Titan International (TWI) Q3 2026 Earnings Call: ITM Sale and Q4 Guidance
Source Tradingkey
Key Takeaways
- Titan International reported Q3 2026 revenue of $454 million, adjusted EBITDA of $28 million, a 15% gross margin and $10 million of free cash flow, all inclusive of ITM.
- The Agricultural segment remained the main pressure point. Sales declined 12% year over year, while gross margin fell to 7.6% from 13.2% amid weak U.S. activity, a slowdown in Brazil and higher input costs.
- Consumer segment sales declined 3%, but gross margin expanded to 27.6%. Excluding $3.5 million of net tariff-related benefits, margin improved to 24.7% from 23.4%.
- EMC sales from continuing operations grew 5% to $57 million, supported by Europe and externally sourced products in the U.S. Gross margin increased to 7.1% from 6.1%.
- Titan expects the ITM divestiture to close in January, subject to customary conditions. Management plans to use a significant portion of the proceeds to reduce debt while retaining capacity for core investments and selective M&A.
- For Q4 2026, including ITM, management guided to revenue of $410 million to $430 million and adjusted EBITDA ranging from breakeven to $7 million, reflecting weak volumes, higher costs, planned shutdowns and pricing lags.
Key Financial Data
| Metric | Q3 2026 | Comparison or context |
|---|---|---|
| Revenue, including ITM | $454 million | Above the midpoint of company guidance |
| Adjusted EBITDA, including ITM | $28 million | Within guidance; slightly below the midpoint due to delayed tariff refunds |
| Gross margin, including ITM | 15% | Company-reported figure |
| Free cash flow, including ITM | $10 million | Positive for the quarter |
| Operating cash flow from continuing operations | $29 million | Up from $19 million a year earlier |
| Capital expenditures | $6 million | Down from $8 million a year earlier |
| Year-to-date capital expenditures | $25 million | Down from $30 million a year earlier |
| SG&A, including R&D | $46 million | Down from $49 million; 13.8% of sales |
| Net debt, including ITM | $406 million | Down from $413 million at the end of Q2 2026 |
| Tax expense | Approximately $0.2 million | Lower than the previous $4 million to $5 million expectation, mainly due to ITM’s discontinued-operations classification |
Business and Operating Performance
Agricultural
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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