Is Titanium Transportation Group a buy?

Titanium Transportation Group (Titanium Transportation Group Stock Quote, Chart, News, Analysts, Financials TSX:TTNM) reported second-quarter 2025 results that beat revenue and profitability expectations and showed year-over-year growth, Haywood Capital Markets analyst Gianluca Tucci said August 12.

He reiterated a “buy” rating and $3.00 target, recommending investors accumulate shares at current levels.

Titanium is an asset-based transportation and logistics company with offices across Canada and the United States.

Tucci said that while tariffs and North American trade uncertainty are weighing on business investment and the economy as supply chains are reworked, Titanium remains focused on profitability and debt reduction in the current environment.

“The North American growth forecast has deteriorated this year, driven mostly by higher international tariffs as well as concerns over inflation, interest rates and geopolitical concerns,” Tucci said. “The resulting industry-wide weaker freight volumes have impacted TTNM’s demand drivers. As results highlight, we continue to believe TTNM is well-positioned to weather continued uncertainty in transportation and freight driven by fluid trade policy. Free cash flow continues to be solid – $8.8M in Q2 – as the Company’s growth capex cycle is behind it with net debt falling $12.8M QoQ (according to our calculation).

“We look for debt reduction to continue to be a theme in 2025. Additional proceeds from the sale of its North Bay terminal – ~$2.6M – will be realized in Q3 and utilized to further reduce debt. Net-net, we continue to believe the transport sector is in a holding pattern awaiting trade policy clarity. Despite this, TTNM remains well-positioned. Its guidance for Q3/25 further highlights resiliency.”

The company reported Q2 2025 revenue of $119.1-million, EBITDA of $10.0-million, and EPS of $0.02, compared with Haywood’s estimates of $113.7-million, $9.6-million, and a loss of $0.02, and consensus at $118.1-million, $9.5-million, and a loss of $0.02. The logistics segment posted 19.1% year-over-year volume growth, driving a 16.8% increase in revenue. The company recently grew its U.S. logistics network to nine locations with the opening of a brokerage office in Irving, Texas.

Titanium is withholding full-year 2025 guidance due to tariff and macroeconomic uncertainty but introduced Q3 2025 guidance of $115-million to $120-million in revenue and an EBITDA margin of 8.5% to 9.5%. At the midpoint, this implies $117.5-million in revenue and $10.6-million in EBITDA, versus consensus forecasts of $121.5-million and $10.3-million, respectively.

Tucci said that Titanium should generate $39.4-million in Adjusted EBITDA on revenue of $473.3-million in fiscal 2025, up from his prior estimates of $38.1-million and $470.6-million. He expects those numbers to improve to $44.1-million on revenue of $487.1-million in fiscal 2026, compared with earlier forecasts of $43.2-million and $483.4-million.

-30-