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SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has 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. Titan is 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 (President and CEO of Titan). 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 months ended March 31, 2025 and 2024 (amounts in thousands):
| Three months ended March 31, 2025
| Agriculture |  | Earthmoving/Construction |  | Consumer |  | Corporate & Unallocated |  | Total
Net sales | $ | 197,746 |  |  | $ | 143,290 |  |  | $ | 149,672 |  |  | $ | — |  |  | $ | 490,708 |
Cost of sales | 173,259 |  |  | 128,397 |  |  | 120,408 |  |  | — |  |  | 422,064 |
Gross profit | $ | 24,487 |  |  | $ | 14,893 |  |  | $ | 29,264 |  |  | $ | — |  |  | $ | 68,644 |
Selling, general and administrative expenses | 12,074 |  |  | 11,021 |  |  | 19,087 |  |  | 7,673 |  |  | 49,855 |
Research and development expenses | 1,354 |  |  | 1,849 |  |  | 888 |  |  | 453 |  |  | 4,544 |
Royalty expense | 1,617 |  |  | 347 |  |  | 482 |  |  | — |  |  | 2,446 |
Segment profit (loss) | $ | 9,442 |  |  | $ | 1,676 |  |  | $ | 8,807 |  |  | $ | (8,126) |  |  | $ | 11,799 |
Interest expense |  |  |  |  |  |  | (9,535) |  |  | (9,535) |
Interest income |  |  |  |  |  |  | 2,239 |  |  | 2,239 |
Foreign exchange loss |  |  |  |  |  |  | (1,385) |  |  | (1,385) |
Other income |  |  |  |  |  |  | 1,134 |  |  | 1,134 |
(Loss) income before income taxes |  |  |  |  |  |  | $ | (15,673) |  |  | $ | 4,252 |
| Three months ended March 31, 2024
| Agriculture |  | Earthmoving/Construction |  | Consumer |  | Corporate & Unallocated |  | Total
Net sales | $ | 239,673 |  |  | $ | 165,208 |  |  | $ | 77,328 |  |  | $ | — |  |  | $ | 482,209 |
Cost of sales | 199,054 |  |  | 142,231 |  |  | 63,554 |  |  | — |  |  | 404,839 |
Gross profit | $ | 40,619 |  |  | $ | 22,977 |  |  | $ | 13,774 |  |  | $ | — |  |  | $ | 77,370 |
Selling, general and administrative expenses | 13,394 |  |  | 11,956 |  |  | 7,803 |  |  | 6,267 |  |  | 39,420 |
Acquisition related expenses | — |  |  | — |  |  | — |  |  | 6,196 |  |  | 6,196 |
Research and development expenses | 1,230 |  |  | 1,666 |  |  | 336 |  |  | 422 |  |  | 3,654 |
Royalty expense | 1,985 |  |  | 521 |  |  | 522 |  |  | — |  |  | 3,028 |
Segment profit (loss) | $ | 24,010 |  |  | $ | 8,834 |  |  | $ | 5,113 |  |  | $ | (12,885) |  |  | $ | 25,072 |
Interest expense |  |  |  |  |  |  | (8,367) |  |  | (8,367) |
Interest income |  |  |  |  |  |  | 2,875 |  |  | 2,875 |
Foreign exchange loss |  |  |  |  |  |  | (275) |  |  | (275) |
Other income |  |  |  |  |  |  | 405 |  |  | 405 |
(Loss) income before income taxes |  |  |  |  |  |  | $ | (18,247) |  |  | $ | 19,710 |
The table below presents net sales by products and reportable segments for the three months ended March 31, 2025 and 2024 (amounts in thousands):
| Agricultural Segment |  | Earthmoving/Construction Segment |  | Consumer Segment |  | Total
Three months ended March 31, 2025 |  |  |  |  |  |  |
Wheels and Tires [including assemblies] | $ | 188,367 |  |  | $ | 54,413 |  |  | $ | 142,175 |  |  | $ | 384,955 |
Undercarriage systems and components | 9,379 |  |  | 88,877 |  |  | 7,497 |  |  | 105,753 |
Total | $ | 197,746 |  |  | $ | 143,290 |  |  | $ | 149,672 |  |  | $ | 490,708 |
| Agricultural Segment |  | Earthmoving/Construction Segment |  | Consumer Segment |  | Total
Three months ended March 31, 2024 |  |  |  |  |  |  |
Wheels and Tires [including assemblies] | $ | 229,034 |  |  | $ | 66,245 |  |  | $ | 71,354 |  |  | $ | 366,633 |
Undercarriage systems and components | 10,639 |  |  | 98,963 |  |  | 5,974 |  |  | 115,576 |
Total | $ | 239,673 |  |  | $ | 165,208 |  |  | $ | 77,328 |  |  | $ | 482,209 |
Depreciation and amortization expense by segment were as follows as of the periods set forth below (amounts in thousands):
| Agricultural Segment |  | Earthmoving/Construction Segment |  | Consumer Segment |  | Corporate & Unallocated |  | Total
Three months ended March 31, 2025 | $ | 6,158 |  |  | $ | 4,463 |  |  | $ | 4,661 |  |  | $ | 589 |  |  | $ | 15,871 |
Three months ended March 31, 2024 | 5,708 |  |  | 3,935 |  |  | 1,842 |  |  | 516 |  |  | 12,001 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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