WEST CHICAGO, Ill. — Titan International, Inc. (NYSE: TWI) (“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, 2026.
Q1 2026 Key Figures
- Revenues grew 2.9% to $505 million
- Gross margin improved to 14.1%
- Adjusted EBITDA increased to $31 million
Paul Reitz, President and Chief Executive Officer, commented, “Our Q1 2026 results were at the high end of our expectations as our team executed well against a macro backdrop that continued to be very dynamic. EMC was our best-performing segment, with growth over 11% versus the prior year period. Gross margin in the segment improved 90 basis points to 11.3% as top-line growth allowed for improved fixed cost leverage. Our Ag segment also recorded modest growth while Consumer fell by only 1.6%. Notwithstanding the geopolitical and tariff volatility, we had a strong quarter with revenues up nearly 3% with increased gross margin and Adjusted EBITDA.”
Mr. Reitz continued, “Titan is built to be resilient in market conditions such as this. We have a diversified portfolio of products, strategically positioned global plants, and a one-stop shop distribution channel that is surrounded by a team that is highly energized for our customers. In times like this, we help our customers remain flexible in serving their end markets. With purchasers of equipment remaining hesitant, inventory management continues to be paramount with many OEMs and dealers working from lean positions to limit their investment in working capital. This naturally limits their ability to be responsive to customer ordering and by working with Titan, those OEMs and dealers know they have a trusted partner that can get them the wheel, tire and undercarriage products they need quickly.”
Mr. Reitz concluded, “We continue to be hopeful that the underlying causes of the current market volatility will subside but remain resolute in knowing Titan is well-positioned however our markets unfold. Our terrific One Titan Team is focused on producing high-quality products and serving our customers to the best of their ability on a daily basis and as we do that, I firmly believe in our continued success.” '
Tony Eheli, Chief Financial Officer added, “We currently expect second quarter sales to be between $470 million and $490 million with Adjusted EBITDA between $25 million and $30 million. We are also maintaining our previously communicated full year guidance of sales between $1.85 and $1.95 billion with Adjusted EBITDA between $105 million and $115 million.
Mr. Eheli continued, “During the quarter, we announced the closure of our Jackson, Tennessee plant. We expect to complete the closure by the end of October, and execution is on a solid pace. With the acquisition of Carlstar, we knew we had excess manufacturing capacity in the US and identified this as a long-term synergy opportunity that would be accretive to our earnings. This action will streamline our manufacturing footprint by improving our capacity utilization, reducing costs and improving our ability to serve our customers effectively over the long term. We recorded approximately $2 million in restructuring and $23 million in non-cash impairment expenses related to the closure. We are confident that we will see cash benefits next year.”
Results of Operations
Net sales for the three months ended March 31, 2026 were $505.1 million, compared to $490.7 million in the comparable period of 2025. The increase was driven by foreign currency translation, which contributed approximately 3.7% to net sales growth, largely due to the strengthening of the Brazilian real and euro against the U.S. dollar, and favorable pricing related to higher input costs. These increases were partially offset by lower sales volumes resulting from reduced customer demand in the consumer and agricultural segments due to challenging market conditions.
Gross profit for the three months ended March 31, 2026 was $71.4 million, or 14.1% of net sales, compared to $68.6 million, or 14.0% of net sales, for the three months ended March 31, 2025. The improvement in gross profit and margin was driven by focused cost reduction and productivity initiatives which continued to be executed across our global production facilities.
Selling, general and administrative expenses (SG&A) for the three months ended March 31, 2026 were $52.4 million, or 10.4% of net sales, compared to $49.9 million, or 10.2% of net sales, for the three months ended March 31, 2025. The increase in SG&A expenses was primarily attributable to inflationary cost impacts, including higher personnel‑related costs.
Loss from operations for the three months ended March 31, 2026 was $13.8 million, compared to income from operations of $11.8 million for the three months ended March 31, 2025. The change in (loss) income from operations was primarily due to the restructuring and impairment charges related to the closure of Jackson, Tennessee facility. Excluding the impact of the restructuring and non-cash impairment expenses related to the closure, income from operations would have been $11.4 million.
Segment Information
Agricultural Segment
Net sales in the agricultural segment were $198.3 million for the three months ended March 31, 2026, as compared to $197.7 million for the comparable period in 2025. Foreign currency translation had a favorable impact on sales of approximately 3.1%, which was partially offset by lower sales volumes in the Americas, driven by lower farm income, higher financing costs, and continued inventory reduction initiatives by OEM customers.
Gross profit in the agricultural segment was $24.0 million for the three months ended March 31, 2026, as compared to $24.5 million in the comparable period in 2025. The change in gross profit was primarily due to lower sales volumes and the resulting reduced fixed cost leverage.
