TITAN INTERNATIONAL, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 FINANCIAL PERFORMANCE

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]