Titan International Inc., a manufacturer specializing in wheels and tires for agricultural, construction, and mining equipment, has entered into a significant supply agreement with Deere (NYSE:DE) & Company. The deal, which was officially signed on January 16, 2025, will involve Titan supplying wheels and tires from its North and South American plants to Deere & Company, along with its affiliates and subsidiaries globally.
The agreement, effective as of November 1, 2024, is set to last until October 30, 2027, with provisions for early termination as outlined in the contract terms. The details of the agreement were disclosed in a recent 8-K filing with the Securities and Exchange Commission (SEC).
This new supply arrangement could potentially bolster Titan International's position in the market by aligning the company with Deere & Company, a major player in the agricultural and construction machinery industry.
While the full terms of the agreement were not disclosed due to confidentiality clauses, the 8-K filing included the Global Long-Term Agreement as Exhibit 10.1. This document, now part of the public record, provides insight into the contractual relationship between Titan International and Deere & Company.
Titan International, formerly known as Titan Wheel International Inc., operates under the SIC code for Steel Works, Blast Furnaces Rolling Mills (Coke Ovens), and is incorporated in Illinois. The company's fiscal year ends on December 31.
Investors and industry analysts may view this agreement as a strategic move for Titan International, potentially impacting the company's future performance and stock valuation, which is traded on the New York Stock Exchange under the ticker symbol (NYSE:TWI). The stock has shown strong momentum with an 8.74% return over the past week, while analyst price targets range from $9 to $16, suggesting potential upside from current levels. Access comprehensive analysis and Fair Value estimates through InvestingPro's detailed research reports, available for 1,400+ US stocks.
This news is based on the latest SEC filing by Titan International Inc. and reflects the company's ongoing business developments.
In other recent news, Titan International reported significant developments, including Q3 2024 revenue of $448 million and an adjusted EBITDA of $20 million. The company also generated $42 million in free cash flow, maintaining solid gross margins despite challenges in the agricultural market and broader macroeconomic headwinds. Additionally, the company secured new union contracts, a move expected to help Titan attract and retain a skilled workforce, integral to the company's ongoing growth strategies.
Financial firm DA Davidson initiated coverage of Titan International with a Buy rating, suggesting a potential rebound in growth as U.S. farm incomes are projected to improve in 2025. Titan's business model, which includes about 40% of sales from the less volatile aftermarket, could offer stability against market cycles.
Looking ahead, the company provided guidance for Q4, projecting revenues between $375 million and $425 million. Analysts anticipate a potential market recovery in 2025, driven by reduced inventory destocking and possible catalysts such as changes in interest rates and political clarity following elections. These are the most recent developments for Titan International.
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