Financial Data and Key Metrics Changes - Consolidated revenues grew 4% year over year, with adjusted EBITDA increasing 45% to $30 million [16][17] - Gross margins expanded by 210 basis points to 15.2%, and operating margins also improved [16] - Free cash flow reached $30 million, allowing the company to reduce net debt from $391 million to $373 million [16][18] Business Line Data and Key Metrics Changes - Agricultural segment revenues increased by over 7% year over year, driven by higher volumes, particularly in Latin America [17] - EMC segment revenues rose 6% to $145 million, primarily due to increased orders from light construction customers in the U.S. and favorable foreign exchange impacts [17] - Consumer segment sales were $132 million, a decline of just under 3% year over year, but up 14% sequentially from Q2 [17][18] Market Data and Key Metrics Changes - The agricultural market is expected to benefit from a government agreement with China to resume soybean purchases, which could improve market conditions [6][12] - Dealer inventories in the agricultural segment are decreasing, which is seen as a positive sign for future orders [8][9] - The EMC segment in Europe is experiencing stagnant demand on the OEM side but good growth in aftermarket mining [14] Company Strategy and Development Direction - The company is focused on diversifying its business, with agricultural, EMC, and consumer segments accounting for 41%, 31%, and 28% of revenues, respectively [11] - Titan is positioned as a one-stop shop for tire and wheel sizes needed in its end markets, emphasizing innovation and product development [9][10] - The company is expanding its Goodyear product portfolio, particularly in outdoor power equipment tires, which is expected to drive future growth [10] Management's Comments on Operating Environment and Future Outlook - Management believes the company is at a bottom in market conditions but anticipates a return to growth in 2026, supported by favorable interest rates and government actions [27][28] - The agricultural sector is expected to see a rebound, with government aid potentially supporting farmer income and equipment sales [12][13] - The company remains optimistic about its aftermarket positioning and expects a positive start to 2026 [52][56] Other Important Information - The company is managing working capital with discipline, which has facilitated cash flow and debt reduction [20] - The company is exploring M&A opportunities in a niche industry, focusing on lower valuations [63][64] - The Brazilian joint venture has been successfully closed, enhancing the company's market position [78] Q&A Session Summary Question: What drove the year-over-year upside in ag? - The growth was primarily driven by aftermarket improvements and increased activity in Latin America, with OEMs showing only slight improvements [26] Question: What is the outlook for ag in 2026? - The company expects a return to growth, supported by positive market conditions and government support for farmers [27][28] Question: Any insight on OEM inventory levels? - OEM inventory levels have improved, with approximately 30 days of inventory reduction observed [36][39] Question: What is driving aftermarket mining growth? - The growth is attributed to Titan's ability to produce customized cast products that meet specific market needs [40][41] Question: Why is the top-line guidance for Q4 lower despite strong Q3 performance? - The guidance reflects seasonal drops and pragmatic decisions by OEMs in preparation for the next year [46][47] Question: How is the targeting of the military market progressing? - The company is pursuing opportunities in the military market but faces challenges with the U.S. government's procurement processes [65][66] Question: Can you comment on the Goodyear brand initiative? - The company plans to develop new products under the Goodyear brand, with a focus on premium segments and higher margins [73][74] Question: What caused the decline in Asia sales? - The decline is attributed to timing and shifts in manufacturing rather than a fundamental market issue [77]