Titan International (NYSE:TWI) Posts Earnings Results, Misses Expectations By $0.02 EPS

Titan International (NYSE:TWI) announced its quarterly earnings results on Thursday. The industrial products company reported ($0.27) EPS for the quarter, missing analysts’ consensus estimates of ($0.25) by ($0.02), FiscalAI reports. Titan International had a negative net margin of 0.34% and a positive return on equity of 1.38%. The firm had revenue of $410.44 million for the quarter, compared to the consensus estimate of $396.86 million.

Here are the key takeaways from Titan International’s conference call:

• Q4 2025 finished ahead of guidance with sales up ~7% year-over-year, adjusted EBITDA up 17% in the quarter to $11 million, and modest gross margin expansion to ~10.9%, driven by a strong EMC performance.
• The company reintroduced full-year 2026 guidance expecting growth, with revenue of $1.85B–$1.95B and adjusted EBITDA of $105M–$150M, and management sees EMC as the leading growth driver while ag should recover later in the year.
• Ongoing tariff and trade-policy volatility created chaotic input-cost dynamics in 2025 and remains an uncertainty into 2026, which could continue to compress margins despite Titan’s multi-sourcing strategy.
• Financial headwinds include a $40 million valuation allowance on certain deferred tax assets, year-end net debt of $383 million with a 3.8x leverage ratio, negative Q4 free cash flow (-$5M), and expected working-capital and CapEx needs (~$55M guidance) that may pressure near-term cash flow.

Titan International Stock Performance

NYSE:TWI traded down $0.76 during mid-day trading on Thursday, hitting $9.75. The company’s stock had a trading volume of 463,690 shares, compared to its average volume of 576,810. The business’s fifty day moving average is $9.31 and its two-hundred day moving average is $8.52. The stock has a market cap of $623.38 million, a price-to-earnings ratio of -97.30 and a beta of 1.50. The company has a debt-to-equity ratio of 0.97, a current ratio of 2.28 and a quick ratio of 1.25. Titan International has a 1 year low of $5.93 and a 1 year high of $11.70.

Hedge Funds Weigh In On Titan International

Large investors have recently made changes to their positions in the company. Royal Bank of Canada raised its stake in shares of Titan International by 23.6% during the 1st quarter. Royal Bank of Canada now owns 48,782 shares of the industrial products company’s stock worth $409,000 after buying an additional 9,327 shares during the period. Empowered Funds LLC increased its position in Titan International by 4.2% during the first quarter. Empowered Funds LLC now owns 325,470 shares of the industrial products company’s stock worth $2,731,000 after purchasing an additional 13,083 shares during the last quarter. Jane Street Group LLC lifted its holdings in Titan International by 35.5% in the first quarter. Jane Street Group LLC now owns 424,724 shares of the industrial products company’s stock valued at $3,563,000 after acquiring an additional 111,309 shares during the last quarter. Rhumbline Advisers lifted its stake in shares of Titan International by 2.6% in the 2nd quarter. Rhumbline Advisers now owns 152,505 shares of the industrial products company’s stock valued at $1,566,000 after purchasing an additional 3,934 shares during the last quarter. Finally, Prudential Financial Inc. lifted its position in Titan International by 6.3% in the second quarter. Prudential Financial Inc. now owns 52,026 shares of the industrial products company’s stock valued at $534,000 after buying an additional 3,085 shares during the last quarter. 80.39% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages have recently weighed in on TWI. Wall Street Zen raised shares of Titan International from a “sell” rating to a “hold” rating in a research note on Saturday, November 8th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Titan International in a report on Monday, December 29th. Three research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $11.33.

About Titan International

Titan International, Inc is a leading global manufacturer of wheels, tires and undercarriage systems designed for off-highway vehicles. The company serves a diverse range of markets including agricultural, construction, earthmoving and consumer segments. Titan’s product portfolio encompasses a variety of tire sizes and tread designs, steel and cast centers, wheels, tracks and complete wheel‐and‐tire assemblies tailored to meet the needs of tractors, combines, skid steers, loaders, haul trucks and other specialized equipment.

In addition to original equipment manufacturing, Titan provides extensive aftermarket support through its network of distributors and sales offices.