Titan International (TWI) Conference Transcript

Titan International (TWI) Conference Summary Company Overview - Titan International manufactures wheels, tires, and steel tracks for off-road equipment used in agriculture, construction, earth moving, and utility vehicles [3][4] - The company operates over 20 manufacturing locations globally, with a significant presence in the US, Latin America, Europe, and China [4] Key Points US Manufacturing Advantages and Challenges - Titan's primary manufacturing base is in the US, with eight large plants, which allows for proximity to customers [5][6] - Challenges include competition from low-cost manufacturing countries and the need for a level playing field in global trade [7][9] - Titan has successfully defended its position in front of the International Trade Commission (ITC) three times, indicating the unfairness of global competition [9][10] Tariffs and Their Impact - Tariffs are viewed as potentially beneficial for Titan, as they may create a more level playing field [13][14] - The management believes that tariffs will lead to risk mitigation in supply chains, enhancing Titan's competitive position [15][16] - Short-term chaos due to tariffs is acknowledged, but the company is adapting its business strategy accordingly [17][19] Market Segments and Demand Drivers - Agriculture is currently in a downturn, but signs indicate a potential turnaround as farmer incomes stabilize and equipment needs updating [21][22][25] - The construction market is experiencing a pause due to geopolitical and tariff-related uncertainties, but the need for infrastructure development remains [28][29] - The aftermarket business is becoming increasingly important, as equipment usage continues despite OEM market fluctuations [29][30] Customer Base and OEM Relationships - Titan's largest customer is John Deere, with a diverse range of other OEMs in agriculture and construction [32][33] - The company is focusing on strengthening its aftermarket connections and providing a comprehensive product portfolio to meet customer needs [34][35] Innovation and Product Development - Titan emphasizes innovation to enhance equipment performance, with recent developments like LSW and VPO technologies [38][41] - The company aims to improve ROI for customers by developing products that enhance efficiency and reduce downtime [41][43] Recent Acquisition - Titan acquired Carlstar, which has diversified its offerings and expanded its market reach into high-speed trailers and outdoor power equipment [47][48] - The integration of Carlstar is progressing well, with both companies benefiting from shared resources and distribution channels [51][53] Capital Allocation Strategy - The company plans to focus on funding innovation, paying down debt, and exploring joint ventures for geographical and product expansion [54][56] - Stock buybacks were executed as part of a positive capital allocation strategy [54] Future Outlook - Titan is excited about continuing to innovate and produce high-quality products that meet customer needs [57][59] - The company aims to maintain its energized workforce and drive momentum in its operations [59][60]