10-Q - TITAN INTERNATIONAL INC (0000899751) (Filer)

Wed, Apr 30, 8:44 PM (11 days ago)

**Titan International, Inc. (TWI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $490.7 million, up 1.8% YoY, driven by Titan Specialty acquisition and positive price/mix effects, offset by declines in agricultural and earthmoving/construction segments. - **Gross Profit:** $68.6 million (14.0% margin), down 11.3% YoY due to lower volume and inflationary costs. - **Operating Income:** $11.8 million, down 52.9% YoY due to lower gross profit and increased SG&A expenses. - **Net Income:** $0.0 million, down from $10.0 million YoY, resulting in a basic and diluted EPS of $(0.01). - **Cash Flow:** Operating cash flow was $(38.6) million, primarily due to increased working capital. Investing cash flow was $(14.8) million, and financing cash flow was $18.6 million. **Segment Performance:** - **Agricultural:** Net sales down 17.5% YoY due to reduced global demand and unfavorable currency translation. Gross profit down 39.7% YoY. - **Earthmoving/Construction:** Net sales down 13.3% YoY due to reduced sales volume and negative currency impact. Gross profit down 35.2% YoY. - **Consumer:** Net sales up 93.6% YoY driven by Titan Specialty acquisition, offset by lower sales volumes in the Americas. Gross profit up 112.5% YoY. **Trends and Uncertainties:** - **Market Conditions:** Agricultural markets face slowdowns in North America and Europe, while South America shows early signs of recovery. Earthmoving/construction markets expect stabilization over the mid to long term. Consumer markets vary by region and product line. - **Tariffs and Trade:** Newly imposed tariffs may increase costs, disrupt supply chains, and create market uncertainty. - **Liquidity:** Titan has $174.4 million in cash and expects sufficient liquidity for working capital needs, debt maturities, and capital expenditures. **Future Operations Impact:** - **Capital Expenditures:** Expected to be between $55 million and $65 million for the full year, focusing on enhancing facilities and manufacturing capabilities. - **Interest Payments:** Forecasted to be between $35 million and $38 million for the remainder of 2025. - **Debt Restrictions:** Titan is in compliance with debt covenants but faces restrictions on dividends, stock repurchases, and additional borrowings. **Ticker:** TWI