Titan International (NYSE: TWI) grows Q2 revenue and boosts free cash flow
Rhea-AI Filing Summary
Titan International, Inc. reported higher results for the quarter ended June 30, 2026. Net sales rose 5.2% to $484 million, lifting gross profit to $74.9 million and gross margin to 15.5%. Adjusted EBITDA increased 13.3% to $34.2 million, and adjusted net income applicable to common shareholders was $6.6 million, or $0.10 per share, compared with an adjusted net loss a year earlier. Free cash flow was $26 million.
Performance varied by segment: Agricultural net sales declined 5.0% to $183.6 million with lower margins, Earthmoving/Construction grew 1.4% to $154.5 million with improved profitability, and Consumer net sales climbed 27.2% to $146.6 million with significantly higher margins. At June 30, 2026, cash and cash equivalents were $179.8 million and net debt was $413.5 million. Management currently expects third quarter sales between $440 million and $460 million and adjusted EBITDA between $27 million and $33 million, and is maintaining full‑year 2026 sales guidance of $1.85–$1.95 billion and adjusted EBITDA of $105–$115 million.
Positive
- None.
Negative
- None.
Filing Explained
The filing adds a GAAP profit, but first-half operating cash flow remained negative through June 30 despite positive second-quarter cash generation.
The company furnished its second-quarter results in this Form 8-K; alongside the adjusted profit already highlighted, it reports GAAP net income attributable to common shareholders of
The release describes adjusted net income and adjusted EBITDA as non-GAAP measures that supplement, rather than replace, GAAP results; the reconciliation adjusts earnings for foreign-exchange effects and restructuring and impairment expenses.
The cash picture differs by period: second-quarter operating cash flow was
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales Q2 2026: $484,766 (thousands)
Adjusted EBITDA Q2 2026: $34,160 (thousands)
Adjusted net income to common Q2 2026: $6,540 (thousands)
+5 more
8 metrics
Net sales Q2 2026
$484,766 (thousands)
Three months ended June 30, 2026; up 5.2% from $460,830 (thousands) in Q2 2025
Adjusted EBITDA Q2 2026
$34,160 (thousands)
Adjusted EBITDA for the three months ended June 30, 2026; up from $30,159 (thousands)
Adjusted net income to common Q2 2026
$6,540 (thousands)
Adjusted net income applicable to common shareholders in Q2 2026 vs adjusted net loss of $1,550 (thousands) in Q2 2025
Free cash flow Q2 2026
$26,394 (thousands)
Free cash flow for the three months ended June 30, 2026 vs $4,219 (thousands) a year earlier
Cash and cash equivalents
$179,785
Cash and cash equivalents at June 30, 2026
Net debt
$413,466
Net debt at June 30, 2026 based on total debt less cash and cash equivalents
Consumer segment net sales Q2 2026
$146,602 (thousands)
Consumer segment net sales for Q2 2026; 27.2% higher than $115,260 (thousands) in Q2 2025
Agricultural segment net sales Q2 2026
$183,637 (thousands)
Agricultural segment net sales for Q2 2026; 5.0% lower than $193,223 (thousands) in Q2 2025
Key Terms
Adjusted EBITDA, free cash flow, net debt, constant currency, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $34.2 million for the second quarter of 2026"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow was $26,394 for the three months ended June 30, 2026"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
net debt financial
"Net debt (total debt less cash and cash equivalents) was $413.5 million"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
constant currency financial
"impact to net sales of currency translation (constant currency) by geography"
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
IEEPA tariff refund recoveries financial
"driven by cost reduction initiatives and $6.0 million of net IEEPA tariff refund recoveries"
Earnings Snapshot
Net sales: $484,766 (thousands) · Guidance included
Three months ended June 30, 2026
Net sales
$484,766 (thousands)
Up 5.2% from $460,830 (thousands) in the three months ended June 30, 2025
Net income attributable to Titan and applicable to common shareholders
$5,764 (thousands)
Compared with net loss of $(4,545) (thousands) in Q2 2025
Adjusted EBITDA
$34,160 (thousands)
Increased from $30,159 (thousands) in Q2 2025; company also cited a 13.3% increase
Adjusted net income applicable to common shareholders
$6,540 (thousands)
Compared with adjusted net loss of $(1,550) (thousands) in Q2 2025
Free cash flow
$26,394 (thousands)
Improved from $4,219 (thousands) for the three months ended June 30, 2025
Guidance
For Q3 2026, management expects sales between $440 million and $460 million and adjusted EBITDA between $27 million and $33 million. For full year 2026, it is maintaining sales guidance of $1.85–$1.95 billion and adjusted EBITDA of $105–$115 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Titan International (TWI) perform in Q2 2026?
Titan International reported Q2 2026 net sales of $484.8 million, up 5.2%, with gross margin of 15.5%. Adjusted EBITDA was $34.2 million and adjusted net income applicable to common shareholders was $6.6 million, or $0.10 per share, versus an adjusted net loss a year earlier.
What were Titan International (TWI) segment results for Q2 2026?
In Q2 2026, Agricultural net sales were $183.6 million, down 5.0%. Earthmoving/Construction sales were $154.5 million, up 1.4%, while Consumer segment sales reached $146.6 million, up 27.2%, driven largely by higher volumes in the Titan Specialty business and tariff refund benefits.
What guidance did Titan International (TWI) provide for Q3 2026?
Management expects Q3 2026 sales between $440 million and $460 million and adjusted EBITDA between $27 million and $33 million. This outlook reflects current demand trends across agricultural, earthmoving/construction, and consumer end markets while continuing cost and productivity initiatives.
What is Titan International (TWI) full-year 2026 outlook?
Titan is maintaining full‑year 2026 guidance of sales between $1.85 billion and $1.95 billion and adjusted EBITDA between $105 million and $115 million. This reflects diversified end‑market exposure and ongoing cost reduction and productivity initiatives across its global operations.
What is Titan International (TWI) cash and debt position as of June 30, 2026?
As of June 30, 2026, Titan held cash and cash equivalents of $179.8 million. Long‑term debt was $558.9 million and short‑term debt was $34.4 million, resulting in net debt of $413.5 million based on the company’s net debt reconciliation.
How did Titan International’s (TWI) free cash flow change in Q2 2026?
For Q2 2026, Titan generated free cash flow of $26.4 million, compared with $4.2 million in the prior‑year quarter. The improvement reflects stronger operating cash flow, driven by higher earnings and working capital improvements, partially offset by increased capital expenditures.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 30, 2026
(Exact name of Registrant as specified in its Charter)
| (State of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 30, 2026, Titan International, Inc. issued a press release reporting its second quarter 2026 financial results. A copy of the press release is furnished herewith as Exhibit 99.
Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d)Exhibits
99Press release dated July 30, 2026, reporting second quarter 2026 financial results for Titan International, Inc.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TITAN INTERNATIONAL, INC. | |||||
| (Registrant) | |||||
| Date: | July 30, 2026 | By: | /s/ TONY C. EHELI | ||||||||
| Tony C. Eheli | |||||||||||
| SVP and Chief Financial Officer | |||||||||||
| (Principal Financial Officer) | |||||||||||
FOR IMMEDIATE RELEASE
Thursday, July 30, 2026
Titan International, Inc. Reports Second Quarter Financial Results
WEST CHICAGO, ILLINOIS, July 30, 2026 - 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 second quarter ended June 30, 2026.
Q2 2026 Key Figures
•Revenues grew 5.2% to $484 million
•Gross margin improved to 15.5%
•Adjusted EBITDA increased 13.3% to $34 million
•Free Cash Flows generated $26 million
Paul Reitz, President and Chief Executive Officer, commented, “We were once again able to report solid results in the second quarter, with revenues toward the high end of our guidance range and Adjusted EBITDA that exceeded guidance. Consumer was our best-performing segment, with 27% growth versus the prior year period as our Titan Specialty business experienced solid end customer demand. Our EMC segment grew 1.4% in the quarter as construction end markets moderated from the stronger growth levels experienced in prior periods. Lower farm incomes and elevated financing costs continued to impact our Ag segment, leading to sales being down 5% in the quarter. Overall, we had a strong quarter with revenues up over 5%, higher gross margin and increased Adjusted EBITDA. Another highlight of the quarter was our free cash flow performance of $26 million, reflecting strong working capital improvement.”
Mr. Reitz continued, “Over the past several years we have made significant progress in diversifying our business, with our three reporting segments each accounting for between 30% and 40% of our revenues in the quarter. Those segments are organized by end market, resulting in valuable diversification that supports continued, solid financial results even as conditions vary across these end markets. Underpinning our customer relationships is a broad portfolio of products, strategically positioned global plants, and a one-stop shop distribution channel, all supported by our phenomenal One Titan team, which in combination allows us to be strategic in how we support our customers.”
Mr. Reitz concluded, “At the macro level, many global industries remain challenged by significant uncertainty, including some of the markets we serve. Against that backdrop Titan continues to succeed, delivering solid financial performance with year-over-year growth. That is an achievement we are proud of and a testament to both our strategic plan and how we operate our business on a daily basis.”
Tony Eheli, Chief Financial Officer added, “We currently expect third quarter sales of between $440 million and $460 million, and Adjusted EBITDA of between $27 million and $33 million. We are also maintaining our previously communicated full-year guidance of sales between $1.85 and $1.95 billion and Adjusted EBITDA of between $105 million and $115 million."
Results of Operations
Net sales for the three months ended June 30, 2026 rose to $484.8 million, from $460.8 million in the comparable period of 2025. Net sales was primarily driven by higher sales volumes in the Titan Specialty business, reflecting improved demand compared to the prior year period. The increase was also contributed by favorable pricing, which
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reflected higher input costs, and an improved product mix. In addition, the increase benefited from favorable foreign currency translation, which contributed approximately 2.4% to net sales growth, largely due to the strengthening of the Brazilian real against the U.S. dollar.
Gross profit for the three months ended June 30, 2026 was $74.9 million, or 15.5% of net sales, compared to $69.3 million, or 15.0% of net sales, in the 2025 period. The increase in gross profit and gross margin was driven by cost reduction initiatives continuing to be executed across our global production facilities and $6.0 million of net IEEPA tariff refund recoveries, which were recorded as a reduction of cost of goods sold.
Selling, general and administrative expenses (SG&A) for the three months ended June 30, 2026 were $52.7 million, or 10.9% of net sales, compared to $52.4 million, or 11.4% of net sales, in the 2025 period. The SG&A expenses were in line with the prior year period. As a percentage of net sales, SG&A expense decreased due to higher sales volumes and continued focus on cost management initiatives.
Income from operations for the three months ended June 30, 2026 was $13.3 million, compared to $10.2 million in the 2025 period. The increase was primarily driven by the improvement in gross profit discussed above, net tariff refund recoveries, and the continued benefits of cost reduction and productivity initiatives across the Company's global manufacturing operations.
The Company recorded income tax expense of $0.0 million and $4.7 million for the three months ended June 30, 2026 and 2025, respectively. The Company's effective income tax rate was (0.1)% and 431.6% for the three months ended June 30, 2026 and 2025, respectively. The income tax expense and tax rates differed each period due to an overall decrease in foreign pre-tax income slightly offset by a valuation allowance on the domestic operations, and certain discrete tax benefits recorded in 2026.
Segment Information
Agricultural Segment
| (Amounts in thousands, except percentages) | Three months ended | Six months ended | |||||||||||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||
| Net sales | $ | 183,637 | $ | 193,223 | (5.0) | % | $ | 381,982 | $ | 390,969 | (2.3) | % | |||||||||||||||||||||||
| Gross profit | 20,895 | 28,280 | (26.1) | % | 44,910 | 52,767 | (14.9) | % | |||||||||||||||||||||||||||
| Profit margin | 11.4 | % | 14.6 | % | (21.9) | % | 11.8 | % | 13.5 | % | (12.6) | % | |||||||||||||||||||||||
| Income from operations | 3,188 | 11,453 | (72.2) | % | 10,681 | 20,895 | (48.9) | % | |||||||||||||||||||||||||||
Net sales in the agricultural segment were $183.6 million for the three months ended June 30, 2026, as compared to $193.2 million for the comparable period of 2025. The change was primarily due to lower sales volumes in the Americas, driven by lower farm income, higher financing costs, and continued inventory reduction initiatives by OEM customers. These factors were partially offset by favorable foreign currency translation, which increased sales by approximately 2.5%.
Gross profit in the agricultural segment was $20.9 million for the three months ended June 30, 2026, as compared to $28.3 million in the comparable period of 2025. The change in gross profit was primarily attributable to lower sales volumes and the resulting reduction in fixed cost leverage, as well as higher material costs, primarily driven by increased steel prices.
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Earthmoving/Construction Segment
| (Amounts in thousands, except percentages) | Three months ended | Six months ended | |||||||||||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||
| Net sales | $ | 154,527 | $ | 152,347 | 1.4 | % | $ | 314,041 | $ | 295,637 | 6.2 | % | |||||||||||||||||||||||
| Gross profit | 19,311 | 17,474 | 10.5 | % | 37,400 | 32,367 | 15.5 | % | |||||||||||||||||||||||||||
| Profit margin | 12.5 | % | 11.5 | % | 8.7 | % | 11.9 | % | 10.9 | % | 9.2 | % | |||||||||||||||||||||||
| Income from operations | 4,353 | 2,994 | 45.4 | % | 6,743 | 4,670 | 44.4 | % | |||||||||||||||||||||||||||
The Company's earthmoving/construction segment net sales were $154.5 million for the three months ended June 30, 2026, as compared to $152.3 million in the comparable period of 2025. The increase was driven by favorable foreign currency translation, which increased net sales by approximately 3.2%. This benefit was partially offset by lower sales volumes in North America, which primarily reflected the timing of demand among certain construction OEM customers.
Gross profit in the earthmoving/construction segment was $19.3 million for the three months ended June 30, 2026, as compared to $17.5 million for the 2025 period. The increase in gross profit was mainly driven by $0.9 million of net tariff refund recoveries, as well as cost reduction and productivity initiatives implemented across the Company's production facilities.
Consumer Segment
| (Amounts in thousands, except percentages) | Three months ended | Six months ended | |||||||||||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||
| Net sales | $ | 146,602 | $ | 115,260 | 27.2 | % | $ | 293,816 | $ | 264,932 | 10.9 | % | |||||||||||||||||||||||
| Gross profit | 34,718 | 23,519 | 47.6 | % | 64,063 | 52,783 | 21.4 | % | |||||||||||||||||||||||||||
| Profit margin | 23.7 | % | 20.4 | % | 16.2 | % | 21.8 | % | 19.9 | % | 9.5 | % | |||||||||||||||||||||||
| Income (loss) from operations | 12,999 | 3,230 | 302.4 | % | (2,953) | 12,037 | (124.5) | % | |||||||||||||||||||||||||||
Consumer segment net sales were $146.6 million for the three months ended June 30, 2026, as compared to $115.3 million in the 2025 period. The increase was primarily driven by higher sales volumes in the Titan Specialty business, reflecting improved customer demand compared to the prior-year period, which was impacted by a temporary slowdown related to tariff uncertainty. The increase also benefited from favorable pricing, reflecting higher input costs and a positive foreign currency translation impact of approximately 1.2%.
Gross profit from the consumer segment was $34.7 million for the three months ended June 30, 2026, as compared to $23.5 million in the 2025 period. The increase was primarily driven by higher sales volumes and the impact on fixed cost leverage, as well as $4.7 million of net tariff refund recoveries, which were recorded as a reduction of cost of goods sold.
Non-GAAP Financial Measures
Adjusted EBITDA was $34.2 million for the second quarter of 2026, compared to $30.2 million in the comparable prior year period. The Company utilizes EBITDA and adjusted EBITDA, which are non-GAAP financial measures, as a means to measure its operating performance. A reconciliation of net income (loss) to EBITDA and adjusted EBITDA can be found at the end of this release.
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Adjusted net income applicable to common shareholders for the second quarter of 2026 was $6.6 million, equal to $0.10 per basic and diluted share, compared to adjusted net loss of $1.6 million, equal to $(0.02) per basic and diluted share, in the second quarter of 2025. The Company utilizes adjusted net income applicable to common shareholders, which is a non-GAAP financial measure, as a means to measure its operating performance. A reconciliation of net income applicable to common shareholders and adjusted net income applicable to common shareholders can be found at the end of this release.
Financial Condition
The Company ended the second quarter of 2026 with total cash and cash equivalents of $179.8 million, compared to $202.9 million at December 31, 2025. Long-term debt at June 30, 2026 was $558.9 million, compared to $564.7 million at December 31, 2025. Short-term debt was $34.4 million at June 30, 2026, compared to $21.2 million at December 31, 2025. Net debt (total debt less cash and cash equivalents) was $413.5 million at June 30, 2026, compared to $383.0 million at December 31, 2025.
During the six months ended June 30, 2026, cash flows used for operating activities were $7.4 million. This cash outflow was primarily driven by an increase in working capital. The increase in accounts receivable was largely attributable to seasonality, as sales increased by $74.3 million during the second quarter of 2026 compared to the fourth quarter of 2025. In response to higher operating activity, accounts payable also increased during the second quarter of 2026 compared to year end 2025. Inventory levels increased, reflecting efforts to proactively manage inventory while supporting customer demand in the subsequent quarter.
Cash used for operating activities increased by $16.9 million when comparing the six months ended June 30, 2026 to the comparable period in 2025, primarily due to working capital changes.
Teleconference and Webcast
Titan will be hosting a teleconference and webcast to discuss the second quarter financial results on Thursday, July 30, 2026, at 9:00 a.m. Eastern Time.
The real-time, listen-only webcast can be accessed using the following link
https://events.q4inc.com/attendee/185351132 or on our website at www.titan-intl.com within the “Investor Relations” page under the “News & Events” menu (https://ir.titan-intl.com/news-and-events/events/default.aspx). Listeners should access the website at least 10 minutes prior to the live event to download and install any necessary audio software.
A webcast replay of the teleconference will be available on our website (https://ir.titan-intl.com/news-and-events/events/default.aspx) soon after the live event.
In order to participate in the real-time teleconference, with live audio Q&A, participants should use one of the following dial in numbers:
United States Toll Free: 1 833 461 5787
All other locations: https://help.events.q4inc.com/eahc/international-dial-in-numbers
Participants Access Code: 185 351 132
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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.
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Titan International, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
Amounts in thousands, except per share data
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | 484,766 | $ | 460,830 | $ | 989,839 | $ | 951,538 | |||||||||||||||
| Cost of sales | 409,842 | 391,557 | 843,466 | 813,621 | |||||||||||||||||||
| Gross profit | 74,924 | 69,273 | 146,373 | 137,917 | |||||||||||||||||||
| Selling, general, and administrative expenses | 52,722 | 52,353 | 105,120 | 102,208 | |||||||||||||||||||
| Research and development expenses | 5,401 | 4,341 | 10,685 | 8,885 | |||||||||||||||||||
| Royalty expense | 2,653 | 2,419 | 5,063 | 4,865 | |||||||||||||||||||
| Restructuring and impairment expenses | 834 | — | 25,976 | — | |||||||||||||||||||
| Income (loss) from operations | 13,314 | 10,160 | (471) | 21,959 | |||||||||||||||||||
| Interest expense | (10,047) | (9,673) | (19,934) | (19,208) | |||||||||||||||||||
| Interest income | 2,463 | 2,455 | 4,662 | 4,694 | |||||||||||||||||||
| Foreign exchange gain (loss) | 58 | (2,995) | 968 | (4,380) | |||||||||||||||||||
| Other income | 548 | 1,140 | 1,494 | 2,274 | |||||||||||||||||||
| Income (loss) before income taxes | 6,336 | 1,087 | (13,281) | 5,339 | |||||||||||||||||||
| (Benefit) provision for income taxes | (4) | 4,691 | 4,629 | 8,921 | |||||||||||||||||||
| Net income (loss) | 6,340 | (3,604) | (17,910) | (3,582) | |||||||||||||||||||
| Net income attributable to noncontrolling interests | 576 | 941 | 540 | 1,612 | |||||||||||||||||||
| Net income (loss) attributable to Titan and applicable to common shareholders | $ | 5,764 | $ | (4,545) | $ | (18,450) | $ | (5,194) | |||||||||||||||
| Earnings (loss) per common share: | |||||||||||||||||||||||
| Basic | $ | 0.09 | $ | (0.07) | $ | (0.29) | $ | (0.08) | |||||||||||||||
| Diluted | $ | 0.09 | $ | (0.07) | $ | (0.29) | $ | (0.08) | |||||||||||||||
| Average common shares and equivalents outstanding: | |||||||||||||||||||||||
| Basic | 64,384 | 63,722 | 64,229 | 63,504 | |||||||||||||||||||
| Diluted | 64,504 | 63,722 | 64,229 | 63,504 | |||||||||||||||||||
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Titan International, Inc.
Condensed Consolidated Balance Sheets
Amounts in thousands, except share data
| June 30, 2026 | December 31, 2025 | ||||||||||
| Assets | (unaudited) | ||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 179,785 | $ | 202,879 | |||||||
| Accounts receivable, net of allowance of $5,261 and $5,058, respectively | 317,216 | 238,906 | |||||||||
| Inventories | 479,993 | 470,549 | |||||||||
| Prepaid and other current assets | 76,429 | 73,638 | |||||||||
| Total current assets | 1,053,423 | 985,972 | |||||||||
| Property, plant and equipment, net | 439,201 | 448,910 | |||||||||
| Operating lease assets | 99,226 | 119,225 | |||||||||
| Goodwill | 29,563 | 29,563 | |||||||||
| Intangible assets, net | 10,259 | 10,889 | |||||||||
| Deferred income taxes | 15,323 | 10,715 | |||||||||
| Other long-term assets | 75,180 | 67,386 | |||||||||
| Total assets | $ | 1,722,175 | $ | 1,672,660 | |||||||
| Liabilities | |||||||||||
| Current liabilities | |||||||||||
| Short-term debt | $ | 34,401 | $ | 21,185 | |||||||
| Accounts payable | 294,270 | 251,715 | |||||||||
| Operating leases | 14,665 | 13,830 | |||||||||
| Other current liabilities | 155,139 | 141,514 | |||||||||
| Total current liabilities | 498,475 | 428,244 | |||||||||
| Long-term debt | 558,850 | 564,717 | |||||||||
| Deferred income taxes | 6,843 | 6,138 | |||||||||
| Operating leases | 105,878 | 111,054 | |||||||||
| Other long-term liabilities | 42,208 | 40,890 | |||||||||
| Total liabilities | 1,212,254 | 1,151,043 | |||||||||
| Commitments and Contingencies | |||||||||||
| Equity | |||||||||||
| Titan shareholders' equity | |||||||||||
Common stock ($0.0001 par value, 120,000,000 shares authorized, 78,447,035 issued and 64,485,180 outstanding at June 30, 2026; 78,447,035 issued and 63,951,494 outstanding at December 31, 2025) | — | — | |||||||||
| Additional paid-in capital | 737,085 | 738,711 | |||||||||
| Retained earnings | 82,119 | 100,569 | |||||||||
Treasury stock (at cost, 13,961,855 shares at June 30, 2026 and 14,495,541 shares at December 31, 2025) | (111,621) | (115,871) | |||||||||
| Accumulated other comprehensive loss | (206,318) | (209,029) | |||||||||
| Total Titan shareholders’ equity | 501,265 | 514,380 | |||||||||
| Noncontrolling interests | 8,656 | 7,237 | |||||||||
| Total equity | 509,921 | 521,617 | |||||||||
| Total liabilities and equity | $ | 1,722,175 | $ | 1,672,660 | |||||||
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Titan International, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
All amounts in thousands
| Six months ended June 30, | |||||||||||
| Cash flows from operating activities: | 2026 | 2025 | |||||||||
| Net loss | $ | (17,910) | $ | (3,582) | |||||||
| Adjustments to reconcile net loss to net cash used for operating activities: | |||||||||||
| Depreciation and amortization | 34,293 | 32,494 | |||||||||
| Restructuring and impairment expenses | 25,976 | — | |||||||||
| Deferred income tax (benefit) provision | (3,749) | 2,410 | |||||||||
| Loss on fixed asset and investment sale | 45 | 38 | |||||||||
| Stock-based compensation | 1,786 | 479 | |||||||||
| Issuance of stock under 401(k) plan | 838 | 827 | |||||||||
| Foreign currency (gain) loss | (3,332) | 6,870 | |||||||||
| (Increase) decrease in assets: | |||||||||||
| Accounts receivable | (77,398) | (60,964) | |||||||||
| Inventories | (9,559) | (13,172) | |||||||||
| Prepaid and other current assets | (2,568) | (3,335) | |||||||||
| Other assets | (8,889) | (4,800) | |||||||||
| Increase (decrease) in liabilities: | |||||||||||
| Accounts payable | 37,580 | 24,038 | |||||||||
| Other current liabilities | 12,531 | (7,499) | |||||||||
| Other liabilities | 2,979 | 1,918 | |||||||||
| Net cash used for operating activities | (7,377) | (24,278) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (26,005) | (25,121) | |||||||||
| Proceeds from sale of fixed assets | 1,005 | 275 | |||||||||
| Net cash used for investing activities | (25,000) | (24,846) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from borrowings | 76,607 | 54,936 | |||||||||
| Repayments of debt | (69,659) | (37,956) | |||||||||
| Other financing activities | (193) | (74) | |||||||||
| Net cash provided by financing activities | 6,755 | 16,906 | |||||||||
| Effect of exchange rate changes on cash | 2,528 | 20,913 | |||||||||
| Net decrease in cash and cash equivalents | (23,094) | (11,305) | |||||||||
| Cash and cash equivalents, beginning of period | 202,879 | 195,974 | |||||||||
| Cash and cash equivalents, end of period | $ | 179,785 | $ | 184,669 | |||||||
| Supplemental information: | |||||||||||
| Interest paid | $ | 20,656 | $ | 21,168 | |||||||
| Income taxes paid, net of refunds received | $ | 6,436 | $ | 8,135 | |||||||
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Titan International, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
Amounts in thousands, except earnings per share data and percentages
The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). These supplemental schedules provide a quantitative reconciliation between each of adjusted gross profit, adjusted net income attributable to Titan, EBITDA, adjusted EBITDA, net sales on a constant currency basis, net debt, and net cash used for operating activities to free cash flow, each of which is a non-GAAP financial measure and the most directly comparable financial measures calculated and reported in accordance with GAAP.
We present adjusted gross profit, adjusted net income attributable to Titan, adjusted earnings per common share, EBITDA, adjusted EBITDA, net sales on a constant currency basis, net debt and net cash used for operating activities to free cash flow, as we believe that they assist investors with analyzing our business results. In addition, management reviews these non-GAAP financial measures in order to evaluate the financial performance of each of our segments, as well as the Company’s performance as a whole. We believe that the presentation of these non‑GAAP financial measures will permit investors to assess the performance of the Company on the same basis as management.
Adjusted gross profit, adjusted net income attributable to Titan, adjusted earnings per common share, EBITDA, adjusted EBITDA, net sales on a constant currency basis, net debt, and free cash flow should be considered supplemental to, not a substitute for, the financial measures calculated in accordance with GAAP. One should not consider these measures in isolation or as a substitute for our results reported under GAAP. These measures have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may be calculated differently than non-GAAP financial measures reported by other companies, limiting their usefulness as comparative measures. We attempt to compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
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The table below provides a reconciliation of net income (loss) attributable to Titan and applicable to common shareholders to adjusted net income (loss) attributable to Titan and applicable to common shareholders, which is a non-GAAP financial measure, for the three and six-month periods ended June 30, 2026 and 2025 (in thousands, except earnings (loss) per share).
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income (loss) attributable to Titan and applicable to common shareholders | $ | 5,764 | $ | (4,545) | $ | (18,450) | $ | (5,194) | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Foreign exchange (gain) loss | (58) | 2,995 | (968) | 4,380 | |||||||||||||||||||
| Restructuring and impairment expenses | 834 | — | 25,976 | — | |||||||||||||||||||
| Adjusted net income (loss) attributable to Titan and applicable to common shareholders | $ | 6,540 | $ | (1,550) | $ | 6,558 | $ | (814) | |||||||||||||||
| Adjusted earnings (loss) per common share: | |||||||||||||||||||||||
| Basic | $ | 0.10 | $ | (0.02) | $ | 0.10 | $ | (0.01) | |||||||||||||||
| Diluted | $ | 0.10 | $ | (0.02) | $ | 0.10 | $ | (0.01) | |||||||||||||||
| Average common shares and equivalents outstanding: | |||||||||||||||||||||||
| Basic | 64,384 | 63,722 | 64,229 | 63,504 | |||||||||||||||||||
| Diluted | 64,504 | 63,722 | 64,479 | 63,504 | |||||||||||||||||||
The table below provides a reconciliation of net income (loss) to EBITDA and adjusted EBITDA, which are non-GAAP financial measures, for the three and six-month ended June 30, 2026 and 2025 (in thousands).
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income (loss) | $ | 6,340 | $ | (3,604) | $ | (17,910) | $ | (3,582) | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| (Benefit) provision for income taxes | (4) | 4,691 | 4,629 | 8,921 | |||||||||||||||||||
| Interest expense, excluding financing fees amortization | 9,828 | 9,454 | 19,496 | 18,769 | |||||||||||||||||||
| Depreciation and amortization | 17,220 | 16,623 | 34,293 | 32,494 | |||||||||||||||||||
| EBITDA | $ | 33,384 | $ | 27,164 | $ | 40,508 | $ | 56,602 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Foreign exchange (gain) loss | (58) | 2,995 | (968) | 4,380 | |||||||||||||||||||
| Restructuring and impairment expenses | 834 | — | 25,976 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 34,160 | $ | 30,159 | $ | 65,516 | $ | 60,982 | |||||||||||||||
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The table below sets forth, for the three and six-month ended June 30, 2026, the impact to net sales of currency translation (constant currency) by geography (in thousands, except percentages):
| Three months ended June 30, | Change due to currency translation | Three months ended June 30, | |||||||||||||||||||||||||||||||||
| 2026 | 2025(1) | % Change from 2025 | $ | % | Constant Currency | ||||||||||||||||||||||||||||||
| North America | $ | 257,003 | $ | 234,378 | 9.7 | % | $ | 8 | — | % | $ | 256,995 | |||||||||||||||||||||||
| Europe / CIS | 122,597 | 119,255 | 2.8 | % | 3,895 | 3.3 | % | 118,702 | |||||||||||||||||||||||||||
| Latin America | 83,599 | 84,770 | (1.4) | % | 7,787 | 9.2 | % | 75,812 | |||||||||||||||||||||||||||
| Asia and other regions | 21,567 | 22,427 | (3.8) | % | (683) | (3.0) | % | 22,250 | |||||||||||||||||||||||||||
| $ | 484,766 | $ | 460,830 | 5.2 | % | $ | 11,007 | 2.4 | % | $ | 473,759 | ||||||||||||||||||||||||
| Six months ended June 30, | Change due to currency translation | Six months ended June 30, | |||||||||||||||||||||||||||||||||
| 2026 | 2025(1) | % Change from 2025 | $ | % | Constant Currency | ||||||||||||||||||||||||||||||
| North America | $ | 548,895 | $ | 518,370 | 5.9 | % | $ | 801 | 0.2 | % | $ | 548,094 | |||||||||||||||||||||||
| Europe / CIS | 229,825 | 228,308 | 0.7 | % | 14,495 | 6.3 | % | 215,330 | |||||||||||||||||||||||||||
| Latin America | 166,801 | 161,788 | 3.1 | % | 15,018 | 9.3 | % | 151,783 | |||||||||||||||||||||||||||
| Asia and other regions | 44,318 | 43,072 | 2.9 | % | (1,029) | (2.4) | % | 45,347 | |||||||||||||||||||||||||||
| $ | 989,839 | $ | 951,538 | 4.0 | % | $ | 29,285 | 3.1 | % | $ | 960,554 | ||||||||||||||||||||||||
(1) Certain reclassifications were made to the prior year amounts to conform with the current year presentation for the net sales by geography.
The table below provides a reconciliation of net debt, which is a non-GAAP financial measure (in thousands):
| June 30, 2026 | December 31, 2025 | June 30, 2025 | |||||||||||||||
| Long-term debt | $ | 558,850 | $ | 564,717 | $ | 565,872 | |||||||||||
| Short-term debt | 34,401 | 21,185 | 19,795 | ||||||||||||||
| Total debt | $ | 593,251 | $ | 585,902 | $ | 585,667 | |||||||||||
| Cash and cash equivalents | 179,785 | 202,879 | 184,669 | ||||||||||||||
| Net debt | $ | 413,466 | $ | 383,023 | $ | 400,998 | |||||||||||
The table below provides a reconciliation of net cash provided by (used for) operating activities to free cash flow, which is a non-GAAP financial measure (in thousands):
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net cash provided by (used for) operating activities | $ | 39,149 | $ | 14,313 | $ | (7,377) | $ | (24,278) | |||||||||||||||
| Capital expenditures | (12,755) | (10,094) | (26,005) | (25,121) | |||||||||||||||||||
| Free cash flow | $ | 26,394 | $ | 4,219 | $ | (33,382) | $ | (49,399) | |||||||||||||||
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