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Titan Machinery Pivots From Inventory Cuts to Margin Optimization, Guides FY2027 Loss on Lower Volumes

Management signals sharply lower North American volumes, prioritizing margin improvement alongside lower financing costs.

Overview

  • The company said it reduced total inventory by more than $200 million in fiscal 2026 and by $625 million over the past 18 months, surpassing internal targets.
  • Parts and service now generate over half of gross profit, and management expects this contribution to hold steady in fiscal 2027.
  • Initial fiscal 2027 guidance assumes North American equipment volumes decline by 15% to 20%.
  • Titan forecast equipment margins of roughly 8.4%, an adjusted loss per share of $1.25 to $1.75, and adjusted EBITDA of $17 million to $29 million.
  • Leadership outlined a shift toward product‑mix optimization, faster inventory turns, and less aged stock to lower floor‑plan interest and operating expenses, noting improved inventory quality with some pockets still requiring work.