WEST CHICAGO, Ill., March 14, 2025 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) ("Titan" or the "Company"), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, today announced that management will participate in the upcoming Sidoti Small Cap Virtual Conference. Paul Reitz, CEO, will participate in a fireside chat and 1 on 1 investor meetings. The live presentation of the fireside chat will take place at 4:00 PM ET on Wednesday, March 19, 2025 and can ...

Financial Performance - Titan International (TWI) experienced a significant decline in share price, closing down 9.3% on February 27th following the announcement of its financial results [1] Investment Focus - Crude Value Insights emphasizes an investment service and community centered on oil and natural gas, focusing on cash flow and companies that generate it, which leads to value and growth prospects with real potential [1]

INVESTOR PRESENTATION – FEBRUARY 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 Data and Key Metrics Changes - Revenues in Q4 2024 were $384 million with adjusted EBITDA of $9 million and gross margin at almost 11% [31][32] - Full-year gross margins for 2024 were approximately 14.6%, compared to 9% during the last cyclical low in 2019 [32] - Net debt at quarter-end was $369 million, representing 2.9 times trailing twelve-month adjusted EBITDA [37] Business Line Data and Key Metrics Changes - Agricultural segment gross margins were 9%, EMC margins around 6%, and consumer gross margins were 18%, with the consumer segment being the most profitable due to higher margin aftermarket business [34] - Aftermarket business accounted for more than 60% of sales in the consumer segment, indicating a steady performance through the downturn [34][20] Market Data and Key Metrics Changes - Recent corn prices have risen over 15% year-over-year, reaching levels above $5 per bushel, positively impacting farm income [13] - Brazil is showing increasing demand in both OE and aftermarket channels, with expectations for a strong recovery in the agricultural market [14][15] Company Strategy and Development Direction - The company is focused on expanding its aftermarket offerings across all segments and enhancing customer relationships through a one-stop-shop strategy [17][18] - Innovation in new products remains a cornerstone of the company's value proposition, with ongoing investments in R&D [35][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a cyclical recovery in the agricultural sector, driven by improved farmer sentiment and government support [11][12] - The company anticipates a sequential improvement in sales for Q1 2025, with guidance ranging from $450 million to $500 million [44] Other Important Information - The company recorded a credit to income tax expense of $26 million related to a pre-tax loss in Q4, resulting in an effective tax rate of 143% for the year [39] - The acquisition of CarlStar has enhanced the company's capabilities and product offerings, contributing to a stronger market position [18][116] Q&A Session Summary Question: Insights on cash flow and working capital needs - Management indicated they will assess working capital needs as they typically see a sequential increase from Q4 to Q1, and they aim to calibrate production to meet growth expectations [48][49] Question: Outlook for earthmoving construction and consumer segments - Management noted that earthmoving construction is stable but facing inventory corrections, while the consumer segment has performed well, particularly in the aftermarket [50][55] Question: Positioning for a potential fast recovery - Management emphasized their preparedness to ramp up production and maintain experienced labor, which is crucial for meeting customer demands [84][86] Question: Impact of tariffs on operations - Management stated that current tariffs are not significantly impacting the business, and they have the flexibility to adjust production locations as needed [40][126] Question: Aftermarket versus OEM business size - The company has increased its aftermarket presence to 45% of sales, with a goal to continue expanding this segment [139][141]

Ownership and Operations - The Company owns 64.3% of Voltyre-Prom, which represents approximately 5% and 7% of consolidated assets as of December 31, 2024, and 2023, respectively[103]. - The Russian operations account for approximately 5%, 6%, and 6% of consolidated global sales for the years ended December 31, 2024, 2023, and 2022, respectively[103]. - The military conflict between Russia and Ukraine has not significantly impacted the Company's global operations, but it continues to monitor potential effects[103]. Compliance and Regulatory Risks - The Company is subject to anti-corruption laws and regulations, including the U.S. Foreign Corrupt Practices Act (FCPA), which could adversely affect its business and reputation[106]. - The Company has implemented training programs to ensure compliance with evolving sanctions and export controls[102]. - The Company is subject to risks associated with climate change regulations, which may increase costs and disrupt operations[108]. - International acquisitions may involve additional complexities and risks, including compliance with foreign laws and regulations[118]. Financial Risks and Economic Conditions - The Company may incur additional tax expense or tax exposure due to changes in income tax provisions and cash tax liabilities across various jurisdictions[115]. - The Company is affected by global and regional economic conditions, with demand for products being cyclical and potentially reduced during economic downturns[117]. - Economic conditions vary by region, with demand for products generally increasing in areas experiencing economic growth[117]. - The Company’s operating costs may be impacted by higher inflation and interest rates, affecting overall financial performance[117]. - The Company may experience financial risks associated with increased indebtedness, including reduced liquidity and higher cash flow requirements[119]. Competition and Market Risks - The Company faces intense competition and potential adverse effects from unfair trade practices, particularly related to imported off-the-road tires[97]. - The Company faces risks from natural disasters and sabotage, which could lead to uninsured losses and damage to operational capacity[118]. Investment and Acquisition Risks - Future acquisitions or divestitures may require significant resources and could result in substantial costs or liabilities, impacting managerial focus[118]. - Financing for future acquisitions may come from cash from operations, additional indebtedness, or issuing equity securities, which could impair business operations[119]. - The Company is not insured against all potential losses, which could adversely affect its financial condition and results of operations[118]. - The Company’s business activities involve substantial investments in manufacturing facilities, which are vulnerable to various risks[118].

Financial Performance - Net sales for Q4 2024 were $383.6 million, a decrease of 1.5% from $390.2 million in Q4 2023, driven by declines in agricultural and earthmoving/construction segments[5]. - Gross profit for Q4 2024 was $41.2 million, down from $58.3 million in Q4 2023, resulting in a gross margin of 10.7% compared to 14.9% in the prior year[6]. - Adjusted EBITDA for Q4 2024 was $9.2 million, significantly lower than $38.1 million in Q4 2023[16]. - Net sales for the twelve months ended December 31, 2024, were $1,845.9 million, a slight increase from $1,821.8 million in 2023[28]. - Gross profit decreased to $257.8 million in 2024 from $305.8 million in 2023, reflecting a decline in profitability[28]. - Net income attributable to Titan decreased to a loss of $5.6 million in 2024, compared to a profit of $78.8 million in 2023[28]. - For the twelve months ended December 31, 2024, the net loss was $3,590,000 compared to a net income of $83,706,000 for the same period in 2023[32]. - Net income for the three months ended December 31, 2024, was $1,213,000, compared to a loss of $1,282,000 in the same period of 2023[41]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $128,108,000, down from $205,229,000 in 2023, reflecting a decrease of 37.5%[41]. Segment Performance - Agricultural segment net sales for Q4 2024 were $157.1 million, down 18.4% from $192.6 million in Q4 2023, attributed to lower global demand[10]. - Earthmoving/construction segment net sales for Q4 2024 were $116.3 million, a decrease of 26.9% from $159.1 million in Q4 2023, due to softer demand in North America and Europe[12]. - Consumer segment net sales for Q4 2024 were $110.1 million, a substantial increase of 185.8% from $38.5 million in Q4 2023, driven by increased sales volumes following the Carlstar acquisition[14]. - The United States market saw a 14.2% increase in net sales for the three months ended December 31, 2024, totaling $183,066,000[41]. - Europe/CIS experienced a significant decline of 25.9% in net sales for the same period, with sales of $99,475,000[41]. Expenses and Cash Flow - SG&A expenses for Q4 2024 increased by 58.5% to $55.7 million from $35.2 million in Q4 2023, primarily due to the Carlstar acquisition[7]. - Operating cash flows decreased by $37.9 million in 2024 compared to 2023, primarily due to lower net income, despite improvements in accounts receivable and inventory management[19]. - Operating cash flow decreased to $141,487,000 in 2024 from $179,350,000 in 2023, reflecting a decline of approximately 21%[32]. - Free cash flow for the twelve months ended December 31, 2024, was $75,863,000, down from $118,551,000 in 2023[42]. Capital Expenditures and Investments - Capital expenditures increased to $65.6 million in 2024 from $60.8 million in 2023, focusing on plant equipment replacement and new product development[21]. - The company reported capital expenditures of $65,624,000 in 2024, an increase from $60,799,000 in 2023[32]. - Capital expenditures for the three months ended December 31, 2024, were $13,306,000, compared to $19,319,000 in the same period of 2023[42]. - Net cash used for investing activities significantly increased to $201,598,000 in 2024 from $56,923,000 in 2023[32]. Debt and Equity - The company ended 2024 with total cash and cash equivalents of $196.0 million, down from $220.3 million at the end of 2023, while long-term debt increased to $553.0 million from $409.2 million[18]. - Long-term debt increased to $552.97 million in 2024 from $409.18 million in 2023, indicating higher leverage[30]. - Titan's stockholders' equity rose to $496.1 million in 2024 from $467.1 million in 2023, showing a positive trend in equity[30]. - Total debt as of December 31, 2024, was $565,445,000, an increase from $518,454,000 as of September 30, 2024[42]. - Net debt increased to $369,471,000 as of December 31, 2024, compared to $291,161,000 at the end of the previous quarter[42]. Research and Development - Research and development expenses increased to $16.5 million in 2024 from $12.5 million in 2023, indicating a focus on innovation[28]. Foreign Exchange and Shares - The company incurred foreign exchange losses of $6,123,000 for the twelve months ended December 31, 2024, compared to $22,822,000 in 2023[39]. - The company reported a foreign exchange loss of $3,785,000 for the three months ended December 31, 2024[41]. - The average common shares outstanding increased to 68,662,000 in 2024 from 62,452,000 in 2023[39]. Upcoming Events - The company will host a teleconference on February 27, 2025, to discuss fourth quarter financial results[22].

Core Insights - Titan International, Inc. reported a decrease in net sales for Q4 2024, totaling $383.6 million, down from $390.2 million in Q4 2023, primarily due to declines in agricultural and earthmoving/construction segments, alongside a 4.3% unfavorable currency translation impact [4][5][6] - The company anticipates a return to growth in 2025, supported by improved net farm income and the success of its 'One-Stop Shop' strategy in the aftermarket [2][3] Financial Performance - Gross profit for Q4 2024 was $41.2 million, a decline from $58.3 million in Q4 2023, resulting in a gross margin of 10.7% compared to 14.9% in the prior year [5][26] - Selling, general, and administrative expenses (SG&A) increased to $55.7 million in Q4 2024 from $35.2 million in Q4 2023, largely due to costs associated with the Carlstar acquisition [6][26] - The company reported a loss from operations of $17.0 million in Q4 2024, compared to a profit of $20.7 million in Q4 2023 [7][26] Segment Performance - Agricultural segment net sales decreased by 18.4% to $157.1 million in Q4 2024, with gross profit down 48.8% to $14.3 million [9][10] - Earthmoving/construction segment net sales fell by 26.9% to $116.3 million, with gross profit down 68.8% to $6.9 million [11][12] - Consumer segment net sales surged by 185.8% to $110.1 million, driven by increased sales volumes post-Carlstar acquisition, although impacted by a 4.6% negative currency translation [13][14] Cash Flow and Financial Condition - The company ended 2024 with total cash and cash equivalents of $196.0 million, down from $220.3 million at the end of 2023, while long-term debt increased to $553.0 million from $409.2 million [17][18] - Operating cash flows decreased by $37.9 million year-over-year, primarily due to lower net income, though effective working capital management partially offset this decline [19][20] Outlook - For Q1 2025, Titan expects sales between $450 million and $500 million, with Adjusted EBITDA projected between $25 million and $35 million [3] - The company anticipates a higher proportion of revenue generation in the second half of 2025, as larger OEMs are expected to complete destocking in the first half [3]

Core Viewpoint - Titan International, Inc. is set to release its fourth quarter 2024 financial results on February 26, 2025, followed by a teleconference and webcast on February 27, 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 tailored to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers across agricultural, earthmoving/construction, and consumer markets [3].

Core Viewpoint - Titan International, Inc. has successfully negotiated and ratified new four-year contracts with employees represented by the United Steelworkers, which is expected to enhance employee retention and support the company's growth strategy [1][2]. Group 1: Contract Details - The new contracts are effective immediately and share similarities with previous contracts, incorporating changes that reflect the company's appreciation for employee commitment [3]. - The contracts apply to Titan's operations in Bryan, OH (Local 890), Freeport, IL (Local 745), and Des Moines, IA (Local 164) [1]. Group 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 [3]. - The company produces a wide range of products for original equipment manufacturers (OEMs) and aftermarket customers in agricultural, earthmoving/construction, and consumer markets [3].

Financial Data and Key Metrics Changes - Revenues in Q3 2024 were $448 million, with adjusted EBITDA of $20 million and free cash flow of $42 million, indicating a focus on managing working capital during the downturn [30][32] - Adjusted gross margin decreased to 13.3% from 16.4% year-over-year, with ag segment margins at 9.6%, EMC at 8.6%, and Consumer at 22.9% [34] - SG&A expenses increased to $50 million or 11.1% of sales, primarily due to the Carlstar acquisition [35] Business Line Data and Key Metrics Changes - The aftermarket business accounted for over 45% of total revenue, down high single-digits compared to a 25% decline in OEM sales [20] - The Consumer segment showed healthier margins due to a strong mix of aftermarket business, contrasting with the lower margins in the ag and EMC segments [34][45] Market Data and Key Metrics Changes - Farmer incomes in the U.S. remain under pressure, impacting purchasing activity, but there is optimism that headwinds like interest rates and the presidential election will ease in 2025 [21] - The ag market is experiencing a second round of destocking, which is expected to conclude, potentially marking a low point in the cycle for the company [12][21] Company Strategy and Development Direction - The company is focusing on product innovation and expanding its presence in the military market, aiming to regain lost sales from years past [17][51] - Strategic partnerships and expanding the tire and wheel product portfolio are key initiatives to leverage brand strength and distribution capabilities [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current downturn, emphasizing the importance of product development and market adaptability [28][42] - There is a belief that the destocking phase will end, leading to improved sales alignment with market demand in 2025 [68] Other Important Information - The company repurchased over 1 million shares for $8.3 million in Q3 and an additional 8 million shares post-quarter, indicating a commitment to shareholder value [37] - The effective tax rate increased significantly due to foreign tax expenses, with expectations for normalization in future periods [39] Q&A Session Summary Question: Variability in segment performance and Consumer segment margins - The Consumer segment's healthy aftermarket mix contributed to better margins despite lower overall volumes in ag and EMC segments [45] Question: Drivers for the ag market recovery - Crop prices are a significant driver for equipment purchases, with management focusing on product development and market expansion rather than waiting for price increases [47][48] Question: Military contract potential and smaller tire markets - The company sees opportunities to regain military sales and believes that entering smaller tire markets can be beneficial due to less competition in specific niches [51][54] Question: Impact of volume on margins and cost pressures - Volume declines have significantly impacted margins, with some pressure from rising material costs, but the primary issue remains low volume [58] Question: Working capital opportunities - There is ongoing focus on optimizing inventory levels, which are currently heavier than desired, but management is committed to improving cash flow through working capital management [60] Question: Share count guidance - The expected share count at year-end is in the $63 million range due to recent repurchases [76]