Titan International, Inc. Reports Second Quarter Financial Results
Rhea-AI Summary
Titan International (NYSE:TWI), a leading manufacturer of off-highway wheels and tires, reported its Q2 2025 financial results. The company achieved revenues of $461 million, with a gross margin of 15%, Adjusted EBITDA of $30 million, and Free Cash Flow of $4 million.
Management highlighted that despite challenging market conditions due to higher interest rates and tariff uncertainty, the company maintained gross and EBITDA margins above previous cyclical troughs. For Q3 2025, Titan expects sales between $450-475 million and Adjusted EBITDA of $25-30 million, representing improvements compared to Q3 2024.
Positive
- Maintained gross and EBITDA margins above previous cyclical troughs
- Generated positive free cash flow of $4 million in Q2
- Q3 2025 guidance shows improvement compared to Q3 2024
- Successfully executing one-stop-shop strategy and innovation focus
Negative
- Market conditions impacted by higher interest rates
- Facing uncertainty due to tariff concerns
- Current market demand affected by cyclical downturn
News Market Reaction 14 Alerts
On the day this news was published, TWI declined 6.73%, reflecting a notable negative market reaction. Argus tracked a trough of -3.7% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $39M from the company's valuation, bringing the market cap to $538M at that time.
Data tracked by StockTitan Argus on the day of publication.
Q2 2025 Key Figures
- Revenues of
$461 million - Gross margin of
15% - Adjusted EBITDA of
$30 million - Free Cash Flow of
$4 million
Paul Reitz, President and Chief Executive Officer, commented, "Our One Titan team continued to execute, enabling the Company to report revenues and Adjusted EBITDA within our guidance range, as well as positive free cash flow for the quarter. Overall conditions in our end markets are currently defined primarily by the impact of higher interest rates and tariff uncertainty. On a longer-term basis, we are encouraged by the broad support the recently-passed legislation included for farmers."
Mr. Reitz continued, "Among the highlights from our second quarter, we were able to maintain gross and EBITDA margins which continued to be meaningfully above where they were during the last cyclical trough. We also continued to focus on expanding our reach via our one-stop-shop strategy and our focus on innovation, and we expect those efforts to help drive growth when broad-based industry demand resumes. In the near term, we remain confident that wheel and tire inventories throughout the chain are reaching levels where the only path forward is up. We are well-positioned as a leader in our industry and fully expect to see improving financial results as macro tailwinds begin to emerge."
Company Outlook
David Martin, Chief Financial Officer, added, "We expect third quarter sales to be between
About Titan
Titan International, Inc. (NYSE: TWI) is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products. Headquartered in
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.
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SOURCE Titan International, Inc.
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