Titan buys stake in Brazilian agricultural wheel manufacturer
Company Titan International is buying a minority stake in Rodaros Industria de Rodas Ltda., the second-largest manufacturer of wheels for agricultural equipment in Brazil, as announced by Titan's President and CEO Paul Reitz.
Subject to regulatory approvals, Titan will acquire 20% of Rodaros' shares for $4 million, Reitz said, adding that the deal is expected to close in the third quarter of this year.
Rodaros is based in Vacaria (Rio Grande do Sul state) and collaborates with agricultural equipment manufacturers such as John Deere, CNH, Mahindra, Liebherr, and Hyundai Engineering & Construction. The company has a staff of 230 people.
According to Reitz, Titan has been working to become a strategic partner of Rodaros for several years and will have opportunities for further investments in the Brazilian company.
"Brazil is becoming an increasingly important market for Titan, and we think this is a great investment that will help us strengthen our leadership position in the region," he said.
In the second quarter of 2025, Titan reduced its revenue by 13.4% to $460.8 million, with negative impacts from low demand in the agricultural and construction sectors, new import duties, and high interest rates.
As Reitz noted, the situation in both the original equipment and aftermarket segments remained the same as in the previous quarter, with manufacturers, dealers, and farmers postponing purchases in anticipation of lower interest rates, and consumers also wanting to better understand the tariff policy of US President Donald Trump.
Titan's sales in the agricultural and construction sectors decreased by 10.7% and 8%, respectively, while in the consumer segment (tires for ATVs, lawn mowers, etc.), revenue fell by 23.3%, primarily due to the weak results of Titan's Specialty division (formerly Carlstar).
Reitz emphasized that the decline in demand is expected to be temporary and will improve after interest rates decrease. "A positive point is that in July, some consumers placed fairly large orders to replenish inventory in anticipation of increased sales," he said.
Titan's gross profit for the second quarter was $69.3 million (-13.8% compared to the same period last year), and the company also reported a loss of $4.6 million, while a year ago it had a net profit of $2.2 million.
As noted by Financial Director David Martin, the company expects its sales in the third quarter to be $450-475 million, which means an increase in revenue compared to July-September of last year.