Timken (NYSE:TKR) Issues Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Timken (NYSE:TKR) released its quarterly earnings results on Wednesday. The industrial products company reported $1.65 EPS for the quarter, beating analysts’ consensus estimates of $1.48 by $0.17, FiscalAI reports. Timken had a return on equity of 13.13% and a net margin of 5.88%. The company had revenue of $1.21 billion during the quarter, compared to analysts’ expectations 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 Stock Performance

NYSE TKR traded up $2.07 during trading hours on Friday, reaching $102.01. The stock had a trading volume of 506,756 shares, compared to its average volume of 909,471. The stock has a fifty day moving average of $115.96 and a 200 day moving average of $117.39. The stock has a market cap of $7.07 billion, a P/E ratio of 25.25, a price-to-earnings-growth ratio of 1.18 and a beta of 1.19. Timken has a 52-week low of $73.62 and a 52-week high of $146.37. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.74 and a current ratio of 2.56.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Jefferies Financial Group set a $135.00 price objective on shares of Timken in a research report on Tuesday, September 1st. DA Davidson set a $130.00 target price on shares of Timken in a research report on Friday, August 14th. KeyCorp upped their price target on shares of Timken from $140.00 to $160.00 and gave the company an “overweight” rating in a research note on Monday, July 13th. Citigroup decreased their price target on shares of Timken from $140.00 to $125.00 and set a “buy” rating for the company in a report on Thursday. Finally, Oppenheimer reiterated an “outperform” rating and set a $150.00 price objective on shares of Timken in a research note on Thursday, October 1st. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Timken has a consensus rating of “Moderate Buy” and a consensus price target of $141.90.

Insider Transactions at Timken

In other Timken news, Director Richard Kyle sold 13,637 shares of Timken stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $126.63, for a total transaction of $1,726,853.31. Following the completion of the sale, the director directly owned 183,724 shares in the company, valued at approximately $23,264,970.12. The trade was a 6.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Corporate insiders own 8.10% of the company’s stock.

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.