Titan International Reports Q1 2025 Financial Results with Increased Sales but Declining Profitability

Titan International, Inc. reported its financial results for the first quarter of 2025, revealing a modest increase in net sales but a significant decline in profitability compared to the same period in 2024. The company generated net sales of $490.7 million, a 1.8% increase from $482.2 million in the prior year. However, gross profit fell to $68.6 million, or 14.0% of net sales, down from $77.4 million, or 16.0% of net sales, in the previous year. This decline in gross profit was attributed to lower sales volumes and inflationary cost pressures impacting fixed cost leverage across its production facilities.

The company's income from operations also saw a substantial decrease, dropping 52.9% to $11.8 million from $25.1 million in the first quarter of 2024. This decline was primarily driven by increased selling, general, and administrative expenses, which rose 26.5% to $49.9 million, largely due to the integration of operations from the recently acquired Titan Specialty, formerly known as The Carlstar Group. The acquisition, completed in February 2024, contributed positively to sales but also added to operational costs.

In terms of operational metrics, Titan's agricultural segment experienced a notable decline, with net sales falling 17.5% to $197.7 million, while the earthmoving/construction segment saw a 13.3% decrease to $143.3 million. Conversely, the consumer segment reported a significant increase in sales, up 93.6% to $149.7 million, largely due to the Titan Specialty acquisition. The company’s total employee headcount remained stable, reflecting its ongoing operational adjustments in response to market conditions.

Looking ahead, Titan International anticipates continued challenges in the agricultural and earthmoving/construction markets, particularly due to weakened demand in North America and Europe. The company is closely monitoring the impact of global tariffs and currency fluctuations on its operations. Despite these challenges, Titan remains optimistic about long-term growth prospects, driven by strategic investments in manufacturing capabilities and product innovation. The company expects to maintain sufficient liquidity to support its operational needs and capital expenditures, projecting full-year capital expenditures between $55 million and $65 million.