Titan International, Inc. reported net sales of $460.83 million for the second quarter ended June 30, 2025, a 13.4% decrease from $532.17 million in Q2 2024. This decline was primarily driven by reduced sales volumes stemming from lower end-market demand in global agricultural and construction equipment sectors, compounded by a temporary slowdown in the Titan Specialty business due to tariffs.
Gross profit for Q2 2025 was $69.27 million, resulting in a gross margin of 15.0%, slightly down from 15.1% in Q2 2024. Income from operations fell to $10.16 million from $22.32 million in Q2 2024, a 54.5% decrease, primarily due to lower gross profit and increased selling, general, and administrative (SGA) expenses. The company reported a net loss of $3.60 million in Q2 2025.
Segment-wise, Agricultural sales decreased by 10.7%, and Earthmoving/Construction sales declined by 8.0% due to reduced demand. The Consumer segment saw a 23.3% sales decrease, primarily due to tariff impacts and market softness, though its gross margin remained the highest at 20.4%.
As of June 30, 2025, cash and cash equivalents stood at $184.67 million. Net cash used for operating activities was $24.28 million in the first half of 2025, primarily due to an increase in working capital. The company's net debt declined sequentially to $401 million in Q2 2025 from $411 million in Q1 2025.
For the third quarter of 2025, Titan provided guidance expecting revenues between $450 million and $475 million, with Adjusted EBITDA projected to be between $25 million and $30 million. These figures are expected to be improvements compared to the third quarter of 2024.
Paul Reitz, President and CEO, noted that the company maintained gross and EBITDA margins meaningfully above levels from the last cyclical trough and generated positive free cash flow for the quarter. He expressed confidence that wheel and tire inventories throughout the chain are reaching levels where demand will improve, positioning Titan for improving financial results as macro tailwinds emerge.
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