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Aug. 8, 2022 Source: Titan International news release CHICAGO -- Titan International, Inc. (NYSE: TWI), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, today reported results for the second quarter ended June 30, 2022. "The positive momentum we have seen in our business kept on rolling this quarter and when combined with the continuing strong execution of our team, it resulted in excellent financial performance. As indicated by the updated full year 2022 guidance we released in June, we feel good about our business and our end-markets," stated Paul Reitz, President and Chief Executive Officer. "We experienced sales growth of 31% from the second quarter last year and sales grew sequentially 3% from the first quarter to the second quarter. More importantly, our margins were good, and we delivered adjusted EBITDA of $82 million in the second quarter. This performance was buoyed by strong financial performance across all parts of the business as our Titan team keeps running hard like a good, long-distance marathoner. "Perhaps the most important aspect of our performance is that we are generating significant cash flow and we have strengthened our financial position considerably. We generated $56 million in free cash flow in Q2, and our debt leverage fell below 2 times adjusted EBITDA, with expected further improvements in the second half of the year. "The strong financial performance over the past couple years, combined with significant improvements in our balance sheet and solid free cash flow now coming through means we are driving increased shareholder value. "Nearly everywhere you turn these days you will get hit with noise and our end-markets of Agriculture, Construction and Mining are no exception. However, like everything, you need to spend some time sifting through the noise to get a clear picture as a quick look at the headlines likely does not tell the complete, accurate story. We believe that the complete picture is farmers are going to still make a high level of income in 2022 and they are sitting on strong balance sheets as well. "The large Ag equipment fleet is aged with low levels of available used equipment. Demand and order books are in a solid position in Ag and should continue on that path well into the future as supply chain and labor disruptions at OEM's have extended the duration of retail demand, not destroyed it. "The overall, bigger picture view is that Ag fundamentals remain in a strong position and we expect the future to remain bright in the sector. "This view is also true for our global construction and mining markets, where we continue to see demand holding at a good level through 2022 that should carry to 2023 as public infrastructure spending picks up." Outlook "Our expectations for financial performance remain strong and during the second half of the year we anticipate continued top-line and bottom-line expansion relative to prior year performance. Given our performance in Q2 and our current visibility in the second half of the year, we now expect full year sales in 2022 to be $2.2 billion, with an increased adjusted EBITDA target between $240 million and $250 million. Based on this latest outlook, current cash flow expectations have improved accordingly, and we now believe we can deliver an increased level of free cash flow between $90 million and $100 million for the full year. By almost all standards, we expect this year to be the strongest in Titan's history, and we continue to see positive signs for demand to remain robust into 2023." Tweet |
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