Titan International’s third quarter reflected solid execution in a challenging environment, but the market’s negative reaction highlighted ongoing concerns. Management pointed to steady year-over-year growth in the Agricultural (Ag) and Earthmoving/Construction (EMC) segments, with aftermarket demand and Latin American strength offsetting softness in OEM channels. CEO Paul Reitz emphasized, “Our Ag and EMC segments reported solid sales growth of 8% and 7%, respectively, compared with the prior year.” Despite improved operating margins, management maintained a cautious tone regarding persistent headwinds, including U.S. farmer income pressure and ongoing inventory adjustments.
Is now the time to buy TWI? Find out in our full research report (it’s free for active Edge members).
Titan International (TWI) Q3 CY2025 Highlights:
- Revenue: $466.5 million vs analyst estimates of $458.9 million (4.1% year-on-year growth, 1.7% beat)
- Adjusted EPS: $0.04 vs analyst estimates of -$0.02 (significant beat)
- Adjusted EBITDA: $29.77 million vs analyst estimates of $26.79 million (6.4% margin, 11.1% beat)
- Revenue Guidance for Q4 CY2025 is $397.5 million at the midpoint, below analyst estimates of $420.7 million
- EBITDA guidance for Q4 CY2025 is $10 million at the midpoint, below analyst estimates of $16.48 million
- Operating Margin: 2.2%, up from 0.7% in the same quarter last year
- Market Capitalization: $499.5 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 Q3 Earnings Call
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Michael Shlisky (D.A. Davidson): Asked whether Ag segment growth was driven by aftermarket or OEM orders. CEO Paul Reitz clarified it was “primarily at customers with aftermarket,” with Latin America contributing to year-over-year gains.
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Derek Soderberg (Cantor Fitzgerald): Inquired about improvements in OEM inventory levels. Reitz estimated inventories fell by about 30 days, moving toward normalization and enabling Titan to better respond to unexpected orders.
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Steve Ferazani (Sidoti): Questioned why Q4 guidance implied a seasonal downturn despite inventory improvements. Reitz explained that OEMs are being disciplined, with no plans for significant production increases in Q4, and that aftermarket contribution typically dips in the quarter.
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Hans Baldau (NOBLE Capital Partners): Sought color on M&A opportunities and military market targeting. Reitz described Titan’s approach as opportunistic, waiting for favorable valuations, and expressed frustration at slow progress in U.S. military sales compared to Europe.
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Kirk Ludtke (Imperial Capital): Asked about the timing and strategy behind the expanded Goodyear licensing. Reitz said new product launches tied to the agreement will materialize in 2026, targeting premium market segments for margin expansion.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will be watching (1) the pace of aftermarket and replacement tire demand, especially as new Goodyear-branded products reach the market, (2) further signs of OEM inventory normalization or production ramp-up in the Ag and EMC segments, and (3) how Titan’s geographic diversification, especially in Latin America, continues to offset U.S. market headwinds. Progress on M&A and government support initiatives will also be critical markers for future growth.
Titan International currently trades at $7.82, down from $7.95 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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