Titan Machinery Inc (TITN) 2027 Q1 法說會逐字稿

Greetings and welcome to the Titan Machinery Incorporated's first-quarter fiscal 2027 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 Titan Machinery Incorporated 2027 財政年度第一季財報電話會議。(接線員指示) 提醒各位，本次會議將被錄音。

I would now like to turn the conference over to your host, Mr. Jeff Sonnek of ICR. Thank you. Please go ahead.

現在我想將會議交給本次主持人 ICR 的 Jeff Sonnek 先生。謝謝。請開始。

Thank you. Welcome to Titan Machinery's first-quarter fiscal 2027 earnings conference call. On the call today from the company are Bryan 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 April 30, 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.

謝謝。歡迎參加 Titan Machinery 2027 財政年度第一季財報電話會議。今天與會的公司代表包括：總裁兼執行長 Bryan Knutson，以及財務長 Bo Larson。截至目前，各位應已取得截至 2026 年 4 月 30 日的第一季財報新聞稿，亦可於 Titan 投資人關係網站 ir.titanmachinery.com 查閱。此外，我們也提供補充簡報以配合今日的事先準備發言，並附上網路直播與重播資訊；上述內容同樣可在 Titan 投資人關係網站「活動與簡報」專區找到。

I'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. 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.

同時也提醒各位，事先準備發言中包含前瞻性陳述，管理層亦可能在回答各位提問時提出額外的前瞻性陳述。相關陳述不保證未來績效，因此不應過度依賴。這些前瞻性陳述係基於管理層目前的預期，並涉及固有風險與不確定性，包括今日財報新聞稿之前瞻性陳述章節以及公司向美國證券交易委員會（SEC）提交之文件中所識別者，其中包括 Titan 最近提交之 Form 10-K 年報與 Form 10-Q 季報中的「風險因素」章節。

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.

上述風險與不確定性可能導致實際結果與任何前瞻性陳述所預測者出現重大差異。除非適用法律另有要求，Titan 不承擔更新今日新聞稿或電話會議中任何前瞻性陳述之義務。

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.

請注意，在今日電話會議中，我們可能會討論非 GAAP 財務衡量指標，包括以調整後基礎呈列的結果。我們認為，這些調整後財務衡量指標可促進更完整的分析，並提高對 Titan 持續性財務表現的透明度，特別是在比較各期間的基礎結果時。我們已在今日新聞稿與補充簡報中，提供這些非 GAAP 財務衡量指標與最直接可比之 GAAP 財務衡量指標的調節表。在事先準備發言結束後，我們將開放提問。

And with that, I'd now like to introduce the company's president and CEO, Bryan Knutson. Bryan, please go ahead.

接下來，我將介紹公司總裁兼執行長 Bryan Knutson。Bryan，請開始。

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 Bo for his financial review and comments on our fiscal 2027 modeling assumptions.

謝謝你，Jeff。我今天將先概述我們第一季的表現，以及我們在邁入 2027 財政年度時所設定之營運優先事項的持續進展。接著我會說明我們在各個事業部門所觀察到的情況，之後把電話會議交給 Bo，由他進行財務回顧並說明我們對 2027 財政年度的模型假設。

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 aged 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.

2027 財政年度第一季的結果略優於我們的預期。設備毛利率的改善比預期更早出現，我們認為這是團隊在過去數季以紀律性方式清理高齡庫存、並為景氣循環下一階段做好布局的直接成果。我們的設備毛利率仍明顯低於正常區間，但很高興看到持續改善，這反映了我們為提升庫存健康度所做的努力。

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.

整體而言，由於交付時點的影響，我們今年開局相對強勁；但客戶端的基本需求環境仍具挑戰，因其利潤率同時受到低商品價格與較高投入成本的壓力。因此，我們維持全年財測指引不變。

As we discussed last quarter, our focus has shifted from absolute inventory reduction to mix 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.

如同我們在上一季所討論的，我們的重點已從絕對庫存削減轉向組合最佳化。團隊在過去兩年所執行的紀律性工作強化了我們的基礎，我們相信也使公司在景氣循環的下一階段具備良好定位。

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. This is a critical leading indicator of sustained equipment margin improvement.

第一季末的總庫存較年末小幅增加，符合我們的預期，並反映正常的季節性節奏。更重要的是，截至今年目前為止，我們的高齡設備庫存每個月都持續下降。這是設備毛利率可持續改善的一項關鍵領先指標。

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.

在某些二手機種分類以及部分周轉較慢的季節性新設備品類方面，我們仍有工作要做。但整體庫存健康度持續朝正確方向發展，我們相信這項聚焦使 Titan 相較於經銷商同業處於更有利的位置。

Our customer care initiative remains central to our operating strategy as we navigate what we expect as 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 fix-as-fail mentality.

在我們因應預期的設備景氣循環底部之際，客戶關懷計畫仍是我們營運策略的核心。我們的零件與維修服務業務再度交出一季穩定表現；在許多種植戶日益轉向「壞了才修」心態的環境下，這是一項重要的成果。

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.

在產業處於谷底的交易量水準下仍能維持零件與維修服務業務的穩定，歸功於我們團隊在各營運據點與客戶建立的合作關係。我們相信，隨著種植戶回到較正常的採購模式，這種互動將持續轉化為「錢包份額」的提升。

With that, I'll now turn to our segments. In Domestic Ag, the environment for our grower customers remains very challenging. Commodity prices continue to sit below breakeven for many producers. And while we have seen some positive movement in corn prices over the past several weeks, grower profitability remains challenged.

接下來我將談各事業部門。在美國農業（Domestic Ag）方面，我們種植戶客戶所處的環境仍非常艱困。對許多生產者而言，商品價格仍低於損益兩平水準。雖然過去幾週玉米價格出現一些正向變動，但種植戶的獲利能力仍面臨壓力。

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 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.

政府資金仍是提供支撐的關鍵短期變數，我們也持續在華盛頓積極為農民發聲。全年採用 E15 仍是我們客戶的首要政策優先事項；同時，我們也對生質柴油與永續航空燃料的持續動能感到鼓舞，兩者皆有助於緩解玉米與黃豆的結構性供給過剩。

We expect the pre-sale 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.

我們預期本月開始的預售訂單期將是觀察下半年活動的重要指標；我們也將持續密切關注 OEM（原廠）方案規劃與種植戶情緒，以辨識可促成交易的機會。在營建方面，基礎建設與資料中心活動持續為我們的營運版圖提供健康的需求底盤。而住宅相關活動的走勢也符合我們的預期。

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.

提醒各位，我們營建事業部門的銷售中有相當比例是銷售給農民，而這部分業務正經歷與我們美國農業事業部門相同的疲弱。撇除這一點，我們的營建事業部門整體市場狀況普遍良好。

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.

在歐洲方面，我們於第一季完成了德國營運的大部分退場（wind-down）作業，這是我們營運版圖最佳化工作的一項重要里程碑。我們很高興這項工作已告一段落，團隊仍專注於我們認為能帶來最強長期報酬的市場。如預期所示，羅馬尼亞在與去年歐盟補助計畫（subvention program）活動相比時，將面臨具挑戰性的年對年比較基期；而保加利亞與烏克蘭則預期在整個財政年度可達成溫和成長。

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 IH in New Holland continues to expand our reach.

在澳洲方面，我們的客戶正承受相對更大的壓力，主要來自投入成本居高不下，尤其是柴油燃料與肥料；自中東衝突爆發以來，這兩項成本在當地均出現顯著上升。儘管投入成本通膨仍是種植戶最關切的議題，但澳洲多數營運據點的降雨增加，正為相較近年更有利的生長條件奠定基礎。我們仍看好在此市場的長期布局，而我們與 Case IH 與 New Holland 的雙品牌策略也持續擴大我們的觸及範圍。

Before turning the call over to Bo, 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 am convinced that this that our position today is setting us up for stronger performance as industry conditions improve.

在把電話會議交給 Bo 之前，我想感謝我們的團隊在第一季展現的持續自律與執行力。過去幾年我們為強化業務所做的策略性工作，正隨著每一季的推進在營運成果中愈發清晰可見；我深信，我們目前的定位將使我們在產業環境改善時，具備更強勁的表現基礎。

With that, I will turn the call over to Bo for his financial review.

接下來，我把電話會議交給 Bo 進行財務回顧。

Thanks, Bryan, and good morning, everyone. Starting with our consolidated results for the fiscal '27 first quarter, total revenue was $522.4 million compared to $594.3 million in the prior year period, reflecting a 10.4% decrease in same-store sales driven by softer demand in our Domestic Ag, construction, and Europe segments, partially offset by growth in our Australia segment. Despite the sales headwinds in the first quarter, gross profit was down only slightly at $89.3 million compared to $90.9 million in the prior year period while gross profit margin expanded 180 basis points to 17.1%, compared to 15.3% in the prior year.

謝謝你，Bryan，各位早安。先從 2027 財政年度第一季的合併業績談起：總營收為 5.224 億美元，較去年同期的 5.943 億美元下降，反映同店銷售下滑 10.4%，主要因國內農業（Domestic Ag）、建築與歐洲事業部需求轉弱所致，部分被澳洲事業部成長所抵銷。儘管第一季銷售面臨逆風，毛利僅小幅下滑至 8,930 萬美元（去年同期為 9,090 萬美元），同時毛利率擴張 180 個基點至 17.1%，高於去年同期的 15.3%。

This year-over-year improvement primarily reflects stronger equipment margins driven by the continued benefit from our aged inventory reduction efforts alongside a higher mix of parts and service revenue in our consolidated total. Equipment margins in the fiscal '27 first quarter increased approximately 100 basis points year over year to 7.8%.

這項年對年改善主要反映設備毛利率更強，受惠於我們持續推動的庫齡較長庫存去化措施，以及在合併總營收中零件與服務收入占比提高。2027 財政年度第一季設備毛利率年對年提升約 100 個基點至 7.8%。

Operating expenses were $94.4 million for the first quarter of fiscal '27. from $96.4 million in the prior year period. Our headcount and discretionary spending continue to be down year over year as a result of disciplined expense management, partially offset by higher variable expenses tied to driving sales. Floor plan and other interest expense was $8.2 million, a decrease of 26% from last year's $11.1 million, reflecting the significant reduction in interest-bearing inventory levels over the past year.

2027 財政年度第一季營業費用為 9,440 萬美元，較去年同期的 9,640 萬美元下降。在嚴謹的費用管理下，我們的人力與可自由支配支出持續較去年同期下降，但部分被與推動銷售相關的較高變動費用所抵銷。庫存融資（floor plan）及其他利息費用為 820 萬美元，較去年的 1,110 萬美元下降 26%，反映過去一年計息庫存水位大幅降低。

In the first quarter of fiscal '27, net loss was $12.6 million, with loss per diluted share of $0.55 compared to a net loss of $13.2 million, with loss per diluted share of $0.58 in the prior year period. Adjusted EBITDA was $1 million compared to $2.6 million last year.

2027 財政年度第一季淨損為 1,260 萬美元，稀釋後每股虧損 0.55 美元；去年同期淨損為 1,320 萬美元，稀釋後每股虧損 0.58 美元。調整後 EBITDA 為 100 萬美元，去年為 260 萬美元。

Now, turning to a brief overview of our segment results for the first quarter. Our Domestic Ag segment achieved sales of $344.2 million, reflecting a same-store sales decrease of 8.2%, driven by continued softness in equipment demand against a challenging industry backdrop. However, these results were stronger than our initial expectations and benefited from a pull forward of deliveries to customers relative to our expected quarterly cadence. As Bryan alluded to, we are leaving our full-year revenue guidance intact as we think this balances out throughout the rest of the year.

接著簡要說明第一季各事業部表現。國內農業（Domestic Ag）事業部銷售額為 3.442 億美元，同店銷售下滑 8.2%，主要因在具挑戰性的產業背景下設備需求持續疲弱。不過，這些結果優於我們最初預期，並受惠於相較我們原先預估的季度出貨節奏，對客戶交付有所提前。如 Bryan 所提，我們維持全年營收指引不變，因為我們認為這將在今年其餘期間取得平衡。

Segment pretax loss improved to $6.2 million compared to a pretax loss of $12.8 million in the first quarter of the prior year, reflecting the actions we have taken to accelerate inventory reductions and the resulting improvement in equipment margins that we have achieved. In our Construction segment, same-store sales decreased by 6.5% to $67.5 million, driven primarily by the timing of equipment deliveries. We are leaving our full-year revenue guidance intact and expect modest year-over-year growth for the balance of the year. Pretax loss narrowed to $0.6 million compared to a pretax loss of $4.2 million in the first quarter of the prior year.

事業部稅前虧損改善至 620 萬美元，去年同期稅前虧損為 1,280 萬美元，反映我們為加速去化庫存所採取的行動，以及因此帶來的設備毛利率改善。在建築事業部，同店銷售下降 6.5% 至 6,750 萬美元，主要受設備交付時點影響。我們維持全年營收指引不變，並預期今年其餘期間將呈現溫和的年對年成長。稅前虧損收斂至 60 萬美元，去年同期稅前虧損為 420 萬美元。

In our Europe segment, sales declined to $60.4 million for the quarter, which included a $4.2 million net benefit related to foreign currency fluctuations. On a constant currency basis, revenue decreased approximately 40%, primarily reflecting the expected softening of demand in Romania following the prior year period, which had benefited from a strong response to European Union's subvention program activity.

在歐洲事業部，本季銷售額下滑至 6,040 萬美元，其中包含與外匯波動相關的 420 萬美元淨受益。以固定匯率計，營收約下降 40%，主要反映羅馬尼亞需求如預期轉弱；去年同期曾受惠於歐盟補助計畫（subvention program）活動帶來的強勁反應。

Additionally, I'd like to call out that our Germany divestiture had an immaterial impact in the segment revenue decline year over year, but it will have a larger year-over-year impact in future quarters. Pretax loss for the segment was $0.9 million compared to a pretax income of $4.7 million in the first quarter of last year.

此外，我也想特別指出，我們出售德國業務對該事業部年對年營收下滑的影響不大，但在未來幾季將帶來更顯著的年對年影響。該事業部稅前虧損為 90 萬美元，去年第一季稅前獲利為 470 萬美元。

In our Australia segment, sales increased 14% to $50.3 million compared to $44 million in the first quarter of last year, which included a $5.1 million net benefit related to foreign currency fluctuations. On a constant currency basis, revenue increased $1.2 million or 2.8% with the current period benefiting from additional revenue related to the BelleVue Machinery acquisition completed last fall. Pretax loss for the segment was $1.8 million compared to a pretax loss of $0.6 million in the first quarter of last year.

在澳洲事業部，銷售額年增 14% 至 5,030 萬美元，去年第一季為 4,400 萬美元，其中包含與外匯波動相關的 510 萬美元淨受益。以固定匯率計，營收增加 120 萬美元或 2.8%；本期亦受惠於去年秋季完成的 BelleVue Machinery 併購所帶來的額外收入。該事業部稅前虧損為 180 萬美元，去年第一季稅前虧損為 60 萬美元。

Now, on to our balance sheet and inventory position, we had cash of approximately $30 million and an adjusted debt to tangible net worth ratio of 1.6 times as of April 30, 2026, which is well below our bank covenant of 3.5 times. Total inventory at quarter end was $914.8 million, a modest increase of $12 million compared to year-end. This increase was in line with our expectations and reflects the normal seasonal cadence. As Bryan noted, our focus in fiscal '27 is on mix optimization rather than inventory reduction, and we expect total inventory to fluctuate seasonally throughout the year.

接著談資產負債表與庫存狀況：截至 2026 年 4 月 30 日，我們現金約 3,000 萬美元，調整後負債對有形淨值比為 1.6 倍，遠低於銀行契約上限的 3.5 倍。季末總庫存為 9.148 億美元，較年末小幅增加 1,200 萬美元。此增幅符合我們預期，反映正常的季節性節奏。如 Bryan 所述，我們在 2027 財政年度的重點是組合優化而非降低庫存，我們預期全年總庫存將隨季節性而波動。

Turning to our fiscal '27 modeling assumptions, we are reaffirming each of the modeling assumptions for fiscal '27 we introduced on last quarter's call. While our first-quarter performance was modestly better than our expectations, the underlying demand environment remains consistent with our prior outlook. As a reminder, our segment revenue assumptions are: for agriculture to be down 15% to 20%; construction, flat to up 5%; Europe, down 20% to 25%; and Australia up 10% to 15%.

談到 2027 財政年度的模型假設，我們重申上季電話會議中提出的所有 2027 財政年度模型假設。雖然第一季表現略優於預期，但基本需求環境仍與我們先前展望一致。提醒各位，我們對各事業部營收的假設為：農業下降 15% 至 20%；建築持平至成長 5%；歐洲下降 20% 至 25%；澳洲成長 10% 至 15%。

From a margin perspective, we continue to expect consolidated full-year equipment margin to be approximately 8.4%, which compares to 7.3% in fiscal 2026. This expected year-over-year improvement is a direct reflection of the work we have done to rightsize our inventory and reduce aged equipment, and the progress we have demonstrated in the first quarter supports our confidence in delivering against this expectation across the balance of the year.

就毛利率而言，我們仍預期合併全年設備毛利率約為 8.4%，相較 2026 財政年度的 7.3%。這項預期的年對年改善，直接反映我們為調整適當庫存規模並降低庫齡較長設備所做的努力；第一季展現的進展也支持我們對於在今年其餘期間達成此目標的信心。

Operating expenses are expected to decline year over year, although we intend to continue to invest in our customer care strategy, which is supporting stability in our parts and service businesses. We continue to expect operating expenses to be approximately 17% of sales.

預期營業費用將年對年下降，儘管我們仍打算持續投資於客戶關懷策略，該策略正支撐我們零件與服務業務的穩定性。我們仍預期營業費用約占銷售額的 17%。

On floor plan interest expense, we have continued to see aged inventory and floor plan interest expense decline quarter over quarter on a sequential basis, and we reiterate our prior expectation of an approximately 25% year-over-year decline because the great work our team is doing to manage healthier levels of inventory and improved inventory turns. Bringing it all together, we are reaffirming our full-year adjusted EBITDA range of $17 million to $29 million and our adjusted diluted loss per share range of $1.25 to $1.75.

就庫存融資（floor plan）利息費用而言，我們持續看到庫齡較長庫存與庫存融資利息費用逐季下降；我們重申先前預期年對年約下降 25%，這得益於團隊在維持更健康的庫存水位與提升庫存周轉方面所做的出色工作。綜合以上，我們重申全年調整後 EBITDA 目標區間為 1,700 萬至 2,900 萬美元，以及調整後稀釋每股虧損區間為 1.25 至 1.75 美元。

In summary, the first quarter unfolded about as expected and the soft demand backdrop continues to suggest our expectations for the full year remain prudent. We remain focused on executing our near-term initiatives while continuing to lean into our customer care strategy with exceptional discipline and operational excellence to accelerate our earnings power as market conditions improve.

總結而言，第一季的發展大致符合預期，而疲弱的需求背景也持續顯示我們對全年預期仍屬審慎。我們將持續專注於執行短期重點措施，同時以卓越的自律與營運卓越持續深化客戶關懷策略，隨著市場環境改善，加速提升我們的獲利能力。

This concludes our prepared comments. Operator, we are now ready for the question-and-answer session of the call.

以上為我們預先準備的發言。接線員，我們現在準備進入本次電話會議的問答環節。

(Operator Instructions) Liam Burke, B. Riley.

(接線員指示) Liam Burke，B. Riley。

Thank you. Good morning, Bryan. Good morning, Bob. Bryan, can you give us some sense on the competitive pricing environment out there? I mean, it looks like things are stable, but could you give us some color on that, please?

謝謝。早安，Bryan。早安，Bob。Bryan，你能否讓我們了解一下目前外部的競爭性定價環境？我的意思是，看起來情況很穩定，但你能否請再補充一些說明？

Yeah, used equipment values is a big piece of that. As most of our customers, especially in North America, have a trade-in and -- so it's really about the trade difference and what boils down to their payment and their -- ultimately the cost per acre on the Ag side. Definitely, within this year, we've seen stability in the used equipment prices after about 18 months of almost going two years of sequentially falling used equipment values, so that stability all throughout the year here has been good in the used side.

是的，二手機械設備的價值是其中很重要的一部分。我們的大多數客戶，尤其在北美，都會有以舊換新——所以這其實取決於換購差額，最後反映在他們的付款金額，以及——最終在農業端的每英畝成本。確實，在今年之內，在經歷了約18個月、幾乎接近兩年二手機械設備價值連續下滑之後，我們看到二手機械設備價格已趨於穩定；因此，今年整體二手市場的穩定性是正面的。

Also, we had some large price increases post-COVID and over the recent years, and also, that's stable now, very low single digits. You're hearing CNH and Deere and AGCO, while talking that 1% to 2% range, a couple of select categories, maybe being as high as 3%, but generally 1% to 2%. They're managing through the tariffs as well. So ultimately, the pricing has stabilized, Liam. And it's really at this juncture about getting commodity prices up, and inputs down, and returning our farmers on the Ag side to profitability here.

另外，COVID 之後以及近幾年我們曾有過一些較大幅度的漲價，而現在也已趨於穩定，僅為很低的個位數。你也聽到 CNH、Deere 和 AGCO 提到大約在 1% 到 2% 的區間，少數特定品類可能高到 3%，但整體而言是 1% 到 2%。他們也在因應關稅。所以總體來看，Liam，定價已經穩定下來。而在這個時間點，重點其實是讓大宗商品價格上升、投入成本下降，讓我們農業端的農民回到獲利狀態。

Sure. And then you discussed, I believe, in the parts and service section, about how your customers are pushing hard on existing assets rather than rather than maintaining them. But I guess my question is, as those assets are being pushed harder, does that have a cyclical impact on new or equipment purchases down the road?

了解。另外你在零件與服務的部分提到，我相信，你們的客戶正在更用力地使用既有資產，而不是——而不是去維護它們。但我的問題是，當這些資產被更高強度地使用時，是否會在未來對新機或設備採購產生週期性的影響？

Yeah, absolutely. So that bodes well for us as we go through the cycle here and as things start to turn the fleets getting older, the hours on the machines are getting higher. Also, as we mentioned, in these tougher times, producers are having a bit of fix-as-fail mentality, which is a testament, as we said, to our parts and service businesses, where we have strength that we do there when, frankly, they're trying to spend as little money as possible.

是的，絕對會。因此，當我們走過這一輪週期、情況開始好轉時，這對我們是有利的：車隊會變得更老、機器使用時數會更高。另外，如我們提到的，在這些較艱難的時期，生產者會有一種「壞了再修」的心態；這也印證了我們所說的零件與服務業務，因為坦白說，當他們試圖盡可能少花錢時，我們在這方面就具備優勢。

And so, they're not doing some of those upgrades that they would typically do as well as certainly with -- through the parts and service side, as well as trading the machines. So that'll bode well both on a parts and service side for us and especially on the machine trade cycle as we go forward.

因此，他們也不會做一些平常通常會做的升級；同樣地，無論是在零件與服務端，或是以舊換新汰換機器方面，都會受到影響。所以，這不僅會對我們的零件與服務業務有利，尤其在未來機器換購週期推進時也會對我們有利。

Mick Dobry, RW Baird.

Mick Dobry，RW Baird。

Hey, good morning, guys. It's Joe Grabowski on for Mick this morning. Hey, good morning. So I wanted to start with the delivery pull forward. Maybe, could you tell us what drove that? And then you said that it kind of balances out the rest of the year, but would it be safe to assume that maybe if Q1 was down less than the full-year guidance, maybe Q2 would be down a little more than the full-year guidance, or your thoughts on the cadence for the rest of the year?

嗨，各位早安。我是 Joe Grabowski，今天早上代 Mick 發問。嗨，早安。我想先從交付提前（delivery pull forward）談起。你們能否說明是什麼因素驅動了這件事？另外你提到它在今年其餘時間會大致抵消，但是否可以合理假設：如果第一季的下滑幅度小於全年指引，那第二季可能會比全年指引下滑得更多？或你們對今年其餘時間節奏的看法是什麼？

Yeah, so ultimately, that came down to timing of when we received equipment, and then we're able to turn around and deliver to customers. I think it kind of pulls through the rest of the year. And really, as we play it out, I anticipate that most of that offset really comes in the back half of the year, a little bit in the second quarter. Assuming we continue to receive and turn equipment around, we'll -- essentially, the same sort of thing will happen in Q2, Q3, and then you'll get to Q4 at the end of the year there.

是的，歸根結底，這取決於我們收到設備的時間點，以及我們能夠隨後快速交付給客戶的能力。我認為這會延續到今年其餘時間。而實際推演下來，我預期大部分的抵消會發生在下半年，第二季也會有一點。假設我們持續收到設備並加速周轉交付，那麼——基本上，第二季、第三季會出現類似情況，然後到年底第四季時就會反映出來。

So the messaging there was intentional, and obviously it wasn't massive, but we didn't want anybody to over-read into Q1 expectations and, of course, setting our full-year expectations consistent with what we said at the beginning of the year. That's really what it came down to. We were able to get more of that equipment turned around in customers' hands sooner than we thought we would.

因此，我們的訊息是刻意這樣表達的；當然幅度並不大，但我們不希望任何人過度解讀第一季的預期，並且——我們的全年預期也維持與年初所說一致。重點就是如此。我們能夠比原先預期更早把更多設備周轉並交付到客戶手上。

Got it. Okay, that's helpful. And then my follow-up question, you mentioned equipment margin has been improving sooner than expected, but you kind of left your full-year guidance on equipment margins the same as last quarter. I guess sort of, what would the drivers be to maybe get the equipment margin into the high 8% versus the 8.4% guidance?

了解。好，這很有幫助。接著我的追問是：你提到設備毛利率改善的速度比預期更快，但你們把全年設備毛利率指引維持在與上季相同。我想問的是，若要把設備毛利率推升到接近 8% 高段、而不是 8.4% 指引，可能的驅動因素會是什麼？

Yeah, for sure. So if we continue to make additional progress beyond what's anticipated from an aging profile perspective, as we already talked about absolute dollar value, we felt pretty good, still a little work to do in some select new categories and on the used side. We are making progress quarter over quarter. We anticipate we'll continue to do so. At the same time, right, I think we prefaced that a little bit with the fact that we're in really a trough-type environment with the lowest TIVs in multiple decades, so not anticipating that we'd see a sharp inflection.

好的，當然。如果我們在庫齡結構（aging profile）的改善上能持續取得超出預期的進展——我們已談到絕對金額的價值——我們覺得整體狀況不錯，但在某些特定新機品類以及二手機方面仍有一些工作要做。我們正逐季取得進展。我們預期會持續如此。同時，我想我們也先鋪陳了：目前其實處於一種谷底型環境，TIV（總產業銷量）處於數十年來最低水準，因此我們不預期會看到明顯的急速反轉。

To start, at the beginning of the year, we were thinking from a Domestic Ag perspective that margins would be more like 5.25%. In this quarter, it was 6%. We were expecting it to be more like 5.25% first half of the year, and then closer to 7%, 7.5% in the back of the year. I think what we're really seeing is kind of a pull forward in the leveling in first quarter was 6% for Domestic Ag, and we're expecting the rest of the year to be in that 6.5% to upwards of 7% for the rest of the quarters.

一開始，在年初時，從國內農業（Domestic Ag）的角度，我們原本認為毛利率會更接近 5.25%。而本季是 6%。我們原先預期上半年大概會是 5.25% 左右，然後在下半年更接近 7%、7.5%。我認為我們真正看到的是某種程度的提前：第一季國內農業是 6%，而我們預期今年其餘季度會落在 6.5% 到接近 7% 的區間。

So just a little bit more flat than we originally anticipated. Glad to see that improvement coming. But again, just comparing that to the backdrop and and what the demand has been and what we're expecting that to be the rest of the year, not getting out ahead of ourselves in where we think it'll go. That said, again, really good to see that progress, feeling good about where inventory is going, and definitely feel like we'll see a sharper inflection as we see demand normalize here.

所以只是比我們原先預期更平坦一些。很高興看到改善正在出現。但同樣地，考量整體背景、需求的表現以及我們對今年其餘時間需求的預期，我們不想過早樂觀、超前推估它會走到哪裡。話雖如此，再次強調，很高興看到這些進展；我們對庫存走向感到樂觀，而且我們確實認為，當需求在此回到常態時，我們會看到更明顯的反轉。

Great. Okay, I appreciate it. Thanks for taking my questions.

很好。好，我很感謝。謝謝回答我的問題。

Thank you. At this time, I'll turn the call back to management for closing remarks.

謝謝。此時我將把電話交回管理層作結語。

Thank you, everybody, for joining us on our call today, and we look forward to updating you next quarter.

謝謝各位今天參與我們的電話會議，我們期待在下個季度向各位更新。

Thank you. This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。您現在可以掛斷電話線。感謝您的參與。