Titan International, Inc. (TWI) Q2 2025 Earnings Call Transcript
Revenue $461 million, with a year-over-year decline due to organic revenue decrease. The decline was attributed to market softness and cautious purchasing behavior from OEMs and end customers.
Adjusted EBITDA $30 million, in line with expectations. No specific year-over-year comparison provided, but sequential improvement in gross margins contributed to this figure.
Free Cash Flow $4 million, driven by moderated CapEx spending of $10 million and positive working capital adjustments.
Gross Margins 15%, down from 16.5% year-over-year when adjusted for the Carlstar inventory step-up last year. The decline was due to leverage on overhead from the organic revenue decline.
Segment Gross Margins Ag gross margin: 14.6% (up from 12.4% in Q1), EMC gross margin: 11.5% (up from 10.4% in Q1), Consumer gross margin: 20.4% (up from 19.6% in Q1). Year-over-year decline in overall gross margins attributed to overhead leverage.
SG&A Expense $52 million, approximately 11% of sales, up 1.5% year-over-year due to inflation in labor costs.
R&D Expense $4.3 million, slightly up from $4.2 million last year, primarily due to inflation.
Operating Income $10 million, no specific year-over-year comparison provided.
Net Debt $401 million, reduced by $10 million from the previous quarter due to positive free cash flow.
Income Tax Expense $4.7 million, with an effective rate over 100%, driven by geographic distribution of profits and losses and associated tax regimes.
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Titan International Appoints New Executives to Drive Transformation
- Executive Appointments: Titan International appoints David Martin as Chief Transformation Officer to lead enterprise-wide transformation and strategic alignment, which is expected to accelerate AI adoption and enhance operational agility, laying a foundation for future growth.
- Financial Leadership Change: Tony Eheli is appointed Chief Financial Officer, and with his extensive experience in financial reporting and operational controls, he will continue to drive Titan's long-term growth and value creation, enhancing the company's financial governance.
- Accounting Role Promotion: Jim Pach is promoted to Chief Accounting Officer, overseeing financial compliance and internal controls, reflecting Titan's commitment to excellence in financial stewardship and ensuring continuity in global finance operations.
- Strategic Confidence: CEO Paul Reitz stated that these leadership transitions reflect confidence in the strength of Titan's executive team, aiming to accelerate the achievement of strategic objectives and deliver sustainable value to shareholders.
Titan International Appoints New Executives to Drive Strategic Transformation
- Executive Appointments: Titan International appoints David Martin as Chief Transformation Officer to lead enterprise-wide transformation and accelerate AI adoption, aiming to enhance operational agility and long-term value creation, reflecting the company's focus on future growth.
- Financial Leadership Change: Tony Eheli is appointed Chief Financial Officer, leveraging his extensive experience in global financial reporting and audit oversight to continue driving Titan's long-term growth and value creation.
- Strengthening Financial Compliance: Jim Pach is promoted to Chief Accounting Officer, bringing six years of experience in financial compliance and reporting, ensuring ongoing excellence in financial stewardship and enhancing Titan's financial foundation.
- Strategic Confidence: CEO Paul Reitz states that these leadership transitions reflect confidence in Titan's executive team, aiming to accelerate the achievement of strategic objectives and deliver sustainable value to shareholders.
