TKR earnings analysis
What we found in TKR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Timken delivered strong Q2 top-line and underlying-profit momentum: revenue increased 7.5% to $1.2609 billion, led by 14.6% Industrial Motion growth, and adjusted EPS reached $1.83. Reported results were materially weaker, with GAAP EPS falling to $0.41 and operating margin declining to 6.7% because of $94.4 million in belts-related charges. Cash generation remained positive, but first-half operating cash flow fell to $146.4 million amid a $92.1 million year-over-year working-capital headwind, while net debt increased to $1.6771 billion.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 7.5% with organic growth
- Q2 net sales increased $87.5 million, or 7.5% year over year, to $1.2609 billion, driven by $52 million of organic revenue growth, $21 million from acquisitions, and $15 million from foreign exchange.
- Industrial Motion margin expanded 500 bps
- Industrial Motion was the growth leader: revenue rose $57.9 million (14.6%) to $453.9 million, while adjusted EBITDA increased $33.0 million (45.5%) to $105.6 million and margin expanded 500 bps to 23.3%.
- Engineered Bearings delivered growth
- Engineered Bearings revenue increased $29.6 million (3.8%) to $807.0 million. Adjusted EBITDA rose $7.9 million (5.1%) to $161.3 million, with margin improving 30 bps to 20.0%.
- Underlying earnings improved materially
- Adjusted EPS increased to $1.83 from $1.42, while adjusted EBITDA rose $39.0 million to $247.2 million and adjusted EBITDA margin improved 190 bps to 19.6%.
- Quarterly free cash flow increased
- Q2 free cash flow was $80.5 million, up from $78.2 million a year earlier, as operating cash flow of $107.1 million exceeded $26.6 million of capital expenditures.
- Liquidity and covenant headroom remain solid
- Liquidity remained substantial at $399.1 million of cash plus $651.6 million available under committed credit lines; net leverage was 2.02x versus the 3.5x covenant limit at June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Belts charges sharply reduced GAAP profit
- GAAP operating income fell $63.0 million (42.6%) to $84.8 million and operating margin contracted 590 bps to 6.7%, despite 7.5% sales growth, as impairment and restructuring charges increased to $87.9 million from $2.9 million.
- GAAP EPS fell 63.4% on belts actions
- GAAP diluted EPS declined $0.71 (63.4%) year over year to $0.41. The company recorded $94.4 million of belts impairment, restructuring and reorganization charges tied to the planned divestiture and Springfield, Missouri facility closure.
- Working capital weighed on first-half cash
- First-half operating cash flow declined $23.5 million to $146.4 million, as working-capital use increased $92.1 million to $180.1 million; accounts receivable used $124.6 million and unbilled receivables used $36.6 million.
- Net debt and leverage moved higher
- Net debt increased $119.5 million from December 31, 2025 to $1.6771 billion, and net debt to capital rose to 33.3% from 31.8%, reflecting higher total debt of $2.0762 billion.
- Full-year GAAP earnings expected lower
- Management expects 2026 GAAP earnings to be down slightly versus 2025, even as revenue is expected to rise approximately 5%-6%, owing primarily to higher impairment charges.
- Tariff exposure remains an active uncertainty
- The company reported no material changes to risk factors from its December 31, 2025 Form 10-K; however, it identified $14 million of incremental tariff costs, net of IEEPA refunds, in first-half 2026 cost of products sold and said the impact of potential new tariffs remains uncertain.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.41
- Gross margin
- 31.7%
- Operating margin
- 6.7%
- Segment
- Engineered Bearings: $807.0 million revenue, up $29.6 million (3.8%) year over year; sales excluding currency were up $19.8 million (2.5%).
- Segment
- Industrial Motion: $453.9 million revenue, up $57.9 million (14.6%) year over year; sales excluding acquisition and currency effects were up $32.0 million (8.1%).
What they said about what is next.
The 10-Q provides no quantitative EPS range. Management expects 2026 revenue to increase approximately 5%-6% versus 2025, GAAP earnings to be down slightly due to impairment charges, operating cash flow of $550 million versus $554.3 million in 2025, and capital expenditures of approximately 3.3% of sales.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 6, 2026
- Timken's Q1 2026 results showed strong performance with revenues rising to $1.23 billion, up 8% year-over-year, driven by robust demand particularly in the Industrial Motion segment. The company reported diluted EPS of…
- 10-K · February 13, 2026
- Timken reports scale and market leadership in engineered bearings and industrial motion — 116 manufacturing facilities, 29 technology and engineering centers, 74 distribution centers and ~19,000 employees across 44…
- 10-Q · July 30, 2025
- Timken reported Q2 net sales of $1,173.4 million (Q2 2024: $1,182.3M), with gross margin compressed to 30.7% (Q2 2024: 31.6%) and operating income down to $147.8M (Q2 2024: $167.2M). Diluted EPS was $1.12 (Q2 2024:…
- 10-Q · November 5, 2024
- The Timken Company reported Q3 2024 revenues of $1.13 billion, a slight decline from $1.14 billion in Q3 2023. Net income attributable to shareholders also decreased from $87.9 million to $81.8 million, while diluted…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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