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1. Company Snapshot

1.a. Company Description

Titan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles in North America, Europe, Latin America, the Commonwealth of Independent States region, the Middle East, Africa, Russia, and internationally.The company operates in Agricultural, Earthmoving/Construction, and Consumer segments.It offers rims, wheels, tires, and undercarriage systems and components for various agricultural equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment.


The company also offers rims, wheels, tires, and undercarriage systems and components for off-the-road earthmoving, mining, military, construction, and forestry equipment, including skid steers, aerial lifts, cranes, graders and levelers, scrapers, self-propelled shovel loaders, articulated dump trucks, load transporters, haul trucks, backhoe loaders, crawler tractors, lattice cranes, shovels, and hydraulic excavators.In addition, it provides bias and light truck tires; and products for ATVs, turf, and golf cart applications, as well as specialty and train brakes.It sells its products directly to original equipment manufacturers, as well as to the aftermarket through independent distributors, equipment dealers, and own distribution centers.


Titan International, Inc.was founded in 1890 and is headquartered in Quincy, Illinois.

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1.b. Last Insights on TWI

Titan International, Inc.'s recent performance was negatively impacted by unfavorable market conditions. The company's Q2 2025 earnings call revealed challenges in the off-highway industry. Although specific details on segment performance were not disclosed, the company's cautious tone during the earnings conference call suggests potential headwinds. Additionally, rising production costs and potential pricing pressures may affect profitability. No recent share buyback announcements were made, and no rating changes were cited in recent news. The company's focus on undercarriage products and assemblies may face short-term demand fluctuations.

1.c. Company Highlights

2. Titan International's Q3 2025 Earnings: A Strong Performance

Titan International, Inc.'s third-quarter 2025 results showed a solid sales growth in Ag and EMC segments, with consolidated revenues in line with guidance, and adjusted EBITDA near the higher end of the range. The company's Ag segment saw a 7% year-over-year increase in revenues, driven by higher volumes, especially in Latin America, and pricing related to increased input costs. Gross margins expanded 210 bps to 15.2%, and operating margin also expanded. Adjusted EBITDA grew 45% to $30 million, and actual EPS came out at $0.04, beating estimates at -$0.03.

Publication Date: Nov -29

📋 Highlights
  • Ag & EMC Segment Growth:: Ag segment revenue up 7% YoY to $145M (EMC at $145M, +6% YoY), driven by Latin America volume and U.S. construction demand.
  • Gross Margin Expansion:: Margins jumped 210 bps to 15.2%, with adjusted EBITDA surging 45% to $30M, reflecting cost discipline and pricing power.
  • Debt Reduction:: Net debt cut to $373M, leverage ratio improved to 3.7x, enabling reinvestment and financial flexibility.
  • Q4 Guidance:: Revenue expected $385–$410M (+YoY midpoint growth), adjusted EBITDA guided to $10M, signaling optimism for 2026 EMC expansion.
  • Inventory & Market Dynamics:: OEM inventory normalized (-30 days), used inventory improved with incentives, and EMC poised for 2026 growth via government contracts and Goodyear partnership.

Segment Performance

The Ag segment was a strong performer, with revenues up 8% year-over-year. EMC revenues grew 6% year-over-year to $145 million, primarily due to drop-in orders from light construction customers in the U.S. and favorable FX impacts. The consumer segment sales declined just under 3% year-over-year but were up 14% from Q2. The company's diversification across Europe, aftermarket mining, and the U.S. is expected to drive growth.

Cash Flow and Debt Reduction

Free cash flow was a highlight, allowing the company to invest in the business and reduce debt. The company reduced its net debt to $373 million and leverage decreased to 3.7x. The net debt to EBITDA ratio stands at 5.2, indicating a still leveraged position.

Guidance and Outlook

For Q4, the company guides for revenues of $385 million to $410 million and adjusted EBITDA of approximately $10 million, implying growth in both metrics compared to Q4 last year. The company's business is diversified, and early looks into 2026 indicate a good basis for growth in EMC, driven by government support and spending. Analysts estimate next year's revenue growth at 5.0%.

Valuation

The current valuation metrics indicate a P/E Ratio of -84.5, a P/B Ratio of 0.91, and an EV/EBITDA of 12.41. The negative P/E ratio is due to the company's historical losses, but the current EPS beat suggests a positive trend. The EV/EBITDA ratio suggests that the company's valuation is reasonable compared to its EBITDA.

Strategic Developments

The Goodyear deal allows Titan to use the Goodyear brand on more products, which will drive growth in 2026. The partnership will enable the company to capture a stronger foothold on margin. The company continues to look for M&A opportunities, particularly in niche industries with lower valuations.

3. NewsRoom

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Titan International Inc. Announces Executive Leadership Transitions Including New Role of Chief Transformation Officer to Accelerate Strategic Objectives

Dec -04

Source: prnewswire.com

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Bailard Inc. Acquires 13,731 Shares of Titan International, Inc. $TWI

Nov -15

Source: defenseworld.net

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Titan International, Inc. (TWI) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Titan International, Inc. Reports Third Quarter Financial Results

Nov -06

Source: prnewswire.com

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TITAN INTERNATIONAL INC. CLOSES ON STRATEGIC PARTNERSHIP WITH BRAZILIAN WHEEL MANUFACTURER RODAROS

Oct -28

Source: prnewswire.com

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Titan International, Inc. to Announce Third Quarter 2025 Financial Results on November 6

Oct -15

Source: prnewswire.com

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Titan International, Inc. (TWI) Q2 2025 Earnings Call Transcript

Jul -31

Source: seekingalpha.com

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Titan International, Inc. Reports Second Quarter Financial Results

Jul -31

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.63%)

6. Segments

Agricultural

Expected Growth: 10%

Titan International's Agricultural segment growth is driven by increasing global demand for food, government initiatives supporting sustainable farming practices, and rising adoption of precision agriculture technology. Additionally, the company's focus on innovative products, such as low-compaction tires, and strategic partnerships with major OEMs contribute to its 10% growth.

Earthmoving/Construction

Expected Growth: 11%

Titan International's 11% growth in Earthmoving/Construction is driven by increasing infrastructure spending, rising demand for heavy equipment, and growing adoption of advanced tire technologies. Additionally, the company's focus on product innovation, expansion into emerging markets, and strategic partnerships are contributing to its growth momentum.

Consumer

Expected Growth: 13%

Titan International, Inc.'s 13% growth in the Consumer segment is driven by increasing demand for outdoor recreational activities, rising popularity of off-highway vehicles, and growing adoption of Titan's innovative wheel and tire products in the agriculture and construction industries.

7. Detailed Products

Agricultural Tires

Titan International, Inc. offers a wide range of agricultural tires designed for tractors, combines, and other farm equipment, providing superior traction, durability, and fuel efficiency.

Construction and Mining Tires

Titan International, Inc. provides high-quality construction and mining tires designed for heavy-duty equipment, offering excellent durability, traction, and load-carrying capacity.

Forestry Tires

Titan International, Inc. offers specialized forestry tires designed for logging and forestry equipment, providing superior traction, flotation, and durability in challenging terrain.

Industrial Tires

Titan International, Inc. provides a range of industrial tires designed for forklifts, skid-steer loaders, and other material handling equipment, offering excellent durability, traction, and load-carrying capacity.

OEM and Aftermarket Wheels

Titan International, Inc. offers a range of OEM and aftermarket wheels designed for agricultural, construction, and industrial equipment, providing superior strength, durability, and corrosion resistance.

8. Titan International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Titan International, Inc. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Titan International, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Titan International, Inc. relies on a few key suppliers, which gives them some bargaining power, but the company's large scale of operations helps to mitigate this risk.

Threat Of New Entrants

The high capital requirements and regulatory barriers to entry in the industry make it difficult for new entrants to compete with Titan International, Inc.

Intensity Of Rivalry

The industry in which Titan International, Inc. operates is highly competitive, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.35%
Debt Cost 5.63%
Equity Weight 51.65%
Equity Cost 14.36%
WACC 10.14%
Leverage 93.62%

11. Quality Control: Titan International, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Astec Industries

A-Score: 5.1/10

Value: 5.6

Growth: 3.4

Quality: 5.7

Yield: 2.0

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

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Manitowoc

A-Score: 4.4/10

Value: 8.5

Growth: 4.3

Quality: 4.3

Yield: 0.0

Momentum: 5.5

Volatility: 3.7

1-Year Total Return ->

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Manitex International

A-Score: 3.8/10

Value: 4.6

Growth: 4.7

Quality: 3.5

Yield: 0.0

Momentum: 6.0

Volatility: 4.0

1-Year Total Return ->

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Titan International

A-Score: 3.7/10

Value: 6.6

Growth: 4.7

Quality: 2.3

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Hydrofarm Holdings

A-Score: 2.8/10

Value: 10.0

Growth: 2.3

Quality: 2.7

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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Columbus McKinnon

A-Score: 2.6/10

Value: 5.2

Growth: 2.1

Quality: 3.4

Yield: 2.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.21$

Current Price

8.21$

Potential

-0.00%

Expected Cash-Flows