Timken (NYSE:TKR) Releases Earnings Results

Timken (NYSE:TKR) posted its earnings results on Wednesday. The industrial products company reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.17, FiscalAI reports. Timken had a net margin of 6.29% and a return on equity of 11.52%. The business had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same period in the prior year, the company posted $1.40 EPS. The company’s revenue for the quarter was up 8.0% on a year-over-year basis. Timken updated its FY 2026 guidance to 5.750-6.250 EPS.

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

• Strong Q1 results: total revenue of $1.23 billion (+8%), organic sales +4.3%, adjusted EPS of $1.67 (nearly +20%) and adjusted EBITDA margin of 18.8%.
• Raised 2026 guidance — full-year net sales now targeted at +4%–6% (organic ~3%), adjusted EPS guide of $5.75–$6.25 (up $0.25 at midpoint, ~13% implied growth at midpoint) and a ~18% consolidated EBITDA margin at midpoint, helped by more favorable tariff assumptions.
• Portfolio actions — announced sale of the Belts business to Gates (expected close in Q3) and completed the acquisition of Bijur Delimon, which scales Timken’s automated lubrication platform to ~$400 million and should be accretive to Industrial Motion margins after synergies.
• Healthy balance sheet & capital allocation — net leverage ~2.1x, returned ~$53M to shareholders in Q1 (including ~280k share repurchases), a new 10M-share repurchase authorization, and full-year free cash flow guidance of $350–$375M.
• Near-term risks and conservatism — tariffs were a ~$20M headwind in Q1, management built a $0.10/share cushion for potential cost inflation, and geopolitical uncertainty in the Middle East likely pulled some Q2 demand into Q1 and adds downside risk to cadence.

Timken Trading Up 10.3%

NYSE:TKR traded up $11.30 on Wednesday, hitting $120.93. The stock had a trading volume of 1,297,641 shares, compared to its average volume of 804,983. The company has a fifty day moving average price of $103.66 and a two-hundred day moving average price of $93.04. Timken has a 1-year low of $65.85 and a 1-year high of $123.67. The company has a quick ratio of 1.47, a current ratio of 2.82 and a debt-to-equity ratio of 0.56. The stock has a market cap of $8.44 billion, a price-to-earnings ratio of 29.42, a PEG ratio of 1.56 and a beta of 1.18.

Timken Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 6th. Shareholders of record on Tuesday, February 24th were issued a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 1.2%. The ex-dividend date was Tuesday, February 24th. Timken’s payout ratio is presently 34.06%.

Insider Activity at Timken

In other news, Director Richard G. Kyle sold 19,636 shares of Timken stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $107.99, for a total transaction of $2,120,491.64. Following the sale, the director owned 243,636 shares of the company’s stock, valued at approximately $26,310,251.64. The trade was a 7.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 8.10% of the company’s stock.

Institutional Investors Weigh In On Timken

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. grew its holdings in shares of Timken by 1.0% during the 4th quarter. Invesco Ltd. now owns 1,371,613 shares of the industrial products company’s stock worth $115,394,000 after purchasing an additional 13,459 shares during the period. Corient Private Wealth LLC lifted its position in Timken by 111.8% in the fourth quarter. Corient Private Wealth LLC now owns 17,933 shares of the industrial products company’s stock valued at $1,517,000 after buying an additional 9,465 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its stake in Timken by 6.6% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 47,807 shares of the industrial products company’s stock worth $4,022,000 after buying an additional 2,939 shares during the period. EP Wealth Advisors LLC acquired a new stake in shares of Timken during the fourth quarter valued at about $231,000. Finally, Empowered Funds LLC raised its stake in shares of Timken by 106.3% in the 4th quarter. Empowered Funds LLC now owns 7,788 shares of the industrial products company’s stock valued at $655,000 after acquiring an additional 4,012 shares during the period. Institutional investors and hedge funds own 89.08% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. DA Davidson increased their price target on Timken from $86.00 to $108.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 10th. Wall Street Zen raised Timken from a “hold” rating to a “buy” rating in a research note on Sunday, March 1st. Morgan Stanley increased their target price on Timken from $116.00 to $119.00 and gave the company an “overweight” rating in a research report on Monday, March 30th. Citigroup boosted their price target on shares of Timken from $115.00 to $125.00 and gave the stock a “buy” rating in a report on Monday, April 13th. Finally, JPMorgan Chase & Co. restated an “underweight” rating and set a $100.00 price target on shares of Timken in a research report on Thursday, March 26th. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $105.86.

Timken Company Profile

The Timken Company is a global manufacturer specializing in engineered bearings and mechanical power transmission products. Its core offerings include tapered and cylindrical roller bearings, spherical and plain bearings, mounted bearing units, and precision gear drives. Timken’s products serve a broad range of industries, from industrial machinery and aerospace to automotive, rail, wind energy and heavy equipment.

Beyond bearings, Timken’s portfolio extends to industrial chains, belts, couplings and related components designed to optimize power transmission systems.