Titan International (TWI) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered revenue, gross margin, and adjusted EBITDA above guidance and prior year levels, with EMC segment leading growth in Europe and North America.

• Global leader in off-highway tires, wheels, and undercarriage equipment, reporting FY'25 revenue of $1.83B and $102M adjusted EBITDA.

• Ag segment showed resilience in small equipment, while large ag remained challenged; Consumer segment saw stable aftermarket demand but softer margins.

• Carlstar acquisition in 2024 expanded product offerings, distribution, and aftermarket stability.

• Management transition was seamless, with new CFO and CTO roles filled internally.

Financial highlights

• Q4 2025 sales grew 7% year-over-year to $410M; EMC up 21%, Ag up 2.6%, Consumer down 1.5%.

• Q4 gross margin expanded to 10.9%; EMC gross margin rose to 9.3%, Ag steady at 9.1%, Consumer declined to 15.6%.

• Adjusted EBITDA for Q4 2025 was $11M, up 17% year-over-year; FY'25 adjusted EBITDA was $102M.

• Q4 operating cash flow was $13M; CapEx $18M; free cash flow negative $5M; year-end net debt was $383M with a leverage ratio of 3.8x.

• Full-year 2025 net sales were $1.83B, down 0.9% from 2024, with net loss attributable to shareholders of $63.5M, mainly due to a $40M non-cash deferred tax valuation allowance.

Outlook and guidance

• Q1 2026 guidance: revenue $490M–$510M, adjusted EBITDA $28M–$33M, both flat year-over-year.

• FY 2026 guidance: revenue $1.85B–$1.95B, adjusted EBITDA $105M–$150M, reflecting improvement over 2025.

• EMC expected to outperform in 2026; Ag to remain flat with potential second-half recovery; Consumer to improve modestly.

• Path to $250M midcycle adjusted EBITDA based on revenue growth, synergies, and incremental margin of 25%.

• CapEx for 2026 projected at $55M, with maintenance CapEx at $30M–$35M; cash taxes for 2026 expected at $20M.