The following is a summary of the Titan International, Inc. (TWI) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Titan International reported Q1 revenues of $482 million, adjusted EBITDA of $50 million, and EPS of $0.29.

• Ag Segment adjusted gross margin increased to 17.2% from 16.1% last year.

• SG&A expense was higher this year at $39 million due to the contribution from Carlstar's operations.

• R&D expenses stood at $3.6 million, indicating continued investment in product development.

• Despite a challenging environment, Titan achieved solid Q1 results.

• Q2 revenues are projected to be between $525 million and $575 million with an adjusted EBITDA expectation of $45 million to $55 million.

• A decline in year-over-year ag sales was reported, expected to continue into the second quarter. Strong margins were maintained in the Ag and consumer segment despite this fall.

Business Progress:

• The acquisition of Carlstar has driven the aftermarket business, expecting to benefit multi-dimensionally, and has helped in customer base diversification with a balance between OEM and aftermarket.

• The combined companies are expected to secure earnings power of $250 million to $300 million of adjusted EBITDA, producing a free cash flow of at least $125 million.

• Progress has been made in creating cost synergies with an estimated bottom-line contribution of approximately $5 million to $6 million for 2024.

• The company anticipates a decrease in Ag demand and is implementing temporary actions to minimize costs while preserving a robust workforce.

• Growth is expected in relation to infrastructure spending for construction.

• Steps are being taken to manage costs effectively through vendor consolidation, supply chain optimization, and system reduction within the business.

More details: Titan International IR

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