TITAN INTERNATIONAL INC Q4 FY2025 earnings call

Paul congratulated Tony on promotion to CFO. Discussed 2025 results, ag market challenges, EMC segment optimism, consumer segment outlook. Mentioned tariffs, Titan's ability to serve customers, and innovation. Tony highlighted financial metrics, segment details, SG&A, CAPEX, taxes, and 2026 guidance.

Ag: Livestock producers had a good 2025, row crop farmers faced difficulties. Small equipment market performed better. EMC: Segment revenues up 21% y/y to $141M, growth strong in Europe and US, benefited from FX. Consumer: Q4 revenues off 1.5% y/y, non-specialty part slow, specialty held up. EMC gross margin expanded, consumer gross margin slipped, ag had OE pricing pressure.

Q1 2026 revenues $490M - $510M, adjusted EBITDA $28M - $33M. FY 2026 revenues $1.85B - $1.95B, adjusted EBITDA $105M - $150M. Expect EMC to outperform, ag flattish, consumer improved but less than EMC.

Tariff uncertainty continuing, impact on input costs and pricing, chaotic implementation of tariffs affecting raw material prices and product pricing.

Q: Broad directional thoughts on segments' top and bottom line in 2026.

A: EMC outperforming, ag flattish, consumer improved less; bottom line EMC and consumer improve, ag has OE pricing pressure.

Q: Ag second half vs first.

A: First half flat-ish, later year growth expected.

Q: South America JV.

A: JV gives confidence, early days, wheel business gaining momentum.

Q: Consumer gross margin 2026.

A: Expect improvement via new business and product innovations.

Q: EMC end markets and geographies.

A: Europe construction driven by infrastructure, US construction improving, growth across regions except Brazil.

Q: R&D priorities.

A: 15% of 2026 sales from new products, focus on innovation across business.

Q: EMC demand meeting.

A: Titan's strength allows handling surges.

Q: Consumer margin impact.

A: Rubber mixing business volumes down impacted margins.

Q: CapEx guidance 2026.

A: Expect improvement from 2025, maintenance CapEx 30 - 35M, additional investments in growth.

Q: Ag recovery.

A: Input cost moderation, government support, equipment aging needed.

Q: Brazil guidance.

A: Somewhat flattish, earlier part softer, later year expected to come back.

Q: Tariff impact on input costs.

A: Tariffs chaotic, impact raw material prices, different business model than assemblers like Caterpillar and Deere