Titan International, Inc.

Titan said second-quarter revenue was $484 million, adjusted EBITDA was $34 million, gross margin was 15.5%, and sales increased 5.2% year over year. Consumer segment sales rose 27%, EMC sales increased 1.4%, and Ag segment sales declined 5% year over year. Reported segment gross margin was 23.7% in Consumer versus 20.4% a year ago, EMC gross margin was 12.5% versus 11.5%, and Ag gross margin was 11.4% versus 14.6%. Free cash flow was $26 million, operating cash flow was $39 million, SG&A including R&D was $58.1 million, and net debt was $413 million at quarter end. For Q3 2026, Titan guided to revenue of $440 million to $460 million and adjusted EBITDA of $27 million to $33 million, with tax expense of $4 million to $5 million. Full-year 2026 guidance was unchanged at revenue of $1.85 billion to $1.95 billion and adjusted EBITDA of $105 million to $115 million, though management now expects sales to skew toward the lower half of that range. Titan also expects an additional $7 million to $9 million of net tariff refunds over the rest of the year, with about $6 million expected in Q3 and the balance in Q4.

Paul Reitz emphasized Titan’s diversified model, saying each reporting segment represented roughly 30% to 40% of revenue and that about 45% of aggregate sales are aftermarket. His tone was cautious on Ag but constructive overall: he said the Ag cycle looks more like an exceptional downturn than a structural change, commodity prices are improving, equipment is aging, and the foundation for a recovery appears to be building even if it may not fully show up this year. He also stressed customer-centric product breadth, aftermarket strength, and continued investment in R&D and efficiency.

Anthony Eheli highlighted that Q2 results were strong relative to guidance, with revenue near the top end and adjusted EBITDA above the top end. He cited 5.2% total sales growth, 15.5% gross margin, $34 million of adjusted EBITDA, and $26 million of free cash flow, plus $6 million of tariff-related benefits in EBITDA and $4.6 million of net tariff refunds in cost of goods sold. He also pointed to improved cash generation, with operating cash flow of $39 million, lower net debt at $413 million versus $441 million in Q1, and SG&A including R&D at $58.1 million, or 12% of sales. On outlook, he reiterated unchanged FY26 guidance, said Q3 revenue should be $440 million to $460 million, and noted tariff refunds of $7 million to $9 million expected over the rest of the year.

Analysts focused on whether improving corn prices and better commodity trends could support a 2027 Ag recovery; Reitz agreed the backdrop is improving but said the company has not yet seen enough evidence to expect a meaningful 2026 rebound. Questions also probed OEM inventory reductions, and management said those inventories are being actively managed and are in a better position for a recovery, though farmer income still needs to improve. On consumer, Reitz said growth was driven by new products and OEM wins rather than a single brand launch, while on EMC he described conditions as stable and supportive in Europe. Analysts also pressed on tariffs and working capital: Eheli said the Q2 tariff benefit was incremental and split across Q3 and Q4, and he said working capital gains were strong but not likely to repeat at the same level every quarter.