Titan Sets Fourth-Quarter Sales Outlook After Ag Drop

The Tip Desk · November 10, 2026 · 3 min read

Continuing-operations sales fell 6.2% to $335.2 million as agricultural volumes weakened and the company booked a $38.5 million loss on the pending ITM sale.

Titan International (TWI), a global maker of off-highway wheels, tires, assemblies and undercarriage products, reported continuing-operations net sales of $335.2 million for the three months ended September 30, 2026, down 6.2% from $357.3 million a year earlier, as lower volumes from weak end-market demand were only partly offset by favorable pricing and a 0.2% currency tailwind.

Gross margin compressed to 14.7% from 15.7% a year earlier, and gross profit fell to $49.4 million from $56.1 million. The company said the change reflected lower fixed-cost leverage from reduced volumes and inflationary pressure on raw materials and other inputs. Continuing operations swung to an operating loss of $1.0 million from operating income of $3.7 million. Adjusted EBITDA from continuing operations declined to $16.4 million from $20.3 million.

Agricultural was the drag. Segment net sales fell 11.7% to $156.9 million from $177.6 million, which the company attributed to lower Americas volumes from weak farm income, higher financing costs and continued inventory reduction by OEM and aftermarket customers. Agricultural gross profit halved to $12.0 million from $23.4 million, and the segment posted an operating loss of $4.0 million versus $5.6 million of income. President and Chief Executive Officer Paul Reitz said farmers remained on the sidelines because of high interest rates, diesel and fertilizer costs and other macro concerns.

Consumer sales declined 3.3% to $120.9 million from $125.0 million, which the company said was driven by lower Titan Specialty volumes versus a year-ago quarter that had benefited from a shift in customer order timing under then-current tariff policies. Gross profit rose 13.8% to $33.4 million from $29.3 million, including $3.5 million of net tariff refund recoveries recorded as a reduction of cost of goods sold. Profit margin was 27.6% versus 23.4%, and operating income was $13.3 million versus $7.7 million.

Earthmoving/construction net sales rose 5.0% to $57.4 million from $54.7 million, which the company said was driven by higher European volumes from recent business awards and increased market share, plus pricing actions to offset higher input costs, with about 0.7% of the increase from currency. Gross profit increased 22.7% to $4.1 million from $3.3 million, and the operating loss narrowed to $1.8 million from $2.4 million.

Toward the end of the quarter Titan announced an agreement to sell its Italtractor ITM undercarriage business, now reported as discontinued operations, with a close expected in early January 2027. The company recorded a $38.5 million loss on sale in the quarter. Inclusive of ITM, revenue was $454 million and adjusted EBITDA was $28 million. Reitz said the board believes the sale lets Titan focus on its wheel and tire businesses and use proceeds to reduce debt.

Cash and cash equivalents were $172.8 million at September 30, 2026. Long-term debt was $537.6 million and short-term debt $28.5 million. Net debt of continuing operations was $393.4 million. The company generated $23 million of free cash flow in the quarter.

Chief Financial Officer Tony Eheli said the company is updating fourth-quarter and full-year guidance to reflect current market conditions. It now expects fourth-quarter sales of $410 million to $430 million and adjusted EBITDA of break-even to $7 million. Full-year 2026 sales guidance was narrowed to $1.85 billion to $1.87 billion from $1.85 billion to $1.95 billion, and adjusted EBITDA guidance was reduced to $91 million to $101 million from $105 million to $115 million.

Reitz said an aging machinery fleet continues to create pent-up replacement demand and that wheel and tire inventories across distribution channels remain relatively low. He said corn prices, though down from August highs, are still above year-ago levels, as are soybean prices.