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Titan International reports:

Net sales were $556.0 million, a $152.5 million (37.8%) YoY increase, the highest quarterly sales since Q2 2013
Gross margin was 15.6%
Adjusted EBITDA was $56.8 million as compared to $26.3 million in Q1 of the prior year

Chicago - Titan International, Inc. (NYSE: TWI), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, today reported results for the first quarter ended March 31, 2022.

"We were able to pick up right where we left off in 2021 with another stellar quarter to begin the year," stated Paul Reitz, President and Chief Executive Officer. "All of our business units across all geographies came together to deliver our strongest sales quarter in nearly nine years.

The first quarter experienced strong top line growth, along with excellent conversion to the bottom line, as gross margins were 15.6%, adjusted EBITDA was $57 million, and adjusted EBITDA margin climbed to 10.2%, reaching their strongest levels in close to a decade. The runway for our business moving forward looks good and remains similar to what we outlined in March, with both our Agriculture and Earthmoving / Construction segments continuing to reflect strong demand driven by solid market fundamentals.

"Earlier this year, we commented on the positive market dynamics creating a tidal wave for Titan to navigate in 2022 and beyond. We continue to firmly believe this remains the case. Our first quarter results and our 2022 order books clearly support that, along with elevated commodity prices with solid supply-demand fundamentals, used inventory levels at record lows for larger equipment, and demand for new equipment that remains robust. Elaborating further, these positive market forces, combined with delays in order deliveries from the OEM's due to production challenges, provide support and momentum for a multi-year demand cycle.

"Aftermarket demand remains very robust reflecting the need for replacement in the midst of shortages of new equipment. Along with the strong agriculture backdrop, order books are solid in earthmoving and construction and should continue to remain positive as infrastructure spending increases globally. Our Titan team will continue to work hard to meet our customers growing expectations and with our impressive and extensive manufacturing footprint that produces quality, innovative products, we are a strong solution to meet the needs of our global customer base.

"Based on the strength of our first quarter performance and a similar expectation for Q2, we are now anticipating full year net sales above $2.1 billion, with adjusted EBITDA to be around $200 million. This revised outlook reflects more normalized demand and production levels in the second half that are in line with our typical seasonality trends for the business. Based on the increased profitability and strength in the business, our cash flow expectations have also improved, and believe we can deliver between $55 million and $65 million in free cash flow for the full year.

To view the complete report, click here.

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