Titan International (TWI) Wells Fargo 2024 Industrials Conference summary

Business overview and strategy

• Manufactures wheels, tires, and steel tracks for off-road equipment, serving sectors from large construction to small farm and consumer products.

• Unique integration of wheel and tire manufacturing enables innovation and differentiation in the market.

• Strong OEM presence and a growing aftermarket focus, emphasizing direct relationships with end users.

• Technical resources are developed both internally and through end-user feedback, driving product innovation.

Recent acquisition and integration

• Acquired Carlstar, marking the first acquisition in a decade, with minimal product and geographic overlap.

• Integration is progressing well, with significant commercial and cost synergies expected.

• Synergy targets are $5–6 million in 2024, with a long-term goal of $25–30 million.

• Acquisition is immediately accretive and positions the company as a broader one-stop shop.

Shareholder and capital structure developments

• AIP became the largest shareholder through a stock component in the Carlstar deal; board is considering allowing AIP to increase its stake.

• Board composition includes significant private equity and hedge fund experience, supporting strategic decisions.

• Stock price declined 45% in 45 days post-acquisition and Q1 results, despite strong margins and cash flow.