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Consolidated Revenue Growth: 4% year-over-year increase.

Adjusted EBITDA: Grew 45% to $30 million, near the higher end of guidance.

Free Cash Flow: $30 million for the quarter.

Gross Margin: Expanded by 210 basis points to 15.2%.

Operating Cash Flow: $42 million, facilitated by strong working capital discipline.

Net Debt: Reduced to $373 million from $391 million in the previous quarter.

Ag Segment Revenue Growth: Over 7% increase, driven by higher volumes and pricing.

EMC Segment Revenue: Up 6% to $145 million, influenced by favorable FX impacts.

Consumer Segment Sales: $132 million, a decline of just under 3% year-over-year, but up 14% from Q2.

Ag Gross Margin: Improved to 13.4% from 9.5% last year.

EMC Gross Margin: Increased to 10.4% from 8.5% last year.

Consumer Gross Margin: Rose to 23% from 22.3% the previous year.

Q4 Revenue Guidance: $385 million to $410 million.

Q4 Adjusted EBITDA Guidance: Approximately $10 million.

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Release Date: November 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Titan International Inc (NYSE:TWI) reported solid sales growth in its Ag and EMC segments, with increases of 8% and 7% respectively compared to the previous year.

The company achieved consolidated revenues in line with guidance and adjusted EBITDA near the higher end of its range.

Free cash flow was a highlight, allowing Titan International Inc (NYSE:TWI) to continue investing in the business while reducing debt.

Gross margins expanded by 210 basis points to 15.2%, and adjusted EBITDA grew 45% to $30 million.

The company is well-positioned with a diversified business model, including a strong aftermarket presence and geographic diversification, particularly in Latin America.

The consumer segment experienced a year-over-year decline in sales, although it rebounded sequentially by nearly 15%.

The Ag segment faces challenges due to suppressed crop prices and less profitable conditions for US farmers, impacting equipment sales.

OEM activity remains low, with a seasonal downturn expected in Q4, affecting sales and production levels.

The company is experiencing frustration with slow progress in securing military contracts, citing a lack of support from the US government compared to European counterparts.

Asia sales were down over 20% year-over-year, attributed to timing issues in the EMC segment.

Q: What drove the year-over-year upside in the Ag segment? Was it due to farmers fixing up their old tractors, or was it OEMs asking for wheels and tires? A: We saw improvements primarily from aftermarket customers, which held steady with slight improvements. OEMs showed some improvement, but not significantly. Our Latin American activity was also up year over year, contrasting with last year's weakness and destocking.

Q: Is the current plan to expect an upturn in Ag in 2026? If so, what is the timing and how might that play out? A: We do see a return to growth, particularly through innovations and aftermarket performance. While OEMs are delaying solid forecasts, we believe we're at a bottom. Positive factors like interest rate cuts and government support for farmers suggest an uptick in OEMs for 2026.

Q: How might the construction segment look for Titan in 2026, given some major US players are already talking about improvement next year? A: We are in a good position, seeing support from government spending that will help accelerate growth. Our diversified business exposure to Europe, mining, and the US positions us well for growth in 2026, with potential acceleration throughout the year.

Q: Can you provide insight into OEM inventory levels and how they have improved over the past quarter? A: Inventory levels have improved, with large equipment inventories coming down by about 30 days to a more normalized level. Used equipment is moving better with incentives, indicating inventory is hitting the right level, if not too low in some cases.

Q: Can you provide any color on what's driving aftermarket mining demand? A: Our growth in aftermarket mining is driven by our ability to produce customized cast products in our European foundry, meeting specific market needs. This niche market growth is specific to Titan, beyond general mining segment trends.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.