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Sep 30, 2022
Titan Q3 2022 Earnings Report
Titan International reported record third quarter financial performance with adjusted EBITDA of $61 million, a YoY $26 million increase and EPS of $0.68/share, a YoY growth of $0.50/share.
Key Takeaways
Titan International, Inc. reported a strong third quarter with net sales of $530.7 million, an increase of 17.8% compared to the same quarter last year. The company's adjusted EBITDA was $61.2 million, compared to $35.1 million in the prior year period. Free cash flow was $40 million for the quarter, and the company reduced its debt by $35 million.
Net sales were $531 million, an 18% year-over-year increase, the strongest Q3 sales level in TWI history.
Gross margin was 16.5% versus 13.4% a year ago.
Free cash flow was $40 million in Q3.
Reported EPS of $0.68/share, a YoY growth of $0.50/share
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company expects to finish the year at the top end of its previously communicated targets for sales, adjusted EBITDA, and free cash flow.
Positive Outlook
- Farmers are in a good financial position.
- Corn and soybean supply-demand will support good pricing into 2024, at a minimum.
- Pent-up demand from supply chain and labor disruptions at OEMs.
- Continuing low levels of available used equipment.
- Large Ag remains in a solid position, and we expect the sector to work through current supply chain challenges with a bright future ahead.
Challenges Ahead
- The business climate is swimming with noise these days.
- Small Ag equipment inventory levels are starting to normalize to pre-Covid levels
- Used small Ag prices remain well above those levels.
- Inventory levels are still below historical norms.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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