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…
Earnings analysis · 10-Q
TKR earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.41
What stood out
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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.
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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%.
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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%.
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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%.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.