Titan International Q1 Revenue Tops Forecast by $10M While Earthmoving Sales Climb 11.3%
Titan International posted $505 million in Q1 revenue, beating the $494.75 million consensus and rising 2.9% year-over-year led by an 11.3% increase in its earthmoving segment. Net loss widened to $24.2 million from $0.6 million due to $25.1 million in restructuring charges, while adjusted EBITDA edged up to $31 million.
1. Revenue Beats Estimates
Titan International delivered $505 million in Q1 revenue, surpassing the $494.75 million consensus. Revenue rose 2.9% year-over-year with the earthmoving segment up 11.3% to $159.5 million, agricultural up 0.3% to $198.3 million, and consumer down 1.6% to $147.2 million.
2. Margins and Adjusted EBITDA
Gross margin edged up to 14.1% from 14.0% a year earlier, driven by cost-cutting and productivity improvements across the global manufacturing footprint. Adjusted EBITDA increased modestly to $31 million from $30.8 million in the prior-year quarter.
3. Restructuring Charges Weigh on Profits
The company reported a net loss of $24.2 million, or $0.38 per share, widening from a $0.6 million loss as a result of $25.1 million in restructuring and impairment charges tied to the closure of its Jackson, Tennessee facility.
4. Outlook for Q2 and Full Year
Titan projects Q2 sales between $470 million and $490 million with adjusted EBITDA of $25 million to $30 million. It reaffirmed its full-year guidance of $1.85 billion to $1.95 billion in revenue and $105 million to $115 million in adjusted EBITDA.