A farm equipment dealer changed all four of its regional revenue assumptions and left its loss forecast exactly where it was, and the segment it raised is the one selling to data centres

Every one of Titan Machinery's four segment revenue assumptions changed on Thursday morning. The number at the bottom did not.

The agricultural and construction equipment dealer, which runs stores across the northern plains, central Europe and Australia, reaffirmed an adjusted diluted loss of $1.25 to $1.75 a share for the year to January 2027. It reaffirmed the adjusted EBITDA range of $17.0m to $29.0m, the pre-tax loss range of $28.0m to $39.0m and the tax line as well. Then it moved three of the four segments underneath them and left the fourth alone.

Construction went up, from flat to up 5 percent, to up 5 to 10 percent. Australia went up, from 10 to 15 percent, to 15 to 20. Europe went the other way, from down 20 to 25 percent, to down 30 to 40. Agriculture, which is more than three fifths of the business, stayed exactly where it was at down 15 to 20 percent.

What is holding agriculture down

Agriculture revenue was $310.2m in the quarter, against $345.8m a year earlier, a same-store fall of 8.4 percent. The release names one cause: softer demand for equipment, driven by continued pressure on grower profitability.

The segment's losses narrowed sharply even so. Pre-tax loss came in at $3.3m against $12.3m, which the company attributes to the work it has done on aged inventory. Consolidated gross margin rose 150 basis points to 18.6 percent on the same basis, and floorplan and other interest expense fell to $8.1m from $11.5m because there is less inventory being financed.

Bryan Knutson, the chief executive, said fundamentals "are suggesting that calendar year 2026 could be the bottom of this cycle." That is his reading. The release contains no data supporting it.

The segment that went up

Construction revenue was $78.6m against $72.0m, a same-store rise of 9.2 percent, and the segment moved from a $1.2m pre-tax loss to $0.4m of pre-tax income.

Knutson attributes it to "increased activity in our footprint, including data center and other infrastructure projects." That is the whole of what the release says about it, and it is worth noticing where it turns up. Titan is a dealership network in North Dakota and its neighbours. The data centre build-out reaches this company's accounts not as a chip order or a power contract but as excavators moving on sites in farm country.

Europe is being wound down in part

European revenue fell to $66.1m from $98.1m, a decline of $33.1m or 33.7 percent once a $1.1m currency benefit is stripped out. About $11m of that is the wind-down of the German business, which took $53.9m of revenue in fiscal 2026 and is expected to take about $11m this year. The rest is lower equipment demand against a prior year that had been lifted by European Union stimulus programmes in Romania.

Australia went the other way. Revenue rose 22.5 percent net of currency, and Knutson names healthy moisture levels, higher yield expectations and improving farmer sentiment.

Consolidated revenue was $496.4m against $546.4m, and the net loss widened to $9.2m, or $0.40 a diluted share, from $6.0m and $0.26. Inventories rose $28.4m from the year end to $931.5m, and floorplan payables rose to $623.6m from $553.8m on $1.5bn of available lines.