Titan International(US:TWI)2025-04-30 20:40Financial Performance - Titan International reported Q1 2025 revenues of $491 million and Adjusted EBITDA of $31 million, both at the higher end of guidance[2]. - Net sales increased by 1.0% from $482.2 million in Q1 2024 to $490.7 million in Q1 2025, driven by increased sales volumes and positive price/mix effects[4]. - Adjusted net income applicable to common shareholders for Q1 2025 was $0.7 million, compared to $19.0 million in Q1 2024, reflecting a significant decline[18]. - Net income attributable to Titan was a loss of $0.6 million in Q1 2025, a significant decline from a profit of $9.2 million in Q1 2024[30]. - Adjusted net income attributable to Titan for Q1 2025 was $736,000, down from $19,048,000 in Q1 2024, reflecting a decline of approximately 96.1%[41]. - EBITDA for the three months ended March 31, 2025, was $29,438,000, compared to $39,858,000 in Q1 2024, representing a decrease of about 26.1%[42]. - Adjusted EBITDA for Q1 2025 was $30,823,000, down from $49,705,000 in Q1 2024, indicating a decline of approximately 38.1%[42]. Segment Performance - The agricultural segment experienced a 17.5% decrease in net sales, from $239.7 million in Q1 2024 to $197.7 million in Q1 2025, primarily due to reduced global demand[10]. - The earthmoving/construction segment saw a 13.3% decline in net sales, from $165.2 million in Q1 2024 to $143.3 million in Q1 2025, attributed to lower sales volume and negative currency translation[12]. - The consumer segment achieved a 93.6% increase in net sales, from $77.3 million in Q1 2024 to $149.7 million in Q1 2025, largely due to the Titan Specialty acquisition[15]. - The United States market saw a 7.0% increase in sales to $266,504,000, while Europe/CIS experienced a decline of 14.8% to $109,053,000[43]. Cash Flow and Debt - The company ended Q1 2025 with total cash and cash equivalents of $174.4 million, down from $196.0 million at the end of 2024[19]. - Long-term debt increased to $571.6 million at March 31, 2025, compared to $553.0 million at December 31, 2024[19]. - The company reported a net cash used for operating activities of $38.6 million in Q1 2025, contrasting with a net cash provided of $2.0 million in Q1 2024[34]. - Free cash flow for Q1 2025 was negative at $(53,618,000), compared to $(14,602,000) in Q1 2024, indicating a worsening cash flow situation[43]. - Net debt as of March 31, 2025, was $410,973,000, an increase from $369,471,000 as of March 31, 2024[43]. Expenses and Profitability - Gross profit decreased to $68.6 million in Q1 2025, down 11.1% from $77.4 million in Q1 2024, resulting in a gross margin of 14.0%[30][39]. - Research and development expenses rose to $4.5 million in Q1 2025, compared to $3.7 million in Q1 2024, indicating a focus on innovation[30]. - Interest expense increased to $9.5 million in Q1 2025, compared to $8.4 million in Q1 2024, reflecting higher borrowing costs[30]. - The company experienced a foreign exchange loss of $1.4 million in Q1 2025, compared to a loss of $0.3 million in Q1 2024[30]. - The company incurred foreign exchange losses of $1,385,000 in Q1 2025, compared to $275,000 in Q1 2024, highlighting increased currency volatility impacts[42]. Future Outlook - The company expects Q2 2025 sales to be between $450 million and $500 million, with Adjusted EBITDA between $25 million and $35 million[3]. - Total assets increased to $1.72 billion as of March 31, 2025, up from $1.58 billion at the end of 2024[32]. - Total liabilities rose to $1.18 billion as of March 31, 2025, compared to $1.09 billion at the end of 2024[32]. - Average common shares outstanding decreased slightly, with basic shares at 63,283,000 in Q1 2025 compared to 64,928,000 in Q1 2024[41]. - Titan announced an expanded licensing agreement with Goodyear, aimed at complementing growth initiatives and enhancing product offerings[2].