US Machinery: Takeaways from Call with Titan Machinery (TITN; Not Covered)

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US Machinery: Takeaways from Call with Titan Machinery (TITN; Not Covered)

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07 Jul 2026 04:00:00 ET │ 11 pages

US Machinery

Takeaways from Call with Titan Machinery (TITN; Not Covered)

CITI'S TAKE

Yesterday (7/6), we hosted a call with BJ Knutson (CEO) and Bo Larsen

(CFO) from Titan Machinery (TITN). While commentary from TITN

reinforced positive trends we have picked up lately on inventory health

across the industry (here), the company sounded cautious on the demand Kyle MengesAC

outlook as most grain growers in its US footprint are "penciling to a slight +1-212-816-1817

loss" for the year as of now. That said, TITN emphasized that pent-up kyle.menges@citi.com

replacement demand continues to build as the fleet ages, which also

Randy Marker bodes well for its parts & service offerings (including retrofit kits). We

gathered that incentive/discounting is likely to remain a key component of +1-212-816-3537

randy.marker@citi.com the strategy for both dealers and OEMs as list prices continue to rise.

Lastly, TITN highlighted that its warranty claim statistics and failure rates

have been trending down over the past 12 months, illustrating progress

CNH is making on its quality improvement initiatives.

Finding Ways to Win in a Muted New Equipment Environment -- The demand for

new equipment remains choppy, which we gather will likely continue to be in a

structural decline at least on an absolute unit basis. TITN mentioned that it is seeing

many of its growers operate with a lower # of machines, which is not a new trend

but has accelerated over the last few years, driven by a combination of new

equipment continuing to get more expensive and the rapid technology advancement

of machines. TITN mentioned that this plays into its strengths and investments it