TWI · Titan International, Inc.

Titan International's first quarter 2026 results showed modest top-line growth of 2.9% to $505 million, driven by favorable foreign currency translation (3.7% contribution) and pricing actions to offset higher input costs, partially offset by lower volumes in consumer and agricultural segments due to challenging market conditions. Gross margin improved slightly to 14.1% from 14.0%, reflecting ongoing cost reduction and productivity initiatives across global facilities. However, operating results swung to a loss of $13.8 million from income of $11.8 million in the prior year, primarily due to $2 million in restructuring and $23 million in non-cash impairment charges related to the closure of the Jackson, Tennessee plant. Excluding these charges, income from operations would have been $11.4 million. Adjusted EBITDA increased to $31.4 million from $30.8 million. Segment performance varied: Earthmoving/Construction was the standout with 11.3% sales growth and 21.5% gross profit growth, driven by higher volumes in the Americas and Europe Wheel business. Agricultural sales were flat (+0.3%) with a slight decline in gross profit, while Consumer sales fell 1.6% but gross profit remained flat due to cost initiatives. Management commentary highlighted the company's resilience amid geopolitical and tariff volatility, with a diversified portfolio and global footprint. The company provided Q2 2026 guidance of sales between $470 million and $490 million and adjusted EBITDA between $25 million and $30 million, and maintained full-year 2026 guidance of sales $1.85-$1.95 billion and adjusted EBITDA $105-$115 million. The Jackson plant closure is expected to be completed by end of October 2026, with cash benefits anticipated next year. Balance sheet metrics showed cash of $171.3 million, long-term debt of $578.3 million, and net debt of $441.3 million, with operating cash flow of negative $46.5 million driven by working capital increases.