Mircea Dobre's questions to Titan Machinery (TITN) leadership • Q2 2026
Question
Mircea Dobre from Robert W. Baird & Co. sought clarification on the equipment margin outlook, questioning what was driving the increased revenue guidance if margins weren't improving significantly. He also asked about the potential scale of the inventory reduction beyond the $100 million target and how the company is handling model year 2026 OEM price increases.
Answer
CFO Bo Larsen explained that while consolidated equipment margins are guided down 100 bps, domestic ag margins are down more, with the impact being partially offset by a stronger sales mix from the higher-margin Europe segment. He noted the revenue uplift is from stronger used equipment sales. CEO Bryan Knutson stated that internal inventory reduction goals are 'significantly higher' than the public target. Regarding OEM pricing, Knutson said they are partnering with suppliers on a targeted, deal-by-deal basis, while Larsen cautioned that passing on further cost increases will be challenging and could lead to demand destruction.