Titan International Q2 revenue rises 5.2% on consumer segment growth

Overview

• U.S. off-highway tire maker's Q2 revenue rose 5.2%, slightly beating analyst expectations

• Adjusted EBITDA for Q2 rose 13.3% to $34 mln, gross margin improved to 15.5%

• Company cites strong consumer segment growth, Ag sales fell on lower farm incomes, high financing costs

Outlook

• Titan sees Q3 sales between $440 mln and $460 mln

• Company expects Q3 Adjusted EBITDA of $27 mln to $33 mln

• Titan maintains full-year sales guidance of $1.85 bln to $1.95 bln

Result Drivers

• CONSUMER SEGMENT GROWTH - Consumer segment revenue rose 27% on strong end customer demand in Titan Specialty business

• AG SEGMENT DECLINE - Agricultural segment sales fell 5% due to lower farm incomes and elevated financing costs

• WORKING CAPITAL IMPROVEMENT - Free cash flow of $26 mln attributed to improved working capital

Company press release: ID:nPn5p2p3pa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Titan International Inc is $13.00, about 69.9% above its July 29 closing price of $7.65

• The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 43 three months ago

Reuters Recommended Reads

• July 29 - Pirelli confirms 2026 outlook despite Middle East crisis as operating profit rises 1%

• July 29 - FMC Q2 adjusted EPS beats estimates, cuts FY outlook

• July 28 - Oshkosh Q2 profit beats on improved pricing

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)