Shares of Titan International (TWI) plunged 9.21% in early trading on Thursday following the release of its second-quarter financial results that fell short of analyst expectations. The tiremaker faced headwinds from higher interest rates and tariff uncertainties, which impacted its end markets and financial performance.

Titan reported Q2 revenue of $461 million, missing the analyst consensus estimate of $478 million by 3.60%. This represents a 13.41% decrease compared to the same period last year. The company's adjusted earnings per share came in at a loss of $(0.02), significantly below the analyst estimate of $0.03 profit. Despite the challenges, Titan maintained a 15% gross margin and reported an adjusted EBITDA of $30 million for the quarter.

CEO Paul Reitz acknowledged the market challenges, stating, "Higher interest rates and tariff uncertainties impacted end markets." However, he expressed optimism about future prospects, noting that wheel and tire inventories are reaching levels where growth is expected. Looking ahead, Titan provided guidance for the third quarter, projecting sales between $450 million and $475 million, with adjusted EBITDA expected to range from $25 million to $30 million. The company anticipates that macro tailwinds and improving inventory levels will drive an upward sales trend in the coming months.