NYSE$TWI

Titan International Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Delivered strong results despite challenging industry conditions, with free cash flow of $53 million; Adjusted EBITDA of $49 Million; and Adjusted EPS of $0.10

Titan International, Inc. reported solid financial results for the second quarter ended June 30, 2024, with adjusted EBITDA of $49 million and free cash flow of $53 million, despite a cyclical trough in the industry. The company's strategic acquisition of Carlstar in February has bolstered its aftermarket capabilities, helping to offset slowing sales of new equipment.

  • Achieved adjusted EBITDA of $49 million.
  • Generated free cash flow of $53 million.
  • Reduced net debt by $43 million from Q1 2024.
  • Increased cash position by more than $20 million compared to the first quarter of 2024.

Headline financials

Total Revenue

$532M

Previous: $481M+10.6%
EPS

$0.03

Previous: $0.43-93.0%
Adjusted EBITDA

$48.8M

Previous: $59M-17.4%
Gross Margin

15.1%

No prior period
Capital Expenditures

-$34.2M

Previous: -$27.6M-24.1%
Free Cash Flow

-$32.1M

Previous: $2.64M-1314.0%
Net Income

$2.15M

Previous: $30.2M-92.9%
Operating Income

$22.3M

Previous: $45.9M-51.4%
Gross Profit

$80.4M

Previous: $85.9M-6.3%
Cash & Equivalents

$224M

Previous: $197M+14.0%
Total Assets

$1.73B

Previous: $1.31B+32.9%
R&D Expense

$4.22M

No prior period
Stock-Based Comp

$1.77M

Previous: $1.52M+16.8%

Revenue & EPS history

Titan · Revenue · Quarterly

$532M

Q2 2024+10.6%vs Q2 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 Q3 2024 as follows:

Tailwinds

  • Revenues of $450 million to $500 million
  • Adjusted EBITDA of $25 million to $30 million
  • Free cash flow of $20 to $30 million
  • Integration of Carlstar continues to go well.
  • Pursuit of acquisition-related synergies have placed us well along the path to achieve our target bottom-line benefit of $5 million to $6 million this year and $25 million to $30 million long term

Headwinds

  • Interest rates continue to weigh on the industries we serve.
  • High horsepower agricultural equipment represents a significant purchase for farmers and thus they are highly attuned to the associated financing costs.
  • With the possibility of interest rate cuts on the horizon, farmers are choosing to defer major purchases.
  • Similarly, interest rates impact the cost of working capital for both OEMs and Aftermarket dealers who are being extremely cautious about the levels of inventory they are carrying in their factories and on their lots.
  • Lower prices driven by steel costs and softness on construction wheels and tires in the US.

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 2024

Historical avgQ2 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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