Timken Reports First-Quarter 2026 Results

Rhea-AI Summary

The Timken Company (NYSE: TKR) reported 1Q 2026 sales of $1.23 billion, up 8% year-over-year, diluted EPS of $1.40 and adjusted EPS of $1.67. Net income margin was 8.0% and adjusted EBITDA margin 18.8%. Organic sales rose 4.3% and free cash flow was $0.5 million.

The company raised 2026 guidance to $4.70–$5.20 GAAP EPS and $5.75–$6.25 adjusted EPS, expects ~5% revenue growth at the midpoint, completed the acquisition of Bijur Delimon and plans to sell the belts business.

Positive

• Net sales +8.0% to $1,231.3 million
• Diluted EPS +26.1% to $1.40
• Adjusted EBITDA margin expanded to 18.8%
• Raised 2026 guidance: adjusted EPS $5.75–$6.25
• Completed acquisition of Bijur Delimon (strategic market expansion)

Negative

• Free cash flow was only $0.5 million in 1Q
• Net debt to adjusted EBITDA at 2.1x as of March 31, 2026
• Engineered Bearings adjusted EBITDA margin declined 120 bps to 19.7%

News Market Reaction – TKR

+9.19%

26 alerts

+9.19% News Effect

+4.8% Peak in 1 hr 27 min

+$726M Valuation Impact

$8.63B Market Cap

0.7x Rel. Volume

On the day this news was published, TKR gained 9.19%, reflecting a notable positive market reaction. Argus tracked a peak move of +4.8% during that session. Our momentum scanner triggered 26 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $726M to the company's valuation, bringing the market cap to $8.63B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 Net Sales: $1,231.3M Q1 2026 Diluted EPS: $1.40 Q1 2026 Adjusted EPS: $1.67 +5 more

8 metrics

Q1 2026 Net Sales $1,231.3M Vs. $1,140.3M in Q1 2025 (up 8.0%)

Q1 2026 Diluted EPS $1.40 Vs. $1.11 in Q1 2025 (up 26.1%)

Q1 2026 Adjusted EPS $1.67 Vs. $1.40 in Q1 2025 (up 19.3%)

Net Income Margin 8.0% Vs. 6.9% in Q1 2025 (up 110 bps)

Adjusted EBITDA Margin 18.8% Vs. 18.2% in Q1 2025 (up 60 bps)

2026 EPS Outlook $4.70–$5.20 Raised full-year 2026 diluted EPS guidance range

2026 Adjusted EPS Outlook $5.75–$6.25 Raised full-year 2026 adjusted EPS guidance range

Q1 2026 Free Cash Flow $0.5M Net cash provided by operations minus capital expenditures

Market Reality Check

Price: $119.67 Vol: Volume 888,153 is 17% abo...

normal vol

$119.67 Last Close

Volume Volume 888,153 is 17% above the 20-day average of 760,152. normal

Technical Shares at $109.63 are trading above the 200-day MA of $88.16 and sit 1.8% below the 52-week high of $111.64.

Peers on Argus

TKR gained 2.34% while key peers like TTC, LECO, RBC, HLMN and SWK showed smalle...

1 Up

TKR gained 2.34% while key peers like TTC, LECO, RBC, HLMN and SWK showed smaller positive moves between 0.44% and 2.38%. Momentum scans flagged only KMT with a larger ~11.97% upside move, suggesting limited evidence of a broad sector-driven reaction.

Historical Context

5 past events · Latest: May 01 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
May 01	Portfolio divestiture	Positive	-1.7%	Announced sale of belts business to Gates to enhance Industrial Motion margins.
May 01	Peer acquisition news	Neutral	-1.7%	Gates disclosed agreement to acquire Timken’s belts business; terms undisclosed.
Apr 29	Investor Day announcement	Neutral	-0.3%	Scheduled New York Investor Day with leadership presentations and webcast access.
Apr 15	Earnings date notice	Neutral	-2.9%	Set May 6 release date and conference call for Q1 2026 financial results.
Mar 18	Strategic acquisition	Positive	-0.8%	Closed Bijur Delimon acquisition, adding automated lubrication systems capabilities.

Pattern Detected

Recent positive strategic announcements, including portfolio actions and acquisitions, were followed by modest share price declines, indicating a tendency toward muted or contrary reactions to good news.

Recent Company History

Over the last few months, Timken has focused on portfolio optimization and investor communication. On Mar 18, 2026, it acquired Bijur Delimon, expected to add over $60 million in 2026 sales. Subsequent news on the upcoming Q1 release, an Investor Day on May 20, and divesting the belts business to Gates in Q3 2026 all saw modest negative price moves. Against this backdrop, the current Q1 2026 results with higher margins and a raised 2026 outlook continue that strategy-driven narrative.

Market Pulse Summary

The stock moved +9.2% in the session following this news. A strong positive reaction aligns with Tim...

Analysis

The stock moved +9.2% in the session following this news. A strong positive reaction aligns with Timken’s solid Q1 2026 execution, featuring higher sales, margin expansion and raised EPS guidance to $4.70–$5.20 (adjusted $5.75–$6.25). Historically, shares often drifted lower after constructive news on acquisitions and portfolio shifts, so a large upside move would mark a break from that pattern. Investors would still need to monitor integration of Bijur Delimon, progress on the belts divestiture, and cash conversion given Q1 free cash flow of $0.5M.

Key Terms

adjusted ebitda, ebitda margin, non-gaap, operating lease liabilities, +2 more

6 terms

adjusted ebitda financial

"Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

ebitda margin financial

"Adjusted EBITDA Margin (1) | 18.8 | % | 18.2 | %"

EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.

non-gaap financial

"EBITDA is a non-GAAP measure defined as operating income plus other income"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

operating lease liabilities financial

"Long-term operating lease liabilities | 99.4 | | 100.8"

Long-term lease payments a company is legally committed to because it rents assets such as offices, factories, or equipment; under modern accounting rules these future rent obligations are recorded on the balance sheet as liabilities. Investors care because operating lease liabilities act like debt that drains future cash, affects measures of leverage and borrowing capacity, and can change profitability and valuation — think of them as a company’s large, ongoing rent payments that limit its financial flexibility.

restricted cash financial

"Restricted cash | 0.8 | | 1.0"

Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.

free cash flow financial

"Net cash provided by operations in the quarter was $39.3 million, and free cash flow was $0.5 million."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

AI-generated analysis. Not financial advice.

• Sales of $1.23 billion, up 8 percent from last year
• First-quarter diluted EPS of $1.40; adjusted EPS of $1.67
• Net income margin of 8.0 percent; adjusted EBITDA margin of 18.8 percent
• Raises 2026 outlook; now expects 2026 EPS of $4.70-$5.20, with adjusted EPS of $5.75-$6.25

NORTH CANTON, Ohio, May 6, 2026 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, today reported first-quarter 2026 results.

	1Q-26	1Q-25	% Change
Net Sales (mils.)	$1,231.3	$1,140.3	8.0 %
Net Income Margin	8.0 %	6.9 %	110 bps
Adjusted EBITDA Margin	18.8 %	18.2 %	60 bps
Diluted EPS	$1.40	$1.11	26.1 %
Adjusted EPS	$1.67	$1.40	19.3 %

"We delivered a strong start to 2026, achieving double-digit earnings growth and margin expansion versus last year," said Lucian Boldea, president and chief executive officer. "We are raising our full-year outlook to reflect this performance as well as improving customer demand across several end-market sectors.  

"The Timken team is taking actions designed to accelerate profitable growth and create significant value for shareholders. The recent announcements of the acquisition of Bijur Delimon and the planned sale of the belts business demonstrates our 80/20 approach to the portfolio and commitment to margin expansion. The momentum is building as we execute on our strategic priorities, and we are excited to share more details at our upcoming Investor Day on May 20 in New York City." 

First-Quarter 2026 Highlights

Timken delivered sales in the first quarter of $1.23 billion, up 8 percent from the same period a year ago. The increase was driven primarily by higher pricing, favorable foreign currency translation and higher volumes in the Industrial Motion segment. Organically, sales were up 4.3 percent as compared to the first quarter of 2025.

The company posted net income in the first quarter of $98.2 million or $1.40 per diluted share. This compares to net income of $78.3 million or $1.11 per diluted share for the same period a year ago. The company's net income margin in the quarter was 8.0 percent, compared to 6.9 percent in the first quarter of last year.

Excluding special items (detailed in the attached tables), adjusted net income in the first quarter was $117.3 million or $1.67 per diluted share. This compares to adjusted net income of $98.6 million or $1.40 per diluted share for the same period in 2025. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $231.0 million or 18.8 percent of sales, compared with $208.1 million or 18.2 percent of sales in the first quarter of last year.

Net cash provided by operations in the quarter was $39.3 million, and free cash flow was $0.5 million. During the quarter, Timken returned $53.3 million of cash to shareholders through the payment of its 415^th consecutive quarterly dividend and the repurchase of 282 thousand shares of company stock. Timken also acquired Bijur Delimon, a leading manufacturer of automated lubrication systems, which expands the company's presence in key market verticals like rail, power generation and mining. The company ended the quarter with a strong balance sheet; net debt to adjusted EBITDA was 2.1 times as of March 31, 2026.

First-Quarter 2026 Segment Results

Engineered Bearings sales of $806.2 million increased 6 percent from the same period a year ago driven primarily by higher pricing and favorable foreign currency translation as volumes were flat compared to last year.

Adjusted EBITDA in the quarter was $159.0 million or 19.7 percent of sales, compared with $159.2 million or 20.9 percent of sales in the first quarter of last year. Adjusted EBITDA in the current quarter benefited from positive price/mix, lower material & logistics costs and the favorable impact of currency, offset by incremental tariff costs and higher operating costs.

Industrial Motion sales of $425.1 million increased 12 percent compared with the same period a year ago driven primarily by higher demand across most sectors, higher pricing and favorable foreign currency translation.

Adjusted EBITDA in the quarter was $91.3 million or 21.5 percent of sales, compared with $67.1 million or 17.7 percent of sales in the first quarter of last year. The increase in adjusted EBITDA was driven primarily by the impact of higher volume and positive price/mix, partially offset by incremental tariff costs.

2026 Outlook

Timken is increasing its 2026 outlook, with full-year earnings per diluted share now forecasted to be in the range of $4.70 to $5.20 and adjusted earnings per diluted share in the range of $5.75 to $6.25. The company is planning for 2026 revenue to be up approximately 5 percent in total at the midpoint from 2025, an increase from its prior outlook of 3 percent growth at the midpoint.

Conference Call Information

Timken will host a conference call today at 11 a.m. Eastern Time to review its financial results. Presentation materials will be available online in advance of the call for interested investors and securities analysts.

Conference Call:	Wednesday, May 6, 2026
	11:00 a.m. Eastern Time
	Live Dial-In: 833-461-5787
	Access Code: 838181029
Live Webcast:	http://investors.timken.com
Register in advance:	https://tmkn.biz/4ca9inj
Replay:	https://tmkn.biz/4soIaqt

About The Timken Company

The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, designs a growing portfolio of next-generation products for diverse industries. For more than 125 years, Timken has used its specialized expertise to innovate and create customer-centric solutions that increase reliability and efficiency. Timken posted $4.6 billion in sales in 2025 and employs approximately 19,000 people globally, operating from 45 countries.

Certain statements in this release (including statements regarding the company's forecasts, estimates, plans and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the company's future financial performance, including information under the heading "2026 Outlook," are forward-looking.

The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the finalization of the company's financial statements for the first quarter of 2026; fluctuations in customer demand for the company's products or services; changes in customer preferences due to emergent technologies, evolving regulatory landscapes or other factors; unanticipated changes in business relationships with customers or their purchases from the company; changes in the financial health of the company's customers, which may have an impact on the company's revenues, earnings and impairment charges; logistical issues associated with port closures, delays or increased costs; costs associated with inclement weather events; the impact of changes to the company's accounting methods; political risks associated with government instability; recent world events that have increased the risks posed by international trade disputes, tariffs, sanctions and hostilities; strained geopolitical relations between countries in which we have significant operations; weakness in global or regional general economic conditions and capital markets (as a result of financial stress affecting the banking system or otherwise); changes in wages, shipping costs, raw material costs, energy and fuel prices, and other production costs; new technology, such as artificial intelligence, that may impact the way the Company's products are produced, sold or distributed; changes in customer demand or tariff rates and other costs associated with tariffs; the company's ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms; fluctuations in currency valuations or interest rates; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion, synergies, and expected cashflow generation within expected timeframes or at all; the company's ability to effectively adjust prices for its products in response to changing dynamics; the impact on the company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; the introduction of new disruptive technologies, such as artificial intelligence; unplanned plant shutdowns; the effects of government-imposed restrictions, commercial requirements, and company goals associated with climate change and emissions or other sustainability initiatives; unanticipated litigation, claims, investigations remediation, or assessments; the rapidly evolving global regulatory landscape and the corresponding heightened operational complexity and compliance risks; restrictions on the use of, or claims or remediation associated with, per- and polyfluoroalkyl substances or polytetrafluoroethylene; the company's ability to maintain positive relations with unions and works councils; the company's ability to compete for skilled labor and to attract, retain and develop management, other key employees, and skilled personnel; negative impacts to the company's operations or financial position as a result of pandemics, epidemics, or other public health concerns and associated governmental measures; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, acquisitions, capital investments, and cost reduction actions. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2025, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Media Relations:
Sarah Factor
234.262.4878
sarah.factor@timken.com

Investor Relations:
Neil Frohnapple
234.262.2310
neil.frohnapple@timken.com

 

The Timken Company
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except share data) (Unaudited)
	Three Months Ended March 31,
	2026			2025
Net sales	$	1,231.3		$	1,140.3
Cost of products sold	837.3			781.6
Selling, general & administrative expenses	201.2			184.8
Amortization of intangible assets	20.6			19.0
Impairment and restructuring charges	3.6			10.9
Operating Income	168.6			144.0
Non-service pension and other postretirement expense	(0.7)			(1.2)
Other expense, net	(2.4)			(0.3)
Interest expense, net	(22.6)			(24.2)
Income Before Income Taxes	142.9			118.3
Provision for income taxes	37.0			26.9
Net Income	105.9			91.4
Less: Net income attributable to noncontrolling interest	7.7			13.1
Net Income Attributable to The Timken Company	$	98.2		$	78.3
Net Income per Common Share Attributable to The Timken Company Common Shareholders
Basic Earnings per share	$	1.41		$	1.12
Diluted Earnings per share	$	1.40		$	1.11
Average Shares Outstanding	69,582,824			70,024,836
Average Shares Outstanding - assuming dilution	70,204,689			70,513,937

 

BUSINESS SEGMENTS
(Unaudited)
	Three Months Ended March 31,
(Dollars in millions)	2026			2025
Engineered Bearings
Net sales	$	806.2		$	760.7
Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) (1)	$	159.0		$	159.2
Adjusted EBITDA Margin (1)	19.7		%	20.9		%
Industrial Motion
Net sales	$	425.1		$	379.6
Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) (1)	$	91.3		$	67.1
Adjusted EBITDA Margin (1)	21.5		%	17.7		%
Unallocated corporate expense (1)	$	(19.3)		$	(18.2)
Consolidated
Net sales	$	1,231.3		$	1,140.3
Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) (1)	$	231.0		$	208.1
Adjusted EBITDA Margin (1)	18.8		%	18.2		%
EBITDA is a non-GAAP measure defined as operating income plus other income (expense) and excluding depreciation and amortization. EBITDA Margin is a non-GAAP measure defined as EBITDA as a percentage of net sales. EBITDA and EBITDA Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting EBITDA and EBITDA Margin is useful to investors as these measures are representative of the core operations of the Company. See the subsequent pages for the reconciliations of Consolidated EBITDA and Consolidated EBITDA Margin.
(1) Consolidated adjusted EBITDA is a non-GAAP measure defined as EBITDA less impairment, restructuring and reorganization charges, acquisition costs, including transaction costs and the amortization of the inventory step-up, actuarial gains and losses associated with the remeasurement of the Company's defined benefit pension and other postretirement benefit plans, property losses and recoveries, gains and losses on the sale of real estate and divestitures, and other items from time to time that are not part of the Company's core operations. Consolidated adjusted EBITDA Margin is a non-GAAP measure defined as Consolidated adjusted EBITDA as a percentage of net sales. Management believes Consolidated adjusted EBITDA and Consolidated adjusted EBITDA Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting adjusted EBITDA and adjusted EBITDA Margin is useful to investors as these measures are representative of the core operations of the Company. See subsequent pages for the reconciliations of Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin. Segment Adjusted EBITDA is the measurement of segment profit and loss. The Company's Chief Operating Decision Maker ("CODM") utilizes Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin to evaluate segment performance and allocates resources. See the Company's quarterly report on Form 10-Q for a reconciliation of Segment Adjusted EBITDA to income before income taxes.

 

CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)	(Unaudited)
	March 31, 2026				December 31, 2025
ASSETS
Cash and cash equivalents	$	344.7			$	364.4
Restricted cash	0.8				1.0
Accounts receivable, net	808.9				689.4
Unbilled receivables	155.7				137.6
Inventories, net	1,273.8				1,243.3
Other current assets	171.1				165.1
Total Current Assets	2,755.0				2,600.8
Property, plant and equipment, net	1,342.5				1,357.6
Operating lease assets	151.2				152.9
Goodwill and other intangible assets	2,552.3				2,488.7
Other assets	80.5				76.8
Total Assets	$	6,881.5			$	6,676.8
LIABILITIES
Accounts payable	$	380.3			$	353.2
Short-term debt, including current portion of long-term debt	42.9				38.9
Income taxes	41.6				31.4
Accrued expenses	492.1				498.6
Total Current Liabilities	956.9				922.1
Long-term debt	2,027.2				1,883.1
Accrued pension benefits	140.8				148.9
Accrued postretirement benefits	30.6				29.3
Long-term operating lease liabilities	99.4				100.8
Other non-current liabilities	258.7				246.9
Total Liabilities	3,513.6				3,331.1
EQUITY
The Timken Company shareholders' equity	3,207.7				3,184.6
Noncontrolling interest	160.2				161.1
Total Equity	3,367.9				3,345.7
Total Liabilities and Equity	$	6,881.5			$	6,676.8

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Three Months Ended March 31,
(Dollars in millions)	2026			2025
Cash Provided by (Used in)
OPERATING ACTIVITIES
Net Income	$	105.9		$	91.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	58.9			55.1
Stock-based compensation expense	7.6			7.5
Pension and other postretirement expense	1.3			1.8
Pension and other postretirement benefit contributions and payments	(10.8)			(23.8)
Changes in operating assets and liabilities:
Accounts receivable	(112.8)			(70.8)
Unbilled receivables	(18.2)			(18.2)
Inventories	(12.5)			15.3
Accounts payable	31.1			20.2
Accrued expenses	(18.5)			(16.0)
Income taxes	16.0			3.5
Other, net	(8.7)			(7.4)
Net Cash Provided by Operating Activities	$	39.3		$	58.6
INVESTING ACTIVITIES
Capital expenditures	$	(38.8)		$	(35.2)
Acquisitions, net of cash received	(124.3)			—
Investments in short-term marketable securities, net	6.1			0.8
Other, net	—			1.9
Net Cash Used in Investing Activities	$	(157.0)		$	(32.5)
FINANCING ACTIVITIES
Cash dividends paid to shareholders	$	(25.3)		$	(25.1)
Purchase of treasury shares	(28.0)			(23.1)
Proceeds from exercise of stock options	2.9			0.3
Payments related to tax withholding for stock-based compensation	(9.2)			(9.5)
Net proceeds from credit facilities	162.8			28.0
Net payments on long-term debt	(1.1)			(1.2)
Net Cash Provided by (Used in) Financing Activities	$	102.1		$	(30.6)
Effect of exchange rate changes on cash	(4.3)			7.4
(Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	$	(19.9)		$	2.9
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	365.4			373.6
Cash, Cash Equivalents and Restricted Cash at End of Period	$	345.5		$	376.5

 

Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Earnings Per Share to GAAP Earnings Per Share:
(Unaudited)
The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes that the non-GAAP measures of adjusted net income and adjusted diluted earnings per share are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting adjusted net income and adjusted diluted earnings per share is useful to investors as these measures are representative of the Company's core operations.
(Dollars in millions, except share data)	Three Months Ended March 31,
	2026				EPS			2025				EPS
Net Income Attributable to The Timken Company	$	98.2			$	1.40		$	78.3			$	1.11
Adjustments: (1)
Acquisition intangible amortization	$	20.6						$	19.0
Impairment, restructuring and reorganization charges (2)	4.9							3.2
Acquisition-related charges (3)	1.8							—
Gain on sale of certain assets (4)	—							(1.2)
CEO transition expenses (5)	—							8.6
Noncontrolling interest of above adjustments (6)	(0.1)							3.8
Provision for income taxes (7)	(8.1)							(13.1)
Total Adjustments:	19.1				0.27			20.3				0.29
Adjusted Net Income Attributable to The Timken Company	$	117.3			$	1.67		$	98.6			$	1.40
(1) Adjustments are pre-tax, with the net tax provision listed separately.
(2) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; (iv) impairment of assets; and (v) related depreciation and amortization. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company's core operations.
(3) Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact.
(4) Represents the net gain resulting from the sale of certain assets.
(5) On March 31, 2025, the Company announced that Tarak B. Mehta, President and Chief Executive Officer ("CEO") of the Company would be departing from the Company, effective immediately, and Richard G. Kyle would be serving as interim President and CEO. CEO transition expenses primarily related to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of stock compensation expense for stock awards forfeited.
(6) Represents the noncontrolling interest impact of the adjustments listed above, as well as the reversal of uncertain tax positions related to Timken India Limited.
(7) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods.

 

Reconciliation of EBITDA to GAAP Net Income, EBITDA Margin to Net Income as a Percentage of Sales, and EBITDA Margin, After Adjustments, to Net Income as a Percentage of Sales, and EBITDA, After Adjustments, to Net Income:
(Unaudited)
The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors.  Management believes consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure that is useful to investors as it is representative of the Company's performance and that it is appropriate to compare GAAP net income to consolidated EBITDA. Management also believes that adjusted EBITDA, adjusted EBITDA margin and EBITDA margin are useful to investors as they are representative of the Company's core operations and are used in the management of the business, including decisions concerning the allocation of resources and assessment of performance.
(Dollars in millions)	Three Months Ended March 31,
	2026			Percentage to Net Sales		2025			Percentage to Net Sales
Net Income	$	105.9		8.6	%	$	91.4		8.0	%
Provision for income taxes	37.0					26.9
Interest expense	24.3					26.5
Interest income	(1.7)					(2.3)
Depreciation and amortization	58.9					55.1
Consolidated EBITDA	$	224.4		18.2	%	$	197.6		17.3	%
Adjustments:
Impairment, restructuring and reorganization charges (1)	$	4.8				$	3.1
Acquisition-related charges (2)	1.8					—
Gain on sale of certain assets (3)	—					(1.2)
CEO transition expenses (4)	—					8.6
Total Adjustments	6.6			0.6	%	10.5			0.9	%
Adjusted EBITDA	$	231.0		18.8	%	$	208.1		18.2	%
(1) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; and (iv) impairment of assets. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company's core operations.
(2) Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact.
(3) Represents the net gain resulting from the sale of certain assets.
(4) On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Richard G. Kyle would be serving as interim President and CEO. CEO transition expenses primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of stock compensation expense for stock awards forfeited.

 

Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt to Capital, and the Ratio of Net Debt to Adjusted EBITDA:
(Unaudited)
These reconciliations are provided as additional relevant information about the Company's financial position deemed useful to investors. Capital, used for the ratio of net debt to capital, is a non-GAAP measure defined as total debt less cash and cash equivalents plus total shareholders' equity. Management believes Net Debt, the Ratio of Net Debt to Capital, Adjusted EBITDA (see next page), and the Ratio of Net Debt to Adjusted EBITDA are important measures of the Company's financial position, due to the amount of cash and cash equivalents on hand. The Company presents net debt to adjusted EBITDA because it believes it is more representative of the Company's financial position as it is reflective of the ability to cover its net debt obligations with results from its core operations.
(Dollars in millions)
	March 31, 2026			December 31, 2025
Short-term debt, including current portion of long-term debt	$	42.9		$	38.9
Long-term debt	2,027.2			1,883.1
Total Debt	$	2,070.1		$	1,922.0
Less: Cash and cash equivalents	(344.7)			(364.4)
Net Debt	$	1,725.4		$	1,557.6
Total Equity	$	3,367.9		$	3,345.7
Ratio of Net Debt to Capital	33.9		%	31.8		%
Adjusted EBITDA for the Twelve Months Ended	$	818.7		$	795.8
Ratio of Net Debt to Adjusted EBITDA	2.1			2.0
Reconciliation of Free Cash Flow to GAAP Net Cash Provided by Operating Activities:
(Unaudited)
Management believes that free cash flow is a non-GAAP measure that is useful to investors because it is a meaningful indicator of cash generated from operating activities available for the execution of its business strategy.
(Dollars in millions)
	Three Months Ended March 31,
	2026			2025
Net cash provided by operating activities	$	39.3		$	58.6
Less: capital expenditures	(38.8)			(35.2)
Free cash flow	$	0.5		$	23.4

 

Reconciliation of EBITDA, After Adjustments, to GAAP Net Income:
(Unaudited)
The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure that is useful to investors as it is representative of the Company's performance and that it is appropriate to compare GAAP net income to consolidated EBITDA. Management also believes that the non-GAAP measure of adjusted EBITDA is useful to investors as it is representative of the Company's core operations and is used in the management of the business, including decisions concerning the allocation of resources and assessment of performance.
(Dollars in millions)	Twelve Months Ended March 31, 2026			Twelve Months Ended December 31, 2025
Net Income	$	331.8		$	317.3
Provision for income taxes	108.8			98.7
Interest expense	108.1			110.3
Interest income	(9.7)			(10.3)
Depreciation and amortization	233.9			230.1
Consolidated EBITDA	$	772.9		$	746.1
Adjustments:
Impairment, restructuring and reorganization charges (1)	$	22.4		$	20.7
Corporate pension and other postretirement benefit related expense (2)	10.8			10.8
Acquisition-related charges (3)	1.8			—
Gain on sale of certain assets (4)	(1.4)			(2.6)
CEO transition expenses (5)	12.2			20.8
Total Adjustments	45.8			49.7
Adjusted EBITDA	$	818.7		$	795.8
(1) Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; and (iv) impairment of assets. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company's core operations.
(2) Corporate pension and other postretirement benefit related expense represents actuarial losses that resulted from the remeasurement of plan assets and obligations as a result of changes in assumptions or experience. The Company recognizes actuarial losses and gains in connection with the annual remeasurement in the fourth quarter, or if specific events trigger a remeasurement.
(3) Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact.
(4) Represents the net gain resulting from the sale of certain assets.
(5) On August 22, 2025, the Company announced the appointment of Lucian Boldea as President and CEO, effective September 1, 2025, and that Richard G. Kyle would retire from the role of interim President and CEO. On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Mr. Kyle would be serving as interim President and CEO. CEO transition expenses for the twelve months ended December 31, 2025, primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, the acceleration of certain stock compensation awards issued to Mr. Kyle, and other one-time costs associated with the transition in 2025.

 

Reconciliation of Net Sales to Organic Sales
(Unaudited)
The following reconciliations are provided as additional relevant information about the Company's performance deemed useful to investors. Management believes that net sales, excluding the impact of acquisitions and foreign currency exchange rate changes, allow investors and the Company to meaningfully evaluate the percentage change in net sales on a comparable basis from period to period.
	Three Months Ended March 31, 2026				Three Months Ended March 31, 2025				$ Change			% Change
Net sales	$	1,231.3			$	1,140.3			$	91.0		8.0	%
Less: Acquisitions	3.1				—				3.1			NM
Currency	38.6				—				38.6			NM
Net sales, excluding the impact of acquisitions and currency	$	1,189.6			$	1,140.3			$	49.3		4.3	%

 

Reconciliation of Adjusted Earnings per Share to GAAP Earnings per Share for Full Year 2026 Outlook:
(Unaudited)
The following reconciliation is provided as additional relevant information about the Company's outlook deemed useful to investors. Forecasted full year adjusted diluted earnings per share is an important financial measure that management believes is useful to investors as it is representative of the Company's expectation for the performance of its core business operations.
	Low End Earnings Per Share				High End Earnings Per Share
Forecasted full year GAAP diluted earnings per share	$	4.70			$	5.20
Forecasted Adjustments:
Impairment, restructuring and other special items, net (1)	0.20				0.20
Acquisition-related intangible amortization expense, net	0.85				0.85
Forecasted full year adjusted diluted earnings per share	$	5.75			$	6.25
(1) Impairment, restructuring and other special items, net do not include the impact of any potential future mark-to-market pension and other postretirement remeasurement adjustments, because the amounts will not be known until incurred.

 

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SOURCE The Timken Company

FAQ

What did Timken (TKR) report for first-quarter 2026 revenue and EPS?

Timken reported $1.23 billion in 1Q 2026 revenue and diluted EPS of $1.40. According to the company, adjusted EPS was $1.67, with net income margin of 8.0% and adjusted EBITDA margin of 18.8%.

How did Timken's 1Q 2026 segment performance compare for Engineered Bearings and Industrial Motion?

Engineered Bearings revenue was $806.2 million and Industrial Motion was $425.1 million in 1Q 2026. According to the company, Industrial Motion drove stronger margin expansion while Engineered Bearings saw flat volumes and narrower adjusted EBITDA margin.

What guidance did Timken (TKR) provide for full-year 2026 EPS and revenue?

Timken raised its 2026 guidance to GAAP EPS of $4.70–$5.20 and adjusted EPS of $5.75–$6.25. According to the company, it now expects revenue growth of about 5% at the midpoint versus 2025.

What cash-return and capital actions did Timken report in 1Q 2026?

Timken returned $53.3 million to shareholders via dividend and share repurchases in 1Q 2026. According to the company, free cash flow was $0.5 million and net cash provided by operations was $39.3 million.

What strategic transactions did Timken announce alongside 1Q 2026 results?

Timken completed the acquisition of Bijur Delimon and announced plans to sell its belts business. According to the company, these moves support a portfolio '80/20' approach and aim to accelerate margin expansion.

What was Timken's balance-sheet position at March 31, 2026 and leverage metric?

Timken ended 1Q 2026 with total assets of $6.88 billion and net debt to adjusted EBITDA of 2.1x. According to the company, the balance sheet remains strong while carrying long-term debt of approximately $2.03 billion.