Titan International reported third-quarter 2026 results that reflected weaker demand in its agricultural markets, partly offset by growth in Earthmoving, Construction and Mining sales. The company also updated its fourth-quarter and full-year outlook, with figures that include its ITM undercarriage business, which is being treated as a discontinued operation ahead of a planned sale.
Titan expects the ITM sale to close in early January 2027, subject to regulatory progress. Management says the sale will let the company concentrate on its wheel and tire businesses and use the proceeds to reduce debt.
Third-quarter results
- Continuing-operations revenue was $335 million, down from $357.3 million a year earlier. Titan attributed the decline primarily to lower sales volumes amid weak market conditions. Higher pricing and a better product mix partly offset the impact; currency translation added about 0.2% to sales growth.
- Gross margin was 14.7%, and adjusted EBITDA was $16 million for continuing operations.
- Free cash flow was $23 million.
- Including ITM, quarterly revenue was $454 million and adjusted EBITDA was $28 million.
- By segment, Earthmoving, Construction and Mining sales grew 5%, with improved margins. Consumer sales fell 3% against an unusually strong quarter a year earlier. Agricultural sales declined 12%, as high interest rates, fuel and fertilizer costs, and broader economic concerns kept farmers cautious.
Outlook and business conditions
- Titan’s updated outlook, including ITM, calls for fourth-quarter sales of $410 million to $430 million and adjusted EBITDA ranging from break-even to $7 million.
- For full-year 2026, the company expects sales of $1.85 billion to $1.87 billion and adjusted EBITDA of $91 million to $101 million.
- Management cited continuing pressure from elevated interest rates and high fuel and fertilizer costs. It also pointed to an aging farm-machinery fleet and relatively low wheel and tire inventories in distribution channels as factors that may support demand when market conditions improve.
ITM sale and strategic focus
- Titan has agreed to sell ITM to USCO S.p.A. and said the transaction is progressing through regulatory review. The company continues to expect a closing in early January 2027.
- Management described ITM as a high-quality business, but said it has limited synergies with Titan’s wheel and tire operations.
- Titan’s stated plan is to focus on growing its global wheel and tire businesses and use the sale proceeds to reduce debt. The release does not provide the transaction price.
The reported results separate ITM from continuing operations, while the company’s guidance and the larger revenue and adjusted EBITDA figures quoted above include ITM. This distinction matters when comparing the operating results with the outlook.