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Titan International (NYSE:TWI) executives said the company finished 2025 with a “positive quarter” and entered 2026 expecting conditions in most end markets to move past a cyclical trough, even as tariff-related uncertainty and uneven agricultural demand continue to shape the outlook.
Fourth-quarter performance and full-year context
President and CEO Paul Reitz said fourth-quarter 2025 results exceeded the prior year in revenue, gross margin, and adjusted EBITDA, landing ahead of the company’s revenue guidance and above adjusted EBITDA expectations. Reitz characterized 2025 as a challenging year for agriculture, citing a “formidable storm in the ag sector” and “evolving trade policies,” but said Titan’s product and geographic diversity, new product introductions, and “one-stop-shop distribution capabilities” helped the company navigate those conditions.
Segment results: EMC strength, mixed ag signals, consumer softness
Eheli said Earthmoving/Construction (EMC) was the best-performing segment in the quarter, with revenue rising 21% year over year to $141 million off what he called a “particularly weak” fourth quarter last year. Management attributed EMC demand to continued activity in construction and mining, supporting both new equipment and replacement parts. Growth was described as strong in Europe—Titan’s largest EMC market—and solid in the U.S. driven by original equipment (OE) demand in light construction products. Eheli added that foreign currency translation was a tailwind, contributing 5.6% to EMC’s relative performance due to a weakening U.S. dollar.
In agriculture, Eheli said segment revenue increased 2.6% year over year, with foreign exchange adding 3.3%. Management reiterated that demand has varied by equipment size. Reitz and Eheli both pointed to ongoing pressure among row crop farmers—especially corn and soybean producers—who are typically buyers of higher-horsepower equipment. Reitz cited depressed grain prices and higher input costs as factors weighing on those farmers’ profitability and reducing demand for new equipment, while noting that “livestock producers enjoyed a good 2025” and tend to use mid-range to smaller equipment.
Reitz said Titan has a strong position in smaller equipment, including its ability to deliver complete wheel-and-tire assemblies to OEMs, which he said can help simplify OEM supply chains and inventory management. Eheli noted Brazil activity moderated after strength in late 2024 and early 2025, with Brazilian farmers facing higher input costs, high interest rates, declining grain prices, and election-cycle uncertainty.
In the consumer segment, Eheli said fourth-quarter revenue declined 1.5% year over year. He attributed the softness to slower activity in the “non-specialty” portion of the segment, while the specialty business held up better. Management said aftermarket sales are a significant portion of consumer segment revenue and are less cyclical. During Q&A, executives also cited volatility in Titan’s custom rubber mixing business as a factor in fourth-quarter performance.
Margins, costs, and cash flow
Eheli provided segment-level margin details, noting EMC margin expansion helped by improved fixed-cost leverage. EMC gross margin was 9.3% in the fourth quarter, up from 5.9% in the prior-year period. Agricultural gross margin was 9.1%, described as level year over year. Consumer gross margin slipped to 15.6% from 18.1%, which Eheli attributed primarily to product mix and reduced leverage.
On operating expenses, Eheli said fourth-quarter SG&A including R&D was $52.8 million compared with $55.7 million in the prior year, primarily due to lower legal costs, benefits, and insurance costs. For the full year, he said SG&A including R&D increased by less than $1 million year over year excluding the impact of “the additional two months” of the Carlstar acquisition.
Cash flow and investment levels were also discussed. Eheli said operating cash flow in the fourth quarter was $13 million, while capital expenditures were $18 million. For the full year, CapEx was just below $55 million, down from $66 million in 2024. Fourth-quarter free cash flow was negative $5 million and comparable to the prior year. Titan ended 2025 with net debt of $383 million and a leverage ratio of 3.8 times, and Eheli said managing working capital and CapEx would remain a priority in 2026.
During the quarter, Eheli said Titan recorded valuation allowances against certain deferred tax assets totaling $40 million, driven by recent cumulative losses and market conditions that required a more conservative accounting view. He added that management expects taxes to return toward normalized levels as conditions rebound.
Guidance and what management is watching in 2026
Management issued guidance for first-quarter 2026 of revenue between $490 million and $510 million and adjusted EBITDA between $28 million and $33 million, which Eheli said implies relatively flat performance versus the prior-year first quarter.
The company also reintroduced full-year 2026 guidance, with revenue expected between $1.85 billion and $1.95 billion and adjusted EBITDA expected between $105 million and $150 million. Eheli said the guidance reflects improvement versus 2025 and is supported by the view that Titan’s markets have reached a trough, with supply chains “fairly tight” after extensive destocking.
On segment trends for 2026, Eheli told analysts the company expects EMC to continue outperforming, agriculture to be “flattish” as small ag improves but large ag lags, and consumer to improve but less than EMC on the top line. He said bottom-line improvement is expected in EMC and consumer, while agriculture could face OE pricing pressure that limits margin progress. He also said Titan expects agriculture to be relatively flat in the first half of 2026, with better growth anticipated later in the year as OEMs point to potential large ag recovery.
Reitz discussed research and development as a key part of Titan’s strategy, including innovation in the company’s specialty division and new products across segments. He said Titan expects about 15% of 2026 sales to come from products introduced in the past three years, and he pointed to initiatives such as a new Titan forestry line, continued development of the ACES brand, and a “VPO” product for outdoor power equipment that can run without air.
Tariffs, trade policy, and Brazil joint venture
Reitz devoted part of his prepared remarks to tariffs and trade policy, reiterating his view that tariffs can benefit the industry over the long term by addressing unfair trade practices. He referenced three favorable rulings Titan received from the International Trade Commission over the past 15 years. However, he said the evolving implementation of tariffs created uncertainty, prompted a surge of imported tires ahead of tariff effective dates—especially in agriculture—and led import competitors to absorb tariff costs in 2025, which he said “neutralized” potential benefits during the year.
Still, Reitz said Titan delivered a solid 2025 performance despite tariff volatility and believes the company’s footprint, joint ventures, sourcing partners, and distribution network position it to serve customers through changing conditions. Eheli added that Titan expects its multi-sourcing strategy to remain an advantage as tariff policy remains fluid.
In Brazil, Reitz said OEMs have pulled back production schedules at the start of the year and acknowledged political uncertainty ahead of an election cycle. He said Titan’s joint venture is intended to replicate the company’s North American wheel-and-tire strategy in Brazil, adding that the partnership is in “early days” but is expected to show more progress in the back half of the year. Eheli said the company’s guidance assumes Brazil is “somewhat flattish,” with softer conditions early in the year and improvement later.
About Titan International (NYSE:TWI)
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.
