RESTRUCTURING AND IMPAIRMENT EXPENSES

9 Months Ended

Sep. 30, 2026

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND IMPAIRMENT EXPENSES

RESTRUCTURING AND OTHER CHARGES

On March 18, 2026, the Company announced the consolidation of its North American production operations, which will result in the cessation of production in its manufacturing facility in Jackson, Tennessee in the fourth quarter of 2026. As part of the closure, the Company expects production currently performed in Jackson to be transitioned to other existing Titan facilities over the next several months and will impact approximately 140 people. This action is part of our ongoing efforts to optimize our manufacturing footprint and improve capacity utilization.

The Company recorded impairment expenses of $0.0 million and $23.5 million for the three months ended September 30, 2026 and nine months ended September 30, 2026, respectively, associated with impairment of the building right of use (ROU) asset and certain manufacturing plant and equipment. Further, we accrued $1.4 million and $3.9 million for the three months ended September 30, 2026 and nine months ended September 30, 2026, respectively, for severance costs related to the rationalization of certain positions. These costs are included within restructuring and other charges in the Consolidated Statement of Operations.

The impairment loss represents the excess of the assets’ carrying values over their estimated fair values, which were determined using a market approach and Level 3 inputs, including expected net proceeds from the disposal of certain manufacturing equipment and anticipated net sublease income from the building ROU asset. The valuation of the building ROU asset included assumptions related to expected sublease rental rates, vacancy periods and anticipated costs to prepare the facility for leasing.

We estimate that we will incur additional costs associated with the plant closure of approximately $3 million primarily related to severance costs, relocation costs for certain property, plant and equipment and other facility closure related costs. We expect to incur these costs during the remainder of 2026 and 2027.