) ▪ Full Year FY 2025 Results • Revenue $2.7 Billion • Pre-Tax Loss $50.0 Milli
Slide 4: Agriculture Segment Overview
Agriculture Segment Overview Q4 FY25 Recap • Same-store sales decline of 15.5% (versus increase of 35.5% in prior year) ◦ Softer retail demand driven by lower net farm income • Significant inventory reduction achieved in Q4 as part of short term initiatives ◦ Segment inventory down ~$300M since 2Q25
Slide 5: Construction Segment Overview
Construction Segment Overview Q4 FY25 Recap • Same-store sales decline of 5.5% consistent with expectations due to timing differences in second half of fiscal year (versus increase of 17.7% in prior year) • Equipment gross margin compression driven by inventory reduction actions, though to a lesser
Slide 6: Europe Segment Overview
Europe Segment Overview Q4 FY25 Recap • Same-store sales growth of 5.7% (versus 4.8% in prior year) ◦ Positive momentum following a challenging year with subdued retail demand that was exacerbated by significant drought in Eastern Europe • Equipment gross margin normalization, as anticipated, driven
Slide 7: Australia Segment Overview
Australia Segment Overview Q4 FY25 Recap • Same-store sales decline of 6.5% to $65.3 million USD ◦ Well below average rainfall and an early frost event during the critical growing season reduced yields and softened demand • Equipment gross margin normalization, as anticipated, driven by softening de
Slide 8: Fourth Quarter Revenue Analysis
Fourth Quarter Revenue Analysis (in millions of dollars) Q4 FY2025 Q4 FY2024 Change Total Revenue $759.9 $852.1 -10.8% Equipment $621.8 $714.0 -12.9% Parts $89.3 $90.8 -1.6% Service $36.6 $35.1 +4.3% Rental & Other $12.1 $12.2 -0.6% 8
Slide 9: Fourth Quarter Financials
Fourth Quarter Financials (in millions of dollars, except per share) Q4 FY2025 Q4 FY2024 Change Total Revenue $759.9 $852.1 -10.8% Gross Profit $51.0 $141.0 -63.8% Gross Profit Margin 6.7% 16.6% -990 bps Operating Expenses $96.7 $100.3 -3.6% Operating Expense Margin 12.7% 11.8% -90 bps Impairment Co
Slide 10: Fourth Quarter Segment Overview
Fourth Quarter Segment Overview (in millions of dollars) Q4 FY2025 % of Q4 FY2024 % of Change Revenue Revenue Revenue $759.9 $852.1 -10.8% Agriculture $534.7 $620.6 -13.8% Construction $94.6 $100.1 -5.5% Europe $65.4 $61.6 +6.1% Australia $65.3 $69.8 -6.5% Pre-Tax (Loss) Income (1) $(58.8) (7.7)% $3
Slide 11: Full Year Revenue Analysis
Full Year Revenue Analysis (in millions of dollars) FY2025 FY2024 Change Total Revenue $2,702.1 $2,758.4 -2.0% Equipment $2,050.3 $2,145.3 -4.4% Parts $428.5 $410.8 +4.3% Service $180.1 $157.3 +14.5% Rental & Other $43.3 $45.0 -3.8% 11
Slide 12: Full Year Financials
Full Year Financials (in millions of dollars, except per share) FY2025 FY2024 Change Total Revenue $2,702.1 $2,758.4 -2.0% Gross Profit $395.6 $531.4 -25.5% Gross Profit Margin 14.6% 19.3% -470 bps Operating Expenses $389.8 $362.5 +7.5% Operating Expense Margin 14.4% 13.1% 130 bps Impairment Costs $
Slide 13: Full Year Segment Overview
Full Year Segment Overview % of % of (in millions of dollars) FY2025 FY2024 Change Revenue Revenue Revenue $2,702.1 $2,758.4 -2.0% Agriculture $1,888.4 $2,044.3 -7.6% Construction $331.6 $332.5 -0.3% Europe $261.0 $311.9 -16.3% Australia $221.1 $69.8 N/M Pre-Tax (Loss) Income (1) $(50.0) (1.8)% $151
Slide 14: Balance Sheet Highlights January 31, 2025
Balance Sheet Highlights January 31, 2025 ▪ $36 Million of Cash ▪ Equipment Inventory of $0.9 Billion as of January 31, 2025 vs. $1.1 Billion as of January 31, 2024 • $134 million decrease in new equipment and $33 million decrease in used equipment • Equipment inventory decreased $393 Million from p
Slide 15: Equipment Inventory
Equipment Inventory (1) Non-Interest Bearing floorplan is equipment that is in its initial interest free financing period from the OEM (2) Excludes CNH Parts Note which relates to parts inventory that is also not included above (3) Equity is equipment inventory not financed with floorplan (4) Invent
Slide 16: FY2026 Outlook
FY2026 Outlook FY2026 Modeling Assumptions: Current Assumptions Segment Revenue Agriculture Down 20% - Down 25% Construction Down 5% - Down 10% Europe Flat - Up 5% Australia Down 15% - Down 20% Adjusted Diluted Loss Per Share ($1.25) - ($2.00) 16
Slide 17: Appendix
Appendix TITAN MACHINERY Power & Precision to Grow”
Slide 18: Operating Expenses & Absorption
Operating Expenses & Absorption(1) 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 79.2% Millions 75.0% Rate 74.0% 77.7% $250 75% $200 72.0% 70% $150 68.0% 65% $100 60% $50 $— 55% FY20
Slide 19: Same Store Results
(1) Same Store Results (in thousands of dollars) Three Months Ended January 31, Percent Fiscal Year Ended January 31, Percent 2025 2024 Change 2025 2024 Change Same Store Sales (1) Agriculture $ 524,344 $ 620,225 (15.5)% $ 1,854,620 $ 2,042,164 (9.2)% Construction 94,603 100,094 (5.5)% 331,574 332,4
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 $500 1.6 1.5 1.8 1.8 1.8 $400 1.5 1.0 1.0 0.9 $300 1.0 $200 0.5 $100 $— — Q4 FY21 Q4 FY22 Q4 FY23 Q4 FY24 Q1 FY25 Q
Slide 21: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables TITAN MACHINERY INC. Non-GAAP Reconciliations (in thousands, except per share data) (Unaudited) (in thousands, except per share data) Three Months Ended January 31, Twelve Months Ended January 31, 2025 2024 2025 2024 Adjusted (Loss) Income Before Income Taxes (Loss) In
Slide 22: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table Three Months Ended Twelve Months Ended (in thousands) January 31, January 31, 2025 2024 2025 2024 EBITDA Net Income $ (43,761) $ 23,963 $ (36,911) $ 112,441 Adjustments Interest expense, net of interest income (1) 4,369 3,104 14,489 6,759 (Benefit from) Provision for In
Slide 23: Non-GAAP Reconciliations Tables, continued
Non-GAAP Reconciliations Tables, continued (In thousands, except per share data) Three Months Ended January 31, Twelve Months Ended January 31, 2025 2024 2025 2024 Adjusted (Loss) Income Before Income Taxes - Agriculture (Loss) Income Before Income Taxes $ (55,329) $ 28,761 $ (39,773) $ 121,072 Adju