Revenue growth decelerated to 1.8% YoY in 2026Q2, while gross margin contracted to 24.0% from 26.3% a year earlier, reflecting COGS inflation (+12.9% YoY) that outpaced revenue growth.
Titan America S.A. (TTAM) annual income statement — 4-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 1.71B | 1.66B | 1.63B | 1.59B | 1.36B |
| Revenue Growth % | 5.46% | 1.82% | 2.69% | 16.67% | - |
| Cost of Goods Sold | 1.28B | 1.23B | 1.22B | 1.23B | 1.14B |
| COGS % of Revenue | - | 73.86% | 74.51% | 77.16% | 83.78% |
| Gross Profit | 435.92M | 434.99M | 416.65M | 363.49M | 221.27M |
| Gross Margin % | 25.47% | 26.14% | 25.49% | 22.84% | 16.22% |
| Gross Profit Growth % | - | 4.4% | 14.63% | 64.28% | - |
| Operating Expenses | 173.08M | 163.49M | 165.27M | 137.85M | 124.22M |
| OpEx % of Revenue | - | 9.82% | 10.11% | 8.66% | 9.11% |
| Selling, General & Admin | 172.02M | 163.49M | 153.58M | 122.25M | 110.56M |
| SG&A % of Revenue | - | 9.82% | 9.4% | 7.68% | 8.1% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 1.06M | 0 | 11.69M | 15.6M | 13.67M |
| Operating Income | 262.84M | 271.5M | 251.39M | 225.64M | 97.04M |
| Operating Margin % | 15.36% | 16.31% | 15.38% | 14.18% | 7.11% |
| Operating Income Growth % | - | 8% | 11.41% | 132.51% | - |
| EBITDA | 379.73M | 380.21M | 351.33M | 316.71M | 184.77M |
| EBITDA Margin % | 22.19% | 22.85% | 21.5% | 19.9% | 13.54% |
| EBITDA Growth % | 10.23% | 8.22% | 10.93% | 71.41% | - |
| D&A (Non-Cash Add-back) | 116.89M | 108.72M | 99.94M | 91.08M | 87.73M |
| EBIT | 257.85M | 267.4M | 248.77M | 223.16M | 101.08M |
| Net Interest Income | -18.65M | -22.56M | -23.68M | -19.83M | -20.95M |
| Interest Income | 0 | 0 | 1.47M | 950K | 436K |
| Interest Expense | 18.65M | 22.56M | 25.15M | 20.78M | 21.39M |
| Other Income/Expense | -23.65M | -26.66M | -27.77M | -23.26M | -17.35M |
| Pretax Income | 239.19M | 244.84M | 223.62M | 202.38M | 79.69M |
| Pretax Margin % | 13.98% | 14.71% | 13.68% | 12.72% | 5.84% |
| Income Tax | 61.97M | 59.4M | 57.54M | 47.13M | 16.97M |
| Effective Tax Rate % | 25.91% | 24.26% | 25.73% | 23.29% | 21.3% |
| Net Income | 177.22M | 185.44M | 166.07M | 155.24M | 62.72M |
| Net Margin % | 10.35% | 11.14% | 10.16% | 9.75% | 4.6% |
| Net Income Growth % | 10.26% | 11.66% | 6.98% | 147.52% | - |
| Net Income (Continuing) | 177.22M | 185.44M | 166.07M | 155.24M | 62.72M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.96 | 1.01 | 0.90 | 0.84 | 0.34 |
| EPS Growth % | 6.67% | 12.22% | 7.14% | 147.06% | - |
| EPS (Basic) | - | 1.01 | 0.90 | 0.84 | 0.34 |
| Diluted Shares Outstanding | 184.61M | 183.46M | 184.36M | 184.36M | 184.36M |
| Basic Shares Outstanding | 184.37M | 183.35M | 184.36M | 184.36M | 184.36M |
| Dividend Payout Ratio | - | 15.91% | 51.22% | 21.76% | - |
Quick answers to the most common questions about buying TTAM stock.
For fiscal year 2025, Titan America S.A. (TTAM) reported total revenue of $1.66B. This represents a 22.0% increase compared to $1.36B in 2022.
Titan America S.A. (TTAM) is profitable, generating $185.4M in net income for the fiscal year ending 2025 with a net profit margin of 11.1%.
Titan America S.A. (TTAM) reported an operating income of $271.5M, resulting in an operating profit margin of 16.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Titan America S.A. (TTAM) generated $435.0M in gross profit for the year, representing a gross profit margin of 26.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volume stagnation and margin compression
Growth Stalls After Price-Driven Run
TTAM's revenue growth decelerated to 1.8% year-over-year in 2026Q2, down from 9.6% in the prior quarter, suggesting the post-pandemic pricing tailwind is fading. According to the latest income statement data, volumes appear to be the primary driver now.
The 9.6% YoY growth in 2026Q2 was largely a rebound from a weak 2025Q2, but the sequential deceleration to 1.8% indicates that pricing power is normalizing. With Florida construction activity still supportive, the lack of acceleration suggests that volume growth is being offset by mix shifts or competitive pressures. Investors should monitor whether this deceleration persists, as it would imply a transition to a lower-growth phase.
Gross Margin Resilience Under Pressure
Gross margin contracted to 24.0% in 2026Q2 from 26.3% a year earlier, reflecting higher energy and input costs that were not fully passed through. As reported in the quarterly financials, the 26.1% average gross margin remains below peers like Eagle Materials at 28.3%.
The 210 basis point year-over-year decline in gross margin suggests that TTAM's pricing power is insufficient to offset cost inflation, particularly in energy and raw materials. While the company's vertical integration provides some buffer, the margin gap versus peers indicates a structural disadvantage in cost structure or product mix. If energy costs remain elevated, gross margin could compress further, pressuring operating income.
Operating Leverage Fading as Costs Rise
Operating margin fell to 13.6% in 2026Q2 from 16.2% in 2025Q2, as SG&A expenses grew faster than revenue. Based on the income statement data, SG&A as a percentage of revenue increased to 10.3% from 9.8% year-over-year, indicating reduced operating leverage.
The 260 basis point drop in operating margin is more severe than the gross margin decline, implying that SG&A costs are not being controlled effectively. With revenue growth slowing, the fixed cost base is absorbing less volume, leading to margin erosion. This suggests that TTAM's cost structure may be too heavy for the current demand environment, and management may need to rein in overhead to protect profitability.
Earnings Quality Solid but Tax Rate Volatile
Net income quality appears sound with minimal stock-based compensation, but the effective tax rate fluctuated from 15% in 2025Q3 to 25% in 2026Q2, causing EPS volatility. According to the reported figures, net margin of 9.2% in 2026Q2 is below the 11.9% a year earlier.
The absence of significant SBC (except a small amount in 2025Q3) suggests reported earnings are not artificially inflated by non-cash charges. However, the tax rate swings are notable: a 25% effective rate in 2026Q2 versus 15% in 2025Q3, which impacted EPS growth. Investors should adjust for tax rate normalization to assess underlying earnings power, as the 20.8% ROE indicates efficient capital use.
COGS Inflation Outpacing Revenue
COGS rose 12.9% year-over-year in 2026Q2, far exceeding the 9.6% revenue growth, squeezing gross profit. As per the income statement, this cost pressure is the primary driver of margin compression, with energy and raw material costs likely the culprits.
The disproportionate increase in COGS relative to revenue indicates that TTAM is unable to fully pass through input cost inflation, possibly due to fixed-price contracts or competitive dynamics. This is a critical risk because if cost inflation persists, gross margin will continue to erode. Management's ability to manage energy costs and optimize the clinker-to-cement ratio will be key to mitigating this pressure.
Volume Stagnation Threatens Earnings
Despite a fortress balance sheet, TTAM's revenue growth has stalled at 1.8% YoY, and gross margins are below peers, suggesting a lack of pricing power. Short-sellers would argue that the company's low leverage masks an inability to generate organic growth.
The deceleration in revenue growth, combined with margin compression, paints a picture of a company that may be losing competitive ground. With peers like Vulcan growing revenue at 6.9%, TTAM's 1.8% growth is underwhelming. The low debt-to-equity ratio, while safe, could indicate a management team that is too conservative to pursue growth opportunities, potentially leading to underperformance in a consolidating industry. If volume does not pick up, the high fixed-cost base will continue to weigh on margins.