NYSE$TWI

Titan International Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Delivered solid profitability with EPS of $0.31, adjusted EPS of $0.29 and adjusted EBITDA of $41 million.

Titan International reported a decrease in net sales to $401.8 million compared to $530.7 million in the same quarter of the previous year, primarily due to reduced sales volume from customer inventory adjustments and lower demand in some sectors. Despite the sales decrease, the company maintained a solid financial position, generating $37 million in free cash flow and increasing its cash position to $212 million while also repurchasing shares.

  • Delivered EPS of $0.31 and adjusted EPS of $0.29.
  • Generated $37 million of free cash flow.
  • Maintained full year 2023 outlook.
  • Repurchased just over one million additional shares during the quarter, at an average cost of $12.31.

Headline financials

Total Revenue

$402M

Previous: $531M-24.3%
EPS (adj)

$0.29

Previous: $0.54-46.3%
Adjusted EBITDA

$40.5M

Previous: $61.2M-33.8%
Capital Expenditures

-$41.5M

Previous: -$32.8M-26.6%
Free Cash Flow

-$22.2M

Previous: $10.4M-313.2%
Net Income

$19.3M

Previous: $43.2M-55.3%
Operating Income

$27M

Previous: $50.5M-46.6%
Gross Profit

$66.1M

Previous: $87.6M-24.6%
Cash & Equivalents

$212M

Previous: $117M+81.8%
Total Assets

$1.26B

Previous: $1.25B+0.8%
R&D Expense

$3.17M

No prior period
Stock-Based Comp

$1.49M

Previous: $1.17M+27.0%

Revenue & EPS history

Titan · Revenue · Quarterly

$402M

Q3 2023-24.3%vs Q3 2022
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 maintaining its previously communicated outlook for FY 2023:

Tailwinds

  • Revenues are expected to range between $1.85 to $1.9 billion
  • Adjusted EBITDA of $200 to $210 million
  • Free cash flow to range between $110 to $120 million
  • Capital expenditures to range between $55 to $60 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 Q3 2023

Historical avgQ3 2023

-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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