Moody’s lowers Titan International outlook to negative\n\nEditor Luke Juricic\nStock Markets\nEditor Luke Juricic\nPublished 06/20/2025, 03:27 PM\nMoody’s lowers Titan International outlook to negative\n\n© Reuters.\nInvesting.com -- Moody’s Ratings has affirmed Titan International (NYSE:<a>TWI</a>), Inc.’s B1 corporate family rating but changed the outlook to negative from stable, citing weaker-than-expected credit metrics amid ongoing agricultural and construction equipment demand challenges.\nThe rating agency expects Titan’s key credit metrics to remain below original 2025 projections as demand constraints are likely to continue into 2026. High interest rates, macroeconomic uncertainty, tariff concerns, and moderating commodity prices are limiting new equipment spending.\nTitan’s February 2024 debt-funded acquisition of Carlstar Group LLC has worsened the impact of weak operating results on credit metrics, as the purchase coincided with the beginning of the current agricultural sector downturn.\nDespite these challenges, Moody’s acknowledged Titan’s solid competitive position as a tire and wheel supplier to leading global agriculture and construction equipment manufacturers. The company’s long-term demand outlook remains supported by increasing global grain output needs, aging equipment fleets, and demand for advanced farming technology.\nIn the near term, Titan’s agricultural customers have reduced production due to weaker demand, significantly affecting Titan’s operating results. The earthmoving and construction equipment markets show mixed performance, with solid mining demand but slower construction activity outside of infrastructure and onshoring projects.\nMoody’s expects Titan’s EBITA margin to improve only slightly to the mid-3% range in 2025, up from approximately 3% in 2024. The company’s debt-to-EBITDA ratio exceeded 6x as of March 31, 2025, though it’s projected to fall below 6x later this year as free cash flow is directed toward debt repayment.\nThe anticipated benefits from the Carlstar acquisition, including enhanced scale and a broader customer base, have been limited by the weak demand environment, with aftermarket revenues unable to offset the decline in new equipment spending.\nTitan’s SGL-2 liquidity rating remains unchanged, reflecting the company’s cash position of around $200 million and expected increased availability through revolver repayments during the remainder of 2025. The company had $57 million available under its $225 million asset-based lending facility at the end of Q1 2025.\nMoody’s projects positive free cash flow for Titan in 2025, though lower than previous years, as disciplined working capital management and reduced capital expenditures will not fully offset weak earnings.\nFor a potential ratings upgrade, Titan would need to sustain operational efficiencies supporting an EBITA margin above 7%, achieve debt-to-EBITDA approaching the mid-4x range even during downturns, and maintain EBITA-to-interest above 4x.\nConversely, the ratings could face downgrade if Titan’s EBITA margin stays below 5%, debt-to-EBITDA remains above 5.5x, or EBITA-to-interest stays below 3x. Deteriorating liquidity or a shift toward aggressive financial policies could also trigger a downgrade.\nThis article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.\n<h2>TWI: is this perennial leader facing new challenges?</h2>\nWith valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Sure, there are always opportunities in the stock market – but finding them feels more difficult now than a year ago. Unsure where to invest next? One of the best ways to discover new high-potential opportunities is to look at the top performing portfolios this year. ProPicks AI offers 6 model portfolios from Investing.com which identify the best stocks for investors to buy right now. For example, ProPicks AI found 9 overlooked stocks that jumped over 25% this year alone. The new stocks that made the monthly cut could yield enormous returns in the coming years. Is TWI one of them?\nMoody’s lowers Titan International outlook to negative\n\n<h2>Latest comments</h2>\nTrade With A Regulated Broker\n1D1W1M6M1Y5YMax\nUS 30 \n42,254.30+82.6+0.20%\nUS 500 \n5,973.80-7.1-0.12%\nDow Jones \n42,206.82+35.16+0.08%\nS&amp;P 500 \n5,967.84-13.03-0.22%\nNasdaq \n19,447.41-98.86-0.51%\nS&amp;P 500 VIX \n20.62-1.55-6.99%\nDollar Index \n98.28-0.190-0.19%\nCrude Oil WTI Futures\n73.84+0.34+0.46%\nBrent Oil Futures\n77.01-1.84-2.33%\nNatural Gas Futures\n3.847-0.142-3.56%\nGold Futures\n3,385.70-22.40-0.66%\nSilver Futures\n36.017-0.896-2.43%\nCopper Futures\n4.8335-0.0195-0.40%\nUS Soybeans Futures\n1,068.00-6.75-0.63%\nU.S. 10Y \n4.376-0.014-0.32%\nU.S. 30Y \n4.889-0.001-0.02%\nU.S. 5Y \n3.959-0.026-0.65%\nU.S. 3M \n4.305-0.025-0.58%\nUS 10Y T-Note Futures\n110.98+0.19+0.17%\nEuro Bund Futures\n130.93-0.03-0.02%\n10-2 Yield Spread \n31.32+4.15+15.27%\nAAPL\n201.00+4.42+2.25%\nNVDA\n143.85-1.63-1.12%\nGOOGL\n166.64-6.68-3.85%\nTSLA\n322.16+0.11+0.03%\nAMZN\n209.69-2.83-1.33%\nNFLX\n1,231.41+9.12+0.75%\nMETA\n682.35-13.42-1.93%\nMost Popular Articles\nNews\nAnalysis\n<a>Apple internally weighs bid for ChatGPT rival Perplexity, Bloomberg says</a> By Investing.co... Jun 20, 2025\n<a>Stock market today: S&amp;P 500 slips as chips stock stumble to offset rate-cut hopes</a> By Investing.co... Jun 20, 2025\n<a>With +111% gains on the list, these stocks are skyrocketing amid sideways market</a> By Investing.co... Jun 20, 2025\n<a>Tesla’s autonomous chapter ’one of the most important’ in its history says Wedbush</a> By Investing.co... Jun 20, 2025\n<a>Wedbush’s Ives raises stock price target on this ’AI winner’</a> By Investing.co... Jun 20, 2025\n<a>5 Stocks to Anchor Your Portfolio Amid Escalating US-Israel-Iran Tensions</a> By Jesse Cohen Jun 20, 2025\n<a>S&amp;P 500 at 6,000: Hold or Fold as Iran Risk and Fed Hawkishness Collide?</a> By Fawad Razaqz... Jun 19, 2025\n<a>Geopolitical Crisis Can’t Stop These 6 Soaring Disruptive Innovators</a> By David Wagner Jun 19, 2025\n<a>FOMC Preview: Fed in Wait-And-See Mode as Powell Faces Barrage of Uncertainty</a> By Jesse Cohen Jun 18, 2025\n<a>Meta Is Comfortable Betting the House on AI, and Investors Should Pay Attention</a> By Shane Neagle Jun 20, 2025\n<a>More News</a>\n<a>Market Movers</a>\n<table>\n<thead>\n<tr>\n<th>Name</th>\n<th>Last</th>\n<th>Chg. %</th>\n<th>Vol.</th>\n</tr>\n</thead>\n<tbody>\n<tr>\n<td><a>NVDA</a></td>\n<td>143.85</td>\n<td>-1.12%</td>\n<td>242.96M</td>\n</tr>\n<tr>\n<td><a>TSLA</a></td>\n<td>322.16</td>\n<td>+0.03%</td>\n<td>108.69M</td>\n</tr>\n<tr>\n<td><a>AAPL</a></td>\n<td>201.00</td>\n<td>+2.25%</td>\n<td>96.81M</td>\n</tr>\n<tr>\n<td><a>CRCL</a></td>\n<td>240.28</td>\n<td>+20.39%</td>\n<td>92.43M</td>\n</tr>\n<tr>\n<td><a>AMZN</a></td>\n<td>209.69</td>\n<td>-1.33%</td>\n<td>75.35M</td>\n</tr>\n<tr>\n<td><a>MSFT</a></td>\n<td>477.40</td>\n<td>-0.59%</td>\n<td>37.58M</td>\n</tr>\n<tr>\n<td><a>META</a></td>\n<td>682.35</td>\n<td>-1.93%</td>\n<td>22.54M</td>\n</tr>\n</tbody>\n</table>\n<table>\n<thead>\n<tr>\n<th>Name</th>\n<th>Last</th>\n<th>Chg. %</th>\n<th>Vol.</th>\n</tr>\n</thead>\n<tbody>\n<tr>\n<td><a>KR</a></td>\n<td>71.97</td>\n<td>+9.84%</td>\n<td>36.15M</td>\n</tr>\n<tr>\n<td><a>BLDR</a></td>\n<td>114.82</td>\n<td>+7.46%</td>\n<td>7.85M</td>\n</tr>\n<tr>\n<td><a>KMX</a></td>\n<td>68.57</td>\n<td>+6.59%</td>\n<td>12.46M</td>\n</tr>\n<tr>\n<td><a>MDLZ</a></td>\n<td>68.31</td>\n<td>+2.95%</td>\n<td>13.00M</td>\n</tr>\n<tr>\n<td><a>LEN</a></td>\n<td>106.42</td>\n<td>+2.91%</td>\n<td>5.78M</td>\n</tr>\n<tr>\n<td><a>PARA</a></td>\n<td>12.35</td>\n<td>+2.57%</td>\n<td>15.70M</td>\n</tr>\n<tr>\n<td><a>NCLH</a></td>\n<td>18.86</td>\n<td>+2.56%</td>\n<td>14.74M</td>\n</tr>\n</tbody>\n</table>\n<table>\n<thead>\n<tr>\n<th>Name</th>\n<th>Last</th>\n<th>Chg. %</th>\n<th>Vol.</th>\n</tr>\n</thead>\n<tbody>\n<tr>\n<td><a>ACN</a></td>\n<td>285.37</td>\n<td>-6.86%</td>\n<td>11.70M</td>\n</tr>\n<tr>\n<td><a>APP</a></td>\n<td>324.70</td>\n<td>-5.71%</td>\n<td>8.73M</td>\n</tr>\n<tr>\n<td><a>CTSH</a></td>\n<td>75.47</td>\n<td>-4.64%</td>\n<td>11.69M</td>\n</tr>\n<tr>\n<td><a>ALB</a></td>\n<td>56.66</td>\n<td>-4.61%</td>\n<td>5.55M</td>\n</tr>\n<tr>\n<td><a>ANET</a></td>\n<td>86.25</td>\n<td>-4.42%</td>\n<td>18.55M</td>\n</tr>\n<tr>\n<td><a>GOOGL</a></td>\n<td>166.64</td>\n<td>-3.85%</td>\n<td>75.66M</td>\n</tr>\n<tr>\n<td><a>GOOG</a></td>\n<td>167.73</td>\n<td>-3.59%</td>\n<td>55.40M</td>\n</tr>\n</tbody>\n</table>\n<h2><a>Trending Stocks</a></h2>\n<table>\n<thead>\n<tr>\n<th>Name</th>\n<th>Last</th>\n<th>Chg. %</th>\n<th>Vol.</th>\n</tr>\n</thead>\n<tbody>\n<tr>\n<td><a>CRCL</a></td>\n<td>240.28</td>\n<td>+20.39%</td>\n<td>92.43M</td>\n</tr>\n<tr>\n<td><a>TSLA</a></td>\n<td>322.16</td>\n<td>+0.03%</td>\n<td>108.69M</td>\n</tr>\n<tr>\n<td><a>NVDA</a></td>\n<td>143.85</td>\n<td>-1.12%</td>\n<td>242.96M</td>\n</tr>\n<tr>\n<td><a>COIN</a></td>\n<td>308.38</td>\n<td>+4.43%</td>\n<td>31.47M</td>\n</tr>\n<tr>\n<td><a>AMD</a></td>\n<td>128.24</td>\n<td>+1.14%</td>\n<td>79.93M</td>\n</tr>\n</tbody>\n</table>

Moody's lowers Titan International outlook to negative

Moody's Ratings has lowered its outlook on Titan International (NYSE:TWI) to negative from stable, citing weak credit metrics and challenges in agricultural and construction equipment demand. The rating agency highlights ongoing demand constraints, high interest rates, and the impact of the February 2024 Carlstar Group LLC acquisition, which worsened operating results. Titan's debt-to-EBITDA ratio exceeded 6x as of March 2025 but is projected to improve. The company's competitive position in supplying tires and wheels to global equipment manufacturers remains strong, though near-term performance is constrained by weak demand.