Oct 29, 2026 earnings call — Sale of ITM undercarriage business
Titan signed agreement to divest ITM and reported Q3 revenue of $454 million and adjusted EBITDA of $28 million.
Revenue $0.3B (est $0.4B) · EPS $-0.03 (est $-0.05) · Next-quarter revenue outlook $0.4B–$0.4B
Key quotes
"In the press release announcing the transaction, we said we intend to use the ITM proceeds to reduce debt while pursuing accretive acquisitions and strategic partnerships that expand Titan's capabilities over time."
"We believe the conditions for recovery are developing and that titan would see demand rebound quickly when customers begin investing again."
"For the fourth quarter of 2026, we expect revenue of $410 million to $430 million and adjusted EBITDA of breakeven to $7 million."
Analyst Q&A 5
ITM sale and mid-cycle EBITDA outlook
Q (Joseph Gomes · NOBLE Capital): He asked when adjusted ITM numbers for Q1 and Q2 would be available and how the ITM sale changes the prior $250 million mid-cycle adjusted EBITDA framework. He also asked what is different about the company's optimism for 2027 versus prior years.
A: Anthony said they have not provided adjusted quarterly numbers and that full-year comparisons can give perspective. They are discussing internally how the ITM sale affects the mid-cycle adjusted EBITDA framework and will come up with an update. Paul said the farm cycle has had many false starts and that low inventories and drop-in orders give cautious optimism for a 2027 improvement.
"Really, the duration, like you alluded to in your question, Joe, I mean, it's the duration." — Paul Reitz (CEO)
Why Q4 margins weak; ITM removal costs
Q (Michael Shlisky · D.A. Davidson): He asked why Q4 margins could be near zero this year despite similar sales last year, and whether removing ITM will create new costs or dissynergies for the remaining business.
A: Anthony said the operating environment is very different this year, citing the Iran war, higher energy and inflationary costs, and material-cost pass-through lags. He also noted Brazil volume is significantly down. Paul said there are no dissynergies from ITM because it was run as a very separate business.
"Mike, the environment is different this year versus last year, very different." — Anthony Eheli (CFO)
Why sell ITM now and plans for growth
Q (Steve Ferazani · Sidoti): He asked why Titan decided to sell ITM now and how the company and board will fill the revenue gap and pursue growth going forward. He also asked about Q4 weakness and how to model 2027 without ITM.
A: Paul said the Board ran a disciplined process and they sold because the valuation made sense and was a win-win. They plan to keep the balance sheet strong, pursue organic growth in wheels and tires, and consider accretive strategic M&A and joint-venture paths. For Q4 they see some sequential recovery and are building inventory into Q4 to support Q1; Tony noted ITM is less seasonal so Q3–Q4 help gauge next year.
"we reached a point where the valuation made sense and strongly view it as a win-win for both sides and the decision was made." — Paul Reitz (CEO)
Brazil impact and ITM proceeds and working capital
Q: He asked whether Brazil election results affect the Ag business and asked how the company will use ITM sale proceeds, including taxes or letters of credit, and whether working capital needs will change without ITM.
A: Paul said the Brazilian Ag market was already expected to be difficult in Q4 and Q1 regardless of the election and Titan had planned for shutdowns. Anthony said proceeds will be used primarily to pay down debt and strengthen the balance sheet and they do not expect significant tax leakage. He also provided ITM metrics: Q4 sales $115 million to $120 million and around $10 million of EBITDA; full year sales $465 million to $470 million and around $40 million of EBITDA, and said overall working capital needs will be lower without ITM.
"ITM, the sales range for Q4 is $115 million to $120 million and around $10 million of EBITDA." — Anthony Eheli (CFO)
Competition from low-cost importers
Q (Derek Soderberg · Cantor Fitzgerald): He asked whether Titan is seeing increased competition from low-cost importers, including more imports from China, and whether competitive dynamics have changed this year.
A: Paul said there has not been a dramatic change; low-cost competition is always present and some suppliers use unfair practices. He said Titan also uses low-cost manufacturing and partners, and combines that with a controlled production footprint, brands, and distribution to mitigate risk and compete effectively.
"So I don't think our business is being impacted by significant changes in how our competition operates." — Paul Reitz (CEO)