#USA #North Canton #Timken Company #Industrial Motion #engineered bearings

Timken Company Q3 2025 Results Overview

The Timken Company has announced its financial performance for the third quarter of 2025, highlighting a strong growth trajectory. The results reveal net sales of $1.16 billion, reflecting a 2.7% increase compared to the same period in 2024. This growth can be attributed to higher pricing initiatives, favorable foreign currency translations, and contributions from the CGI acquisition. However, lower demand in certain end markets within the Industrial Motion segment posed a challenge.

Detailed Financial Performance

Net Income for the third quarter totaled $69.3 million, equating to $0.99 per diluted share, compared to $81.8 million or $1.16 per diluted share in the prior year. The net income margin decreased from 7.3% to 6.0%, primarily impacted by the lack of a one-time real estate gain that benefited the previous year's results.

In terms of adjusted metrics, Timken’s adjusted net income stood at $96.2 million or $1.37 per diluted share, marking a notable increase of 11.4% from the adjusted income of $87.0 million or $1.23 per diluted share from the last year.

The company reported an adjusted EBITDA margin of 17.4%, up from 16.9% indicated previously, with EBITDA reaching $201.7 million. This reflects the underlying strength of operational performance, aided by improved pricing and optimized costs. Totals reflect strong performance from cash operations, with the quarter showing net cash from operations of $201 million and free cash flow of $164 million.

Segment Highlights

Engineered Bearings emerged as a key growth driver, generating $765.8 million in sales (a 3.4% increase year-on-year), propelled by rising demand for renewable energy applications. This segment's adjusted EBITDA amounted to $144.2 million, accounting for 18.8% of sales, slightly above the 18.7% of the previous year.

On the other hand, Industrial Motion recorded sales of $391.3 million, up 1.3% year-over-year, largely due to revenue contributions from acquisitions and favorable currency outcomes. The adjusted EBITDA margin dipped slightly from 19.2% to 19.0%, impacted by costs related to tariffs and higher logistics expenses.

Forward Outlook

As part of their strategic outlook for the remainder of 2025, the Timken Company's management has updated their earnings forecast. They now anticipate earnings per diluted share to be in the range of $3.90 to $4.00, with adjusted earnings projected between $5.20 and $5.30. While total revenue is expected to show a slight decrease of about 0.75% compared to previous expectations, the forecast reflects a slightly improved sentiment compared to earlier estimates.

CEO Remarks

Lucian Boldea, CEO of Timken, expressed optimism about the company’s direction, stating, "Our team is diligently focused on finishing the year strong while positioning the company for future earnings growth. By leveraging our distinct solutions, we are confident in our approach to enhance margins and drive value for shareholders in 2026 and beyond."

Conclusion

In conclusion, Timken Company's third-quarter results showcase robust sales growth, improved operational efficiency, and a strategic vision that aims to enhance profitability as they navigate current market challenges. The company's focus on innovation and customer-centric solutions remains pivotal to its growth strategy, setting a promising path toward a successful future.