Titan International ( (TWI) ) has released its Q4 earnings. Here is a breakdown of the information Titan International presented to its investors.
Titan International, Inc. is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, serving the agricultural, earthmoving/construction, and consumer markets. The company recently released its financial performance for the fourth quarter and fiscal year 2024, highlighting strong free cash flow generation and the successful integration of Carlstar. Despite a challenging year marked by reduced demand in key segments and unfavorable currency impacts, Titan remains optimistic about future growth, driven by improved net farm income and strategic investments in product innovation and aftermarket offerings.
Key financial metrics for the fourth quarter of 2024 include net sales of $383.6 million, a slight decrease from the previous year, primarily due to declines in the agricultural and earthmoving/construction segments. The company reported a gross profit of $41.2 million, down from $58.3 million in the prior year, with a gross margin of 10.7%. The increase in SG&A expenses, largely due to the Carlstar acquisition, contributed to a loss from operations of $17.0 million. However, the consumer segment saw significant growth with net sales increasing by 185.8% year-over-year, driven by the Carlstar acquisition.
Titan’s management remains optimistic about the future, citing internal investments and external market conditions as key drivers for potential growth. The company anticipates improved net farm income in 2025, supported by higher commodity prices and increased government support for farmers. Additionally, Titan’s strong position in the Brazilian market and its strategic focus on the aftermarket business are expected to mitigate cyclicality and support long-term growth.
Looking ahead, Titan International expects sales between $450 million and $500 million for the first quarter of 2025, with adjusted EBITDA projected between $25 million and $35 million. The company anticipates a higher proportion of revenue in the second half of the year, as OEMs complete destocking and align production with market demand. Titan’s commitment to innovation, particularly its LSW technology, and its strategic focus on expanding its product offerings position the company well for future growth.