Titan Machinery Inc.

Consolidated Results

For the second quarter of fiscal 2027, revenue was $496.4 million compared to $546.4 million in the second quarter last year. Equipment revenue was $328.5 million for the second quarter of fiscal 2027, compared to $376.3 million in the second quarter last year. Parts revenue was $106.6 million for the second quarter of fiscal 2027, compared to $109.2 million in the second quarter last year. Service revenue was $46.4 million for the second quarter of fiscal 2027, compared to $48.8 million in the second quarter last year. Rental and other revenue was $14.8 million for the second quarter of fiscal 2027, compared to $12.1 million in the second quarter last year.

Gross profit for the second quarter of fiscal 2027 was $92.4 million, compared to $93.6 million in the second quarter last year. Gross profit margin was 18.6% in the second quarter of fiscal 2027, compared to 17.1% in the second quarter last year. The year-over-year improvement in gross profit margin primarily reflects stronger equipment margins given continued reductions in aged inventory, alongside a higher mix of parts and service revenue.

Operating expenses increased to $94.1 million for the second quarter of fiscal 2027, compared to $92.7 million in the second quarter last year. Operating expenses as a percentage of revenue were 19.0% for the second quarter of fiscal 2027, compared to 17.0% of revenue in the second quarter last year.

Floorplan interest expense and other interest expense decreased to $8.1 million in the second quarter of fiscal 2027, compared to $11.5 million for the same period last year. The decrease was driven by lower interest-bearing inventory levels.

In the second quarter of fiscal 2027, net loss was $9.2 million, with loss per diluted share of $0.40, compared to a net loss of $6.0 million, with loss per diluted share of $0.26, for the same period last year.

Adjusted EBITDA in the second quarter of fiscal 2027 was $4.6 million, compared to $5.6 million in the second quarter last year.