Titan Machinery (TITN) 26 Nov 242025 Q3 Earnings call transcript

Greetings. Welcome to Titan Machinery Inc.

Third Quarter Fiscal 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. ICR. of Sonnek Jeff you. Thank ahead. go Please

Thank you, XXXX Third Fiscal Titan welcome conference call. to earnings Machinery's Quarter and

On today By website Investor and for XXXX, CEO; have the which Knutson, to at the and Bryan call access available ended Bo ir.titanmachinery.com. from fiscal the is third Larsen, October earnings also Relations CFO. the now, quarter should are everyone release company XX, President Titan's on

statements and along replay a supplemental to all undue may remind forward-looking to be presentation accompany with statements In the should remarks be contain that The we future remarks, webcast the Events prepared can response not Investor are providing which them. make We not and addition, and Titan's Presentations performance, forward-looking Relations do information, statements, reliance within placed guarantee therefore, today's additional the and upon of to on in management questions. section. everyone prepared found like your would website

that Titan expectations could risks law, to be the particularly of more annual Risk these based on and assumes forward-looking Form those made to the projected no facilitate during Bryan. comparing of statements. forward-looking financial Please now the the of to risk on basis. underlying and on cause to CEO, our release in may actual [indiscernible] Forward-looking the identified note the applicable of or non-GAAP differ call. obligation adjusted factors open any a adjusted believe These like today's We analysis including questions. presentation. most any detailed required financial call contain in comparable be into greater Except period. non-GAAP that introduce recently earnings results materially results prepared statements forward-looking by that discuss may from most more today's Titan's your statement transparency as factors section involve President release XX-K. the a and update and may management's and financial Factors financial supplemental performance, ahead, We statements reconciliations in those report uncertainties, of to are ongoing current discussion I'd an in filed inherent conclusion Titan's we'll company's measures we directly included GAAP including that, measures go take when and At these measures, Please results can the complete call, release their measures remarks, with section Knutson. Bryan And

good commentary for in operating incremental year. to pass assumptions everyone Then for current market I'll some Bo thoughts the we and Jeff, each covering our his call manage financial of as you, segments. of the on modeling to the through priorities market environment, will on this our morning call. I the Thank today challenging by remainder start review and and cycle the our

As to commodity and income high anticipated, fundamentals, agricultural softer interest which conditions, in industry across crops, include farm decline from the combination the demand rates. challenging input higher net effect to continues the experience due cash lagging of costs reflecting key lower prices the

expectations our with the played as line in out and anticipated. generally was demand performance segment Agricultural weaker domestic Our environment

be to inventory our focused highly continue We on levels downward. managing

result our the to inventory drive through total sales reductions million. were We approximately achieved beginning toward needle enhanced third the Nonetheless, just our aggressive we realized in only we the decrease retail was but strategy This and through have early to move by quarter, XXXX. $XXX of still we fiscal some made to majority progress, expect incentives demand. as geared inventory able are progress to be

targeted to could first As we move and we market further the calendar our see near-term, move levels. see conditions equipment anticipated, margins these if the measures the as proactive through toward on XXXX, inventory are our in equipment of opportunity margins half compressing depending more compression quickly and

will we are return our financial and lower and important However, the demand that to eventually inventory lessen to a cycle industry progresses. as higher performance has on these our believe normalized profile accelerate margin the actions critically impact more

critical European is lowest Romania, to more severe challenging quarter where and than our experienced weaken Ukraine the operations, through more due soft, had And continued decade. In the the Eastern in a more softening we monitor and but to relative which crop impact in in demand frost true demonstrated previously in result, than anticipated. yields fourth some particularly conditions have markets a these resilience season. of event as have Bulgaria an was to experienced which third relative early our prior to Australia, we to continue negative below This a demand to quarter rainfall we and Europe Turning conditions, drought general closely. yields. we a growing Romania, to well during in This average on the expectations. reduced levels anticipate

achieved demand We Finally, expectations. XX% sales reflects performance was with environment, in our which our consistent increase. business, normalized Construction a same-store a more our

much compared prior year expect the of finish year. timing we generally flattish to business the is However, related, and to construction that still our

outlook suppliers. Looking availability bill near-term introductions healthy infrastructure is improved by long-term, we for from provides new the optimistic further provided our remain support ahead, the and support industry the equipment while on as the segment's over federal product

the some current time. this better the industry we differences believe cycle downturn are balance the level, buffer As to increased with years several farmers positioned good consecutive highlight stronger it entered company following multiple underscore healthier considerably against from values, and and headwinds. that is sheets the industry fundamentals, key profitability the of this At land providing current cycle, navigate our why we mid-XXXXs in last industry important both

inventory farmers us of further resilience. which can't control, North and levels profitable today's leverage helps on to downturn, we is doubled care manufacturers and higher-margin we've higher precision control to production strategy, allowed the through demand through each efforts, solutions Since American the down execute parts has we inventory that strategic our although right build a industry. footprint customer helping growth, and revenue size lowering optimization improvements levels improve structural last as help fleet covered of major over had made a encouraging restructuring our replacement greater cost-out agricultural scale M&A robust taken We've and this The continues specifically, across At increased can environment, action our the are absorption the achieve have fruits purchases earlier agriculture drive forward. to on on and few continue also operations have in service age cycle, management supporting Additionally, our other we've stream that also It enhance centralized and their levels investment. minutes returns support the equipment of ago. been that productivity, higher moving levels on more have more businesses. I important and be seen initiative time to this will decisive that inventory recurring Titan

our XXXX levels as by Finally, inventory we work are to for prudent we industry initiatives. In are of early we through progress navigate a budgeting are growth quickly possible. process to as fiscal measures we the cycle our encouraged strategy reach closing, targeted reduction also this while our continuing to evaluating as making variety lean into with

the well our remain I well deliver foundation, more to customers times our employees than thank With crucial improvements We challenging care customer the our deliver in are past. decisive to that, we now the decidedly for best-in-class cycle to positioned their from over want our these With efforts turn strategy to service. structural Bo will position significant over his the call previous I a the manner success are as the cycle to to to this confident us financial for our stronger review. ability we long-term. and business, supporting actions learned of during our taking with lessons efficient dedication combined to our shareholders value to more and are their in that the navigate sincerely

expense levels. January the quarter, the results The call, margin acquisitions quarter, increase XX decline in which compression primarily basis leased across we $XX.X for fiscal margin diluted Consistent expectations. that floorplan including as quarter and driven million, underlying Good was year's of expense by you Ag largely their a lower of Starting profit usage same-store equipment year-over-year that managing Bryan. led year we It's fourth remind X.X% the targeted our into interest of year by a the diluted XX the our fiscal purchase gross Ag all of of million upcoming executed equipment of $X.XX of total months. consistent executed existing sales and second inventory other On of and provide worth interest guidance reflecting will consolidated this of the business that with comparison of $X.X into lower disclosed the I'd fiscal everyone. the or third were by $XXX,XXX year-over-year operations the higher margins quarter. it of heading basis expectations resulting XX.X%, per rent the was the expense, our million another per the sequentially had on revenue in is to to that million $XXX.X respective contracted conditions O'Connors to $XX.X XXXX to income the this by million second decrease from points third industries report of to quarter driven year-over-year for quarter forward or in last XX last segments XXXX last challenging XX.X%, to net our performance quarter compared for reviewed. for domestic prior our share and we will share. level the The the quarter Supply we fourth quarter. was million the equipment Thanks, a direct higher compares of the guidance quarter gross as October finance the our proactive million fiscal margin consolidated XXXX with below of as to about was also demand interest-bearing basis the income third the previously prior for continue incremental compared down of $XX.X prior or quarter $XX.X facilities our points impact was in our by the offset equipment initiatives due in domestic for XX at contemplates percentage for our million, levels the decrease Gross period. gave for above Underlying inventory $XXX purchases a same-store industry O'Connors in modestly acquisition. more in agreement quarter. third was Net accounting and margins Floorplan third acquisitions moving morning, $X.XX we've other that the was quarter our expenses updated period. on completed was noting Operating was with gross inventory, compared this the when classified capacity of XXXX, midpoint the equipment and classification acquisition $X.X gross points was XXX X.X% our for XXXX. Scott year, O'Connors serve of Bryan result that and that was note, This profit XXXX to

Now a our to for segment quarter. of overview third brief turning the results

farmer demand sales of realized segment sales XX.X% same-store pre-tax a January contributions from from The retail well sales a same-store $XX.X to partially offset million quarter segment, third Agriculture prior year-over-year the actively as in $XX.X levels Scott managing as the levels. Our to by decline we environment inventory to of our in are In sentiment to higher to of $XX.X X.X% increased targeted profitability was year. This of due XX% million segment. income compared decrease Construction benefited million and acquisition see prior segment in Agriculture deliveries lower driven half the in million year from this relative in the third stability our decrease fiscal decrease timing year. we of was equipment prior year-over-year quarter. continue Supply $XXX the by of million, of the to in Overall, the XXXX. favorable some softer back reflects to $X.X down

driven levels inventory for construction both industry for the catch-up whole However, a supply has as and higher Titan. chain

million, industry to decline in acute on to margin sales million, decreased weighing as is our our segment, well. the compares exemplifies strategy pre-tax loss addition X.X% the of income to million third our same-store quarter was of $X.X sales million fundamentals. to in a that XX.X% to as prior are isn't what a segment Pre-tax year. $X.X XXXX. the the segment, million million, and Europe fiscal broader nevertheless decrease inventory included reduction the of $X.X for year. income Pre-tax significant we in and compares quarter While were on this of was drought $X.X third same-store segment the Bryan loss this This Agriculture $X.X segment commented prior pre-tax XX.X% $XX.X our experiencing segment, the which sales Australia In which of the the in divergence In was $XX.X compares of in as in Ag of sales softness pre-tax conditions which million. severity for equipment the loss

customer similar today our addition In to segment discussed across this is dynamics impacts, end we've those enterprise. facing weather-related very as

October Now on of sheet of We to worth net $XX had well adjusted which million XXXX, bank X.X our position. and is our XX, inventory debt balance tangible as cash an X.Xx. and of of ratio below to covenant

our was as managed million inventory $X.X third to approximately sequentially quarter, which by new a to decreases start the expected in is and in our $XXX inventory, we billion, Regarding by reduce inventory driven levels. equipment good

year, As few as more offsetting of for the anticipate there inventory progress are rest well. a variables on making but we the reductions,

We have before which delivery year. our customers, inventory be to invoiced for will fiscal end the ordered QX of of some for

I've fiscal used we equipment year grow deliveries. As as QX will discussed the of trade-ins our previously, through on new take the our end equipment

the significant facing at segment, we to prior equipment of million Australia and reviewing during from to our our finish peak next last the XXXX lowering With updated are we hasn't in as revisions realize our we approximately weather-related anticipate more outlook in evolve we inventory that dynamic year. those by our reduction limited discussed year by are equipment our billion to As the full I isolated the goal XXXX more This of into get quarter. of second fiscal $X.X challenges shift to our quarters coming update, and previously I'll will end decreases that, markets the track reduction guidance. used $XXX and of which mentioned given changed, substantial the are are on our following fiscal Europe some inventory reducing toward fiscal quarterly Relative expectations, impacts. a

XX% the assumption down for is compared previously. For segment, to our Europe to XX% be XX% down as updated to XX% revenue to

to of year fiscal to facing $X.XX $X.XX share. the environments revenue to and expect diluted as million For the expectations share we reflect be Australia cascade of the updated EPS of a in Each now at compared a earnings revised million $XXX of million be We million, XXXX $XXX approximately share. these our consolidated to fiscal to $XXX to for breakeven XXXX our segment, down we're range midpoint the adjusted per calls segment range earnings assumptions previously. range per full challenging $XXX of expect adjusted per for that loss of to more

intact. our expense the financing impact remain As $X.XX adjusted quarter. figure our a assumptions base recognized non-cash the the in excludes reminder, sale-leaseback More broadly, of second

compress we speaks for improving inventory compression through as fourth work expect earnings on in fiscal on We to fourth margins provide margin through initiatives, for will We our basis range margin inventory continue provides our perspective, to progress expect year, quarter position, gross our year care single-digit committed remain call fiscal and we service strategy. XXXX will to quarter. our From full which reduction consolidated growth in our what next guidance in we the the more persist which the in business with equipment ongoing our customer high equipment March. to the anticipate a for to further

believe aggressive help focus reduction on our our performance, our inventory return to managing is levels. inventory profitability short-term impacting we to accelerate will normalized While approach

expense XX.X% operating full the sales guidance sales. of to given year expenses, implies about our be revised operating Regarding expectations,

inventory take and guidance, interest fiscal normalized floor we remains and $XX income consistent interest which the includes Our expense. finish next expect interest and approximately other more year a we at will year and more progress substantial begin prior before assumption expense, decrease expense, for of million It in we with other levels to see interest expense. plan expense expense floorplan as other income through of to

through reduction Operator, what down terms conditions delivering. and convinced of many what levels to the inventory focused these a it with takes customer confirmed we quarter are This question-and-answer care softer in our strategy, our demand which prepared growth third forecast our retail cycle, remain session of in environment. approach call. inventory The this are assumptions now we in reduce our We and of on while prioritizes is initiatives for ready comments. that driving concludes our market

[Operator Instructions] Alex from Riley Our Securities. first is with question Rygiel B.

election A in couple early of post you quick the change Have questions seen farmer sentiment November? here.

just better. plan to for certainty allowed any the the it primarily has business think being their Yes, just more and provided completed around with winner them election, them now, certainty of regardless is, I who

So of happen what with around bit a will tariffs. around some improvement that, quite uncertainty

on be retaliatory recall and last back watching closely the to we'll the growers, some Also, the how President the the commodity which really, plays the end, time overall for dealers. form equipment the Trump to for that prices. hit out. was and in growers tariffs office, the well quite in And So from for-- see out he impacts played subsidized that of if payments there in was you

And with the of and way, bonus some be XXX% out that's played and about reinstatement depreciation of be Jobs that would regarding tax the potential Also Cuts hopeful biggest But again and that. forward I would things customers they're it things if the looking the the talked that so main associated Act, uncertainty. have to one, very reinstatement Tax much certainly, of our some good. think

overall, for would our generally customers. say Alex, speaking, I sentiment So positive

you're is That's for? of that your days then helpful. looking what And target inventory sort of

Yes.

probably that that certainly, trying new sustained we've we're average, is generally, long give X.Xx a turn. in achieved But on historically. on the turn what bit about achieve and or about not something get used the over different That's points X.Xx So of will inventory, across to and flex time And period over at cycle. to a take. our time

we've as had mid-Xs. recent well historically. efficiency centralization we of turns at certainly in look drive we Although higher to continue we the been of years, that our the our believe than control, in and we can the inventory above But footprint

is it a that does is And target sight 'XX? think in 'XX? Or stretch into you fiscal in

Yes.

just levels if inventory with talk get of of objective turns when such XXXX. we're the a type the we FY mathematically, the your is year reductions, going to not achieve fiscal we we're calculating think for there But starting about in in the that turns, end that, the targeted on big returns I that objective reality 'XX. is can to year

is question Markets. from next Our with Ben Street Capital Klieve Lake

of is stores? to renewed traffic like First, a kind tangible kind follow-up foot more enthusiasm farmer kind I'm Any elaborate sentiment of sentiment effects kind you kind you Or of a greater kind of seen question just in the any this more you equipment wondering dynamic. In for indications early form just any tangible can on yet? your of of farmer as improved purchases? tone bit on this benefits sentiment in the overall seeing of are -- if just of that, of addressed. of that without

Sure.

across was speaking, better than anything, but traffic, Ben, looking uptick in because you near expected. sentiment U.S. term broadly brief mentioned, foot at footprint it generally came than we they or an expected. better the buster call seeing more term, definitely wasn't increase think, in positive or I bin what a here as Again, and in and some near yields, midterm, the are a

growing they through pleasantly yields season, spent than year on planning at look all surprised. the you if So that, lower

really it to the think the seed nowadays. I of genetics speaks

going reduction QX. term, led as that look you have longer that's commodity a as our positivity of And bit a inventory them. are though hard little here even were been some are then although input for are so we part elevated costs much we after still they reduced to a rates than there XX in higher to persist, or increased And The little last the continuing prices. still bit. Interest easing years, there's near-term relief

the bright a does anytime horizon in still prices there especially spots soon. be real on again, next bit look for as there, commodity a but little to of looking So not year, challenging increase

us and our So that biggest be will the certainly that growers is factor watching. both

U.S.-based. and by as was that's talked Europe, we impacted so quite And about, weather conditions. drought

been how the or play. is So conditions, segment funds have over that the government then tough now there drought but watch And continue coming had to not into impact which they that drier plays still sentiment our there. have We'll event only biggest in frost has there. also out. the some Romania, been Australia, is

that's quite So harvest still in impacted. been They're in Australia.

that in how season plays in the So branches being historical the Western XX% again, our we'll up bottom years. growing ended of But see out. rainfall

region Eastern Our better. fared

what we're looking to below-average So yields. below-average, we believe at slightly overall, be

change positivity again, about we here, horizon near-term prices. tougher the So U.S. a but concerned little the well of and sentiment are definitely in on in year Europe, unless Australia as farmers with see commodity bit next something

for about some Very good. sequential break general I'll prepared your I'm by you're of that can me, versus in remarks, more of In wondering One and for incentives sales. or the sales queue. margin talked performance decline movement kind somehow kind back driven That's regarding down you you the just hard. accelerated jump way helpful. initiatives if year-over-year supply/demand guys pretty pushing

on hard number to margins Yes. opportunity overall exact good It's I'll on here. question. take talk an you mean That's just to think I I a that. give the overall, pretty

the in period. As to historical the of 'XX half year, we end 'XX get and we that about the at were quarter, of second in talked lows the those forecasting back

more just this play cycle we We're than are challenging, I better certainly, you cycle, the higher that. what had have that the getting it'd not down would those so exact seen give be relatively an lows much let thing split that number that posture today. So I in still accelerate on we having speaking, a we're to was can't this, versus we aggressive to out. be in that To said level. exactly this. how it is acceleration mean, different if and quite wanting before we a

were about here, equipment we fourth in but We've X%, third So If range. and the Ag Ag are In this of domestic is longer-term domestic levels, XX% talking that XX%. and about would we had X% the inventory that through average talked north we a quarter how south cycle. for on probably expect healthier you. X% the of margins for certainly

Yes.

the of the margins I That's the delta our way our there. well now Bo to from margins, and close. used to said, equipment there with our Ben, main the X described, values get which it acceleration. used just the is that as think And dive decrease detailed lower right between is hit is as easiest attributable are to he but in quite delta historical due he and it's And at the it and look that'll values combined is you then acceleration, think comprise primarily average delta. out exactly the those to factors which that equipment

question with next is from Baird. Our Mircea Dobre

a clarification just here. So

when do what's needed happening to Europe, think expect the all or well? versus inventories at that's another can fourth how decline of other North to look that have destock sort as 'XX? you Is a at terms North in some you reductions, and Australia going about your the of And should Or American we this, fiscal is about you in in work in this in In do QX? related geographies happen quarter, comment to inventory all you something your all America?

significantly whole is dollars-wise, probably to side. million side, all would From rest But lot. obviously not we there, made there, we where overall, domestic third do was a in by $XX of Certainly. on all being in have geography, the quarter. Europe To and prescribe we say, Australia really was new, some there today obviously, I'd to do on much not in less perspective, where U.S. little than of It Yes. a with work shape, terms it are – a about go, we Europe. want work million certainly $XXX The do that but about to on U.S. decrease. the good I versus start in probably the

there's simply we couple You fourth see of I Yes, as asked if will invoiced that some we on by then factors in that continue there. to do. to we the see end stating partially will us quarter, decrease certainly said and our and of a we'll was that. see here the that presales and sell-through moving another of ahead the million. quarter. $XXX second We'll I to of what to in the get right be have expect quarter offset be we were us step direction, we'd used which partially where call as another will growth down But we prescribing put a some about little offset sat in have

right, I Europe dynamic equipment the exist. in used of the a would used do is better guess we'll fiscal next So between continue sales mean, new incrementally where lot as so be thing be year. accelerate U.S. and poised we new this through to work that equipment don't We that from to used just I speaking, than relatively a the perspective. and equipment mix, inventory

yes, answered there. everything think I I've So

did fiscal finer it, to could 'XX, than more we on equipment very margins going level? inventory in hold used helpful. on your forward? think X% fact this, seeing portion know Can that this, pressure point kind The early significant time a a margins anticipated, at all equipment the on the is of you prices. little that? a and put the in I Can take the that be Yes. dynamic Should maybe your you at considering bit point third me, we margins, that's better of than No, quarter, what a down on you inventories least equipment some a in were that of write-down we something risk call there 'XX? And kind to less related used

Yes.

those the in X% print, now, domestic we QX Right were like X.X%. Ag guidance margins, which on with implies X% is to to X% little margins a back on question. midpoint of I fourth talked you to So Ag start mentioned referenced Ben's right -- clarity right, historical line quarter, in lows. from with for the our that about about X.X% our about And equipment

in range -- similar expect and guidance on the you fiscal the in that to give of that half that trying a that be March. were 'XX, finish pencils sharpening question. should but directionally revising in not at quarter. -- the That continuously, exact used consistent write-down of our through full how potentially basically that inventory looking between at probably gets year. didn't providing equipment in what project X% north today the of back in through But a line as And cycle, the to versus kind a we're FY see last prior the we larger cycle the these year same prior outlook manage on levels and say with we I half you we're south year. As and we perhaps in full kind we of of down today, heart first and 'XX, We dynamics inventory onetime difference the did that seeing of in speaking, market could We'll we The your the our little in the event. particularly of say, pricing. have books fourth consistently and

we're this margins. that play out we've been the So year, the through that what is nature seeing reflected given doing here, and of really in

of versus So position market. where at a the there we're better much we're in in terms

about of sideline, and talk aggressive actually incentives be some off buyers below continuing even that's trying and to In we additional terms pricing. the sales get of incremental selling actually to that where

determines we we're you'll gas. and Overall, we progress aggressive declines us, equipment color we year. on next But it's position, foot keep little of thinking can see year. margins as next about sidelines the for gauging, through these used we a and be would bit of and in For and it expect the a at what what on going that's buyers we're how an that much off to our incremental price how matter point get

out, be Yes. you that dealing the OEM sort support the help or you're a into programs fiscal also of No, or there can Are both for on your of from new especially are problem used I'm term, helpful. I'm with comment great. lack wondering think, and this 'XX, would getting side? that's what I you equipment on whatever in that, the wondering? are And mostly, on specific own better you helping

you. Thank Yes.

through the dealers is same their pool funds, on doing CNH mentioned As exact helping Deere thing. their call,

So that on help from we certainly side. get them

as prescriptive with CNH they're more much towards too, doing the specific internally, issues trying hand-in-hand problem to and we're trying very that as then Deere same approach. well. prescriptive different working be areas addressing can. And They're mix the protect putting like and on they to on we're as margins their Just dollars

So our much destock. Bo category margin getting, compression is to levels or and what how as pace and by with aggressive product and relative also specific and stocking we're to aging how we're turns our talked at trying pricing

So it's prescriptive. quite

help. getting are We

together seeing I I dealers and all all I think real effort haven't a time, we concerted the in just mentioned the we're OEMs this last -- time the we come talked, like something we call seen us where much faster. much in all get much I'll need professionally. decades, more earlier ultimately And cycle, the aggressively, more last it, in going few the be to that's to

we don't the think cycle. previous short-term we I this, just the then that really just returns previous the back any have cycle. Deere in like at we And you but So the that's And have leases had too, had on healthy. don't also, of touched lease coming

get the of factors to of sold. both of spike, so the out us those supply never as have course, and of having just with constraints quicker did glut also this help along We So well, equipment the with chain are on. not leasing new going

keep of really move going we're here and And next So staying OEM, there, there going and return to our into are as look just year here. and by have a as working margins our 'XX. to more normal factors to priced aggressively with and inventory we lot really keep Bo positive mentioned, rightsized to and we're

me. question Final it. Got for

for comes and as they million in to fiscal willing of outlook, tougher a is 'XX. pass get contraction retail truly Deere appropriate demand? is than you outlook calendar for of Speaking was level in they're to correct stocking your Deere, curious their that's a pretty that I'm forecast, your think expecting significant that to comment? to that calendar the calendar perspective actually on experienced their down what provided to is industry interesting enough in in of it But that $XXX guess, level me 'XX inventory what reduction if Certainly, demand targeted to outlook, you're of if in in what was we North I year Ag, 'XX. 'XX, XX%. large And their American I

Yes.

people have smarter that stuff. than So they me on

and for what we're everything there. generally, looking So seems year about looking at, plausible at next talking they're very to it

one what prices. don't and still like in XX% 'XX, -- profitable if really being numbers good they're You Also, depend again, or XXXX, look difference commodity about down years these just look on a to they farmers ever And at potentially talking increase a the here from it's lower going quite year. most of happens with then certainly see that, some but then good had really even year plausible. go

of on. 'XX here, had fall in pretty some they've yields. Again, good So to that we had back

also in bit. bit yields a is interest go But did depleting little costs, little and their at time, a here. But same more are a 'XX. some again, are we we'll getting costs. some watching relief they expected, in be than the reserves relief in the fleet getting aged as So input little yields have better They cash bit

we'll of 'XX, So watching be a factors in lot Mig.

as cost far keep would mind the reduction, As $XXX I the equipment. also the of in million

of we once and $XXX units lots those look of you're to starting at actual pretty reasonable loaner million, some things. reduce for units we and So and amount get anything to units need demo levels add? else starting the down to Bo, a that just on that to

of is again, out, here to a And to sense. time. mean, Bryan think that it, X.Xx it makes as we'll want right? target Certainly, we a perspective, lot overall I over our at continue I turns look Yes. from that theme laid average

is if is our dip even couple demand sustaining averaging potentially aggressive But yes, approach look a year -- we're that does taking we'd a where to. that, of period like it wherever trying or if inventory on inventory P&L. and on just But of March. that business the spot. reduction. provide assuming starting our down I reflect guess to for, a one reasonable in thing high on XX% is horsepower wanted we'll I reality again, the I'd more to at over take guide So levels guidance opportunity is

equipment, So equipment, reductions. be be spot. we reasonable seeing which year-over-year to starting driving we'll a perhaps those as new certainly have increases we're Used that's looking

high is able a that. single not then parts, year, Our year And we bit digits, We're finish get next little to if growing. service to business than should the better low growth. be single-digit expecting

than like total revenue what just XX%. our break be and bit it that rates and if I'd into But those quite of pieces different look you're that's P&L looking -- how would should our a growth those probably reflective So be. at modeling, your

a your If I'm construction. to I on of comments one helpful. squeeze in of one the make trying last very here. terms may sense environment That's competitive

You quarter, obviously had good the revenue the soft. in margin was

erosion going more some used it get and at equipment that think is segment? we And that construction? that you there? normalized do time on happen some dragging point down? discounting equipment pricing So cadence new in is this to what is Is or Why it in in to margin that has and a

Yes.

couldn't an inventory as those lower from -- which touched acute it's a multiple on get mix. it's have There's are industry we're our plenty bit ticket we Last fact Again, increase to there. So year, we, higher We that did levels little down. Ag, saw working an on and tend margin wheel also the margin, of this perspective, that factors. equipment loaders, that's as items year. the ticket a in but not as have items, higher hands

inventory there. more there's out So

that inventory as up So well. clean there's pricing. competitive dealers are more then a little And to with bit used of

level good year. see of so in all targeted where in were QX. we're and the about construction expecting that margins certainly, together, through XX.X%. getting levels mix next We're -- that to the margins kind QX similar And we Certainly, something You the that's in to at. want feel

getting next CE levels that the we'd as my little they're start industry and is we're on we the the year, through we some probably progress double bit end of next get of clearing normalization, I quite a Ag, usually those to where But almost healthy at point year. kind as return of levels see side a there spot. maybe is but a toward stronger. to So bit guess everybody to expect target to with quicker along similar

with Northland Our next Ed from Securities. question is Jackson

just every the much question on pretty that asked off. was Baird Actually, list checked and analyst to

based equipment it and that from thing only the I benefited some line you funny. was So that is for commentary seen pretty construction, have is on about left haven't The in the but put in deliveries. breakout some out, the that items and I of terms talked it the Bo, construction, you quarter

you. than you stronger as quarter it's for relates it what So the then Typically, for for fourth equipment my seasonally for the that And construction? is, sales the construction And of implications expected? question so was is side better a tad equipment that's to a quarter of it me.

guidance. sentiment what the was of clarify essentially real to question consistent overall, to Yes. get the but No, relative or in consider there. in terms Overall, simply of an the of getting the some anything environment, That's opportunity trying with I'd to say, and at flattish in, What because is what I appreciate of causing quarter we're it's kind decline pretty I'd expecting. dramatic or the a in third third I bit shift amount deals flattish growth, quarter. larger the quarter back to grew specifically year, the or quarter year-over-year, We split of going because equipment, kind not the to delivered year order is last to good on we're in the last back Again, pulling fourth relative total in larger in particularly you're a saw year that timing. deals bit some see prescribing -- year-over-year. mid-single-digit In XX.X% in to a some fourth a this of get it we of the on half year-over-year. strength of activity, of that stronger.

down asked margins row months now a down add about you just at just to in have happened and as of of XX -- non-res the with and down -- XX% construction down Mig the just about what's about in recently, softening. and some XX% the XX, nearly would of in and with that largest you manufacturing soybean warehouse XX%. me, then so Also, excuse on. And some or warehouse being I that ABI look

things the see and there's you are an now. some election over, right of that of happening being And just so and there certainty again, with course, are market, definitely, some some positivity, momentum -- in

we out steady had that see flattening And that to look here. And so or some side customers certainly decline I forward our would the next at positivity least we in stability CE as we're contractor from as we've bottoming of hearing we say year. renewed look on and demand there,

there's work the of house, reduction -- little that more the of again, and house as that also, do side well. side positive some on So more on a less inventory to signs there's

the turn back We have closing our reached like question-and-answer to remarks. to the over end session. for conference I would of management

on us Well, we Thank to you. morning, look you to this and joining call. forward QX thank you everyone, your talking for

This you. today's conclude will conference. Thank

for may this participation. lines and you your time at your thank You disconnect