TWI Filings — Titan International, Inc. - FilingSpy
TWI
Titan International, Inc.
A maker of wheels, tires, and undercarriage systems for off-highway vehicles, Titan International supplies farm equipment, mining, construction, and forestry machines under brands like Goodyear Farm Tire and Titan. Its 2024 purchase of Carlstar added outdoor power equipment, power sports, and trailer tires. The company builds both wheels and tires, letting it assemble complete units and support its Low Sidewall (LSW) technology that reduces soil compaction.
Titan returned to net income of $5.8M in Q2 2026 as the Consumer segment rebounded 27% and restructuring charges eased.
The Consumer snapped back, and Titan returned to profitability. rose 5.2% to $484.8 million and widened 0.4 points to 15.5%, as a 27.2% increase in the Consumer segment and tariff refunds offset continued weakness in Agriculture. The company is profitable again, but the core agricultural business is still shrinking.
Key takeaways
swung to a $5.8 million profit from a $4.5 million loss a year ago, as the $25.1 million for the Jackson, Tennessee plant closure recorded in Q1 2026 did not repeat.
The Consumer drove the quarter, with sales rising 27.2% on higher volumes in the Titan Specialty business and favorable pricing, reversing the 23.3% decline reported in Q2 2025 when newly imposed tariffs had slowed that business.
improved 0.4 points to 15.5%, aided by $0.9 million in net IEEPA recoveries in the Earthmoving/Construction and ongoing cost-reduction initiatives across global production facilities.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net sales rose 5.2% to $484.8M, driven by Consumer segment volume and tariff refunds, while six-month operating income swung to a loss on restructuring charges.
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Consolidated Q2 increased 5.2% to $484.8M, with the Consumer surging 27.2% on higher Titan Specialty volumes and favorable pricing.
The Agricultural continued to contract, with sales falling 5.0% to $183.6 million and dropping 26.1% due to lower volumes in the Americas, reduced fixed-cost , and higher steel costs.
turned positive at $39.1 million for the quarter, a sharp reversal from the $46.5 million use of cash in Q1 2026, as the seasonal build in began to unwind.
declined 3.2% sequentially to $594.8 million, though it remained 1.1% above the prior-year level, while cash and equivalents rose 5.0% to $179.8 million.
What changed
The Consumer 's 27.2% growth resolves the question flagged in Q2 2025 of whether the 23.3% decline was temporary or the start of a contraction in Titan's last growth engine — the tariff-driven slowdown appears to have been a single-quarter event.
recovered to 15.5% from the 14.1% reported in Q1 2026, suggesting that cost-reduction initiatives and the tariff refunds are beginning to offset the lower fixed-cost absorption and input-cost inflation that had compressed margins for several quarters.
The $25.1 million Jackson facility closure charge, flagged in Q1 2026 as a potential start of a broader restructuring program, did not recur in Q2, indicating the charge was a one-time event rather than the beginning of a series of plant closures.
improved to $26.4 million from $4.2 million a year ago, addressing the concern raised in Q2 2025 about whether cash generation could cover the $36-$40 million in annual interest payments on the rising debt load.
What to watch
Whether the Agricultural 's 5.0% sales decline and 26.1% drop represent a trough, or whether lower farm income and elevated financing costs extend the OEM destocking cycle into a third full year.
Whether the 15.5% can be sustained or improved in Q3 2026, or whether the benefit from the $0.9 million in IEEPA tariff refunds was a one-time boost that will not repeat.
Whether remains positive through the second half of 2026 and begins to reduce the $594.8 million in , or whether the $50-$55 million plan and needs consume the cash generated.
Any resolution of the OFAC review regarding the escrowed shares for the Voltyre-Prom interest, which could require a $25 million cash payment and reduce the $179.8 million cash balance.
Agricultural Q2 sales fell 5.0% to $183.6M and dropped 26.1% due to lower Americas volumes, reduced fixed-cost , and higher steel costs.
Earthmoving/Construction Q2 rose 10.5% to $19.3M, aided by $0.9M in net IEEPA tariff refund recoveries and cost-reduction initiatives.
Six-month operating loss of $0.5M included $26.0M in restructuring and charges for the planned closure of the Jackson, Tennessee facility; excluding these, operating results improved .
Cash used in operations was $7.4M for the six months, driven by a seasonal $77.4M increase in ; the improved by 8 days to 103 days.
Liquidity remains adequate with $179.8M in cash and $43.9M available under the ; full-year is forecast at $50–$55M.
Quantitative and Qualitative Disclosures About Market Risk
Titan is exposed to market risks, including changes in foreign currency exchange rates and interest rates, and commodity price fluctuations. Our exposure to market risk has not changed materially since December 31, 2025. For quantitative and qualitative disclosures about market…
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Titan is exposed to market risks, including changes in foreign currency exchange rates and interest rates, and commodity price fluctuations. Our exposure to market risk has not changed materially since December 31, 2025. For quantitative and qualitative disclosures about market risk, see Item 7A - Quantitative and Qualitative Disclosures About Market Risk included in the 2025 Form 10-K.
The Company is subject, from time to time, to certain legal proceedings and claims arising out of the normal course of its business, which cover a wide range of matters, including environmental issues, product liability, contracts, and labor and employment matters. See Note 17 "…
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The Company is subject, from time to time, to certain legal proceedings and claims arising out of the normal course of its business, which cover a wide range of matters, including environmental issues, product liability, contracts, and labor and employment matters. See Note 17 "Litigation" of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for further discussion, which is incorporated herein by reference.
Except for the additional risk factor set forth below, there have been no material changes from the risk factors disclosed in Item 1A. "Risk Factors" of the 2025 Form 10-K. Geopolitical and Military Conflict Risks Ongoing military conflicts, particularly the current military con…
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Except for the additional risk factor set forth below, there have been no material changes from the risk factors disclosed in Item 1A. "Risk Factors" of the 2025 Form 10-K.
Geopolitical and Military Conflict Risks
Ongoing military conflicts, particularly the current military confits involving the United States, Israel and Iran, and heightened geopolitical tensions have contributed to increased volatility in global economic conditions, including disruptions to supply chains, fluctuations in commodity and energy prices, and increased transportation costs. While we do not have material operations in regions directly affected by active military conflict, these developments have had, and may continue to have, indirect effects on our business.
The ultimate impact of these conflicts remains uncertain and depends on factors beyond our control, including the duration and geographic scope of the conflicts, governmental responses such as sanctions or trade restrictions, and the effects on global financial markets. Prolonged or expanded military conflict could adversely affect customer demand, supplier availability, costs, and our results of operations or financial condition.
Given this factor, we are continuing to assess the potential impact of these military conflicts and increased geopolitical tensions on our business, financial condition and results of operations, which remains uncertain, given the fluid and changing nature of these events.
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