Titan International Narrows Q3 Loss, Sales Up Quarterly

TL;DR

**Titan's Q3 loss narrowed significantly, but the nine-month picture is still murky, making it a cautious hold for now.**

AI Summary

TITAN INTERNATIONAL INC (TWI) reported a net loss of $2.26 million for the three months ended September 30, 2025, a significant improvement from the $18.25 million net loss in the same period of 2024. Despite this, the nine-month net loss widened to $7.46 million in 2025 from $6.90 million in 2024. Net sales increased to $466.47 million for the quarter, up from $447.99 million year-over-year, but decreased for the nine-month period to $1.42 billion from $1.46 billion. Gross profit rose to $70.87 million for the quarter, compared to $58.81 million in Q3 2024. Operating income saw a substantial increase to $9.74 million for the quarter, up from $2.81 million in Q3 2024, but declined for the nine-month period to $31.70 million from $50.20 million. The company's cash and cash equivalents increased to $205.38 million as of September 30, 2025, from $195.97 million at December 31, 2024. Foreign exchange losses continued to impact results, with a $2.01 million loss in Q3 2025 and a $6.39 million loss for the nine months ended September 30, 2025. The company did not repurchase any shares under its $50 million program during the nine months ended September 30, 2025, with $1.0 million remaining available.

Why It Matters

Titan International's ability to significantly narrow its quarterly net loss to $2.26 million from $18.25 million year-over-year, alongside a 4.1% increase in quarterly net sales to $466.47 million, suggests potential operational improvements and market resilience. For investors, this indicates a possible turnaround in profitability, though the nine-month net loss widening to $7.46 million warrants caution. The company's exposure to hyperinflationary economies like Argentina and Turkey, and its 64.3% ownership of Voltyre-Prom in Russia, introduce geopolitical and economic risks that could impact future performance and competitive standing in the global tire and wheel market. Employees and customers might see this as a sign of stabilizing business, but the broader market will watch for sustained profitability and how TWI navigates its international challenges against competitors like Goodyear and Michelin.

Risk Assessment

Risk Level: medium — The company faces medium risk due to persistent foreign exchange losses, totaling $6.39 million for the nine months ended September 30, 2025, and its significant exposure to hyperinflationary economies like Argentina and Turkey, which recognized net monetary losses of $3.5 million for the nine months ended September 30, 2025. Additionally, its 64.3% ownership of Voltyre-Prom in Russia, representing 6% of consolidated assets, exposes it to ongoing geopolitical instability from the Russia-Ukraine military conflict.

Analyst Insight

Investors should monitor Titan International's next earnings report closely for sustained improvements in net income and operating margins, particularly given the nine-month net loss. Evaluate the impact of foreign exchange fluctuations and geopolitical risks on future guidance before making significant investment decisions. Consider TWI a 'hold' until a clear trend of consistent profitability emerges.

Financial Highlights

revenue

$1.42B

operating Margin

2.2%

total Assets

$1.33B

net Income

$-7.46M

eps

$-0.12

gross Margin

14.7%

cash Position

$205.38M

revenue Growth

-2.9%

Revenue Breakdown

Key Numbers

• $466.47M — Net sales for Q3 2025 (Increased from $447.99 million in Q3 2024)
• $1.42B — Net sales for nine months ended Sep 30, 2025 (Decreased from $1.46 billion in the same period of 2024)
• $2.26M — Net loss attributable to Titan for Q3 2025 (Improved from a net loss of $18.25 million in Q3 2024)
• $7.46M — Net loss attributable to Titan for nine months ended Sep 30, 2025 (Widened from a net loss of $6.90 million in the same period of 2024)
• $9.74M — Income from operations for Q3 2025 (Increased from $2.81 million in Q3 2024)
• $31.70M — Income from operations for nine months ended Sep 30, 2025 (Decreased from $50.20 million in the same period of 2024)
• $205.38M — Cash and cash equivalents as of Sep 30, 2025 (Increased from $195.97 million as of Dec 31, 2024)
• $6.39M — Foreign exchange loss for nine months ended Sep 30, 2025 (Increased from $2.34 million in the same period of 2024)
• 64.3% — Ownership of Voltyre-Prom (Represents 6% of consolidated assets as of September 30, 2025)
• $1.0M — Remaining share repurchase authorization (Out of a $50.0 million program, no shares repurchased in the nine months ended Sep 30, 2025)

Key Players & Entities

• TITAN INTERNATIONAL INC (company) — registrant
• Voltyre-Prom (company) — Russian subsidiary
• SEC (regulator) — United States Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• Argentina (country) — hyperinflationary economy
• Turkey (country) — hyperinflationary economy
• Russia (country) — location of subsidiary
• Ukraine (country) — country in military conflict
• Bloomberg (company) — publisher
• New York Stock Exchange (company) — exchange where TWI is listed

FAQ

Risk Factors

• Foreign Exchange Fluctuations [medium — financial]: The company experienced foreign exchange losses of $2.01 million in Q3 2025 and $6.39 million for the nine months ended September 30, 2025. These losses negatively impacted net income and can be volatile.
• Interest Expense Burden [medium — financial]: Interest expense was $9.73 million for Q3 2025 and $28.94 million for the nine months ended September 30, 2025. This significant expense weighs on profitability, especially when operating income is lower.
• Inventory Management [medium — operational]: Inventories increased significantly to $350.1 million as of September 30, 2025, from $290.6 million as of December 31, 2024. Managing these higher inventory levels efficiently is crucial to avoid obsolescence and carrying costs.
• Dependence on Key Markets/Products [low — market]: The company's ownership of Voltyre-Prom, representing 6% of consolidated assets, indicates a potential concentration risk if this segment faces market downturns or operational issues.
• Share Repurchase Program Inactivity [low — financial]: Despite a $50 million share repurchase program, no shares were repurchased in the nine months ended September 30, 2025. This suggests a lack of confidence or strategic decision not to return capital to shareholders via buybacks.

Industry Context

Titan International operates in the tire and wheel manufacturing industry, serving diverse sectors including agriculture, construction, and mining. The industry is characterized by cyclical demand tied to global economic activity, commodity prices, and infrastructure spending. Competition is significant, with both large global players and regional manufacturers.

Regulatory Implications

The company is subject to standard financial reporting regulations, including GAAP. Any significant changes in accounting standards or tax laws could impact reported results. Additionally, international operations expose the company to varying regulatory environments in different countries.

What Investors Should Do

1. Monitor foreign exchange impact
2. Analyze inventory levels
3. Evaluate operating income trends
4. Assess share repurchase program utilization

Key Dates

• 2025-09-30: End of Q3 2025 — Reported improved quarterly net loss and increased net sales, but a widened nine-month net loss and decreased nine-month net sales.
• 2025-12-31: End of Fiscal Year 2024 — Previous period's cash and cash equivalents were $195.97 million.

Glossary

Noncontrolling interests

Represents the portion of equity in a subsidiary that is not attributable to the parent company. It's the ownership stake of minority shareholders. (The net loss attributable to noncontrolling interests impacts the overall net loss attributable to Titan.)

Foreign exchange loss

Losses incurred due to fluctuations in currency exchange rates when converting financial transactions or balances from one currency to another. (This directly impacted Titan's net income, contributing to losses in both the quarterly and year-to-date periods.)

Comprehensive income (loss)

Includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. It encompasses net income plus other gains and losses not recognized in the income statement. (Titan reported a significant comprehensive loss attributable to Titan for the nine months ended September 30, 2025 ($69.86 million), largely due to currency translation adjustments.)

Currency translation adjustment

An adjustment made to account for changes in exchange rates when translating the financial statements of a foreign subsidiary into the parent company's reporting currency. (This item significantly impacted Titan's comprehensive income/loss, showing a large positive adjustment for the nine months ended September 30, 2025 ($83.64 million).)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Titan International Inc. saw a slight decrease in net sales from $1.46 billion to $1.42 billion. While the company significantly reduced its net loss for the third quarter of 2025 to $2.26 million from $18.25 million in 2024, the net loss for the nine-month period widened from $6.90 million to $7.46 million. Operating income for the quarter showed a strong rebound, but the nine-month operating income declined substantially from $50.20 million to $31.70 million. Foreign exchange losses have also increased significantly year-over-year for the nine-month period.

Key Financial Figures

• $0.0001 — ange on which registered Common stock, $0.0001 par value TWI New York Stock Exchange

Filing Documents

• twi-20250930.htm (10-Q) — 1585KB
• twi09302025ex311.htm (EX-31.1) — 11KB
• twi09302025ex312.htm (EX-31.2) — 11KB
• twi09302025ex32.htm (EX-32) — 10KB
• twi-20250930_g1.jpg (GRAPHIC) — 46KB
• 0000899751-25-000087.txt ( ) — 8761KB
• twi-20250930.xsd (EX-101.SCH) — 44KB
• twi-20250930_cal.xml (EX-101.CAL) — 116KB
• twi-20250930_def.xml (EX-101.DEF) — 181KB
• twi-20250930_lab.xml (EX-101.LAB) — 644KB
• twi-20250930_pre.xml (EX-101.PRE) — 460KB
• twi-20250930_htm.xml (XML) — 1532KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 1 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 2 Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 3 Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 6 Notes to Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 40 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2 . Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 5 . Other Information 42 Item 6. Exhibits 43

Signatures

Signatures 44 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements TITAN INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (All amounts in thousands, except per share data) Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Net sales $ 466,466 $ 447,985 $ 1,418,004 $ 1,462,364 Cost of sales 395,595 389,180 1,209,216 1,245,747 Gross profit 70,871 58,805 208,788 216,617 Selling, general, and administrative expenses 53,132 49,533 155,340 140,536 Acquisition related expenses — — — 6,196 Research and development expenses 4,550 4,199 13,435 12,071 Royalty expense 3,445 2,266 8,310 7,613 Income from operations 9,744 2,807 31,703 50,201 Interest expense ( 9,727 ) ( 9,005 ) ( 28,935 ) ( 27,103 ) Interest income 3,032 3,064 7,726 8,483 Foreign exchange loss ( 2,009 ) ( 2,525 ) ( 6,389 ) ( 2,338 ) Other (loss) income ( 2,433 ) 375 ( 159 ) 4,057 (Loss) income before income taxes ( 1,393 ) ( 5,284 ) 3,946 33,300 Provision for income taxes 1,066 12,915 9,987 38,103 Net loss ( 2,459 ) ( 18,199 ) ( 6,041 ) ( 4,803 ) Net (loss) income attributable to noncontrolling interests ( 197 ) 50 1,415 2,096 Net loss attributable to Titan and applicable to common shareholders $ ( 2,262 ) $ ( 18,249 ) $ ( 7,456 ) $ ( 6,899 ) Loss per common share: Basic $ ( 0.04 ) $ ( 0.25 ) $ ( 0.12 ) $ ( 0.10 ) Diluted $ ( 0.04 ) $ ( 0.25 ) $ ( 0.12 ) $ ( 0.10 ) Average common shares and equivalents outstanding: Basic 63,895 72,013 63,635 69,900 Diluted 63,895 72,013 63,635 69,900 See accompanying Notes to Condensed Consolidated Financial Statements. 1 Table of Contents TITAN INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (All amounts in thousands) Three months ended September 30, 2025 2024 Net loss $ ( 2,459 ) $ ( 18,199 ) Derivative loss ( 3 ) ( 139 ) Currency translation adjustment ( 2,063 ) 11,064 Pension liability adjustments, net of tax 34 29 Comprehensive loss ( 4,491 ) ( 7,245 ) N

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