Titan Machinery Inc.

Greetings and welcome to the Titan Machinery Incorporated's first quarter fiscal 2027 earnings call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Jeff Sonick of ICR. Thank you. Please go ahead.

Thank you. Welcome to Titan Machinery's first quarter fiscal 2027 earnings conference call. On the call today from the company are Brian Knutson, President and Chief Executive Officer, and Bo Larson, Chief Financial Officer. By now, everyone should have access to the earnings release for the fiscal first quarter ended April 30th, 2026, which is also available on Titan's investor relations website at ir.titanmachinery.com. In addition, we're providing a supplemental presentation to accompany today's prepared remarks, along with webcast and replay information, which can also be found on Titan's investor relations website within the events and presentations section. We'd also like to remind everyone that the prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. The statements do not guarantee future performance and therefore undue reliance should not be placed upon them. These forward-looking statements are based on management's current expectations and involve inherent risks and uncertainties, including those identified in the forward-looking statement section of today's earnings release and the company's filings with the SEC, including the risk factors section of Titan's most recently filed annual report on Form 10-K and quarterly reports on Form 10-Q. These risks and uncertainties could cause actual results to differ materially from those projected in any forward-looking statements. Except as may be required by applicable law, Titan assumes no obligation to update any forward-looking statements that may be made in today's release or call. Please note that during today's call, we may discuss non-GAAP financial measures, including results on an adjusted basis. We believe these adjusted financial measures can facilitate a more complete analysis and greater transparency into Titan's ongoing financial performance, particularly when comparing underlying results from period to period. We've included reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measure in today's release and supplemental presentation. At the conclusion of our prepared remarks, we'll open the call to take your questions And with that, I'd now like to introduce the company's President and CEO, Brian Knudson. Brian, please go ahead.

Thank you, Jeff. I will start today with an overview of our first quarter performance and our continued progress on the operational priorities we set heading into fiscal 2027. I will then walk through what we are seeing across each of our segments before turning the call over to Beau for his financial review and comments on our fiscal 2027 modeling assumptions. Fiscal 27 first quarter results came in slightly ahead of our expectations. Equipment margin improvement arrived sooner than anticipated, and we view this as a direct result of the disciplined work our team has done over the past several quarters to clear age inventory and position the business for the next phase of the cycle. We are still well below the normal range for equipment margins, but it is good to see continued improvement, which is reflective of the work we have done to improve inventory health. Overall, we had a relatively strong start to the year due to timing of deliveries, But the underlying demand environment for our customers remains challenged as their margins are under pressure from a combination of low commodity prices and higher input costs. As such, we are maintaining our full year guidance. As we discussed last quarter, our focus has shifted from absolute inventory reduction to mixed optimization. The disciplined work our team has executed over the past two years has strengthened our foundation and we believe has positioned the business well for the next phase of the cycle. Total inventory at the end of the first quarter was modestly higher than year end, which was in line with our expectations and reflects the normal seasonal cadence. Most importantly, our age equipment inventory has continued to decline each month so far this year. And this is a critical leading indicator of sustained equipment margin improvement. We still have work to do across certain use categories and select slower moving seasonal new equipment categories, but the overall health of our inventory continues to trend in the right direction, and we believe this focus has put Titan in an advantageous position relative to our dealer industry peers. Our customer care initiative remains central to our operating strategy as we navigate what we expect is the bottom of the equipment cycle. Our parts and service businesses delivered another quarter of stability, which is a meaningful accomplishment in an environment where many growers have increasingly shifted to a fixes fail mentality. Holding the parts and service business steady at Trough Industry Volumes is a credit to the partnerships our team has built with our customers across our footprint. And we believe this engagement will continue to translate into share wallet gains as growers return to more normalized purchasing patterns. With that, I'll now turn to our segments. In domestic egg, the environment for our grower customers remains very challenging. Commodity prices continue to sit below break-even for many producers, and while we have seen some positive movement in corn prices over the past several weeks, grower profitability remains challenged. Government funds remain a critical near-term variable to provide support, and we continue to be active in Washington advocating for farmers. Year-round E15 adoption remains a top policy priority for our customers, and we are also encouraged by ongoing momentum around biodiesel and sustainable aviation fuel, each of which would help alleviate the structural oversupply of corn and soybeans. We expect the presale order period, which begins this month, to be an important indicator for back half activity, and we will continue to monitor OEM programming and grower sentiment closely to identify where deals can be made. In construction, infrastructure and data center activity continues to provide a healthy baseline of demand across our footprint, and residential activity has tracked in line with our expectations. As a reminder, a meaningful portion of our construction segment sales go to farmers, and that portion of the business is where we are experiencing the same softness we are seeing in our domestic agriculture segment. Setting that aside, there are generally good market conditions for our construction segment. In Europe, we completed the majority of our wind-down activities for our German operations during the first quarter, marking an important milestone in our footprint optimization efforts. We are pleased to have this work behind us, and our team remains focused on the markets where we believe we can deliver the strongest long-term returns. As expected, Romania will have challenging year-over-year comparables as we lap last year's European Union Subvention Program activity, while Bulgaria and Ukraine are expected to achieve modest growth for the full fiscal year. In Australia, our customers are facing disproportionate pressure from elevated input costs, particularly in diesel fuel and fertilizer, both of which have experienced pronounced cost increases in the country following the onset of the conflict in the Middle East. While substantial input inflation is top of mind for growers, Increased rainfall across most of our footprint in Australia is setting up more favorable growing conditions relative to recent years. We continue to like our long-term position in this market and our dual brand strategy with Case H in New Holland continues to expand our reach. Before turning the call over to Beau, I want to thank our team for the continued discipline and execution they have demonstrated in the first quarter. The strategic work we have been doing over the past several years to strengthen our business is becoming more visible in our operating results with each passing quarter. And I'm convinced that our position today is setting us up for stronger performance as industry conditions improve. With that, I will turn the call over to Beau for his financial review.