Titan Machinery Q2 2027 revenue falls as gross margin improves

Titan Machinery (NASDAQ: TITN ) reported second-quarter financial results on Thursday.

The transcript from the company's second-quarter earnings call has been provided below.

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The full earnings call is available at Summary Titan Machinery reported a 6.2% decrease in same-store sales for Q2 FY27, with total revenue of $496.4 million compared to $546.4 million in the prior year.

The company achieved a 190 basis point improvement in consolidated gross margin, driven by stronger equipment margins and improved inventory management.

Despite a challenging agricultural market, the construction segment showed robust performance with a 9.2% increase in same-store sales.

The Europe segment underperformed, largely due to the wind-down of German operations and challenging market conditions, leading to a downward revision of expectations for FY27.

In Australia, despite increased input costs, favorable weather improved customer sentiment, leading to a 36% increase in sales.

Titan Machinery maintained its full-year adjusted EBITDA guidance of $17 million to $29 million and adjusted diluted loss per share range of $1.25 to $1.75.

Management highlighted improved inventory health and stronger equipment margins as key strategic focuses, with expectations of further margin improvement in the coming quarters.

The company is optimistic about long-term fundamentals in agriculture, with expectations that 2026 could mark the bottom of the current cycle.

Full Transcript OPERATOR For operator assistance during the conference, please press star-0 on your telephone keypad.

Please note this conference is being recorded.

I will now turn the conference over to Jeff Sonnek with ICR.

Thank you.

You may begin.

Jeff Sonnek, Investor Relations (ICR) Thank you.

Welcome to the Titan Machinery second quarter fiscal 2027 earnings conference call.

On the call today from the company are Brian Knudsen, President and Chief Executive Officer, and Bo Larson, Chief Financial Officer.

By now, everyone should have access to the earnings release for the fiscal second quarter ended July 31, 2026, which is also available on Titan's investor relations website at ir.titanmachinery.com.

In addition, we're providing a supplemental presentation to accompany today's prepared remarks, along with webcast and replay information, which can also be found on Titan's Investor Relations website within the Events and Presentations section.

We would like to remind everyone that the prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions.

These statements do not guarantee future performance, and therefore undue reliance should not be placed upon them.

These forward-looking statements are based on management's current expectations and involve inherent risks and uncertainties, including those identified in the Forward-Looking Statements section of today's earnings release and the Company's filings with the SEC, including the Risk Factors section of Titan's most recently filed Annual Report on Form 10-K and quarterly reports on Form 10-Q.

These risks and uncertainties could cause actual results to differ materially from those projected in any forward-looking statements.

Except as may be required by applicable law, Titan assumes no obligation to update any forward-looking statements that may be made in today's release or call.

Please note that during today's call we may discuss non-GAAP financial measures, including results on an adjusted basis.

We believe these adjusted financial measures can facilitate a more complete analysis and greater transparency into Titan's ongoing financial performance, particularly when comparing underlying results from period to period.

We have included reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures in today's release and supplemental presentation.

At the conclusion of our prepared remarks, we will open the call to take your questions, and with that I'd now like to introduce the Company's President and CEO, Brian Knudsen.

Please go ahead, Brian.

Brian Knudsen, President and Chief Executive Officer Thank you, Jeff.

I'll begin today's call with a review of our second quarter results and then provide an update on what we are seeing across each of our business segments before turning the call over to Bo for his financial review and updated outlook assumptions.

Overall, our second quarter results were largely in line with our expectations, and I am pleased with the continued progress our team is making on the operational priorities we established heading into FY2027.

The highlight of the quarter was the continued improvement in equipment margins across our agricultural business, which contributed to a 190 basis point increase in consolidated gross margin compared to the prior year period.