Oppenheimer, referring to the Sandhills report, said used equipment inventories decreased in May across several major categories - agriculture, construction and medium- and heavy-duty trucks.
Agriculture sector results showed total used tractor inventories fell 1.5% from the previous month and were down 20.3% compared with the same month a year earlier. Losses were uneven across horsepower brackets: tractors in the 100-174 horsepower range declined 22.0% year-over-year, while 175-299 horsepower units were down 16.1% year-over-year. Smaller tractors, those under 100 horsepower, recorded a 28.3% year-over-year drop, and the largest tractors above 300 horsepower decreased 12.5% year-over-year.
Price movements for tractors were mixed. Asking prices eased 0.5% month-over-month and were 1.5% lower year-over-year. Auction values dipped 0.8% month-over-month but were 2.4% higher than a year earlier. The gap between asking and auction prices for tractors narrowed to 3.9% in May from 4.1% in April.
Used combine inventories moved in the opposite direction on a monthly basis, increasing 0.6% month-over-month, yet they still fell 10.1% year-over-year. Asking prices for combines declined 2.6% month-over-month and were 1.2% lower versus a year earlier. Auction prices for combines fell 1.5% month-over-month but gained 0.8% year-over-year. In May the spread between asking and auction values for combines widened to 2.0%, up from 0.9% in April.
In construction equipment, used excavator inventories dropped 1.6% month-over-month and 14.2% year-over-year. Both asking and auction prices for excavators declined: asking prices fell 1.5% month-over-month and 3.3% year-over-year, while auction prices were down 1.8% month-over-month and 3.1% year-over-year. The asking-to-auction spread for excavators tightened to 0.2% in May from 0.6% in April - the narrowest spread reported since February 2025.
Turning to trucks, total used truck inventories decreased 1.4% month-over-month and were down 27.1% year-over-year in May. Medium-duty truck inventories fell 0.9% month-over-month and 37.5% year-over-year. Among heavy-duty segments, Class 8 day-cab inventories rose 0.3% month-over-month but remained 25.3% below year-ago levels, whereas Class 8 sleeper inventories fell 3.3% month-over-month and 20.8% year-over-year.
Price dynamics in the truck market showed asking prices rising 0.8% month-over-month but declining 2.4% year-over-year. Auction prices increased 2.0% month-over-month and were 1.1% higher year-over-year. The spread between asking and auction values for trucks widened to 3.5% in May from 1.5% in April.
The report also listed several equipment-related tickers alongside their intraday moves: CAT +1.38%, DE +0.43%, CMI +0.02%, AGCO +0.28%, and CNH -1.4%.
Summary of findings
- Total used tractor inventories decreased 1.5% month-over-month and 20.3% year-over-year, with the largest percentage declines in tractors under 100 horsepower and in the 100-174 horsepower range.
- Used combine inventories rose 0.6% month-over-month but fell 10.1% year-over-year; asking and auction price movements diverged modestly.
- Used excavator inventories and total truck inventories declined month-over-month and year-over-year in May, while certain truck price measures rose on a monthly basis.
Key points
- Agriculture, construction and trucking segments all reported lower inventories in several subcategories in May, according to Sandhills data cited by Oppenheimer.
- Asking and auction prices did not move uniformly across equipment types; some categories saw narrowing spreads while others experienced widening spreads between asking and auction values.
- The report highlights distinct behavior by equipment class - for example, mid-range tractors and small tractors showed the steepest year-over-year inventory declines.
Risks and uncertainties
- Asking and auction price trends differ across equipment types, creating variability in valuation signals for buyers and sellers in agriculture, construction and trucking markets.
- Inventory changes are not uniform by horsepower or truck class, introducing uncertainty for market participants who operate in specific equipment segments.
- Movements in the spread between asking and auction values - narrowing in some categories and widening in others - add ambiguity to price comparisons and could complicate transaction assessments.