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]

Core Insights - Titan International, Inc. has expanded its production rights for the Goodyear brand across various segments, including light construction, ATV, lawn and garden, and golf tires, while renewing its licensing rights for Goodyear Farm Tires, showcasing its commitment to the agricultural sector [1][2][3] Group 1: Expansion and Strategic Initiatives - The expansion into new segments positions Titan to better serve customers and capitalize on emerging market opportunities, with ongoing research and development for innovative tire designs in the lawn and garden segment [2] - The renewal of the Goodyear brand licensing agreement aligns with Titan's growth strategy, reinforcing its commitment to enhancing product offerings and supporting end-users, customers, and distributors across multiple regions [3] Group 2: Product Portfolio and Market Position - Titan International's product portfolio includes a wide range of offerings for sectors such as forestry, powersports, outdoor power equipment, agriculture, earthmoving, and light construction, emphasizing innovation, quality, and performance [2] - The company's strategic initiatives aim to strengthen its position as a leader in the tire industry, enhancing its comprehensive "one-stop shop" solution for tire and wheel needs [3]

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]

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].