Titan Machinery Inc. has reported its financial results for the fiscal first quarter ended April 30, 2024, showing a shift in the market environment. The company's revenue in the first quarter of fiscal 2025 increased to $628.7 million, up from $569.6 million in the first quarter of the previous year. The breakdown of revenue by segment includes $447.7 million for the agriculture segment, $71.5 million for the construction segment, $65.1 million for the Europe segment, and $44.4 million for the Australia segment.
In terms of profitability, the company's net income for the first quarter of fiscal 2025 was $9.4 million, or earnings per diluted share of $0.41, a decrease from $27.0 million, or earnings per diluted share of $1.19, for the first quarter of the prior year. The decrease in profitability was attributed to lower equipment gross margins and incremental floorplan interest expense.
The company's gross profit for the first quarter of fiscal 2025 was $121.8 million, with a gross profit margin of 19.4%, down from 20.8% in the first quarter of the previous year. Operating expenses were $99.2 million, compared to $81.3 million in the first quarter last year, and floorplan interest expense and other interest expense aggregated to $9.5 million, compared to $2.5 million for the same period last year.
The balance sheet and cash flow showed that cash at the end of the first quarter of fiscal 2025 was $35.7 million, and inventories increased to $1.4 billion as of April 30, 2024, compared to $1.3 billion as of January 31, 2024. The company's net cash used for operating activities decreased to $32.4 million from $77.7 million for the first three months ended April 30, 2023, primarily driven by the favorable timing of collection of receivables.
In light of the market conditions, Titan Machinery Inc. is updating its full-year modeling assumptions for fiscal 2025, including changes in segment revenue and diluted EPS expectations. The company emphasized its focus on utilizing available tools to improve inventory levels efficiently.
The full press release, including details on the company's conference call and financial measures, can be found on the company's website under investor relations at www.titanmachinery.com. The market has reacted to these announcements by moving the company's shares -13.0% to a price of $20.15. Check out the company's full 8-K submission here.
