NYSE$TWI

Titan International Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a 53 percent YoY increase in net sales, marking the highest quarterly sales since 2014 and the strongest quarterly operating performance since 2013.

Titan International reported a strong second quarter in 2021 with net sales up 53% year-over-year, driven by sales increases in the agricultural and earthmoving/construction segments. The company's adjusted EBITDA improved sequentially by more than $11 million to over $37 million. Titan is set to deliver adjusted EBITDA north of $120 million this year.

  • Net sales increased by 53.3% YoY to $438.6 million, the highest since 2014.
  • Gross margin improved to 14.0% from 10.4% in Q2 of the prior year.
  • Income from operations was $23.7 million, a $26.8 million YoY improvement, the strongest in more than eight years.
  • Adjusted EBITDA was $37.4 million compared to $13.3 million in Q2 of the prior year.

Headline financials

Total Revenue

$439M

Previous: $286M+53.3%
EPS (adj)

$0.22

Previous: -$0.08+375.0%
Adjusted EBITDA

$37.4M

Previous: $13.3M+181.2%
Gross Margin

14.0%

Previous: 10.4%+34.6%
Capital Expenditures

-$14.6M

Previous: -$8.4M-74.2%
Free Cash Flow

-$17.4M

Previous: -$13.4M-29.5%
Net Income

-$2.77M

Previous: -$5.05M+45.0%
Operating Income

$23.7M

Previous: -$3.1M+864.9%
Gross Profit

$61.5M

Previous: $29.9M+105.8%
Cash & Equivalents

$95.8M

Previous: $80.2M+19.5%
Total Assets

$1.13B

Previous: $1.03B+9.3%
Stock-Based Comp

$810K

Previous: $581K+39.4%

Revenue & EPS history

Titan · Revenue · Quarterly

$439M

Q2 2021+53.3%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Titan · $439M total across 3 segments · Q2 2021

  • Agricultural
    $232M+57.2%
  • Earthmoving/Construction
    $177M+57.1%
  • Consumer
    $30.4M+15.2%

Forward guidance

Titan is set to deliver adjusted EBITDA north of $120 million this year, with opportunities for further growth next year.

Tailwinds

  • Strong sales volume growth in both Agriculture and Earthmoving/Construction segments.
  • Dealer inventories remain tight in the Ag segment.
  • Used and new equipment pricing continues to increase.
  • Overall large equipment fleet is aged.
  • Farm commodity prices remain at historically elevated levels.

Headwinds

  • Continuing supply chain challenges.
  • Labor challenges.
  • Unfavorable movements in foreign currency exchange rates.
  • Investments in working capital to support business growth.
  • Legal settlement paid in February.

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 Q2 2021

Historical avgQ2 2021

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro