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Jun 30, 2021
Titan Q2 2021 Earnings Report
Reported a 53 percent YoY increase in net sales, marking the highest quarterly sales since 2014 and the strongest quarterly operating performance since 2013.
Key Takeaways
Titan International reported a strong second quarter in 2021 with net sales up 53% year-over-year, driven by sales increases in the agricultural and earthmoving/construction segments. The company's adjusted EBITDA improved sequentially by more than $11 million to over $37 million. Titan is set to deliver adjusted EBITDA north of $120 million this year.
Net sales increased by 53.3% YoY to $438.6 million, the highest since 2014.
Gross margin improved to 14.0% from 10.4% in Q2 of the prior year.
Income from operations was $23.7 million, a $26.8 million YoY improvement, the strongest in more than eight years.
Adjusted EBITDA was $37.4 million compared to $13.3 million in Q2 of the prior year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Titan is set to deliver adjusted EBITDA north of $120 million this year, with opportunities for further growth next year.
Positive Outlook
- Strong sales volume growth in both Agriculture and Earthmoving/Construction segments.
- Dealer inventories remain tight in the Ag segment.
- Used and new equipment pricing continues to increase.
- Overall large equipment fleet is aged.
- Farm commodity prices remain at historically elevated levels.
Challenges Ahead
- Continuing supply chain challenges.
- Labor challenges.
- Unfavorable movements in foreign currency exchange rates.
- Investments in working capital to support business growth.
- Legal settlement paid in February.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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