NYSE$TWI

Titan International Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Titan International reported solid profitability with adjusted EBITDA of $50 Million and Adjusted EPS of $0.29.

Titan International, Inc. reported a decrease in net sales to $482.2 million compared to $548.6 million in the same period last year, primarily due to lower sales volume in the agricultural and earthmoving/construction segments. Despite challenging market conditions, the company focused on operating efficiency, achieving an adjusted gross margin of 16.7%. The integration of Carlstar Group LLC is underway, with expectations of significant synergies and long-term growth.

  • Net sales for Q1 2024 were $482.2 million, down from $548.6 million in Q1 2023.
  • Adjusted EBITDA was $49.7 million, compared to $67.6 million in the prior year period.
  • Adjusted net income was $19.0 million, or $0.29 per share, compared to $33.6 million, or $0.53 per share, in Q1 2023.
  • The company is integrating Carlstar Group LLC and expects synergies of $5 to $6 million this year and $25 to $30 million over the longer term.

Headline financials

Total Revenue

$482M

Previous: $549M-12.1%
EPS

$0.14

Previous: $0.53-73.6%
Adjusted EBITDA

$49.7M

No prior period
Gross Margin

16.0%

Previous: 17.4%-8.0%
Capital Expenditures

-$16.6M

Previous: -$11.7M-42.0%
Free Cash Flow

-$7.41M

Previous: $20.1M-136.8%
Net Income

$9.2M

Previous: $31.8M-71.1%
Operating Income

$25.1M

Previous: $55.1M-54.5%
Gross Profit

$77.4M

Previous: $95.6M-19.0%
Total Assets

$1.81B

Previous: $1.34B+34.9%
R&D Expense

$3.65M

No prior period
Stock-Based Comp

$32K

Previous: $700K-95.4%

Revenue & EPS history

Titan · Revenue · Quarterly

$482M

Q1 2024-12.1%vs Q1 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Titan · $402M total across 3 segments · Q3 2023

  • Agricultural
    $213M-26.4%
  • Earthmoving/Construction
    $155M-22.4%
  • Consumer
    $33.8M-18.7%

Forward guidance

The Company is introducing financial guidance for Q2 2024. Revenues are expected to range between $525 million to $575 million. Adjusted EBITDA of $45 million to $55 million. Free cash flow to range between $30 to $40 million. Capital expenditures to range between $15 to $20 million.

Tailwinds

  • Revenues are expected to range between $525 million to $575 million
  • SG&A plus royalty and R&D expense at approximately 11.0% of sales
  • Adjusted EBITDA of $45 million to $55 million
  • Free cash flow to range between $30 to $40 million
  • Capital expenditures to range between $15 to $20 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.7%

Avg return

Earnings day

-1.3%

Avg return

5 days after

+2.7%

Avg return

30 days after

42%

27 / 65 earnings

Positive

+22.9%

Q2 2016

Best reaction

-34.2%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%-7.4%
Q4 2025-5.8%-12.7%-35.3%
Q3 2025-4.1%-1.6%+1.6%
Q1 2025-13.6%-6.9%-1.5%
Q4 2024-9.3%-13.4%-1.7%
Q3 2024-11.4%-11.3%+0.7%
Q2 2024-0.5%-9.8%-2.1%
Q1 2024-5.2%-17.6%-25.0%
Q4 2023-10.9%-11.0%-11.9%
Q3 2023+3.1%+10.0%+18.8%
Q2 2023-11.2%-5.5%-0.2%
Q1 2023-1.1%+3.8%+7.6%
Q4 2022-17.5%-11.0%-30.6%
Q3 2022+1.2%+0.3%-5.5%
Q2 2022-15.5%-12.0%-16.3%
Q1 2022+16.5%+12.5%+29.8%
Q4 2021+6.8%+0.5%+32.5%
Q3 2021+10.3%+10.2%-6.8%
Q2 2021+11.1%+6.1%+8.6%
Q1 2021+1.6%-5.6%-13.9%
Q4 2020-2.1%-9.1%+4.6%
Q3 2020+15.3%+73.6%+105.6%
Q2 2020+9.4%+25.8%+69.8%
Q1 2020+6.3%+3.6%+67.6%
Q4 2019-12.4%-28.9%-33.0%
Q3 2019-4.2%+15.3%+1.7%
Q2 2019-20.6%-23.3%-31.2%
Q1 2019-16.1%-18.6%-38.1%
Q4 2018-28.3%-24.5%+6.3%
Q3 2018-3.5%-0.9%-15.7%
Q2 2018-30.5%-27.7%-26.1%
Q1 2018+16.1%+10.6%+9.9%
Q4 2017+17.2%+7.6%+5.5%
Q3 2017+14.5%+15.4%+22.7%
Q2 2017-10.3%-19.5%-31.8%
Q1 2017+10.8%+2.8%+7.9%
Q4 2016-11.3%-15.0%-26.9%
Q3 2016+5.2%+10.6%+19.3%
Q2 2016+22.9%+32.9%+34.5%
Q1 2016+0.6%
Q4 2015+21.0%
Q3 2015-34.2%
Q2 2015+5.2%
Q1 2015+15.7%
Q4 2014+6.2%
Q3 2014+3.8%
Q2 2014-8.5%
Q1 2014-7.5%
Q4 2013-0.8%
Q3 2013+2.0%
Q2 2013-5.6%
Q1 2013+7.6%
Q4 2012-18.0%
Q3 2012+13.0%
Q2 2012-5.2%
Q1 2011+13.4%
Q1 2012+2.7%
Q1 2010-5.8%
Q4 2009-5.8%
Q4 2011-5.8%
Q3 2010-4.0%
Q3 2011-4.0%
Q2 2011-6.0%
Q2 2010-6.0%
Q4 2010-6.0%

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