Titan Machinery Inc. is a retailer and service provider of agricultural and construction machinery with operations across the U.S., Europe, and Australia.

# Summary of Titan Machinery Inc.

## Business Overview
- **Core Operations:** Retail sale, service, and rental of agricultural and construction machinery.
- **Geographic Footprint:** 
  - 148 full-service stores in the United States
  - 40 stores in Europe
  - 15 stores in Australia
  
## Product and Service Offerings
- **Equipment Sales:** 
  - New and used agricultural equipment (including machinery and attachments for farming, home, and garden)
  - New and used construction equipment (heavy machinery, light industrial, highway construction)
  - Sourced primarily from CNH Industrial (approx. 75% of new equipment sales in FY2025)
  - Other manufacturers for niche products (~25% of new equipment sales in FY2025)
  - Trade-ins are a significant source of used equipment inventory
  
- **Parts Sales:** 
  - Extensive in-house inventory
  - Provides support for both sold equipment and other brands
  - Revenue: 15.9% of total FY2025 revenue
  
- **Repair and Maintenance Services:**
  - In-store and off-site technicians
  - Offers warranty repairs, preventative maintenance, and data-driven services
  - Revenue: 6.7% of FY2025 revenue
  
- **Equipment Rental and Other Activities:**
  - Equipment rentals primarily in Construction segment
  - Ancillary products: GPS subscriptions, farm data management, transportation
  - Revenue: 1.5% of FY2025 revenue
  
## Business Segments
- **Agriculture:** 
  - Largest segment; revenue of $1.888 billion in FY2025
  - Sales to a broad customer base, no customer over 1% of revenue
- **Construction:** 
  - Revenue of $331.6 million in FY2025
  - Customers include contractors, utilities, municipalities
- **Europe:** 
  - Revenue of $261 million in FY2025
  - Operations in Bulgaria, Germany, Romania, Ukraine
- **Australia:** 
  - Entered in October 2023 via acquisition
  - Revenue of $221.1 million in FY2025

## Financial Highlights (FY2025)
- **Total Revenue:** $2.702 billion (down 2% from FY2024)
- **Net Income:** -$36.9 million (loss)
- **Gross Profit:** $395.6 million (gross margin 14.6%)
- **Employees:** 3,340 full-time employees
  - U.S.: 2,299 employees
  - Europe: 731 employees
  - Australia: 310 employees
  - Part-time employees: 308

## Key Points
- The company has a history of growth through acquisitions (over 60 since 2003).
- It operates in a highly seasonal industry, affected by weather and crop cycles.
- Major supplier is CNH Industrial, which supplies about 75% of new equipment sold.
- Revenue heavily reliant on agricultural equipment sales, which fluctuate based on farm incomes, commodity prices, and weather.
- The company also engages in equipment financing, using floorplan payable lines and external credit facilities.
- No fundamental material liabilities from legal proceedings reported.
- The company’s stock trades on Nasdaq under the symbol **TITN**, with approximately 718 stockholders as of March 24, 2025.
- No dividends have historically been paid.
- The company emphasizes customer service, employee training, safety, and community engagement.

Titan Machinery Inc. is a leading retailer of agricultural and construction equipment with a comprehensive network of full-service stores across the United States, Europe, and Australia.

# Titan Machinery Inc. Overview

## Business Operations
Titan Machinery Inc., founded in 1980, is a leading retailer of agricultural and construction equipment. The company operates a network of full-service stores across the United States, Europe, and Australia, providing comprehensive sales, service, and rental options for agricultural and construction machinery.

### Segments of Operation
The business is segmented into four reportable areas:

1. **Agriculture**
   - Sales and services of agricultural machinery and attachments.
   - Key brands include Case IH Agriculture and New Holland Agriculture.
   - Total revenue for the Agriculture segment for the fiscal year ended January 31, 2024, was approximately **$2.04 billion**.

2. **Construction**
   - Sales and services of heavy construction machinery and light industrial machinery for construction purposes.
   - Key brands include Case Construction and New Holland Construction.
   - Total revenue for the Construction segment was approximately **$332.5 million** in fiscal year 2024.

3. **Europe**
   - Operates stores in Bulgaria, Germany, Romania, and Ukraine, offering similar agricultural and construction equipment services.
   - Revenue for the Europe segment was approximately **$311.9 million** in fiscal year 2024.

4. **Australia**
   - Recently expanded into Australia with the acquisition of 15 Case IH dealership locations, leverages the established agriculture market in the region.
   - The Australia segment generated **$69.8 million** in revenue in its initial year of operation.

## Customers
Titan Machinery primarily serves a diverse customer base which includes:
- Farmers (commercial and lifestyle);
- Construction contractors;
- Municipalities;
- Maintenance contractors.

In fiscal year 2024, no single customer accounted for more than **1%** of total revenue, highlighting a broad customer diversification which limits exposure to market risks.

## Employee Base
As of January 31, 2024, Titan Machinery employed **3,338** full-time individuals, with a distribution of:
- **2,282** employees in the U.S.;
- **721** employees in Europe;
- **335** employees in Australia.
Additionally, the company also has **266 part-time employees**.

## Financial Performance
- **Total Revenue:** Approximately **$2.76 billion** for the fiscal year ended January 31, 2024.
- **Net Income:** Approximately **$112.4 million**, translating to an earnings per share (EPS) of **$4.93** (basic and diluted).
- **Gross Profit Margin:** Approximately **19.3%**.
- **Total Assets:** Approximately **$1.99 billion** as of January 31, 2024.

## Services Offered
Titan Machinery provides various services to enhance customer satisfaction and equipment longevity:
- **New and used equipment sales**
- **Parts sales and inventory management**
- **Equipment repair and maintenance services**
- **Equipment rental services**
- **Ancillary services** such as equipment transportation and GPS subscriptions.

## Growth Strategy
Titan Machinery plans to continue growing through:
- Increasing same-store sales and market share;
- Strategic acquisitions (over **60** acquisitions since 2003);
- Expanding into new geographical markets.

The company is strategically positioned to benefit from the ongoing consolidation within the agricultural and construction equipment dealership industries.

## Conclusion
Titan Machinery Inc. is a robust player in the agricultural and construction equipment sectors with a comprehensive offering of products and services, a strong financial performance and a committed workforce aimed at delivering quality and value to its diverse customer base.

Titan Machinery Inc.

10-K / April 7, 2025

10-K / April 3, 2024

10-K / April 7, 2025

Summary of Titan Machinery Inc.

Business Overview

Product and Service Offerings

Business Segments

Financial Highlights (FY2025)

Key Points