10-K - Titan Machinery Inc. | StockGist

AI Analysis

AI-generated analysis. Always verify with the original filing.

Fiscal 2026 delivered a challenging year with revenue declining 10.2% to $2.4B amid softening equipment demand, driving operating losses of $6.7M, though strong operating cash flow of $137.5M reflected effective inventory and working capital management.

Key Takeaways

1Revenue declined 10.2% to $2.4B from $2.7B due to softening equipment demand from challenging industry fundamentals.

2Gross profit fell 3.3% to $382.6M but gross margin improved to 15.8% from higher equipment margins and greater parts sales mix.

3Operating income swung to a -$6.7M loss from $4.0M profit, as revenue declines outpaced reductions in variable expenses despite management cost controls.

4Net loss widened 46.8% to -$54.2M with diluted EPS at -$2.38 versus -$1.63, reflecting broader profitability pressures.

5Operating cash flow strengthened to $137.5M from $70.3M, supporting inventory purchases, working capital needs, debt service, leasing payments, and capital expenditures.

6Inflationary pressures increased inventory, supply, and labor costs, though pricing actions have offset much of these increases to date.

Key Financial Metrics

EPS

$-2.38

-46.0%

Revenue

$2.4B

-10.2%

Net Income

-$54.2M

-46.8%

Gross Margin

15.8%

Gross Profit

$382.6M

-3.3%

Operating Income

-$6.7M

-267.5%

operating margin

-27.7%