Titan International(US:TWI)2025-02-26 22:23Financial 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].