TWI

- Interested in Titan International, Inc.? Here are five stocks we like better. - Q3 results met guidance despite weak end markets: Titan reported $454 million in revenue, $28 million in adjusted EBITDA, 15% gross margin and $10 million in free cash flow. - ITM divestiture is expected to close in January: Titan plans to use a significant portion of the proceeds to reduce debt while maintaining flexibility for targeted investments and partnerships. - Agriculture remains pressured, but management sees potential improvement: Agricultural sales and margins declined sharply, while consumer margins and EMC sales improved; Titan expects 2026 may mark an agricultural-cycle floor and projects fourth-quarter revenue of $410 million to $430 million. Titan International (NYSE:TWI) reported third-quarter 2026 revenue of $454 million and adjusted EBITDA of $28 million, with President and CEO Paul Reitz saying both measures were consistent with the company's guidance despite prolonged weakness in its end markets. The company also reported a 15% gross margin and $10 million of free cash flow during the quarter. Senior Vice President and CFO Tony Eheli said results included the operations of the ITM Undercarriage business, which Titan has agreed to sell and is now reporting as discontinued operations. → Alphabet's Cloud Is Paying Off—But the Bill for Building It Keeps Growing "Delivering with that range despite the prolonged cyclical downturn in our end markets reflects our focus on the factors we can control and the value our one-stop-shop strategy provides to our customers," Reitz said. Titan announced in September that it had signed a definitive agreement to divest its ITM Undercarriage business. Reitz said the company expects the transaction to close in January, subject to customary regulatory and closing conditions. → GE Vernova's Reservations Are Turning Into Real Orders—But the Market Still Wants More. The sale is intended to support Titan's strategy as a more focused tire and wheel company. Management plans to use a significant portion of the proceeds to reduce debt while retaining the ability to invest in organic growth, acquisitions and strategic partnerships. Reitz said ITM has been an important operation but does not have the same natural synergies with Titan's wheel and tire businesses as the company's Carlstar acquisition. He said Titan does not have another large transaction pending, but it is pursuing disciplined investments that expand its product offering and market position. → Phillips 66 Posts Strong Earnings But the Stock Doesn't Care Management cited its investment in Brazilian agricultural-wheel manufacturer Rodaros and its Titan Yuxiang joint venture as examples of the type of targeted partnerships it may pursue. Titan invested $4 million for an initial 20% interest in Rodaros and has committed to acquire the remaining stake in 2029, with valuation based on financial-performance criteria. Net debt, including ITM, stood at $406 million at the end of the third quarter, down from $413 million at the end of the second quarter. Eheli said the company does not expect significant tax leakage from the ITM sale. He also said the divested business had been operated separately, and Titan does not anticipate material cost dis-synergies from its departure. Titan's agricultural segment faced the sharpest pressure among its businesses during the quarter. Segment sales fell 12% from the prior-year period as activity in the United States remained subdued and conditions in Brazil weakened. Agricultural gross margin declined to 7.6% from 13.2% a year earlier, reflecting reduced fixed-cost absorption and higher input costs. Eheli said elevated financing, fuel and fertilizer expenses continued to weigh on agricultural equipment demand. In Brazil, management pointed to high interest rates, inflation linked to the Iran war, elevated inventories and uncertainty tied to the country's presidential election. Reitz said Titan expects Brazil's agricultural market to remain difficult through the fourth quarter and first quarter regardless of the election outcome. However, he said the company was already prepared for that environment, including planned shutdowns by customers and Titan's own cost-management actions. Management sees 2026 as a potential floor for the agricultural cycle and expressed cautious optimism for improvement in 2027. Reitz cited higher grain prices than a year ago, potential support for farmer incomes, low channel inventories and the possibility of lower interest rates as factors that could help spur replacement demand for aged equipment. "We don't need the market to return to peak for us to benefit from a market," Reitz said. "We need the market to improve and the volumes and the flow-through will help us at the production absorption cost level quite meaningfully." Consumer-segment sales declined 3% year over year, although the comparison was affected by stronger purchasing activity in the third quarter of 2025 after customers had drawn down lower-cost inventory earlier that year. The segment's gross margin increased to 27.6%, including $3.5 million of net tariff refunds. Excluding those refunds, gross margin rose to 24.7% from 23.4% in the prior-year quarter. Reitz said the consumer aftermarket has remained a relative bright spot as customers continue maintaining existing equipment while demand for new equipment stays weak. He added that Titan has been securing original-equipment business through product innovation, with new product wins expected to support sales in 2026 and contribute further in 2027. In the Earthmoving/Construction segment, or EMC, sales increased 5% to $57 million. The improvement was driven primarily by Europe and by U.S. products sourced through strategic suppliers. EMC gross margin improved to 7.1% from 6.1% in the prior-year period. Titan will continue reporting EMC as a segment following the ITM divestiture. Reitz said its remaining EMC operations include wheels and tires used mainly in construction and industrial equipment, which management views as an area with growth potential. For the fourth quarter, Titan expects total revenue of $410 million to $430 million and adjusted EBITDA ranging from breakeven to $7 million, inclusive of ITM. The outlook assumes ITM revenue of $115 million to $120 million and about $10 million in adjusted EBITDA. - Fiscal 2026 revenue guidance: $1.85 billion to $1.87 billion, including $465 million to $470 million from ITM. - Fiscal 2026 adjusted EBITDA guidance: $91 million to $101 million, including about $40 million from ITM. - Expected additional net tariff refunds: approximately $6 million, currently anticipated in the fourth quarter. Eheli said Titan's fourth-quarter profitability outlook reflects a more difficult cost environment than the prior year, including higher energy and material costs, pricing lags and reduced Brazilian volume. The company expects tax expense in the fourth quarter to be similar to the approximately $200,000 recorded in the third quarter. Operating cash flow from continuing operations was $29 million in the third quarter, compared with $19 million a year earlier, as Titan focused on working-capital management. Capital expenditures were $6 million, down from $8 million in the prior-year period. Titan International, Inc (NYSE:TWI) designs, manufactures and sells wheels, tires and undercarriage systems for off-highway vehicles and equipment. Its products are used in agricultural, construction, earthmoving, mining and other industrial applications, with offerings that include specialized tires, wheels, wheel assemblies, tracks and related components. The company serves original equipment manufacturers and replacement, or aftermarket, customers. Its products are used on tractors, combines, planting and harvesting equipment, loaders, graders, haulage vehicles and other heavy-duty machinery. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Titan International (TWI) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Image source: The Motley Fool. Thursday, Oct. 29, 2026 - President and Chief Executive Officer - Paul Reitz - Senior Vice President and Chief Financial Officer - Tony Eheli Operator: Good morning, ladies and gentlemen, and welcome to the Titan International, Inc. Third Quarter 2026 Earnings Conference Call. [Operator Instructions]. On the call today are Paul Reitz, Titan's President and CEO; and Tony Eheli, Titan's Senior Vice President and CFO. We will begin with a reminder that the results management is about to review were presented in the earnings release issued this morning, along with Titan's Form 10-Q, which was also filed with the Securities and Exchange Commission this morning. As a reminder, during this call, management will be discussing certain forward-looking information, including the company's plans and projections for the future that involve risks, uncertainties and assumptions that could cause our actual results to differ materially from the forward-looking information. Additional information concerning factors that either individually or in the aggregate could cause actual results to differ materially from these forward-looking statements can be found within the safe harbor statement included in the earnings release attached to the company's Form 8-K filed earlier as well as the latest Form 10-K and Forms 10-Q, all of which have been filed with the SEC. In addition, today's remarks may refer to non-GAAP financial measures, which are intended to supplement, but not be a substitute for the most directly comparable GAAP measures. The earnings release, which accompanies today's call contains financial and other quantitative information to be discussed today as well as the reconciliation of the non-GAAP measures to the most comparable GAAP measures. The Q3 earnings release is available on the company's website. A replay of this presentation, a copy of today's transcript and the company's latest quarterly investor presentation will be available soon after the call on Titan's website. I would now like to turn the call over to Paul. Paul Reitz: Thanks, and good morning. Our third quarter results were solid. Revenue was $454 million and adjusted EBITDA was $28 million, both consistent with our guidance. Delivering with that range despite the prolonged cyclical downturn in our end markets reflects our focus on the factors we can control and the value our one-stop shop strategy provides to our customers. As we reported in mid-September, we signed a definitive agreement to divest our ITM undercarriage business. This transaction is an important step in our capital allocation and overall strategy as a focused tire and wheel company because it will allow us to reduce debt, invest in core growth initiatives, including M&A. We expect the sale to close in January, subject to customary regulatory and closing conditions. Until then, we are managing ITM to contribute as much as possible to our overall results, even though accounting rules require us to report it as discontinued operations. In particular, we expect ITM to generate positive cash flow during the fourth quarter. Tony will cover the financial details later. ITM has been an important business for Titan, but its products and operating model do not offer the same natural synergies as our wheel and tire businesses, including those we have realized through the recent Carlstar acquisition. After evaluating the strategic fit and the offer presented by USCO, our Board concluded that divesting ITM would better position Titan to grow its wheel and tire businesses organically, pursue potential synergistic acquisitions and, of course, reduce debt. We believe we can create greater long-term value by directing capital toward our strong position in off-road wheels and tires. In the press release announcing the transaction, we said we intend to use the ITM proceeds to reduce debt while pursuing accretive acquisitions and strategic partnerships that expand Titan's capabilities over time. Let me dig into that just a little bit further. We do not have an imminent transaction on the scale of Carlstar pending. We already hold strong positions in wheels and tires in North America, tires in South America and wheels in Europe, supported by deep experience in those markets. Our focus is, therefore, on disciplined opportunities that expand our product footprint, strengthen our customer offering and are accretive through organic investment or selective M&A. I'll give you a recent example, which is the Rodaros transaction that we mentioned last year, and that illustrates that approach. Through that deal, we partnered with the second largest manufacturer of agricultural wheels in Brazil, investing only $4 million for an initial 20% ownership stake and then committing to acquire the remaining 80% in 2029, with yet final enterprise valuation based on the financial performance criteria. I use that Rodaros example and our Titan Yuxiang joint venture to demonstrate the kind of opportunities we see ahead. Targeted investments and partnerships that close product gaps strengthen our market position and expand our capabilities with disciplined capital commitments. With that being said, let's shift gears and spend some time discussing how we view our businesses strategically going forward. We intend and will continue to report EMC as a reportable segment. During Q3, the segment revenues from continuing operations in EMC accounted for 17% of sales, so that is still a meaningful segment within the broader context of our business. From a product perspective, our remaining EMC business consists of wheels and tires that are used primarily on construction and industrial equipment. Although steel undercarriage is the majority of revenue in that segment, there is still a good range of equipment in that area that we believe has growth potential within our wheels and tires businesses and therefore, is still a good accretive business for Titan. Shifting over to the Consumer segment. We delivered a solid quarter despite the difficult comparison with last year. End market demand remains pressured by high interest rates and inflation, common stories. Our sizable aftermarket business has been a bright spot because consumers continue to use and maintain existing equipment even as demand for new equipment remains weak. On the OEM side, though, we have been winning new business with our product innovation and that new business has been coming on both existing and new equipment platforms, and that was on full display at the Equip Expo in Louisville last week. Those wins are supporting sales in 2026 despite the weaker OEM markets, and they will contribute even further to sales gains in 2027. Moving over to the Ag sector. We faced the strongest headwinds in this quarter of all our segments, driven by many of the same pressures affecting consumer. Although Ag has a sizable aftermarket business, our OEM sales represent a larger share of that segment's revenue, therefore, resulting in a year-over-year decline for this quarter. Buyers remain on the sidelines this quarter, even as many industry participants view 2026 as a potential floor. I think we agree with that comment, and we look to 2027 with cautious optimism. We believe the conditions for recovery are developing and that titan would see demand rebound quickly when customers begin investing again. Grain prices have improved from a year ago. That's a definite positive. And there are reports that farmers may use less fertilizer because of the high cost -- the remaining high cost of fertilizer. All else being equal, with that being said, lower fertilizer would reduce crop yields and again, help further support crop prices. Along with that, the government has announced support into the -- continuing support into the sector. So again, we do hold that position that this is a floor period in 2026 and look to 2027 with cautious optimism. With all that being said as well, that's positive for farmer incomes that enables them to replace aged equipment. Interest rates are always tough to predict. They're changing daily. But you do see an environment where interest rate cuts in a more improved environment for interest rates would be available and appropriate for 2027, and that would also spur demand. In addition to the macro wind shifting to drive demand, we also note that low inventory levels throughout our channels mean that any uptick in demand should flow through to the orders for wheels and tires pretty quickly. As machinery is built, wheels and tires are normally fitted fairly earlier in the process. They allow units to be moved through a plant station to station. So again, Titan would be well positioned to be beneficial -- early beneficiary of demand resumption. And again, a comment I want to remind everybody, we don't need the market to return to peak for us to benefit from a market. We need the market to improve and the volumes and the flow-through will help us at the production absorption cost level quite meaningfully. So with that, to sum things up, the remainder of this year will remain challenging, but we expect to enter 2027 with optimism for 2 reasons. First, we expect the ITM sale to close in January, strengthening our balance sheet and positioning us to invest in core growth initiatives. And secondly, as I was just talking about, the conditions for recovery are taking shape, and our market position and low channel inventories would allow Titan to respond quickly when demand returns. So with that, I will turn it over to Tony. Anthony Eheli: Thank you, Paul. Good morning, everyone, and thank you for joining us today. Against the macro backdrop and inclusive of ITM, we delivered solid results with revenue above the midpoint of our guidance range and adjusted EBITDA within our guidance range. The adjusted EBITDA was just below the midpoint of the guidance range due to the delayed receipt of some tariffs. Key figures from the third quarter included sales of $454 million, gross margin of 15%, adjusted EBITDA of $28 million and free cash flow of $10 million. As Paul noted, following the announced sale of ITM, we are reporting that business as discontinued operations in accordance with applicable accounting requirements. My remarks on the third quarter business performance will therefore focus on continuing operations, that is excluding ITM. Turning to segment performance. Our Agricultural segment continued to face pressure from elevated financing, oil and fertilizer costs. Segment sales declined 12% from the prior year period as activity in the U.S. remained subdued and Brazil slowed notably. This impacted fixed cost leverage and together with higher input costs, resulted in segment gross margins of 7.6% compared with 13.2% in the prior year period. On a positive note, grain prices, particularly corn and soybeans remain above prior year levels, which could support farmer income in 2027. Looking specifically to Brazil, we noted last quarter that activity levels were sluggish for several reasons, including uncertainties surrounding the presidential election expected to significantly affect agricultural policy, along with the higher interest rates there and broader inflationary pressures tied to the Iran war. Inventories also remained elevated following the cautious approach many market participants adopted ahead of the Brazil presidential election, and we expect those inventories will need to clear before demand resumes. Moving on to our Consumer segment. I want to first note that last year's third quarter benefited from strong sales due to the impact of U.S. trade policies and tariffs. And I've explained this during the last earnings call. As those policies were implemented in the second quarter of 2025, many market participants focused on drawing down existing lower cost inventory, thereby suppressing sales temporarily. As that inventory cleared, purchasing activity resumed in the third quarter, setting up a difficult comparison this year. As a result, segment sales declined 3% year-over-year. The gross margin for the quarter expanded to 27.6% and included $3.5 million of net tariff reforms. Excluding those reforms, gross margin improved to 24.7% from 23.4% last year. For EMC, which now represents wheels and tires only, sales grew 5% to $57 million, driven primarily by growth in our Europe business and complemented by U.S. product sales sourced externally from our strategic suppliers. And this is a growth strategy we have shared in the past. We launched several of these new products this year, and these have been well received by the market and allow us to compete and gain market share in areas in which we previously did not participate. The EMC gross margin for the quarter improved to 7.1% from 6.1% last year. SG&A, including R&D expenses, was $46 million for the quarter compared to $49 million in the prior year period, primarily due to our continued focus on cost reduction initiatives. As a percentage of sales, expenses were relatively flat at 13.8%. Operating cash flow from continuing operations was $29 million in the third quarter compared with $19 million in the prior year period. This favorable cash flow performance reflected focused execution by our team to optimize working capital investment. Capital expenditures were $6 million in the third quarter compared with $8 million in the prior year period. Year-to-date, capital expenditures are $25 million compared with $30 million in the prior year period as we continue to make prudent measured investments in the business. Tax expense was approximately $200,000 for the quarter, well below the $4 million to $5 million expectation we provided last quarter, and this is primarily due to the classification of ITM as discontinued operations. For the fourth quarter of 2026, we expect tax expense to be similar to the third quarter. Inclusive of ITM, net debt was $406 million at the end of the quarter, down from $413 million at the end of the second quarter. Upon closing the ITM sale, we intend to use a significant portion of the proceeds to further reduce debt. Turning now to our financial guidance. Inclusive of ITM for the fourth quarter of 2026, we expect revenue of $410 million to $430 million and adjusted EBITDA of breakeven to $7 million. This fourth quarter guidance includes ITM's operations forecast of revenue of $115 million to $120 million and adjusted EBITDA of around $10 million. For fiscal year 2026, our revised financial guidance inclusive of ITM's revenue of $1.85 billion to $1.87 billion and adjusted EBITDA of $91 million to $101 million. This full year guidance includes ITM operations forecast of revenue of $465 million to $470 million and adjusted EBITDA of around $40 million. With respect to additional tariff refunds, we expect approximately $6 million of refunds net. We currently expect to receive the refunds in the fourth quarter, while the timing remains subject to applicable government review and processing procedures. We intend to reinvest the proceeds back into the business with a focus on initiatives that enhance our product offerings and deliver greater value to our customers. Looking ahead, any improvement in macroeconomic conditions, including lower interest rates and easing input cost pressures could support a more robust demand environment in 2027. I will now turn it over to the operator for the Q&A session. Operator: [Operator Instructions] Your first question comes from the line of Joe Gomes with NOBLE Capital. Joseph Gomes: So just on the ITM, real quick on a technical. When do you think you'll have out, I haven't seen them yet, the adjusted numbers for the first and second quarters? Anthony Eheli: Yes. Joe, I think that's something we haven't provided. And looking at what we're supposed to provide, that's really not something we're looking at. However -- but with full year, you have the full year for prior year. I mean that would be able to give you the numbers for the full year. And it would be able to give you some -- what to expect quarterly from that I think. I think, you'll be very clear. Joseph Gomes: Okay. So on to the question, with the sale of ITM, how does that impact your previous $250 million mid-cycle adjusted EBITDA framework? Where do we -- kind of where should we look at now as a mid-cycle base for adjusted EBITDA? Anthony Eheli: Yes. Thanks for that question. We will be -- we're actually discussing that internally as we evaluate what the opportunities are going forward, and we will be coming up with an update on that. Joseph Gomes: Okay. And then Paul, I recall last year, this time, it was thought that '25 was going to kind of be the bottom for the Ag cycle in '26, we'd start to see some improvement. Obviously, that hasn't come through. I mean you give us a list of things that you think give you cautious optimism into '27. But we had that same kind of cautious optimism going into '26. And I guess the question is, what's different this time? Paul Reitz: Really, the duration, like you alluded to in your question, Joe, I mean, it's the duration. It's getting long in the tooth. When we talked about the market improving in 2026, it was based upon information that came from our customers and forecasts we had seen. Obviously, that was a false start. We've seen this year have tremendous amount of ups and downs with the -- obviously, the geopolitical environment with the inflationary pressures of fuel, fertilizer and then you throw in a volatile interest rate market. And so that's created some unusual trends in farmer sentiment. We saw some, what I would call, another false start about a month ago and 1 to 3 months before that. And so I think you look at it and go with the duration of all these false starts. I mean, eventually, it's going to be real. And again, all those factors that we've been discussing and listed again today are really good reasons why when the market gets any type of footing, it will definitely go up. We see the impact in our business operating at these levels as others are. We feel very optimistic that with the additional volume, the flow-through will be strong to the bottom line because operating where we are right now, taking days out of our schedule like we are in Q4 with the normal shutdowns that you have with the holidays, it's painful and it's costly. So again, I think with the market turning, we'll see a really nice positive uptick on the flow-through when we can run our plants. But back to your question, we're feeling it around us. We have -- throughout the course of this year, we've seen drop-in orders at times. Again, I'm not calling them a start to a rebound. There's been drop-in orders where people need inventory. And Titan's strength is we can fill those. We remain the leader in our space with our production capabilities. And so we've been servicing those drop-in orders, both on OEM, and we've seen it on the aftermarket side. I mean we have some strong aftermarket results in October that tell us the market has potential. If inventories get low, people want to replenish them. And hopefully, we'll get back to a building cycle in 2027. And then I think it will be, again, very positive to Titan because those inventory levels are low. So we're watching it closely. I'd love to tell you a definitive start date from when the market will turn. But I think all those variables do add up, Joe, to a period of time in 2027 where the markets will get better. Operator: Your next question comes from the line of Mike Shlisky with D.A. Davidson. Michael Shlisky: Just looking at your guidance here in the fourth quarter, you basically have almost -- it could be as low as 0 margin, but a pretty low margin in the fourth quarter, again, almost nothing. In the past, though, even just last fourth quarter, you got EBITDA margins of at least 3%, $10 million worth of EBITDA and sales were only about $410 million. So I'm curious as to kind of this year, why you can't make any money at $410 million to $430 million. Anthony Eheli: Mike, the environment is different this year versus last year, very different. I mean, last year, we did not have the Iran war with the level of energy cost increases and general inflation increases we're seeing and the impact on business. So it's a very different operating environment. And when we compare the 2, there's -- material costs are a major piece of that. And we do what we can as a company to pass on those costs. And in some cases, as we've said before, our price lags the material cost, and we continue to see those energy costs and inflationary cost increases, continue to lag in those -- so we continue to chase the material cost increase from a price perspective. However, realistically, as a business, we'd have to look at whether we can pass on 100% and determine the right approach forward. So that's a big difference when we look at the performance. And of course, there's the volume impact of Brazil itself. Brazil is significantly down just given where the economy is at year-over-year. So that's a huge piece of the volume impact we're seeing year-over-year. Even though on the top line, you may see sales, a lot of that is price, price that relates to material costs that we have passed on already. There's still a lot that we need to pass on. And it's a lag. Michael Shlisky: Got it. Got it. All right. And then for my follow-up, I'm just curious whether -- are there any dissynergies or costs that were being absorbed by having ITM in the portfolio that you'll have to start bearing after ITM is out. So just trying to figure out whether there's any kind of margin impact to the rest of the business if ITM isn't there anymore, producing or front or back office, et cetera. Paul Reitz: No, there isn't. Yes, yes. Thanks for that. The short answer is no. ITM was run as a very separate business. And that's why we said there's not a lot of synergies with it. So I think there's good opportunities going forward. But in terms of the cost, there's nothing like that in terms of the synergies. Operator: Your next question comes from the line of Stephen Ferazani with Sidoti. Steve Ferazani: I know it's been a very busy few weeks for you guys with a lot going on in all of your segments and then to announce this transaction. Paul, I just want to start with -- because I've covered you for a few years now, and I know the first year I covered you, the ITM potential transaction was talked out a lot, particularly by investors. It sort of wasn't discussed so much in the last couple of years. So this was a little bit of a surprise. Can you walk through the reason for the decision now? It sounds like you just got the offer you wanted, but was there anything more to it? Paul Reitz: No, I think -- that is the best way to characterize it. The Board put in strong governance around this process. Like you said, the discussions have taken place over a period of time and they continue to receive further valuations sort of off and on. That's why at times we would speak of it and at times, it would sort of go quiet, not something that we were trying to force. So again, with the strong governance by the Board, the discussions gained steam throughout this year. And like you said, we reached a point where the valuation made sense and strongly view it as a win-win for both sides and the decision was made. And so that's really how the timing took place. There's not any other variables to it. Steve Ferazani: And I do want to follow up the last question you got from the -- previously, which was around, obviously, when you sell a business that was generating this much revenue, and it was, I know, a pretty separately run business, you're going to have the impact of that negative operating leverage. The flip side being your balance sheet looks much, much better. But how do you and the Board think about that in terms of the new profile and sort of filling that gap? Paul Reitz: Yes. Look at it from 3 angles. First is, keep that balance sheet strong, reduce debt, have a strong balance sheet, like you said, and that will enable the opportunities to pursue growth initiatives. We view we have a strong organic platform for growth. Going back to the question asked earlier, when we model that $250 million mid-cycle, a lot of the growth and the benefits we saw to growth in sales in the future was coming from wheels and tires. That's how we modeled that $250 million. It wasn't that ITM was going to grow at the same rate of wheels and tires. So we feel strongly that there are organic growth initiatives and we feel as well there are opportunities to pursue accretive and strategic M&A. And I'm careful when I say that. And I want to look to what we've done recently, and I highlighted in my comments with Rodaros and Yuxiang, building up strong joint venture partnerships that require some equity with the potential to then go above either the 50% threshold or all the way up to 100% and then therefore, consolidate the results exists with both Yuxiang and Rodaros, and they're very accretive businesses to Titan, especially Yuxiang. I've talked about that once, I won't belabor it. I look at Carlstar and the acquisition point multiple for that was attractive for Titan shareholders. The business has performed well. You see it in our Consumer segment. Again, the future is bright for what we have done since we've acquired that business, walk around the Equip Expo last week and see our products on OEM fitments that they weren't there a few years ago. So again, we look at opportunities to take our product platform, our geographical production footprint, and grow within the wheel and tire space. But we're going to do it with the mindset that we got to protect our balance sheet. And our Board is aligned with that. And so again, I think all the reasons lined up to pursue the divestiture of ITM, believe we got it done. I know we got it done successfully at a good valuation and now it gives us the opportunity to protect the balance sheet and grow the business through our initiatives. And again, that's how we always envision the company before when we talked about a $250 million midpoint. We got to back out the ITM part and Tony already highlighted that. But our growth was coming from wheels and tires. Steve Ferazani: Got it. Very helpful. I do got go back on the 4Q guidance, which is probably a little bit softer than a lot of us were looking at. Historically, if you were entering a better year on the Ag side, you'd start seeing it as early as 4Q. It sounds based on this guide, though it sounds like you're seeing some impact on EMC as well. How do you think about the ability to recover if you aren't seeing strength early in 4Q for sort of the new model year? How do we need to think about that? Should we be concerned? Paul Reitz: Well, there is some recovery when you look at it sequentially and year-over-year. We are seeing some growth, and that does impact our Q4, meaning we are going to have to, in certain parts of our business, build ahead and put it in inventory versus realize it as sales, because, again, managing labor effectively is the best way to put it. So there is some movement going on in Q4 that will be related to future sales in Q1. So there is some growth. But what we are seeing from customers because of the geopolitical inflationary interest rate environment, everybody is being cautious. So, we are not lacking growth for next year. There is growth available and being forecasted for next year. So I want to be clear on that. And again, some of those costs and the impact will be absorbed into Q4 because we do have some shutdown days built in. We got the holidays. And so we're going to be running our plants with no sales related to that in preparation for, again, some increase in visibility into forecast for Q1. Steve Ferazani: I mean, certainly, we all heard it late summer when one of the biggest players called this year the bottom in the Ag equipment. But that was late summer. We're -- now Iran conflict continues. And I know you can't characterize that comment. But do you think the optimism given the length this thing is going on and no clear end date, depending on who you ask? Does that -- I mean we've got the government payments announced since. But how do you characterize the shift in your customers now versus, say, late August? Have you seen a significant change? Paul Reitz: I would just take out the adjective. There's been a positive change. We feel it as we go through our modeling for 2027, which we'll be doing in November, there is growth. And that's what we're modeling. That's what the expectations are. That's what we're seeing in the market from our customers. But it's always with that word cautious in front of it. Nobody is willing to say there's a significant growth. But I do see a positive change, both internally and externally, from where we were in August to where we are today. We -- despite what you saw in the farmer sentiment index where it went up and then it went back down and farmer -- crop prices have gyrated as well, I think it goes back to some of the things we've been talking about, the long duration, the low inventory levels. And really, the reality is that something is going to change positively. That we hopefully see that we can put the word significant in front of there. We do see growth. Steve Ferazani: We're all waiting for that. Paul Reitz: It would be great to say it's significant growth. Steve Ferazani: Got it. Got it. Very helpful. If I could jump one more in, just in terms of, I guess, for Tony and for you, Paul. The next time we hear from you, you'll be reporting 4Q. At that point, you're probably going to be offering up guidance without ITM. So, for us on this side, we got to try to model 2027, as you can imagine, without it. Any kind of -- Tony, any kind of tips you want to offer we can see your 3Q? Is there anything specifically beyond the normal seasonality? I know ITM is Europe-based. Anything -- and we have some 2025 numbers. Just anything you can offer, and we can follow up after the call to help us when we start thinking about 2027. I know you obviously clearly don't want to guide right now, but anything you can help us because we're going to have to model it. Anthony Eheli: Yes. I appreciate that question. Yes, obviously, we can talk more after the call. But when we look at seasonality in the business, as you know, it's really the second half. It's really mainly Ag. There's some of that in consumer. ITM is not as such as seasonal as the rest of our businesses in Q4. So the fact that we have Q3 and Q4 gives a perspective to what it's going to look like. The earlier part of the year is not as seasonal even when we look at ITM. So I think that will be a good way for you to look at it as you think about next year. Operator: Your next question comes from the line of Kirk Ludtke. Unknown Analyst: Just a couple of follow-ups. You mentioned Brazil was weak, and I'm curious if not -- and I'm sure it's early days, but do you have any early read as to how the election results might impact the business? Paul Reitz: They're digesting it. We were just down there a couple of weeks ago, so pre-election. And certainly, it was a surprise. But I would say -- I would characterize it this way. I mean the Brazilian Ag market, not talking again to the overall broader economy, but the Ag market was already expecting a very difficult Q4 and Q1, regardless of the election results. And so I don't think that perspective is going to be altered. And we saw the Brazilian stock market go down 20%. But from the Ag space, we were already planning and already scheduling to be shut down. Our customers had significant shutdowns planned for Q4, Q1. We believe Brazil Ag will start off the year difficult. Tony talked about that in his comments, the impact it had on our business when you look at year-over-year Q4. I see that going into Q1, and that's irrespective of the election results. Looking at it, again, from my vantage point, Ag is so important to that economy. If I was leading a country, I would really not want to turn my back on the farmers in that community and what it means to the overall broader economy. So I don't think there was a ton of support in place already for farmers when you look at what's been going on in the last 12 months. Some of the benefits they had for farmers in the past had been already pulled back, kind of resulting, as I said, in a weaker Ag environment in Brazil. So I don't know how it gets worse unless they just don't like to eat in Brazil, and down there, they got great food. So I don't think that's going to happen. I think -- so I think you're already seeing the worst of it. And we were already prepared here at Titan, regardless of the election results. The impact it has on the broader economy could be negative as the market has indicated. But I think from the Ag space, it's already been -- it's in our results, our forecast that we discussed and really all our preparations. Our team is exceptional in Brazil. Kirk, they -- we've worked with them since year 1 of being down there. They know how to manage costs, make changes and deal with a volatile market in Brazil. So I'm confident that Titan will do that, and we were already prepared for that. Unknown Analyst: Got it. That's very helpful. Follow-up on ITM. Are there any use of proceeds that you'd call out, any cash taxes, debt you have to pay down, any letters of credit you have to put up cash for, anything like that, that might be a use of cash? Anthony Eheli: Yes. Just -- I mean, from the proceeds, we've said we're going to focus primarily -- first of all, we'll pay down debt, strengthen our balance sheet. So that's going to be the first thing we're going to do. In terms of taxes, we don't expect any significant tax leakage. Unknown Analyst: Got it. And with respect to the guidance, I might have missed this, but did you break it out between the continuing and discontinued ops? Anthony Eheli: Yes. Yes, I did. I gave the guidance inclusive of ITM, but I also called out ITM's forecast for Q4 and the full year. I can easily say it again. ITM, the sales range for Q4 is $115 million to $120 million and around $10 million of EBITDA. That's for the Q4. And for the full year, it's $465 million to $470 million on sales. And then for EBITDA, it's around $40 million. Unknown Analyst: Got it. I appreciate that. And then with respect to material costs, I remember over the years, you've emphasized contracts that were longer term and also had material pass-through provisions. I'm just curious if that mitigates at all what you're seeing out there? Anthony Eheli: Yes, we have those. And we are getting the price on that, and that's why I talked about the lag. That's why our OE customers -- our major OE customers, that's why we have that lag because the prices that OE customers do not adjust immediately every day or every week or monthly, but some adjust quarterly, some adjust twice a year. So there is a lag. And when you have a situation where inflation and cost increase are continuing to go up, yes, you have prices that you're getting, but you're kind of continually changing the material cost increase with your price. At some point, when that -- those cost increases stop and costs level out, then you will see that improvement in the margin. Then you will see the benefit of -- because you would then get price without a cost increase. But yes, it is in our contracts, and we're executing on those. Unknown Analyst: Got it. I appreciate it. And then lastly, I remember ITM was -- and this may have changed, but I remember that you felt like it was -- had a lot of working capital requirements. And I'm just curious if that changes -- when we forecast going forward, will the company's working capital requirements be less than they have been in the past because ITM is out of the mix? Anthony Eheli: Yes, it will be less. It will be less, just given that, like you said, the business uses more working capital than the other parts of our business. So yes, that will be different going forward. And you can see some of that in the -- in how we drove cash flow in the third quarter. You can see some of that there. Operator: And your next question comes from Derek Soderberg with Cantor Fitzgerald. Derek Soderberg: I was wondering if you could talk a bit about competition, if you're seeing any change there, particularly from low-cost importers. Are your customers importing more from China this year versus last? Can you talk about any of that or any change you're seeing in competition? And then I've got a follow-up. Paul Reitz: Yes. I don't think there's been any change. It's always present. It's been a factor of our industry and our business for a period of time. So has there been a dramatic change? No. Do they -- especially India, do they operate unfairly at times? Yes, we've proven that. I've mentioned that a number of times on the calls, and you can go look at the judicial files that will support that statement. So we do see some tactics that going -- they have unfair practices, but we do see some tactics at times where they'll take containers and they'll drop them and they'll give a year payment terms, et cetera. But that's been going on before. So I don't consider that a change. I'm just kind of illustrating what the market is. So I don't think our business is being impacted by significant changes in how our competition operates. We do also employ a lot of low-cost manufacturing ourselves. So I kind of shift gears and bring it internal instead of external. It's a significant part of our business. We have excellent operations in some low-cost countries, and we have strong partners that we use as third-party manufacturing in low-cost countries because that's what our customers and the market dictates. And so -- what we have that's different than the competition or better than the competition is we have a combination of a strong production footprint that we control, therefore, bringing risk mitigation along with the strength we have of low-cost manufacturing and partners and joint ventures. And with that, we have incredible brands, incredible distribution relationships and partners there. And so the way we view the market, Derek, is that, that is the way it is, and we are going to win and compete within it and adjust our business model accordingly. And so one of the things we do see different now internally versus 5 years ago is how we operate as well. So I'm not going to just say it's external, we've changed. So our business model now going -- it has been and it will be going forward is we are going to be the best of both worlds. And we will win because we bring something to the table that the others don't. And that is, again, we can produce and mitigate risk to our customers. You are not going to be reliant on all the craziness that exists in the world of geopolitics, currencies, et cetera, because you can rely on Titan to say, if you need low cost, we can do that. But guess what, we can also get you products made by ourselves directly to your plants with no risk. So that's how we're going to win. Operator: And there are no further questions at this time. I will now turn the call back to Mr. Reitz for closing remarks. Paul Reitz: I appreciate. I appreciate everybody's attention with our Q3 results and call today, and we will be back with you for Q4. Have yourself a great day. And appreciate it. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Titan International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Titan International wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $334,793!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,257,420!* Now, it's worth noting Stock Advisor's total average return is 874% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 31, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Titan (TWI) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Management is divesting the ITM undercarriage business to focus capital on the core wheel and tire segments, citing a lack of natural synergies between undercarriage products and the company's primary operating model. - The Agricultural segment faced the strongest headwinds this quarter, with OEM sales declining as high interest rates and inflation kept buyers on the sidelines. - Consumer segment performance was bolstered by a resilient aftermarket business, which management notes remains a bright spot as customers maintain existing equipment despite weak new equipment demand. - EMC segment growth (excluding ITM) was driven by expansion in the European business and the successful launch of new products sourced from strategic external suppliers. - Sluggish activity in Brazil is attributed to elevated interest rates, inflationary pressures from the Iran war, and market participants adopting a cautious stance ahead of the presidential election. - The Carlstar acquisition is being used as a blueprint for future growth, with management highlighting new OEM business wins on existing and new equipment platforms. - Management views 2026 as a potential cyclical floor for the Ag sector and expresses 'cautious optimism' for a 2027 recovery driven by improved grain prices and potential interest rate cuts. - Low inventory levels across distribution channels are expected to result in a rapid rebound for Titan once demand resumes, as wheels and tires are fitted early in the machinery manufacturing process. - Proceeds from the ITM sale, expected to close in January 2027, are earmarked for debt reduction and disciplined, accretive M&A opportunities rather than large-scale imminent transactions. - Q4 2026 guidance assumes seasonal holiday shutdowns and a strategy of building inventory ahead of anticipated sales growth in Q1 2027. - The company expects to receive approximately $6 million in net tariff refunds in the fourth quarter, which will be reinvested into product enhancement initiatives. - ITM is now reported as discontinued operations, though it is expected to generate positive cash flow during the fourth quarter prior to the sale closing. - The company reported $3.5 million of net tariff reforms in the Consumer segment during Q3, which contributed to gross margin expansion. - Management noted that ITM has higher working capital requirements than the core business, meaning the company's overall working capital needs should decrease post-divestiture. - Management is currently re-evaluating its previous $250 million mid-cycle adjusted EBITDA framework following the decision to sell ITM. - Paul Reitz clarified that the original growth projections for that framework were primarily modeled on the wheel and tire businesses rather than ITM. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management acknowledges previous 'false starts' in market recovery but believes the current downturn's duration and low channel inventories make a 2027 rebound more likely. - The company is seeing positive changes in modeling for 2027 based on customer forecasts, though they maintain the qualifier 'cautious' due to geopolitical and inflationary volatility. - Low Q4 EBITDA guidance is attributed to a different operating environment than the prior year, specifically higher energy costs and general inflation linked to the Iran war. - Management noted a lag in passing through material cost increases to major OE customers, as those contracts typically adjust only quarterly or twice a year. - Management confirmed there are no expected dissynergies or stranded costs from the ITM sale because the business was already operated as a separate entity with its own front and back-office functions. - Titan is countering low-cost competition by utilizing its own low-cost manufacturing sites and joint ventures while offering domestic production to mitigate customer risk from geopolitical and currency volatility.

Agricultural and farm machinery company Titan (NYSE:TWI) reported earnings that beat analyst estimates. However, next quarter's revenue guidance of $420 million underwhelmed, coming in 1.3% below analysts' consensus estimates. Its non-GAAP loss of $0.03 per share was $0.02 above analysts' consensus estimates. For more on Titan International, read our full research report. - Revenue $335.2 million ($454 million inclusive of discontinued operations) vs S&P analysts' consensus estimates of $448.8 million - Adjusted EPS -$0.03 vs S&P analysts' consensus estimates of -$0.05 ($0.02 beat) - Adjusted EBITDA $28.15 million vs analysts' consensus estimates of $27.91 million (8.4% margin, 0.9% beat) - Revenue guidance $420 million at the midpoint for Q4 2026, below analysts' consensus estimates of $425.4 million - EBITDA guidance $96 million at the midpoint for the full year, below analysts' consensus estimates of $101.7 million - Operating margin -0.3%, down from 2.2% in the same quarter last year - Free cash flow margin 2.9%, down from 6.4% in the same quarter last year - Market capitalization $427.3 million Titan International was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.9% was weak for an industrials business. That outcome is unsurprising given its low gross margin baseline. Looking at the trend in its profitability, Titan International's operating margin decreased by 8.1 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Titan International's poor performance indicates that costs were rising and it couldn't pass them on to its customers. This quarter, Titan International's breakeven margin was -0.3%, down 2.5 percentage points year on year. Its operating margin decreased more than its gross margin, suggesting it was less efficient as expenses such as marketing, R&D and administrative overhead increased. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Titan International's EPS declined by 20.6% annually over the last five years while its revenue grew by 1.4%. This shows the company became less profitable on a per-share basis as it expanded. We can take a deeper look into Titan International's earnings to better understand the drivers of its performance. As we mentioned earlier, Titan International's operating margin declined by 8.1 percentage points over the last five years. Its share count also grew by 3%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Titan International, its two-year annual EPS declines of 54% show it has continued to underperform. These results were poor by any measure. In Q3, Titan International reported adjusted EPS of negative $0.03, down from $0.04 in the same quarter last year. Despite falling year on year, the result comfortably exceeded analysts' consensus estimates. Over the next 12 months, Wall Street expects an improvement. Analysts forecast Titan International's full-year EPS will turn from negative $0.20 to positive $0.10, according to S&P. Titan International's quarter was softer overall, with full-year EBITDA guidance missing expectations. There were positives: EPS beat analysts' consensus estimates, and EBITDA narrowly topped Wall Street's consensus. Shares remained flat at $6.63 immediately after the results. The latest quarter is just one factor in assessing Titan International's longer-term business quality. Quality, combined with valuation, can help determine whether the stock is a buy. For more on the company, read the full research report here (it's free).

WEST CHICAGO, Ill., Oct. 29, 2026 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) ("Titan" or the "Company"), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, today reported financial results for the third quarter ended September 30, 2026. The full earnings release including a reconciliation of GAAP to Non-GAAP figures can be found in the investor relations section of the Company's website at https://ir.titan-intl.com/news-and-events/news-releases/default.aspx. Q3 2026 Key Figures for Continuing Operations - Revenues of $335 million ($454 million, inclusive of discontinued operations) - Gross margin of 14.7% - Adjusted EBITDA of $16 million ($28 million, inclusive of discontinued operations) - Generated Free Cash Flows of $23 million Paul Reitz, President and Chief Executive Officer, commented, "Inclusive of ITM, which is reported in our Q3 financials as discontinued operations, our revenues for the quarter of $454 million were above the midpoint of our guidance while Adjusted EBITDA of $28 million was also within our guidance range. Our One Stop Shop strategy enabled us to deliver solid financial results despite current market conditions. Focusing on our reported results which exclude ITM from continuing operations, EMC sales grew 5% with improved margins during the quarter while Consumer segment sales were down 3% albeit versus an abnormally strong Q3 last year. Our Ag segment declined 12% as farmers remained on the sidelines due to high interest rates, diesel and fertilizer costs and other macro concerns that continue to impact overall economic activity." Mr. Reitz continued, "Toward the end of the quarter we announced an agreement to sell our ITM business. As we noted in that announcement, our Board of Directors believe that the sale of ITM empowers Titan to focus on growing our global wheel and tire businesses while also utilizing the proceeds to reduce our debt. ITM is a high-quality business but has limited synergies relative to our wheel and tire operations. As we continue to execute our strategic plan, we expect to energize our value creation by extending our leadership position in our wheel and tire businesses and intend to utilize proceeds from the transaction to support that strategy. We are progressing through the regulatory process and continue to expect the transaction to close in early January 2027." Mr. Reitz concluded, "Macro uncertainty along with elevated interest rates, fuel and fertilizer costs continue to weigh on activity in our end markets, which has been the story throughout 2026. At the same time, we believe the building blocks for a resumption of growth are present. An aging machinery fleet continues to create pent-up replacement demand, while wheel and tire inventories across our distribution channels remain at relatively low levels. Although corn prices are down from recent highs in August, they are still above year-ago levels, as are soybean prices, which bode well for farmer incomes. I am confident that a resumption in end market demand will flow through to suppliers such as Titan rather quickly. We have also strengthened our strategic position with customers through innovative products and solutions, which we expect will support growth despite challenging market conditions." Third Quarter and Fiscal Year 2026 Outlook Tony Eheli, Chief Financial Officer added, "Inclusive of ITM operations, we are updating our fourth quarter and full-year guidance to reflect the effect of current market conditions. We currently expect fourth quarter sales of between $410 million and $430 million, and Adjusted EBITDA of between break even and $7 million. Our current expectations for FY 2026 are for sales between $1.85 and $1.87 billion and Adjusted EBITDA of between $91 million and $101 million." Results for the 2026 third quarter and nine months reflect the classification of the Company's Italtractor ITM undercarriage business ("ITM") as discontinued operations in connection with its previously announced pending sale to USCO S.p.A. ("USCO"). The transaction is scheduled to close in January 2027. About Titan Titan International, Inc. (NYSE: TWI) is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products. Headquartered in West Chicago, Illinois, the Company globally produces a broad range of products to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agricultural, earthmoving/construction, and consumer markets. For more information, visit www.titan-intl.com. Safe Harbor Statement This press release contains forward-looking statements. These forward-looking statements are covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "plan," "would," "could," "potential," "may," "will," and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, these assumptions are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond Titan International, Inc.'s control. As a result, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to, the effect of a recession on the Company and its customers and suppliers; changes in the Company's end-user markets into which the Company sells its products as a result of domestic and world economic or regulatory influences or otherwise; changes in the marketplace, including new products and pricing changes by the Company's competitors; the Company's ability to maintain satisfactory labor relations; unfavorable outcomes of legal proceedings; the Company's ability to comply with current or future regulations applicable to the Company's business and the industry in which it competes or any actions taken or orders issued by regulatory authorities; availability and price of raw materials; levels of operating efficiencies; the effects of the Company's indebtedness and its compliance with the terms thereof; changes in the interest rate environment and their effects on the Company's outstanding indebtedness; unfavorable product liability and warranty claims; actions of domestic and foreign governments, including the imposition of additional tariffs; geopolitical and economic uncertainties relating to the countries in which the Company operates or does business; risks associated with acquisitions, including difficulty in integrating operations and personnel, disruption of ongoing business, and increased expenses; results of investments; the effects of potential processes to explore various strategic transactions, including potential dispositions; fluctuations in currency translations; risks associated with environmental laws and regulations; risks relating to our manufacturing facilities, including that any of our material facilities may become inoperable; risks relating to financial reporting, internal controls, tax accounting, and information systems; and the other risks and factors detailed in the Company's periodic reports filed with the Securities and Exchange Commission, including the disclosures under "Risk Factors" in those reports. These forward-looking statements are made only as of the date hereof. The Company cautions that any forward-looking statements included in this press release are subject to a number of risks and uncertainties, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events, or for any other reason, except as required by law. View original content to download multimedia:https://www.prnewswire.com/news-releases/titan-international-inc-reports-third-quarter-financial-results-302922816.html

Agricultural and farm machinery company Titan (NYSE:TWI) will be announcing earnings results this Thursday before market open. Here's what to look for. Titan International beat analysts' revenue expectations last quarter, reporting revenues of $484.8 million, up 5.2% year on year. It was a satisfactory quarter for the company, with a beat of analysts' EPS estimates but full-year EBITDA guidance meeting analysts' expectations. Is Titan International a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members. This quarter, the market is expecting Titan International's revenue to decline 3.8% year on year, a reversal from the 4.1% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Titan International has missed Wall Street's revenue estimates multiple times over the last two years. Looking at Titan International's peers in the heavy machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 5.2%, beating analysts' expectations by 7.3%, and Wabtec reported revenues up 8.1%, falling short of estimates by 2.6%. Lindsay's stock price was unchanged after the resultswhile Wabtec was down 2.5%. Read our full analysis of Lindsay's results here and Wabtec's results here. Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the heavy machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. Titan International is down 4.8% during the same time and is heading into earnings with an average analyst price target of $12 (compared to the current share price of $6.67). ALSO WORTH WATCHING: Nvidia's Quiet Partner. Nvidia's chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don't make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.

Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Titan International (NYSE:TWI) and the best and worst performers in the agricultural machinery industry. Agricultural machinery companies are investing to develop and produce more precise machinery, automated systems, and connected equipment that collects analyzable data to help farmers and other customers improve yields and increase efficiency. On the other hand, agriculture is seasonal and natural disasters or bad weather can impact the entire industry. Additionally, macroeconomic factors such as commodity prices or changes in interest rates–which dictate the willingness of these companies or their customers to invest–can impact demand for agricultural machinery. The 5 agricultural machinery stocks we track reported a mixed Q2. As a group, revenues were in line with analysts' consensus estimates while next quarter's revenue guidance was 6.3% below. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Acquiring Goodyear's farm tire business in 2005, Titan (NYSE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles. Titan International reported revenues of $484.8 million, up 5.2% year on year. This print exceeded analysts' expectations by 1%. Overall, it was a satisfactory quarter for the company with a beat of analysts' EPS estimates but EBITDA guidance for next quarter slightly missing analysts' expectations. Titan International scored the highest full-year guidance raise of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 8.7% since reporting and currently trades at $6.99. Is now the time to buy Titan International? Access our full analysis of the earnings results here, it's free. Expanding its markets through acquisitions since its founding, Alamo (NYSE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use. Alamo reported revenues of $450.7 million, up 7.6% year on year, outperforming analysts' expectations by 3%. The business had a very strong quarter with a decent beat of analysts' EBITDA estimates and a beat of analysts' EPS estimates. Alamo scored the biggest analyst estimate beat in the group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.7% since reporting. It currently trades at $161.13. Is now the time to buy Alamo? Access our full analysis of the earnings results here, it's free. With a history that features both organic growth and acquisitions, AGCO (NYSE:AGCO) designs, manufactures, and sells agricultural machinery and related technology. AGCO reported revenues of $2.61 billion, flat year on year, falling short of analysts' expectations by 4.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts' expectations significantly and a significant miss of analysts' EPS estimates. AGCO delivered the weakest full-year guidance update among its peers. As expected, the stock is down 1.3% since the results and currently trades at $114.61. Read our full analysis of AGCO's results here. A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services. Lindsay reported revenues of $160.8 million, down 5.1% year on year. This print came in 5.1% below analysts' expectations. Overall, it was a mixed quarter for the company. Lindsay had the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is down 5.5% since reporting and currently trades at $114.44. Read our full, actionable report on Lindsay here, it's free. Ceasing all production to support the war effort during World War II, Toro (NYSE:TTC) offers outdoor equipment for residential, commercial, and agricultural use. The Toro Company reported revenues of $1.23 billion, up 8.4% year on year. This number topped analysts' expectations by 3%. It was a strong quarter as it also produced full-year EPS guidance meeting analysts' expectations and a beat of analysts' EPS estimates. The Toro Company delivered the fastest revenue growth among its peers. The stock is down 1.7% since reporting and currently trades at $97.46. Read our full, actionable report on The Toro Company here, it's free. 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Interested in Titan International, Inc.? Here are five stocks we like better. Titan International reported solid second-quarter results, with revenue up 5.2% year over year to $485 million and adjusted EBITDA of $34 million, above the high end of guidance. Free cash flow was $26 million, while net debt fell to $413 million. Consumer sales surged 27%, supported by new products, OEM wins and $4.6 million in tariff refunds, helping offset continued agricultural weakness. Agricultural sales declined 5% and margins fell, while EMC sales rose modestly and margins improved. Titan maintained its full-year 2026 guidance but expects revenue to land in the lower half of its range because of uncertain agricultural conditions. The company also expects $7 million–$9 million in additional tariff refunds and is pursuing a transformation program targeting up to $15 million in operating improvements over three years. Titan International (NYSE:TWI) reported second-quarter 2026 revenue of $485 million and adjusted EBITDA of $34 million, with management citing growth in its consumer business, tariff refunds and cost-reduction efforts as contributors to the quarter’s performance. Revenue increased 5.2% from the prior-year period, while adjusted EBITDA exceeded the top end of the company’s guidance range, according to Senior Vice President and Chief Financial Officer Tony Eheli. Free cash flow totaled $26 million, operating cash flow was $39 million, and net debt declined to $413 million at quarter-end from $441 million at the end of the first quarter. → Microsoft Just Flipped the AI Spending Narrative Overnight President and CEO Paul Reitz said Titan’s diversified model helped offset continued weakness in agricultural equipment markets. Each of the company’s three reportable segments accounted for roughly 30% to 40% of quarterly revenue, he said. Titan’s consumer segment led growth in the quarter, with sales rising 27% year over year. Eheli said the company’s Titan Specialty line saw a notable rebound in demand, and reported segment gross margin increased to 23.7% from 20.4% a year earlier. → 2 Unique Space ETFs That Could Upend the Industry The consumer segment’s results included $4.6 million of net tariff refunds that reduced cost of goods sold. Eheli noted that tariffs had also increased input costs in prior periods, making their overall effect on year-over-year comparisons difficult to isolate. Reitz attributed consumer momentum partly to new-product launches and original-equipment manufacturer wins. He said Titan has introduced more new products in its consumer business since acquiring it about two and a half years ago than had been launched in the preceding 15 years. The company is also using the Goodyear brand in its product strategy, which Reitz said could support premium pricing, margins and future growth. → MarketBeat Week in Review – 07/27- 07/31 In the earthmoving, construction and mining, or EMC, segment, sales rose 1.4% from the prior year and gross margin improved to 12.5% from 11.5%. Foreign-currency translation added 3.2% to EMC revenue. While North American construction OEM demand softened modestly from the first quarter, Eheli said productivity and cost-reduction actions at production facilities supported margins. Reitz said EMC activity had shown greater stability heading into the second half of the year. The company has significant European exposure in the segment, as well as operations in Brazil outside the agricultural market, which he said have performed well. Agricultural segment sales declined 5% from the prior-year quarter, as lower farm income and elevated financing costs continued to weigh on equipment purchases. Segment gross margin fell to 11.4% from 14.6% a year earlier, reflecting lower fixed-cost leverage and higher input costs. Management said conditions in Brazil remain particularly difficult. Eheli cited high interest rates, political uncertainty before the country’s presidential election, elevated fertilizer costs tied to the Russia-Ukraine war, and high OEM and dealer inventory levels. Reitz said Brazil’s farmers were more exposed to higher fertilizer costs because they had not purchased fertilizer in advance to the same extent as U.S. farmers. Reitz said Titan views the current agricultural downturn as exceptional rather than a structural change in replacement cycles. He said dealers have worked to reduce equipment inventory and that aging equipment, improving commodity-price conditions and better-positioned used-equipment inventories could provide a foundation for recovery in 2027. However, management no longer expects customer activity to accelerate materially in the fourth quarter ahead of an early-2027 agricultural recovery. Titan emphasized the importance of its aftermarket business, which represents about 45% of aggregate sales. Reitz said continued equipment use in farming, construction, mining and other end markets supports replacement demand for tires, tracks and related products even during softer economic conditions. For the third quarter, Titan forecast revenue of $440 million to $460 million and adjusted EBITDA of $27 million to $33 million. The company maintained its full-year 2026 guidance for revenue of $1.85 billion to $1.95 billion and adjusted EBITDA of $105 million to $115 million. However, Eheli said full-year sales are now expected to trend toward the lower half of the revenue range, representing modest year-over-year growth, because agricultural market conditions remain uncertain. The company expects tax expense of $4 million to $5 million in the third quarter. Second-quarter tax expense was approximately zero, which Eheli attributed to discrete tax benefits and the geographic mix of earnings. Titan expects an additional $7 million to $9 million in net tariff refunds over the remainder of 2026, including about $6 million in the third quarter, with the remaining balance anticipated in the fourth quarter. Management said it intends to reinvest the proceeds in initiatives aimed at improving product offerings and customer value. Chief Transformation Officer David Martin, who previously served as Titan’s CFO, outlined a transformation program focused on applying analytics, automation and artificial intelligence across manufacturing, supply chain, product development and administrative functions. Early projects include plant-level industrial analytics pilots, supply-chain analytics improvements, contract lifecycle management, an AI-driven sales tool, product-development cycle initiatives and a new human-capital-management foundation through Workday. Martin said the initiatives are intended to improve throughput, quality, inventory management, working capital, productivity and decision-making. Titan identified opportunities expected to generate up to $15 million in operating improvements over the next three years, though Martin described the target as “aggressive and aspirational.” The company expects benefits to begin in 2027, with a target of $3 million in improvements by the end of next year. Management said the transformation investments will be funded within Titan’s existing capital-expenditure plans and will not require higher CapEx. Eheli added that expected benefits from a plant consolidation are also expected to begin in the first quarter of 2027. Titan International, Inc is a leading global manufacturer of wheels, tires and undercarriage systems designed for off-highway vehicles. The company serves a diverse range of markets including agricultural, construction, earthmoving and consumer segments. Titan's product portfolio encompasses a variety of tire sizes and tread designs, steel and cast centers, wheels, tracks and complete wheel‐and‐tire assemblies tailored to meet the needs of tractors, combines, skid steers, loaders, haul trucks and other specialized equipment. In addition to original equipment manufacturing, Titan provides extensive aftermarket support through its network of distributors and sales offices. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Titan International Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Agricultural and farm machinery company Titan (NYSE:TWI) reported Q2 CY2026 results beating Wall Street’s revenue expectations , with sales up 5.2% year on year to $484.8 million. On the other hand, next quarter’s revenue guidance of $450 million was less impressive, coming in 6% below analysts’ estimates. Its non-GAAP profit of $0.10 per share was significantly above analysts’ consensus estimates. Is now the time to buy Titan International? Find out in our full research report. Revenue: $484.8 million vs analyst estimates of $480.1 million (5.2% year-on-year growth, 1% beat) Adjusted EPS: $0.10 vs analyst estimates of -$0.04 (significant beat) Adjusted EBITDA: $34.16 million vs analyst estimates of $27.61 million (7% margin, 23.7% beat) The company reconfirmed its revenue guidance for the full year of $1.9 billion at the midpoint EBITDA guidance for the full year is $110 million at the midpoint, in line with analyst expectations Operating Margin: 2.7%, in line with the same quarter last year Free Cash Flow Margin: 5.4%, up from 0.9% in the same quarter last year Market Capitalization: $492.4 million Acquiring Goodyear’s farm tire business in 2005, Titan (NYSE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles. A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Titan International grew its sales at a tepid 4.8% compounded annual growth rate. This fell short of our benchmark for the industrials sector and is a tough starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Titan International’s recent performance shows its demand has slowed as its annualized revenue growth of 1.7% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. This quarter, Titan International reported year-on-year revenue growth of 5.2%, and its $484.8 million of revenue exceeded Wall Street’s estimates by 1%. Company management is currently guiding for a 3.5% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.1% over the next 12 months. Although this projection implies its newer products and services will fuel better top-line performance, it is still below average for the sector. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Titan International was profitable over the last five years but held back by its large cost base. Its average operating margin of 5.1% was weak for an industrials business. This result isn’t too surprising given its low gross margin as a starting point. Analyzing the trend in its profitability, Titan International’s operating margin decreased by 6.6 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Titan International’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. This quarter, Titan International generated an operating margin profit margin of 2.7%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable. Sadly for Titan International, its EPS declined by 28.1% annually over the last five years while its revenue grew by 4.8%. This tells us the company became less profitable on a per-share basis as it expanded. We can take a deeper look into Titan International’s earnings to better understand the drivers of its performance. As we mentioned earlier, Titan International’s operating margin was flat this quarter but declined by 6.6 percentage points over the last five years. Its share count also grew by 4.5%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Titan International, its two-year annual EPS declines of 45.9% show it’s continued to underperform. These results were bad no matter how you slice the data. In Q2, Titan International reported adjusted EPS of $0.10, up from negative $0.02 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast Titan International’s full-year EPS will flip from negative $0.13 to positive $0.17. It was good to see Titan International beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its revenue guidance for next quarter missed and its EBITDA guidance for next quarter fell slightly short of Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock remained flat at $7.64 immediately following the results. So do we think Titan International is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.