#United States #North Canton #Earnings #Bearings #Timken

Timken Company Achieves Strong Fourth Quarter and 2025 Full-Year Results

The Timken Company, renowned as a global technology leader in engineered bearings and industrial motion, recently announced its fourth-quarter and full-year results for 2025, displaying notable growth in key metrics. This announcement was made on February 4, 2026, where the company revealed a quarterly net sales figure of $1.11 billion, marking a 3.5 percent increase compared to the same quarter in the previous year. This positive trend reflects better pricing strategies and improved operational efficiencies.

Financial Performance Overview

During the fourth quarter, Timken achieved a diluted earnings per share (EPS) of $0.89, alongside an adjusted EPS of $1.14. For the full year, the company reported a diluted EPS of $4.11, down from $4.99 in 2024, showcasing challenges amidst a fluctuating market environment. However, adjusted EPS for the full year was $5.33, demonstrating the resilience of its core performance despite external pressures.

Cash flow from operations reached $554 million, with free cash flow hitting $406 million for the entire year, underscoring Timken's capacity to generate significant liquidity even in challenging economic conditions.

Segment Performance Breakdown

Examining the performance by segments, the Engineered Bearings division generated sales of $714.2 million, representing a slight increase of 0.9 percent year-over-year. This growth was driven primarily by enhanced pricing and favorable currency translation impacts, although it faced headwinds from reduced demand in certain markets. Conversely, the Industrial Motion segment saw a substantial 8.4 percent rise in sales to $396.8 million, fueled by increased demand across various sectors.

Adjusted EBITDA margins for the Engineered Bearings segment were recorded at 16.1 percent, reflecting the impacts of rising tariff costs and the volume downturn. Meanwhile, the Industrial Motion segment boasted an improved adjusted EBITDA margin of 21.0 percent, evidencing the benefits from higher volumes and reduced operational costs.

For the entire year, Timken secured net sales of $4.58 billion, a modest increase of 0.2 percent from 2024. Nevertheless, when adjusting for organic growth, total sales showed a slight dip of 1.0 percent.

Strategic Forward-Looking Steps

Looking ahead, the company is optimistic about 2026, projecting an EPS in the range of $4.50 to $5.00, with adjusted EPS anticipated between $5.50 and $6.00. Timken aims for total revenue growth between 2% to 4%, highlighting their commitment to optimizing margins and enhancing operational efficiencies.

President and CEO Lucian Boldea emphasized the company's focus on strategic priorities designed to improve margins and drive growth across key market verticals. With a strong balance sheet, marked by reduced debts and a consistent dividend increase, Timken remains dedicated to creating significant value for its stakeholders. The work to build customer-centric solutions and maintain a leadership position in the industrial motion landscape continues to be the cornerstone of Timken's ethos.

Timken’s leadership team is scheduled to host a conference call to delve deeper into these results with investors and analysts, promising transparency and engagement leading into the new fiscal year.

Overall, Timken's ability to sustain growth, manage operational costs efficiently, and adapt to changing market demands positions it well for the year ahead. Investors and industry observers alike will be keen to monitor the company's progress as it strives to achieve the ambitious goals set for 2026.