Titan International, Inc. ("Titan" or the "Company"), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, today reported financial results for the first quarter ended March 31, 2025.
Paul Reitz, President and Chief Executive Officer stated, "There are no other manufacturers in our industry with the domestic production capabilities of Titan. This means that tariffs applied consistently across the globe should benefit us because many of our competitors have significantly greater exposure to tariffs due to their higher dependence on overseas production. With the breadth of our product portfolio combined with our global platform, we are nimble and the best suited in our industry to meet our customers' long-term needs in a dynamic market landscape. We are actively assessing the evolving situation and will make timely decisions on supply chain and production plans that are the result of data driven analysis and our evaluation of longer-term trade policy."
Mr. Reitz continued, "At Titan, an intense focus on our customers and end users defines everything we do. That customer focus is the anchor that keeps our team grounded. Constantly evolving trade policies are presenting challenges, especially when it comes to longer-term capital planning for OEMs. We are in an enviable position, with quality manufacturing assets strategically located in the key markets we serve. That ability to geographically match production with sales is a key competitive advantage for Titan as our customers can have the utmost confidence that we are available and ready to serve their needs."
Mr. Reitz added, "Turning to our financial results, our revenues of $491 million and Adjusted EBITDA of $31 million were both at the higher end of our guidance range. That success was well-earned against the backdrop of continued OEM destocking of finished goods across all three of our primary end markets. Our aftermarket business continues to perform better than our OEM-pointed operations and is an integral part of our One Stop Shop strategy."
Mr. Reitz continued, "At Titan we are proud of our manufacturing capabilities that are strategically located to best serve the needs of our customers and end-users. Regardless of what's going on in the world, we are confident in our strategy and our growth prospects, including new products, further penetration of our leading LSW technology, offering new third party-sourced products, and driving revenue synergies among our segments and product families. Finally, our expanded licensing agreement with Goodyear, which we just announced, helps to complement the above growth initiatives and presents even more opportunities to provide our customers with high quality products that meet end users' needs."
Mr. Reitz concluded, "We are well-positioned with respect to tariffs, and we are supportive of policies that protect businesses while also providing for a fair and level playing field globally. Now more than ever, we believe strongly in our business, our One Titan team, our growth initiatives and our ability to serve our customers' needs."
Second Quarter 2025 Outlook
David Martin, Chief Financial Officer, added, "Currently less than 10% of our total revenues have a net negative exposure to the current retaliatory China tariffs. We have built strategic inventory in product lines sourced from our plants and from strategic partners, so our guidance includes the expectation that tariffs will have minimal impact on the quarter. We are closely monitoring and scenario-planning in what is obviously a fluid global trade environment and intend to act accordingly based on our commitment to exceptional customer service. We expect second quarter sales to be between $450 million and $500 million with Adjusted EBITDA between $25 million and $35 million, which is very similar to the results from the first quarter of 2025."
Results of Operations
Net sales for the three months ended March 31, 2025 were $490.7 million, compared to $482.2 million in the comparable period of 2024. The net sales increase was primarily attributable to increased sales volumes, resulting from the positive contribution of the Titan Specialty (formerly known as Carlstar) acquisition and positive price/mix effects. This growth was partially offset by declines in the agricultural and earthmoving/construction segments, notably in North America and Europe, attributable to lower end customer demand. Additionally, a 3.6% unfavorable currency translation impact, mainly due to the depreciation of the Brazilian real and Turkish lira, contributed to the offset.
Click here to see Titan International Inc.'s full Q1 report.
