Titan International Reports 13.4% Decline in Q2 2025 Net Sales

Titan International, Inc. reported a significant decline in financial performance for the second quarter of 2025, with net sales of $460.8 million, down 13.4% from $532.2 million in the same period last year. For the first half of 2025, net sales totaled $951.5 million, a decrease of 6.2% compared to $1.014 billion in the first half of 2024. The company's gross profit also fell, reaching $69.3 million in Q2 2025, down 13.9% from $80.4 million in Q2 2024, while gross profit for the first half was $137.9 million, down 12.6% year-over-year. The decline in revenue and profitability was attributed to reduced sales volumes driven by lower demand in the agricultural and construction equipment sectors, as well as challenges faced by the recently acquired Titan Specialty business.

The company's operating income for the second quarter of 2025 was $10.2 million, a 54.5% decrease from $22.3 million in Q2 2024. For the first half, operating income was $22.0 million, down 53.7% from $47.4 million in the prior year. The increase in selling, general, and administrative expenses, which rose to $52.4 million in Q2 2025 from $51.6 million in Q2 2024, further impacted profitability. The company also reported a net loss of $3.6 million for the second quarter, compared to a net income of $3.4 million in the same period last year, resulting in a loss per share of $(0.07) compared to earnings of $0.03 in Q2 2024.

In terms of operational developments, Titan International's acquisition of The Carlstar Group, now known as Titan Specialty, has been fully integrated into its operations since February 2024. This acquisition was expected to enhance the company's product offerings in the consumer segment, which includes outdoor power equipment and power sports. However, the consumer segment experienced a 23.3% decline in net sales for Q2 2025, reflecting the impact of tariffs and reduced demand. Despite this, the segment's gross profit increased by 30% for the first half of 2025, largely due to the contributions from Titan Specialty.

The company reported a cash balance of $184.7 million as of June 30, 2025, a decrease from $196.0 million at the end of 2024. Cash flows from operating activities were negative at $(24.3 million) for the first half of 2025, primarily due to increased working capital needs. Titan's liquidity outlook remains stable, with expectations for capital expenditures between $50 million and $60 million in 2025, aimed at enhancing manufacturing capabilities and supporting new product development. The company continues to monitor market conditions and is positioned to respond to potential challenges, including geopolitical uncertainties and fluctuations in commodity prices.