Tiremaker Titan's Q2 revenue misses analyst estimates

Overview

• Titan Q2 revenue of $461 mln, , within company guidance but missing analyst expectations

• Adjusted EBITDA for Q2 was $30 mln, within company guidance

• Company maintained 15% gross margin amid interest rate and tariff challenges

Outlook

• Titan expects Q3 sales between $450 mln and $475 mln

• Company forecasts Q3 adjusted EBITDA of $25 mln to $30 mln

• Titan sees macro tailwinds aiding future financial results

• Company anticipates inventory levels to drive upward sales trend

Result Drivers

• MARKET CHALLENGES - Higher interest rates and tariff uncertainties impacted end markets, per CEO Paul Reitz

• INVENTORY LEVELS - Co sees wheel and tire inventories reaching levels where growth is expected, per CEO Paul Reitz

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Titan International Inc is $11.00, about 17.5% above its July 30 closing price of $9.07

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nPnxqmqya