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Titan International(TWI) - 2024 Q4 - Annual Results
TWITitan International(TWI)2025-02-26 22:23

Financial Performance - Net sales for Q4 2024 were 383.6million,adecreaseof1.5383.6 million, a decrease of 1.5% from 390.2 million in Q4 2023, driven by declines in agricultural and earthmoving/construction segments[5]. - Gross profit for Q4 2024 was 41.2million,downfrom41.2 million, down from 58.3 million in Q4 2023, resulting in a gross margin of 10.7% compared to 14.9% in the prior year[6]. - Adjusted EBITDA for Q4 2024 was 9.2million,significantlylowerthan9.2 million, significantly lower than 38.1 million in Q4 2023[16]. - Net sales for the twelve months ended December 31, 2024, were 1,845.9million,aslightincreasefrom1,845.9 million, a slight increase from 1,821.8 million in 2023[28]. - Gross profit decreased to 257.8millionin2024from257.8 million in 2024 from 305.8 million in 2023, reflecting a decline in profitability[28]. - Net income attributable to Titan decreased to a loss of 5.6millionin2024,comparedtoaprofitof5.6 million in 2024, compared to a profit of 78.8 million in 2023[28]. - For the twelve months ended December 31, 2024, the net loss was 3,590,000comparedtoanetincomeof3,590,000 compared to a net income of 83,706,000 for the same period in 2023[32]. - Net income for the three months ended December 31, 2024, was 1,213,000,comparedtoalossof1,213,000, compared to a loss of 1,282,000 in the same period of 2023[41]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was 128,108,000,downfrom128,108,000, down from 205,229,000 in 2023, reflecting a decrease of 37.5%[41]. Segment Performance - Agricultural segment net sales for Q4 2024 were 157.1million,down18.4157.1 million, down 18.4% from 192.6 million in Q4 2023, attributed to lower global demand[10]. - Earthmoving/construction segment net sales for Q4 2024 were 116.3million,adecreaseof26.9116.3 million, a decrease of 26.9% from 159.1 million in Q4 2023, due to softer demand in North America and Europe[12]. - Consumer segment net sales for Q4 2024 were 110.1million,asubstantialincreaseof185.8110.1 million, a substantial increase of 185.8% from 38.5 million in Q4 2023, driven by increased sales volumes following the Carlstar acquisition[14]. - The United States market saw a 14.2% increase in net sales for the three months ended December 31, 2024, totaling 183,066,000[41].−Europe/CISexperiencedasignificantdeclineof25.9183,066,000[41]. - Europe/CIS experienced a significant decline of 25.9% in net sales for the same period, with sales of 99,475,000[41]. Expenses and Cash Flow - SG&A expenses for Q4 2024 increased by 58.5% to 55.7millionfrom55.7 million from 35.2 million in Q4 2023, primarily due to the Carlstar acquisition[7]. - Operating cash flows decreased by 37.9millionin2024comparedto2023,primarilyduetolowernetincome,despiteimprovementsinaccountsreceivableandinventorymanagement[19].−Operatingcashflowdecreasedto37.9 million in 2024 compared to 2023, primarily due to lower net income, despite improvements in accounts receivable and inventory management[19]. - Operating cash flow decreased to 141,487,000 in 2024 from 179,350,000in2023,reflectingadeclineofapproximately21179,350,000 in 2023, reflecting a decline of approximately 21%[32]. - Free cash flow for the twelve months ended December 31, 2024, was 75,863,000, down from 118,551,000in2023[42].CapitalExpendituresandInvestments−Capitalexpendituresincreasedto118,551,000 in 2023[42]. Capital Expenditures and Investments - Capital expenditures increased to 65.6 million in 2024 from 60.8millionin2023,focusingonplantequipmentreplacementandnewproductdevelopment[21].−Thecompanyreportedcapitalexpendituresof60.8 million in 2023, focusing on plant equipment replacement and new product development[21]. - The company reported capital expenditures of 65,624,000 in 2024, an increase from 60,799,000in2023[32].−CapitalexpendituresforthethreemonthsendedDecember31,2024,were60,799,000 in 2023[32]. - Capital expenditures for the three months ended December 31, 2024, were 13,306,000, compared to 19,319,000inthesameperiodof2023[42].−Netcashusedforinvestingactivitiessignificantlyincreasedto19,319,000 in the same period of 2023[42]. - Net cash used for investing activities significantly increased to 201,598,000 in 2024 from 56,923,000in2023[32].DebtandEquity−Thecompanyended2024withtotalcashandcashequivalentsof56,923,000 in 2023[32]. Debt and Equity - The company ended 2024 with total cash and cash equivalents of 196.0 million, down from 220.3millionattheendof2023,whilelong−termdebtincreasedto220.3 million at the end of 2023, while long-term debt increased to 553.0 million from 409.2million[18].−Long−termdebtincreasedto409.2 million[18]. - Long-term debt increased to 552.97 million in 2024 from 409.18millionin2023,indicatinghigherleverage[30].−Titan′sstockholders′equityroseto409.18 million in 2023, indicating higher leverage[30]. - Titan's stockholders' equity rose to 496.1 million in 2024 from 467.1millionin2023,showingapositivetrendinequity[30].−TotaldebtasofDecember31,2024,was467.1 million in 2023, showing a positive trend in equity[30]. - Total debt as of December 31, 2024, was 565,445,000, an increase from 518,454,000asofSeptember30,2024[42].−Netdebtincreasedto518,454,000 as of September 30, 2024[42]. - Net debt increased to 369,471,000 as of December 31, 2024, compared to 291,161,000attheendofthepreviousquarter[42].ResearchandDevelopment−Researchanddevelopmentexpensesincreasedto291,161,000 at the end of the previous quarter[42]. Research and Development - Research and development expenses increased to 16.5 million in 2024 from 12.5millionin2023,indicatingafocusoninnovation[28].ForeignExchangeandShares−Thecompanyincurredforeignexchangelossesof12.5 million in 2023, indicating a focus on innovation[28]. Foreign Exchange and Shares - The company incurred foreign exchange losses of 6,123,000 for the twelve months ended December 31, 2024, compared to 22,822,000in2023[39].−Thecompanyreportedaforeignexchangelossof22,822,000 in 2023[39]. - The company reported a foreign exchange loss of 3,785,000 for the three months ended December 31, 2024[41]. - The average common shares outstanding increased to 68,662,000 in 2024 from 62,452,000 in 2023[39]. Upcoming Events - The company will host a teleconference on February 27, 2025, to discuss fourth quarter financial results[22].