Titan International (TWI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues increased 2.9% year-over-year to $505.1 million, with gross margin rising to 14.1% and adjusted EBITDA reaching $31 million, despite ongoing geopolitical and market headwinds.

• Diverse product portfolio, global footprint, and responsive supply chain are cited as key competitive advantages.

• Carlstar acquisition in 2024 expanded aftermarket presence, product portfolio, and manufacturing capacity.

• Net loss attributable to common shareholders was $24.3 million, primarily due to $25 million in restructuring and impairment charges from the Jackson, Tennessee plant closure.

• The company continues to invest in innovation and customer service, with a focus on operational discipline.

Financial highlights

• Q1 sales grew 2.9% year-over-year to $505.1 million; EMC/Earthmoving/Construction segment led with 11.3% growth.

• Gross margin improved to 14.1%; adjusted EBITDA reached $31 million.

• Operating cash used was $46.5 million, consistent with seasonal working capital needs.

• CapEx was $13.3 million in Q1 2026, with full-year guidance of $50–$55 million.

• Net debt at quarter end was $441 million with a leverage ratio of 4.3x.

Outlook and guidance

• Q2 2026 guidance: revenues of $470M–$490M, adjusted EBITDA of $25M–$30M.

• Full-year 2026 guidance unchanged: revenues of $1.85B–$1.95B, adjusted EBITDA of $105M–$115M.

• Q2 margins expected to be pressured by a $3M headwind from the Ukraine war, with recovery expected in the second half as price increases offset costs.

• Path to $250M midcycle adjusted EBITDA based on revenue growth, synergies, and cost initiatives.

• Anticipates increased customer activity in Q4, supporting readiness for an Ag recovery in 2027.