Core Insights - Titan International (TWI) reported Q3 CY2025 revenue of $466.5 million, exceeding Wall Street's expectations by 4.1% year-on-year and beating analyst estimates of $458.9 million by 1.7% [1][6] - The company provided a Q4 revenue guidance of $397.5 million, which is 5.5% below analysts' expectations of $420.7 million [1][6] - Titan's GAAP loss per share was $0.04, missing analysts' consensus estimates by $0.01 [1][6] Revenue and Performance - The Agricultural (Ag) and Earthmoving/Construction (EMC) segments showed solid year-over-year growth of 8% and 7%, respectively [3][5] - Adjusted EBITDA for the quarter was $29.77 million, surpassing analyst estimates of $26.79 million, resulting in a margin of 6.4% [6] - Operating margin improved to 2.1%, up from 0.9% in the same quarter last year [6] Management Commentary - Management highlighted robust aftermarket trends and diversified segment growth, while acknowledging ongoing market headwinds and cautious OEM activity [5] - CEO Paul Reitz noted that OEMs are preparing for the next year but are not expected to ramp up production in Q4 [4] - CFO David Martin expressed confidence in the company's positioning to enhance future performance as macro conditions normalize [4] Market Context - The market's negative reaction to the earnings report reflects ongoing concerns despite the solid execution in a challenging environment [3] - Management's cautious tone regarding U.S. farmer income pressure and inventory adjustments indicates potential challenges ahead [3][5]

Core Insights - Titan International's shares fell 6.9% following the release of third-quarter financial results, which included a weak forecast for the fourth quarter [1] - The company reported third-quarter revenue of $466.5 million and adjusted EBITDA of $29.8 million, both exceeding analyst expectations, but the weaker fourth-quarter guidance raised investor concerns [1] - For the fourth quarter, Titan guided for revenue of $397.5 million and adjusted EBITDA of $10 million, indicating a significant decline from the third quarter and falling short of Wall Street estimates [1] Financial Performance - Titan's third-quarter revenue was $466.5 million, with adjusted EBITDA at $29.8 million, surpassing analyst expectations [1] - The fourth-quarter forecast of $397.5 million in revenue and $10 million in adjusted EBITDA represents a substantial sequential decline [1] - Year-to-date, Titan International's stock is up 14.7%, but it remains 28.3% below its 52-week high of $10.86 [5] Market Reaction - The stock has shown extreme volatility, with 32 moves greater than 5% over the past year, indicating that the market views the recent news as significant but not fundamentally altering its perception of the company [3] - The most notable previous drop occurred six months ago when the stock fell 16.3% due to weak first-quarter results and disappointing guidance [4]

Financial Data and Key Metrics Changes - Consolidated revenues grew 4% year over year, with adjusted EBITDA increasing 45% to $30 million [16][17] - Gross margins expanded by 210 basis points to 15.2%, and operating margins also improved [16] - Free cash flow reached $30 million, allowing the company to reduce net debt from $391 million to $373 million [16][18] Business Line Data and Key Metrics Changes - Agricultural segment revenues increased by over 7% year over year, driven by higher volumes, particularly in Latin America [17] - EMC segment revenues rose 6% to $145 million, primarily due to increased orders from light construction customers in the U.S. and favorable foreign exchange impacts [17] - Consumer segment sales were $132 million, a decline of just under 3% year over year, but up 14% sequentially from Q2 [17][18] Market Data and Key Metrics Changes - The agricultural market is expected to benefit from a government agreement with China to resume soybean purchases, which could improve market conditions [6][12] - Dealer inventories in the agricultural segment are decreasing, which is seen as a positive sign for future orders [8][9] - The EMC segment in Europe is experiencing stagnant demand on the OEM side but good growth in aftermarket mining [14] Company Strategy and Development Direction - The company is focused on diversifying its business, with agricultural, EMC, and consumer segments accounting for 41%, 31%, and 28% of revenues, respectively [11] - Titan is positioned as a one-stop shop for tire and wheel sizes needed in its end markets, emphasizing innovation and product development [9][10] - The company is expanding its Goodyear product portfolio, particularly in outdoor power equipment tires, which is expected to drive future growth [10] Management's Comments on Operating Environment and Future Outlook - Management believes the company is at a bottom in market conditions but anticipates a return to growth in 2026, supported by favorable interest rates and government actions [27][28] - The agricultural sector is expected to see a rebound, with government aid potentially supporting farmer income and equipment sales [12][13] - The company remains optimistic about its aftermarket positioning and expects a positive start to 2026 [52][56] Other Important Information - The company is managing working capital with discipline, which has facilitated cash flow and debt reduction [20] - The company is exploring M&A opportunities in a niche industry, focusing on lower valuations [63][64] - The Brazilian joint venture has been successfully closed, enhancing the company's market position [78] Q&A Session Summary Question: What drove the year-over-year upside in ag? - The growth was primarily driven by aftermarket improvements and increased activity in Latin America, with OEMs showing only slight improvements [26] Question: What is the outlook for ag in 2026? - The company expects a return to growth, supported by positive market conditions and government support for farmers [27][28] Question: Any insight on OEM inventory levels? - OEM inventory levels have improved, with approximately 30 days of inventory reduction observed [36][39] Question: What is driving aftermarket mining growth? - The growth is attributed to Titan's ability to produce customized cast products that meet specific market needs [40][41] Question: Why is the top-line guidance for Q4 lower despite strong Q3 performance? - The guidance reflects seasonal drops and pragmatic decisions by OEMs in preparation for the next year [46][47] Question: How is the targeting of the military market progressing? - The company is pursuing opportunities in the military market but faces challenges with the U.S. government's procurement processes [65][66] Question: Can you comment on the Goodyear brand initiative? - The company plans to develop new products under the Goodyear brand, with a focus on premium segments and higher margins [73][74] Question: What caused the decline in Asia sales? - The decline is attributed to timing and shifts in manufacturing rather than a fundamental market issue [77]

INVESTOR PRESENTATION – November 2025 NYSE: TWI Forward-Looking Statements & Non-GAAP Metrics Forward-Looking Statements The accompanying material includes forward-looking comments and information concerning the company's expectations and objectives for the future. Readers of this material should understand that these forward-looking statements are based on the Company's expectations and subject to a number of risks and uncertainties, certain of which are beyond the Company's control. Actual results may dif ...

Financial Performance - Q3 2025 net sales were $466.5 million, a 4% increase from $448.0 million in Q3 2024, driven by pricing adjustments and foreign currency translation [4]. - Gross profit for Q3 2025 was $70.9 million, representing a gross margin of 15.2%, up from $58.8 million and 13.1% in Q3 2024 [5]. - Adjusted EBITDA for Q3 2025 increased to $30 million, compared to $20.5 million in the same period last year [16]. - Agricultural segment net sales rose by 7.6% to $188.7 million, with gross profit increasing by 50.9% to $25.2 million [10]. - Earthmoving/construction segment net sales grew by 6.6% to $145.4 million, with gross profit up 30.1% to $15.2 million [12]. - Consumer segment net sales decreased by 2.8% to $132.4 million, but gross profit remained stable at $30.5 million [14]. - Net sales for Q3 2025 were $466.5 million, a 4% increase from $448.0 million in Q3 2024 [27]. - Gross profit for Q3 2025 was $70.9 million, up 20.5% from $58.8 million in Q3 2024 [27]. - The net loss attributable to Titan for the three months ended September 30, 2025, was $(2,262,000), compared to $(18,249,000) for the same period in 2024 [38]. - Adjusted net income attributable to Titan for the nine months ended September 30, 2025, was $1,784,000, compared to $12,254,000 in 2024 [38]. Cash Flow and Debt - Free cash flow for Q3 2025 was $30 million, contributing to a reduction in net debt [3]. - The company expects Q4 2025 sales to be between $385 million and $410 million, with Adjusted EBITDA around $10 million [3]. - Total cash and cash equivalents at the end of Q3 2025 were $205.4 million, compared to $196.0 million at the end of 2024 [18]. - Net debt at September 30, 2025, was $372.9 million, slightly up from $369.5 million at the end of 2024 [18]. - Operating cash flow for the nine months ended September 30, 2025, was $17.2 million, down from $132.8 million in the same period of 2024 [31]. - Total liabilities increased to $1.18 billion as of September 30, 2025, from $1.09 billion at the end of 2024 [29]. - Interest expense for the nine months ended September 30, 2025, was $28.9 million, compared to $27.1 million for the same period in 2024 [27]. - Free cash flow for the three months ended September 30, 2025, was $29,889,000, down from $41,786,000 in 2024 [41]. - Total debt as of September 30, 2025, was $578,325,000, an increase from $565,445,000 as of December 31, 2024 [41]. Assets and Liabilities - Total assets as of September 30, 2025, were $1.75 billion, an increase from $1.58 billion at the end of 2024 [29]. - Cash and cash equivalents at the end of Q3 2025 were $205.4 million, compared to $195.9 million at the end of 2024 [29]. - Net debt as of September 30, 2025, was $372,944,000, compared to $369,471,000 as of December 31, 2024 [41]. Research and Development - Research and development expenses increased to $4.6 million in Q3 2025 from $4.2 million in Q3 2024, reflecting a focus on innovation [27]. Foreign Exchange and Other Losses - The company reported a foreign exchange loss of $6.4 million for the nine months ended September 30, 2025, compared to a loss of $2.3 million in the same period of 2024 [27]. Regional Performance - The company experienced a 21.9% increase in net sales in Latin America for the three months ended September 30, 2025, compared to the same period in 2024 [40].

Financial Performance - Net sales for Q3 2025 were $466,466,000, an increase of 4.3% compared to $447,985,000 in Q3 2024[8] - Gross profit for Q3 2025 was $70,871,000, up from $58,805,000 in Q3 2024, representing a 20.5% increase[8] - Net loss for Q3 2025 was $2,459,000, a significant improvement from a net loss of $18,199,000 in Q3 2024[9] - Comprehensive loss for Q3 2025 was $3,244,000, an improvement from a comprehensive loss of $5,466,000 in Q3 2024[9] - For the nine months ended September 30, 2025, Titan International, Inc. experienced a net loss of $6.041 million, compared to a net loss of $4.803 million for the same period in 2024[16] - The company recorded a net loss attributable to Titan of $(2,262) thousand for the three months ended September 30, 2025, compared to a net loss of $(18,249) thousand for the same period in 2024[83] - For the nine months ended September 30, 2025, net loss was $6.0 million compared to a net loss of $4.8 million in the same period of 2024, with basic and diluted loss per share increasing from $(0.10) to $(0.12)[148] Revenue and Sales - For the nine months ended September 30, 2025, Titan's total net sales reached $1,418,004,000, a decrease from $1,462,364,000 in the same period of 2024, representing a decline of about 3.0%[92] - Net sales for Q3 2025 were $466.5 million, a 4.1% increase from $448.0 million in Q3 2024, driven by pricing adjustments and foreign currency translation contributing approximately 1.2% to growth[124] - Agricultural segment net sales for the three months ended September 30, 2025, were $188.7 million, a 7.6% increase from $175.4 million in 2024, driven by higher sales volumes in the Americas[151] - Earthmoving/construction segment net sales for the three months ended September 30, 2025, were $145.4 million, a 6.6% increase from $136.3 million in 2024, primarily due to higher sales volumes in the Americas[158] - Consumer segment net sales for the three months ended September 30, 2025, were $132.4 million, a 2.8% decrease from $136.2 million in 2024, attributed to lower sales volumes in the Americas[165] Expenses and Costs - Research and development expenses increased to $4,550,000 in Q3 2025 from $4,199,000 in Q3 2024, reflecting a 8.4% rise[8] - Selling, general and administrative expenses for Q3 2025 were $53.1 million, or 11.4% of net sales, up from $49.5 million, or 11.1% of net sales, in Q3 2024, driven by inflationary cost impacts[128] - Interest expense for the nine months ended September 30, 2025, was $28,935,000, compared to $27,103,000 in the same period of 2024, showing an increase of about 6.8%[92] - The total depreciation and amortization expense for the three months ended September 30, 2025, was $16,794,000, up from $12,636,000 in the same period of 2024, reflecting an increase of about 32.5%[96] Assets and Liabilities - Total assets as of September 30, 2025, were $1,750,387,000, compared to $1,584,953,000 at the end of 2024, marking an increase of 10.4%[12] - Total liabilities rose to $1,175,958,000 as of September 30, 2025, compared to $1,091,297,000 at the end of 2024, indicating an increase of 7.7%[12] - Cash and cash equivalents increased to $205,381,000 as of September 30, 2025, up from $195,974,000 at the end of 2024[12] - Accounts receivable increased to $291.3 million as of September 30, 2025, compared to $214.9 million as of December 31, 2024[42] - Total inventories rose to $465.9 million as of September 30, 2025, up from $437.2 million as of December 31, 2024[44] Equity and Capital - Titan's total equity increased to $574,429,000 as of September 30, 2025, up from $493,656,000 at the end of 2024, reflecting a growth of 16.4%[12] - The company authorized a share repurchase program of up to $50 million, with $1 million remaining available for future repurchases as of September 30, 2025[27] - Long-term debt totaled $556,770,000 as of September 30, 2025, with a principal balance of $580,515,000 and unamortized debt issuance costs of $2,190,000[54] Cash Flow and Investments - Titan International, Inc. had net cash provided by operating activities of $17.243 million for the nine months ended September 30, 2025, significantly lower than $132.751 million in 2024[16] - Cash flows provided by operating activities were $17.2 million for the nine months ended September 30, 2025, a decrease of $115.5 million compared to the same period in 2024, mainly due to increased investment in working capital[177] - Net cash outflow from investing activities was $36.4 million for the nine months ended September 30, 2025, significantly lower than the $189.0 million outflow in 2024, primarily due to the absence of the Titan Specialty acquisition costs[180] Market and Operational Risks - Titan's financial performance is subject to risks such as geopolitical uncertainties and changes in domestic and international laws[105] - The company faces substantial uncertainties related to newly imposed tariffs, increased competition, and potential reductions in customer demand[206] - Titan is exposed to market risks, including changes in foreign currency exchange rates and interest rates, and commodity price fluctuations[198] Strategic Initiatives - The company plans to consider and pursue acquisition opportunities, which could significantly impact its financial results[106] - The company expects full-year capital expenditures to be between $50 million and $55 million, aimed at enhancing existing facilities and supporting new product development[194]

Core Insights - Titan International, Inc. has completed a strategic partnership with Rodaros Industria de Rodas Ltda., a major Brazilian manufacturer of agricultural and construction wheels, following regulatory review [1][2]. Group 1: Partnership Details - Titan has made an initial cash investment of $4 million for a 20% ownership stake in Rodaros, with plans to acquire the remaining 80% by 2029 based on financial performance [2]. - Titan will secure one seat on Rodaros' three-member Board and will provide financial leadership [2]. Group 2: Strategic Importance - The partnership aims to enhance Titan's offerings in the agricultural and construction sectors by combining Rodaros' manufacturing capabilities with Titan's tire production and distribution [3]. - Titan's CEO emphasized that this collaboration will allow the company to distribute integrated wheel/tire assemblies to existing OEM customers in Brazil, which is the third largest agricultural market globally [3]. Group 3: Future Outlook - The partnership is expected to create significant growth opportunities for Titan and improve service to customers, aligning with the company's goal of being a reliable supplier for both wheels and tires across key global markets [3]. - Rodaros' CEO highlighted the shared values and complementary expertise that will drive synergies and added value for end customers [3].

Core Points - Titan International, Inc. will release its third quarter 2025 financial results on November 6, 2025, before the market opens [1] - A teleconference and webcast will follow the financial results announcement on the same day at 9:00 a.m. Eastern Time [1] - The company is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, headquartered in West Chicago, Illinois [2] Company Information - Titan International, Inc. (NYSE: TWI) produces a broad range of products for original equipment manufacturers (OEMs) and aftermarket customers in agricultural, earthmoving/construction, and consumer markets [2] - The company provides access to its teleconference via a toll-free number for U.S. participants and a global dial-in number for other locations [2]

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector [1] - The service emphasizes cash flow and identifies companies that generate it, highlighting their value and growth prospects [1] - Subscribers have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]

Financial Data and Key Metrics Changes - Titan International reported revenues of $461 million for Q2 2025, with adjusted EBITDA of $30 million, and positive cash flow of $4 million [20][27] - Gross margins improved by 100 basis points sequentially to 15%, driven by product mix [20][21] - Year-over-year gross margins decreased from 16% to 15% when adjusting for the previous year's inventory step-up [21][24] Business Line Data and Key Metrics Changes - Agricultural segment gross margin increased to 14.6% from 12.4% in Q1 [21] - EMC segment gross margin rose to 11.5% from 10.4% in Q1 [21] - Consumer segment gross margin improved to 20.4% from 19.6% in Q1 [21] Market Data and Key Metrics Changes - Demand in Europe remained flat, while Brazil showed better performance due to localized manufacturing [16][19] - The consumer segment was significantly impacted by tariffs, leading to cautious purchasing behavior [17][18] - Farmers expressed concerns over high financing costs, which hindered large equipment purchases [14][13] Company Strategy and Development Direction - Titan is focusing on a one-stop-shop strategy, enhancing customer service through a broad product portfolio [10][12] - The company is actively pursuing partnerships, including a minority investment in Brazilian wheel manufacturer Roderos to penetrate the Brazilian market [12][72] - Titan aims to leverage its U.S.-based production to benefit from tariffs on imports, enhancing its competitive position [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains challenging, with cautious behavior from OEMs and consumers due to interest rates and trade policies [6][7] - There is optimism for a rebound in demand as inventory levels have dropped too low, particularly in the consumer segment [35][36] - Management expects an uptick in market conditions in 2026, contingent on interest rate reductions and tariff resolutions [67][68] Other Important Information - The company is managing costs effectively while preparing to ramp up production when demand increases [15][19] - Titan's net debt decreased by $10 million to $401 million, with expectations to exit the year with a debt ratio closer to three times adjusted EBITDA [23][24] - The effective tax rate for Q2 was over 100%, influenced by geographic profit distribution [24] Q&A Session Summary Question: Clarification on Q3 sales and EBITDA expectations - Management indicated that Q3 sales could be similar to Q2, but EBITDA might decline by 10% to 15% due to seasonal shutdowns and product mix changes [28][29] Question: Outlook for the agricultural sector in the U.S. - Management noted a cautious tone in the U.S. agricultural sector, with OEMs waiting for improved farmer orders before increasing production [32][33] Question: Impact of tax and NOLs on valuation - Management confirmed the presence of NOLs that could affect valuation allowances if market conditions do not improve, but cash taxes have remained stable [38][39] Question: Details on the investment in Roderos - The initial investment in Roderos is $4 million for a 20% stake, with potential for future increases [72][109] Question: Customer inquiries about capacity for 2026 - Customers have begun asking about Titan's capacity for 2026, indicating confidence in Titan's position for future demand [111][112]