Timken (NYSE:TKR) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Timken reported quarterly EPS of $1.65, beating the $1.48 consensus estimate; revenue rose 4.7% year over year to $1.21 billion, in line with expectations.
• Industrial Motion posted 7.3% organic sales growth, while Engineered Bearings grew just 0.5%, partly due to weakness in China’s wind market. Results also included a $12 million tariff-refund benefit.
• Timken raised its 2026 adjusted EPS outlook to $6.35–$6.50 and reaffirmed its organic sales-growth and free-cash-flow targets.

Timken (NYSE:TKR - Get Free Report) issued its quarterly earnings results on Wednesday. The industrial products company reported $1.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.17, FiscalAI reports. Timken had a return on equity of 12.63% and a net margin of 5.43%. The company had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.21 billion. During the same period last year, the business posted $1.37 earnings per share. The firm's revenue was up 4.7% compared to the same quarter last year.

Here are the key takeaways from Timken's conference call:

• Third-quarter sales rose 4.7% to $1.21 billion, with organic growth of 2.8%; adjusted EBITDA margin expanded to 18.5% and adjusted EPS increased 20% to $1.65. Results included a $12 million benefit from tariff refunds, so some of the earnings boost may not recur.
• Industrial Motion delivered 7.3% organic sales growth and an 80-basis-point margin increase, supported by broad demand and higher volumes. Engineered Bearings grew just 0.5% organically as a sharp China wind decline weighed on results.
• Timken raised its 2026 adjusted EPS outlook to $6.35–$6.50 while reaffirming 3.5% organic sales growth and $375–$400 million in free cash flow. Management also expects mid-single-digit organic sales growth in 2027, with third-quarter backlog up mid-single digits year over year.
• The company completed its belts divestiture and expects it to lift Industrial Motion EBITDA margins by more than 200 basis points in 2027; management said 80/20 initiatives are now underway across virtually the entire company. Executives expect these efforts to support growth and margin improvement, though benefits are still developing.
• Timken generated $221 million in third-quarter free cash flow, repurchased more than 500,000 shares, and ended the quarter with net leverage of 1.7 times EBITDA. Management cited the balance sheet as providing flexibility for future capital allocation.

Timken Price Performance

Shares of TKR stock traded down $10.97 during trading hours on Wednesday, hitting $104.69. 1,445,632 shares of the company's stock were exchanged, compared to its average volume of 901,652. Timken has a 52 week low of $73.62 and a 52 week high of $146.37. The stock has a market cap of $7.25 billion, a price-to-earnings ratio of 28.29, a price-to-earnings-growth ratio of 1.26 and a beta of 1.19. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.10 and a quick ratio of 1.74. The stock's 50-day moving average is $116.80 and its 200-day moving average is $117.29.

Wall Street Analyst Weigh In

A number of analysts have issued reports on TKR shares. Bank of America raised Timken from a "neutral" rating to a "buy" rating and raised their target price for the company from $129.00 to $135.00 in a report on Tuesday, September 1st. KeyCorp upped their price target on Timken from $140.00 to $160.00 and gave the stock an "overweight" rating in a report on Monday, July 13th. Jefferies Financial Group set a $135.00 price objective on shares of Timken in a research note on Tuesday, September 1st. DA Davidson set a $130.00 target price on shares of Timken in a research report on Friday, August 14th. Finally, Citigroup cut their target price on shares of Timken from $160.00 to $140.00 and set a "buy" rating for the company in a research note on Monday, October 12th. Seven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $145.00.

Insider Buying and Selling at Timken

In other Timken news, Director Richard Kyle sold 13,637 shares of the company's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $126.63, for a total transaction of $1,726,853.31. Following the transaction, the director owned 183,724 shares of the company's stock, valued at approximately $23,264,970.12. This represents a 6.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 8.10% of the company's stock.

Key Headlines Impacting Timken

Here are the key news stories impacting Timken this week:

• Positive Sentiment: Third-quarter adjusted EPS was $1.65, above analyst estimates of about $1.48 and up from $1.37 a year earlier. Timken Reports Third-Quarter 2026 Results
• Positive Sentiment: Timken raised its 2026 forecast to diluted EPS of $4.05–$4.20 and adjusted EPS of $6.35–$6.50, signaling improved expectations for the year. Timken Reports Third-Quarter 2026 Results
• Positive Sentiment: Revenue increased 4.7% year over year to $1.21 billion. The company also reported $256 million in operating cash flow and $221 million in free cash flow. Timken Reports Third-Quarter 2026 Results
• Negative Sentiment: Revenue matched, rather than exceeded, analysts’ $1.21 billion estimate. The company’s reported diluted EPS was $1.34, below its adjusted EPS of $1.65; these details could have muted the impact of the adjusted earnings beat. Timken Reports Third-Quarter 2026 Results

Timken Company Profile

Timken is an industrial manufacturer that designs and produces engineered bearings and power transmission products. Its offerings include tapered and spherical roller bearings, precision bearings, seals, lubrication systems, gears, belts, chains, couplings, and other components used to manage friction, motion, and power transmission.

The company serves customers across a range of industries, including industrial machinery, renewable energy, transportation, aerospace, defense, agriculture, construction, and energy.

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