Summary of Titan's Conference Call Company Overview - Titan is involved in manufacturing wheels, tires, and steel tracks for off-road equipment, serving a diverse portfolio that includes small and large agricultural equipment, recreational vehicles, and construction equipment [1][2] Leadership Changes - David Martin has been appointed as Chief Transformation Officer, while Tony Alihi has taken over as CFO. This internal promotion reflects the strength of Titan's team and aims to enhance the company's focus on technology and AI innovation [3][4][5][6] One-Stop Shop Concept - Titan positions itself as a "one-stop shop" for customers, emphasizing its ability to meet diverse needs across various equipment types. This approach has evolved from a focus on OEMs to a broader service model that includes direct relationships with end-users and dealers [7][8][9][10][11] Product Development: LSW Tires - The Low Sidewall (LSW) tires have been a significant focus, designed to improve equipment performance, reduce soil compaction, and enhance fuel efficiency. Recent data indicates that using LSW can improve yields by over 30% during turns, making it economically beneficial for farmers [12][15][17][18] Tariffs and Competitive Landscape - Tariffs have been viewed as a net benefit for Titan, with the company successfully advocating for its interests before the International Trade Commission. However, the implementation of tariffs has been inconsistent, creating uncertainty in the market [19][20][21][22][23][24] Supply Chain Strategy - Titan employs a strategy that includes joint ventures and third-party manufacturers to maintain efficiency and meet customer demands. This approach allows Titan to offer a diverse product portfolio without overextending its manufacturing capabilities [25][26][27][28] Market Segments Performance - The agricultural segment is currently facing challenges, particularly in large ag, which requires government attention to support farmers. However, small ag is performing better, and Brazil's market remains strong [29][30][31][32][33][34] - Construction is showing positive signals, especially in Brazil and parts of Europe, while the consumer segment is stable with ongoing product innovation [35][36][37] Capital Allocation Strategy - Titan emphasizes a disciplined approach to capital allocation, focusing on safety, environmental maintenance, and product development. The company aims to maintain a strong balance sheet while navigating the current downturn in the agricultural sector [38][39][40][41] Conclusion - Titan is well-positioned to adapt to market changes with a strong balance sheet, diverse product offerings, and a commitment to innovation. The company is focused on leveraging its strengths to capitalize on future market opportunities [42][43][44]

CHICAGO, Feb. 4, 2026 /PRNewswire/ -- Titan International, Inc. will release its fourth quarter 2025 financial results before the opening of the market on Thursday, February 26, 2026 to be followed by a teleconference and webcast on Thursday, February 26, 2026 at 9:00 a.m. Eastern Time. The real-time, listen-only webcast can be accessed using the following link https://events.q4inc.com/attendee/356935593 or on our website at www.titan-intl.com within the "Investor Relations" page under the "News & Events" ...

Core Insights - Titan International, Inc. has announced a series of executive appointments aimed at strengthening its leadership team and supporting long-term strategic objectives [1] Leadership Changes - David Martin has been appointed as Senior Vice President and Chief Transformation Officer, focusing on enterprise-wide transformation initiatives, including AI adoption and risk management [2] - Tony Eheli has been promoted to Senior Vice President and Chief Financial Officer, bringing a strong financial governance background and experience in driving performance improvements [3] - Jim Pach has been appointed Vice President and Chief Accounting Officer, recognized for his expertise in financial compliance and internal controls [4] Strategic Intent - The leadership transitions are intended to enhance the executive team's capacity to achieve strategic objectives and deliver sustainable value to shareholders, as stated by Paul Reitz, President and CEO [5]

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]

Company Overview - Titan International is a global leader in off-highway tires, wheels, and undercarriage equipment manufacturing[7] - The company's total revenues for the trailing twelve months (TTM) ending September 2025 were $18 billion[9] - Adjusted EBITDA for the same period was $100 million[9] - The company's net debt stood at $373 million, with a leverage ratio of 37x[9] Financial Performance & Strategic Transformation - The company has undergone a multi-year strategic transformation focusing on operational excellence and product innovation[15] - TTM production volume is more than 15% below the prior cyclical trough (2019 – 2020) levels[18] - The TTM gross margin of 139% represents an improvement of approximately 430 basis points compared to the prior cyclical low in 2019/2020[18] - The company aims to achieve $250 million in mid-cycle adjusted EBITDA, with revenue reaching approximately $18 billion[19, 25] Segment Highlights - The Agriculture segment's TTM revenue as of September 2025 was $737 million, with an adjusted gross margin of 13%[46] - The Earthmoving/Construction (EMC) segment's TTM revenue was $557 million, with an adjusted gross margin of 10%[62] - The Consumer segment's TTM revenue was $507 million, with an adjusted gross margin of 20%[77]

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].