TITAN INTERNATIONAL INC Q3 FY2025 earnings call

• Q3 2025 results demonstrate the business and team performing well in challenging times, with Ag and EMC segments showing sales growth and consumer rebounding sequentially. • Tariffs and Fed rate cuts are factors, and the agreement with China on soybean purchases is a positive for market conditions in 2026. • Diversification strategy is proving merit, with Ag, EMC, and consumer segments contributing to revenues. • Consumer segment benefits from a larger aftermarket and diverse customer base, making demand less cyclical. • Ag segment growth driven by higher volumes in Latin America and pricing related to input costs. • EMC revenues up due to drop-in orders in U.S. light construction and favorable FX. • Goodyear product portfolio expansion is a focus, with positive market response in outdoor power equipment tires.

The Ag segment revenues were up over 7% from the prior year, accounting for 41% of year-to-date revenues. EMC revenues were up 6% from the prior year to $145 million, making up 31% of year-to-date revenues. Consumer segment sales were $132 million, a decline of just under 3% from the prior year but up 14% from Q2, accounting for 28% of year-to-date revenues. Ag gross margins were 13.4% compared to 9.5% last year, EMC gross margins were 10.4% versus 8.5% last year, and consumer gross margins were 23% compared to 22.3% the year before.

• Q4 guidance: revenues of $385 million to $410 million and adjusted EBITDA of approximately $10 million. • Midpoint of revenue and adjusted EBITDA guidance imply growth vs Q4 last year. • Fourth quarter typically marks seasonal low point, but business performing well. • Expect to manage working capital with discipline to reduce debt and invest in strategic initiatives.

Q: What drove the year-over-year upside in Ag?

A: Nice improvements in primarily at customers with aftermarket, along with Latin American activity.

Q: Any insights to the degree to which OEM inventory levels improved over the past quarter?

A: Inventories came down roughly like 30 days, varying by product and customer, with customers dropping orders where inventory was out of balance.

Q: How might construction (EMC business) look for Titan in 2026?

A: In a good position with government spending support and early looks indicating good basis for growth into next year.

Q: On the Goodyear deal, potential of the initiative and timing?

A: More of a longer tail with product development, testing, and going into premium segments, with more to be seen in 2026.

Q: Did the Brazilian JV close?

A: Yes, a press release was issued last week indicating it closed.