Titan International faced a challenging Q2, as the company’s revenue and adjusted earnings both came in below Wall Street expectations, prompting a negative market reaction. Management attributed the underperformance to ongoing market softness in the agricultural sector, lower equipment demand, and customer hesitancy driven by unclear interest rate and tariff environments. CEO Paul Reitz noted that, “buyers of equipment continue to take a wait-and-see approach,” highlighting that both OEMs and aftermarket customers were cautious due to macroeconomic uncertainty. The company also pointed to a significant drop in orders and lower operating leverage as key factors impacting margins during the quarter.
Is now the time to buy TWI? Find out in our full research report (it’s free).
Titan International (TWI) Q2 CY2025 Highlights:
- Revenue: $460.8 million vs analyst estimates of $478 million (13.4% year-on-year decline, 3.6% miss)
- Adjusted EPS: -$0.02 vs analyst estimates of $0.01 ($0.03 miss)
- Adjusted EBITDA: $30.16 million vs analyst estimates of $28.61 million (6.5% margin, 5.4% beat)
- Revenue Guidance for Q3 CY2025 is $462.5 million at the midpoint, roughly in line with what analysts were expecting
- EBITDA guidance for Q3 CY2025 is $27.5 million at the midpoint, below analyst estimates of $28.34 million
- Operating Margin: 2.3%, down from 4.3% in the same quarter last year
- Market Capitalization: $535.4 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Titan International’s Q2 Earnings Call
- Michael Shlisky (D.A. Davidson): Asked about the drivers behind Q3 EBITDA guidance and why profit could fall with flat revenues. CFO David Martin cited seasonally lower plant activity and a less favorable product mix as primary factors.
- Michael Shlisky (D.A. Davidson): Inquired about the timing and likelihood of an agricultural sector rebound in the U.S. CEO Paul Reitz explained that customer sentiment remains quiet, with demand recovery dependent on interest rate cuts and tariff resolution.
- Stephen Michael Ferazani (Sidoti): Questioned the consumer segment’s sequential margin improvement despite tariffs. Martin clarified that product mix, rather than price increases, drove margin gains and that tariffs had no material bottom-line impact.
- Stephen Michael Ferazani (Sidoti): Sought clarity on whether consumer sales declines were primarily due to tariffs or underlying demand. Reitz and Martin confirmed that a pause in purchasing was related to dealer destocking and uncertainty, not direct tariff cost pressure.
- Derek John Soderberg (Cantor Fitzgerald): Asked about the Brazil investment’s potential impact and modeling considerations. Reitz emphasized the strategic, rather than immediate financial, value, explaining that the minority stake will not be consolidated but should enhance Titan’s position for future growth.
Catalysts in Upcoming Quarters
In upcoming quarters, our analysts are watching (1) whether inventory restocking trends in the consumer segment continue and expand to other markets, (2) the impact of any changes in U.S. or global trade policy—including tariff resolutions—on customer buying patterns, and (3) signs of improved demand as a result of potential interest rate cuts. We are also monitoring the integration and strategic benefits from the Roderos partnership in Brazil and the pace of new product initiatives, especially in targeted growth segments.
Titan International currently trades at $8.38, down from $9.09 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
