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Shane Thomas

Shane Thomas

Founder of Upstream Ag Insights, a globally read agribusiness newsletter, and agribusiness analyst based in Calgary, Alberta.

Sep 16, 2026

6:05
How should we think about margins there?
6:08
Yeah.
6:08
So on the equipment side of things, that's obviously if you sell a $500,000 tractor, really big total revenue, but really thin margin.
6:16
And the margin structure specific to Titan is going to vary depending on where you're at in the equipment cycle.
6:22
So the commodity cycle and just how profitable farmers are for lack of a better term.
6:27
And when things are really good for a company like Titan, you'll see 13, 14% gross margins on that where we're at today in the cycle you're more in that five six seven percent so pretty low pretty thin margins by most measures and then you get into the higher margin segments and this is really the parts where they're making about 30 gross margin on the part side of the business and then if you get into the service you're even higher than that you're at about 60 ish percent 65 gross margins on that and the rental side of things, you know, the 25%.
6:59
But what's interesting is when you kind of bring all this together, you have about something like, I don't know, 75% or so of the revenue coming from the actual equipment itself.

12 MINS LATER

19:15
And I don't know if they're like rebates yet, but they're levers that the OEM is pulling to sort of control the behavior of the dealer.

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