Titan Machinery Inc., West Fargo, North Dakota, which has a network of full-service agricultural and construction equipment stores, recently reported financial results for the fiscal third quarter ended Oct. 31 that noted $694.1 million in sales.
David Meyer, Titan Machinery’s chairman and CEO, stated, “We accomplished a great deal this quarter, completing our acquisition of the Australia-based O’Connors group and solidifying our leadership succession plan, while delivering solid financial results. In terms of our fiscal third quarter financial performance, we achieved record revenues of $694 million despite being constrained by delayed OEM deliveries, prioritizing customer uptime throughout the harvest and end of season construction projects, and increased preparation time to complete pre-delivery inspections of new machinery.
“This dynamic is also visible in our inventory balance at the end of the quarter, as the amount of on hand, pre-sold inventory being prepped in our service shops continues to trend above normal levels. Notwithstanding, customer uptime is our top priority, and our team did a great job of meeting our customers’ immediate service needs and minimizing downtime during the all-important fall season.”
A year ago the company reported $668.8 million in the third quarter. Equipment revenue was $521.8 million for the third quarter of fiscal 2024, compared to $509 million in the third quarter last year. Parts revenue was $115 million for the third quarter of fiscal 2024, compared to $108.7 million in the third quarter last year. Revenue generated from service was $44.8 million for the third quarter of fiscal 2024, compared to $39 million in the third quarter last year. Revenue from rental and other was $12.6 million for the third quarter of fiscal 2024, compared to $12.1 million in the third quarter last year.
Meyer said about the agricultural segment, “Heading into year-end, we continue to see demand in excess of OEM production for high-horsepower tractors and wheel loaders, which we expect will continue through at least the first half of calendar year 2024.
“While we are positioned well for a strong fourth quarter, our recognition of equipment revenue will be dependent on both the timing of new machinery received from the OEMs, as well as our ability to manage service department workflows as we continue to experience substantially longer preparation time to complete the quality pre-delivery inspection and set-up process required before delivery to our customers due to supply chain challenges,” Meyer said. “Overall, we expect year-over-year revenue growth in each of our segments in the fourth quarter, and we have narrowed the range of our revenue modeling assumptions to reflect our latest expectations for fourth quarter OEM deliveries and demands on our service departments.
