Titan Machinery reported Q2 FY2026 results reflecting a challenging macro backdrop in the agricultural equipment cycle, with a 14% year-over-year revenue decline and a net loss of $6.0 million (-$0.26 per share). The quarter underscored the company’s disciplined inventory-reduction program and a strategic shift toward inventory and service-led profitability, supported by a sizable contribution from parts and service (over half of gross profit despite ~1/4 of revenue). Management reiterated its inventory-reduction target of $100 million for the year and signaled the potential to exceed it, with the bulk of progress expected into the fiscal year-end. Europe remained a bright spot, driven by Romania and EU stimulus programs, while domestic Ag exposures remained structurally weaker due to farm-income and policy uncertainty. The company guided toward a mid-single-digit equipment-margin run-rate for the full year (about 6.6% total equipment margin, with domestic Agriculture margins around ~3.8%), implying meaningful margin recovery into FY2027 as inventory health improves and pricing discipline normalizes. The results and commentary point to a bifurcated thesis: near-term earnings softness from cyclicality and inventory overhang, but a pathway to improved profitability and cash-generation as the cycle normalizes and presales discipline takes hold.