Executive Summary

Q2 2025 revenue of $460.8M, gross margin 15.0%, adjusted EBITDA $30.2M, and free cash flow $4.2M; results were “within our guidance range” but below prior-year levels due to softer end-market demand and tariff-related pause in Consumer .
Versus S&P Global consensus, Titan missed on revenue ($460.8M vs $478.0M*) and EPS (-$0.02 adjusted vs $0.006*), while EBITDA was roughly in line ($27.2M actual vs $28.6M*); we flag an elevated GAAP tax rate (432%) that pressured GAAP EPS to -$0.07 .
Q3 2025 guidance: revenue $450–$475M and adjusted EBITDA $25–$30M; CFO added expected tax expense of ~$4–$5M; guidance high-end narrowed vs Q2 guidance ($450–$500M, $25–$35M), but implies resilience against normal summer seasonality and improvement vs Q3 2024 .
Near-term catalysts: consumer inventory rebuild beginning in July, tariff clarity, potential interest-rate cuts, Brazil growth, and Rodaros minority investment (20% for $4M) to expand wheel/tire assemblies in Brazil; management emphasized “one-stop-shop” strategy and expanded Goodyear licensing to new segments .

What Went Well and What Went Wrong

What Went Well

Maintained margins above prior cyclical trough; Q2 gross margin 15.0% with sequential expansion across all segments (Ag 14.6%; EMC 11.5%; Consumer 20.4%); adjusted EBITDA $30.2M and positive FCF $4.2M .
Consumer inventory rebuilding began in July; management expects near-term rebound as channel inventories “got too low,” supporting Q3 stability despite seasonality .
Strategic initiatives: expanded Goodyear licensing (light construction/industrial, ATV, lawn & garden, golf) and announced a 20% minority investment in Brazil’s Rodaros to deepen wheel/tire assemblies; “we think it will absolutely help drive growth over time” .

Quotes:

CEO: “We were able to maintain gross and EBITDA margins…meaningfully above where they were during the last cyclical trough” .
CFO: “All three [segments] showed expansion versus the first quarter” .
CEO on Rodaros: “We’ll start off with an initial minority investment of $4 million for 20%…to extend our leadership in that market” .

What Went Wrong

Revenue down 13.4% YoY to $460.8M; GAAP operating income fell to $10.2M and GAAP diluted EPS was -$0.07, reflecting lower volumes and elevated tax rate; FX was a modest headwind .
Consumer segment net sales -23% YoY; management cited tariff-driven “wait-and-see” behavior and dealer destocking; operating income fell to $3.2M .
Elevated effective tax rate (431.6%) materially pressured GAAP results; management expects elevated tax to persist near-term until profit mix normalizes .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$383.6	$490.7	$460.8
Gross Margin (%)	10.7%	14.0%	15.0%
EBITDA (GAAP, $M)	$4.7	$29.4	$27.2
Adjusted EBITDA ($M)	$9.2	$30.8	$30.2
Diluted EPS (GAAP)	$0.02	-$0.01	-$0.07
Adjusted EPS	$0.09	$0.01	-$0.02
Free Cash Flow ($M)	-$4.6	-$53.6	$4.2

Segment Performance

Segment	Net Sales Q1 2025 ($M)	Gross Margin Q1 2025 (%)	Op Income Q1 2025 ($M)	Net Sales Q2 2025 ($M)	Gross Margin Q2 2025 (%)	Op Income Q2 2025 ($M)
Agricultural	$197.7	12.4%	$9.4	$193.2	14.6%	$11.5
Earthmoving/Construction	$143.3	10.4%	$1.7	$152.3	11.5%	$3.0
Consumer	$149.7	19.6%	$8.8	$115.3	20.4%	$3.2

KPIs and Balance Sheet

KPI	Q4 2024	Q1 2025	Q2 2025
Cash & Equivalents ($M)	$196.0	$174.4	$184.7
Total Debt ($M)	$565.4	$585.4	$585.7
Net Debt ($M)	$369.5	$411.0	$401.0
Cash from Operations ($M)	$8.7	-$38.6	$14.3
Capex ($M)	$13.3	$15.0	$10.1
Effective Tax Expense ($M)	$(26.2) benefit	$4.2	$4.7

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q2 2025	$450–$500M	Actual $460.8M	Achieved within range
Adjusted EBITDA	Q2 2025	$25–$35M	Actual $30.2M	Achieved within range
Revenue	Q3 2025	—	$450–$475M	Narrowed vs Q2 guidance; lower high-end
Adjusted EBITDA	Q3 2025	—	$25–$30M	Narrowed vs Q2 guidance; lower high-end
Tax Expense	Q3 2025	—	~$4–$5M	New explicit item

Notes: Management stated Q3 guidance implies growth vs Q3 2024 and relative stability vs Q2 despite normal summer seasonality .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
Tariffs & Trade Policy	Expect clarity to support 2025; ~10% of revenues negatively exposed; strategic inventory and sourcing mitigate impact	Consumer segment paused; dealers waited; July orders rebounded; seeking level playing field; Japan deal and broader tariff settlements seen as net positive	Improving clarity; near-term drag easing
Interest Rates	OEM destocking; cautious farmer/dealer sentiment; rate cuts seen as a positive	Rates remain the gating factor for equipment purchases; upside as rates fall	Still headwind; potential relief
Consumer Inventory/Demand	Aftermarket is margin leader; expanded one-stop shop	Channel inventories “too low,” beginning to rebuild; supports Q3	Rebound underway
Brazil & Regional Mix	Brazil strengthening since Q4’24; local manufacturing and leadership position	Minority stake in Rodaros (20%/$4M) to deepen wheel presence; continued strength in Brazil; Europe flattish	Strategic expansion; regional support
LSW Technology & Product Strategy	LSW ROI for midsized farms; expanded Goodyear licensing to new segments	Continued push; AI-enabled marketing tool in development; financing options being explored	Building commercialization tools
Sourcing & Supply Chain	Rubber primarily West Africa; domestic steel; inflation pass-through mechanisms	Stable sourcing; minimal tariff cost dislocation	Stable, mitigated
Tax Rate	Elevated in 2024; mix effects	Effective rate >100% remains near-term; normalize as profits rebound	Elevated but temporary
Military Opportunities	Re-engagement, potential growth	Active meetings; pipeline building; low current base reduces risk	Early-stage, optionality

Management Commentary

Strategy and positioning: “Our One Titan team continued to execute…positive free cashflow…We are well-positioned as a leader in our industry and fully expect to see improving financial results as macro tailwinds begin to emerge.” — Paul Reitz, CEO .
Near-term setup: “We expect third quarter sales to be between $450 million and $475 million with Adjusted EBITDA between $25 million and $30 million…” — David Martin, CFO .
Margin discipline: “On a sequential basis our gross margins improved 100 basis points…product mix being the main reason.” — David Martin .
Tariffs as a long-term positive: “Trade policy applied somewhat consistently around the globe would benefit Titan in the long term…we are well positioned to benefit as tariffs are levied on imports.” — Paul Reitz .
Brazil investment: “We signed an initial minority investment…Rodaros…the second largest manufacturer of agricultural wheels in Brazil…$4 million for 20%.” — Paul Reitz .

Q&A Highlights

Q3 mix/EBITDA: EBITDA guide midpoint below Q2 due to seasonality and modest mix changes; opportunity to achieve high end .
Consumer decline drivers: Tariff-related “wait-and-see” and dealer destocking, not price rejection; sequential margin improvement due to mix .
Leverage/covenants: Management sees “peak leverage” now, expects FCF improvement and ratio trending toward <3x adjusted EBITDA; covenant risks low .
Brazil partnership details: 20% stake, $4M; not consolidated; strategic wheel/tire assembly opportunity with OEMs in Brazil; potential to expand stake over time .
Capacity inquiries and 2026: Customers asking about 2026 capabilities amid tariff shifts; Titan positioned to respond to “large drop-in orders” quickly .
LSW commercialization: Developing AI-driven ROI calculator for farmers; exploring financing to accelerate adoption .

Estimates Context

Metric	S&P Global Consensus (Q2 2025)	Actual (Q2 2025)	Surprise
Revenue ($USD)	$478.0M*	$460.8M	-3.6%
Primary EPS	$0.006*	-$0.02 (Adjusted)	-$0.026
EBITDA ($USD)	$28.6M*	$27.2M (GAAP)	-$1.4M
# of Estimates (Rev/EPS)	5 / 5*	—	—

Values retrieved from S&P Global.*
Interpretation: Misses on revenue and EPS; EBITDA near in-line. We expect sell-side to lower near-term EPS on elevated tax rate and to modestly raise H2 revenue in Consumer on inventory normalization.

Key Takeaways for Investors

Q2 delivered stability in margins and FCF despite softer volumes; sequential margin gains across segments suggest improved mix and cost control .
Guidance implies resilience vs normal summer seasonality, supported by Consumer inventory rebuild; monitor Q3 execution and tariff clarity timelines .
Elevated effective tax rate is a transitory headwind; normalization depends on geographic profit mix recovery as demand improves .
Strategic growth vectors are intact: Goodyear licensing expansion, LSW commercialization (AI tool + potential financing), and Rodaros partnership to extend assemblies in Brazil .
Tariff regime and interest-rate path are the primary macro swing factors; Titan’s domestic manufacturing and diversified sourcing should mitigate relative risk and may drive share gains as customers onshore supply .
Balance sheet: Net debt rose vs YE2024 but improved sequentially; management targets <3x adjusted EBITDA with H2 FCF generation .
Trading setup: Near-term narrative hinges on Consumer recovery and signs of OEM restocking; any policy progress on tariffs or rate cuts is a positive catalyst for equipment demand .

Citations:
Press release/8-K Q2 2025:
Earnings call Q2 2025:
Prior quarters: Q1 2025 8-K/PR/call
Q3 2024 8-K/PR:
Goodyear licensing expansion PR:

TITAN INTERNATIONAL INC (TWI)·Q2 2025 Earnings Summary