v3.25.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We have aggregated its operating segments into reportable segments based on its three customer markets: agricultural, earthmoving/construction, and consumer. These segments are based on the information used by the chief operating decision maker (CODM) to make certain operating decisions, allocate portions of capital expenditures and assess segment performance. The accounting policies of the segments are the same as those described in Note 1, “Basis of Presentation and Significant Accounting Policies” to these Notes to the Condensed Consolidated Financial Statements. Segment external revenues, expenses, and income from operations are determined on the basis of the results of operations of operating units of manufacturing facilities.

We are organized primarily on the basis of products being included in three marketing segments, with each reportable segment including wheels, tires, wheel/tire assemblies, and undercarriage systems and components. Given the integrated manufacturing operations and common administrative and marketing support, a substantial number of allocations primarily based on segment sales data must be made to determine operating segment data.

The CODM of Titan is Paul Reitz (our President and CEO) is our CODM. The CODM utilizes both forecasted and actual expense information on a consolidated basis to manage operations. The CODM utilizes segment gross profit and segment operating profit (loss), both in comparison to the prior year and the current forecasted level of gross profit, for purposes of analyzing the segment’s financial performance. The assessment of each segment’s financial performance by the CODM is then utilized to contemplate and execute on business decisions to allocate resources to manage the growth and profitability of each reportable segment and for the Company as a whole. The CODM does not review asset information by segment to manage operations or allocate resources. Therefore, segment assets are not disclosed.
The table below presents information about certain operating results, separated by market segments, for the three and six months ended June 30, 2025 and 2024 (amounts in thousands):

Three months ended June 30, 2025
AgricultureEarthmoving/ConstructionConsumerCorporate & UnallocatedTotal
Net sales$193,223 $152,347 $115,260 $— $460,830 
Cost of sales164,943 134,873 91,741 — 391,557 
Gross profit$28,280 $17,474 $23,519 $— $69,273 
Selling, general and administrative expenses13,871 12,494 18,916 7,072 52,353 
Research and development expenses1,329 1,652 915 445 4,341 
Royalty expense1,627 334 458 — 2,419 
Segment profit (loss)$11,453 $2,994 $3,230 $(7,517)$10,160 
Interest expense(9,673)(9,673)
Interest income2,455 2,455 
Foreign exchange loss(2,995)(2,995)
Other income1,140 1,140 
(Loss) income before income taxes$(16,590)$1,087 


Six months ended June 30, 2025
AgricultureEarthmoving/ConstructionConsumerCorporate & UnallocatedTotal
Net sales$390,969 $295,637 $264,932 $— $951,538 
Cost of sales338,202 263,270 212,149 — 813,621 
Gross profit$52,767 $32,367 $52,783 $— $137,917 
Selling, general and administrative expenses25,945 23,515 38,003 14,745 102,208 
Research and development expenses2,683 3,501 1,803 898 8,885 
Royalty expense3,244 681 940 — 4,865 
Segment profit (loss)$20,895 $4,670 $12,037 $(15,643)$21,959 
Interest expense(19,208)(19,208)
Interest income4,694 4,694 
Foreign exchange loss(4,380)(4,380)
Other income2,274 2,274 
(Loss) income before income taxes$(32,263)$5,339 
Three months ended June 30, 2024
AgricultureEarthmoving/ConstructionConsumerCorporate & UnallocatedTotal
Net sales$216,330 $165,564 $150,276 $— $532,170 
Cost of sales184,027 144,265 123,436 — 451,728 
Gross profit$32,303 $21,299 $26,840 $— $80,442 
Selling, general and administrative expenses13,927 12,121 18,997 6,538 51,583 
Research and development expenses1,162 1,814 834 408 4,218 
Royalty expense1,442 317 560 — 2,319 
Segment profit (loss)$15,772 $7,047 $6,449 $(6,946)$22,322 
Interest expense(9,732)(9,732)
Interest income2,545 2,545 
Foreign exchange gain462 462 
Other income3,277 3,277 
(Loss) income before income taxes$(10,394)$18,874 


Six months ended June 30, 2024
AgricultureEarthmoving/ConstructionConsumerCorporate & UnallocatedTotal
Net sales$456,003 $330,772 $227,604 $— $1,014,379 
Cost of sales383,081 286,496 186,990 — 856,567 
Gross profit$72,922 $44,276 $40,614 $— $157,812 
Selling, general and administrative expenses27,321 24,077 26,800 12,805 91,003 
Acquisition related expenses— — — 6,196 6,196 
Research and development expenses2,392 3,480 1,170 830 7,872 
Royalty expense3,427 838 1,082 — 5,347 
Segment profit (loss)$39,782 $15,881 $11,562 $(19,831)$47,394 
Interest expense(18,099)(18,099)
Interest income5,420 5,420 
Foreign exchange gain187 187 
Other income3,682 3,682 
(Loss) income before income taxes$(28,641)$38,584 
The table below presents net sales by products and reportable segments for the three and six months ended June 30, 2025 and 2024 (amounts in thousands):
AgriculturalEarthmoving/ConstructionConsumerTotal
Three months ended June 30, 2025
Wheels and Tires [including assemblies]$182,858 $54,138 $107,561 $344,557 
Undercarriage systems and components10,365 98,209 7,699 116,273 
 Total$193,223 $152,347 $115,260 $460,830 
Six months ended June 30, 2025
Wheels and Tires [including assemblies]$371,225 $108,551 $249,736 $729,512 
Undercarriage systems and components19,744 187,086 15,196 222,026 
Total$390,969 $295,637 $264,932 $951,538 

AgriculturalEarthmoving/ConstructionConsumerTotal
Three months ended June 30, 2024
Wheels and Tires [including assemblies]$205,709 $59,352 $142,230 $407,291 
Undercarriage systems and components10,621 106,212 8,046 124,879 
 Total$216,330 $165,564 $150,276 $532,170 
Six months ended June 30, 2024
Wheels and Tires [including assemblies]$434,743 $125,597 $213,584 $773,924 
Undercarriage systems and components21,260 205,175 14,020 240,455 
Total$456,003 $330,772 $227,604 $1,014,379 

Depreciation and amortization expense by segment were as follows as of the periods set forth below (amounts in thousands):
AgriculturalEarthmoving/ConstructionConsumerCorporate & UnallocatedTotal
Three months ended June 30, 2025$6,740 $5,314 $4,021 $548 $16,623 
Six months ended June 30, 202512,898 9,777 8,682 1,137 32,494 
Three months ended June 30, 20246,042 4,623 4,196 561 15,422 
Six months ended June 30, 202411,750 8,558 6,038 1,077 27,423