Titan International (TWI) Conference Summary Company Overview - Titan International is a leading manufacturer of wheels, tires, and steel tracks for off-road equipment in agriculture, construction, and consumer industries [2][3] - The company has a global presence with manufacturing facilities in North America, South America, and Europe [3] Core Differentiators - Titan focuses exclusively on off-road products, allowing for specialized design and better customer connection compared to competitors who may be part of larger conglomerates [5][6] - The company emphasizes the importance of its products, which are custom-designed and not easily replaceable due to significant investment in tooling and engineering [6][7] Impact of Tariffs - Long-term, tariffs are viewed positively for Titan as they create a level playing field against foreign competition [9][10] - Titan has manufacturing facilities in the U.S. and China, allowing flexibility in production locations to optimize costs [11][12] Q2 Performance Expectations - Q2 is expected to meet internal expectations for key metrics such as top line, gross margins, and EBITDA despite market uncertainties [14] - Adjusted EPS is anticipated to align with high rates seen in Q1 due to tax implications from profit distribution [15] Agricultural Cycle Insights - The agricultural cycle is nearing a bottom, with dealers expressing concerns over high interest rates impacting inventory management [16][17] - Some customers are beginning to express a need to rebuild inventory, indicating a potential shift in the cycle [19] Earthmoving and Consumer Segments - Titan has diversified into earthmoving and consumer segments, with a focus on aftermarket sales, particularly in mining and construction [22][27] - The company owns a foundry in Spain, allowing for customized aftermarket parts for mining equipment [26] Goodyear Brand License Renewal - Titan renewed its brand license with Goodyear, expanding into new segments such as light construction and industrial applications [31][33] - The Goodyear brand provides a strong market entry point due to its global recognition [33] Karlstar Acquisition - The acquisition of Karlstar has broadened Titan's product portfolio and enhanced market share opportunities [34][36] - The integration has met expectations, with synergies in cost and commercial operations being realized [37] Aftermarket Business Growth - The aftermarket segment has grown to represent 45% of sales, providing better margins and a direct connection to end users [54][55] - Continuous investment in aftermarket capabilities is seen as crucial for driving innovation and customer support [55][56] Capital Allocation Strategy - Current capital allocation priorities include paying down debt incurred from the Karlstar acquisition and preparing for future opportunities [60][61] South American Market Insights - The South American market, particularly Brazil, is viewed as significant but often misunderstood due to currency fluctuations [62][63] - The Brazilian agriculture economy is crucial to the global landscape, and Titan has seen business growth in this region since 2011 [63][64] Final Thoughts - Titan believes it is well-positioned for recovery following current market challenges, with significant upside potential once conditions improve [69]

Titan International (TWI) Conference June 05, 2025 10:00 AM ET Speaker0 I'm Joe Gomes, managing director and senior analyst at Noble Capital. With us today for a fireside chat is Paul Reitz, president and CEO of Titan International. Good morning, Paul, and thanks for taking the time to sit down with us. Speaker1 Hey. Good morning, Joe. Good to be with you. Speaker0 So let let's start big broad. For those in the audience new to the Titan story, can you provide a brief overview of the company, the products, t ...

Titan International (TWI) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Company Participants Alan Snyder - VP of Financial Planning & Investor RelationsPaul Reitz - CEO & PresidentDavid Martin - Senior VP & CFO Conference Call Participants Michael Shlisky - Managing Director & Senior Equity Research AnalystSteve Ferazani - Senior Equity Analyst - Diversified Industrials & EnergyDerek Soderberg - Director, Senior Equity Research AnalystThomas Kerr - Senior Analyst Operator Good morning all and thank you for ...

Titan International (TWI) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Speaker0 Good morning all and thank you for joining us for the Titan International Inc. First Quarter twenty twenty five Earnings Call and Webcast. At this time, all participants have been placed on listen only mode and we will open the floor for questions and comments after the It is now my pleasure to turn the floor over to Alan Snyder, Vice President, Financial Planning and Investor Relations at Titan. Mr. Snyder, the floor is yours ...

Mr. Reitz continued, "At Titan, an intense focus on our customers and end users defines everything we do. In turbulent times such as these, that customer focus is the anchor that keeps our team grounded. Constantly evolving trade policies are presenting challenges, especially when it comes to longer-term capital planning for OEMs. We are in an enviable position, with quality manufacturing assets strategically located in the key markets we serve. That ability to geographically match production with sales is ...

Financial Performance - Net sales for Q1 2025 increased to $490,708, up 1% from $482,209 in Q1 2024[8] - Gross profit decreased to $68,644, down 11% from $77,370 in the same period last year[8] - Net income attributable to Titan was a loss of $649, compared to a profit of $9,201 in Q1 2024[8] - Comprehensive income attributable to Titan was $38,707, compared to a loss of $4,681 in Q1 2024[9] - For the three months ended March 31, 2025, Titan International reported a net income of $22,000, a significant decrease from $9,974,000 in the same period of 2024[14] - Operating cash flows showed a net cash used of $38,591,000 compared to a net cash provided of $2,005,000 in the prior year, indicating a decline in operational efficiency[14] - The company reported a loss before income taxes of $15.7 million for Q1 2025, compared to a loss of $18.2 million in Q1 2024, showing an improvement of 8.5%[86][88] - Net income for the three months ended March 31, 2025, was $0.0 million, a significant decrease from $10.0 million in the same period of 2024, resulting in basic and diluted loss per share of $(0.01) compared to earnings of $0.14[130] Assets and Liabilities - Total assets increased to $1,722,012, up 9% from $1,584,953 at the end of 2024[12] - Cash and cash equivalents decreased to $174,430, down from $195,974 at the end of 2024[12] - Total liabilities increased to $1,182,556, up 8% from $1,091,297 at the end of 2024[12] - Accounts receivable increased significantly by $97,101,000 in Q1 2025, compared to an increase of $43,140,000 in Q1 2024, indicating potential liquidity concerns[14] - Long-term debt as of March 31, 2025, totaled $574.2 million, with a weighted-average interest rate of approximately 2.6%[49] - The fair value of Titan's senior secured notes due 2028 was approximately $390,800,000 as of March 31, 2025, reflecting a slight decrease from $390,000,000 at the end of 2024[17] Expenses - Research and development expenses rose to $4,544, an increase of 24% from $3,654 in Q1 2024[8] - Selling, general and administrative expenses increased to $49.9 million, or 10.2% of net sales, compared to $39.4 million, or 8.2% in the prior year, largely due to recurring expenses from Titan Specialty operations[117] - Interest expense for the three months ended March 31, 2025, was $9.5 million, compared to $8.4 million in the same period of 2024, indicating an increase of 13.2%[86][88] - Total depreciation and amortization expense for Q1 2025 was $15.9 million, up from $12.0 million in Q1 2024, reflecting a 32.5% increase[88] Acquisition and Growth - The company acquired The Carlstar Group for a total purchase consideration of $312,336,000, enhancing its product offerings in wheels and tires[29] - Titan Specialty, the product line from the Carlstar acquisition, generated revenue of $51,788,000 and income before taxes of $1,254,000 from the acquisition date to March 31, 2024[33] - The acquisition of Carlstar Group (now Titan Specialty) was completed on February 29, 2024, with related costs of $6.2 million recognized in Q1 2024[93] - Consumer segment net sales increased by 93.6% to $149.7 million for the three months ended March 31, 2025, compared to $77.3 million in 2024, driven by the Titan Specialty acquisition[141] Market Conditions - The agricultural market is experiencing a slowdown in North America and Europe, while South America shows early signs of recovery, influenced by global tariffs and commodity prices[110] - The earthmoving/construction segment is currently facing a slowdown in OEM demand but is expected to stabilize over the mid to long term due to mining capital budgets and GDP growth forecasts[111] - The consumer market is seeing varied growth, with some segments slowing down, particularly in the Americas, influenced by macroeconomic factors such as inflation and consumer spending[112] Cash Flow and Financing - Cash flows used for operating activities amounted to $38.6 million for the three months ended March 31, 2025, a decline of $40.6 million compared to the same period in 2024, primarily due to lower net income and increased working capital[150] - Cash provided by financing activities in Q1 2025 was $18.6 million, primarily from $26.6 million in borrowings, offset by $8.0 million in debt repayments[154] - Titan's total amount available for borrowing under its $225 million credit facility was $56.6 million as of March 31, 2025, after accounting for outstanding letters of credit and borrowings[166] Tax and Compliance - The Company recorded income tax expense of $4.2 million for the three months ended March 31, 2025, with an effective income tax rate of 99.5%[75] - The company's effective income tax rate rose to 99.5% for the three months ended March 31, 2025, compared to 49.4% in 2024, due to a decrease in pre-tax income[128] - The report includes certifications from the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act of 2002[187] Strategic Outlook - The company anticipates continued focus on cost control and quality maintenance in its operations moving forward[97] - Forward-looking statements indicate potential impacts from the Titan Specialty acquisition on future financial results, depending on actual performance versus expectations[97] - The company expects full-year capital expenditures to be between $55 million and $65 million, focused on enhancing existing facilities and productivity gains[167] - Titan faces substantial uncertainties from newly imposed tariffs, which may lead to increased costs and supply chain disruptions, potentially affecting financial performance[180]

Core Insights - Titan International, Inc. reported Q1 2025 revenues of $491 million and Adjusted EBITDA of $31 million, both at the higher end of guidance [1][2] - The company is strategically positioned to benefit from current trade policies due to its domestic production capabilities, which reduce exposure to tariffs compared to competitors reliant on overseas production [2][3] Financial Performance - Net sales for Q1 2025 were $490.7 million, up from $482.2 million in Q1 2024, primarily driven by increased sales volumes from the Titan Specialty acquisition and positive price/mix effects [4] - Gross profit for Q1 2025 was $68.6 million, representing 14.0% of net sales, down from $77.4 million or 16.0% in Q1 2024, attributed to lower sales volume impacting fixed cost leverage [5][6] - Selling, general and administrative expenses (SG&A) increased to $49.9 million, or 10.2% of net sales, compared to $39.4 million, or 8.2% in the prior year, due to recurring costs from Titan Specialty operations [7] Segment Performance - Agricultural segment net sales decreased by 17.5% to $197.7 million, with gross profit down 39.7% to $24.5 million, driven by reduced global demand for agricultural equipment [10][11] - Earthmoving/construction segment net sales fell by 13.3% to $143.3 million, with gross profit down 35.2% to $14.9 million, impacted by lower sales volume and inflationary costs [12][13] - Consumer segment net sales surged by 93.6% to $149.7 million, with gross profit increasing by 112.5% to $29.3 million, largely due to the Titan Specialty acquisition [14][15] Outlook - The company expects Q2 2025 sales between $450 million and $500 million, with Adjusted EBITDA between $25 million and $35 million, similar to Q1 results [3] - Less than 10% of total revenues are expected to have a net negative exposure to current retaliatory China tariffs, indicating minimal impact from tariffs on upcoming results [3] Financial Condition - As of March 31, 2025, total cash and cash equivalents were $174.4 million, down from $196.0 million at the end of 2024, while long-term debt increased to $571.6 million [18] - The company reported a net cash used for operating activities of $38.6 million in Q1 2025, primarily due to increased working capital [19][20] Non-GAAP Financial Measures - Adjusted EBITDA for Q1 2025 was $30.8 million, down from $49.7 million in Q1 2024, reflecting the company's operating performance [16] - Adjusted net income applicable to common shareholders was $0.7 million, or $0.01 per share, compared to $19.0 million, or $0.29 per share, in the prior year [17]

WEST CHICAGO, Ill., April 30, 2025 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) ("Titan" or the "Company"), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products announced today the expansion of production rights for the Goodyear brand across the light construction/industrial, ATV, lawn and garden, and golf tires segments. Additionally, Titan is excited to announce the renewal of its Goodyear Farm Tires licensing rights in the farm tires segment, demonst ...

Core Viewpoint - Titan International, Inc. is set to release its first quarter 2025 financial results on April 30, 2025, followed by a teleconference and webcast on May 1, 2025 [1] Company Information - Titan International, Inc. (NYSE: TWI) is a prominent global manufacturer specializing in off-highway wheels, tires, assemblies, and undercarriage products [3] - The company is headquartered in West Chicago, Illinois, and produces a wide range of products for original equipment manufacturers (OEMs) and aftermarket customers across agricultural, earthmoving/construction, and consumer markets [3]

Core Insights - Titan International, Inc. emphasizes its extensive domestic manufacturing capabilities and skilled workforce as a significant advantage in adapting to new tariff policies [1][2] - The company has a strong position in the market, being the only domestic producer with such extensive production capabilities, which allows it to better serve customers amid global economic uncertainties [2] Company Overview - Titan International, Inc. is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, headquartered in West Chicago, Illinois [5] - The company produces a wide range of products for original equipment manufacturers (OEMs) and aftermarket customers in agricultural, construction, and consumer markets [5]