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

Timken (NYSE:TKR) 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. The firm had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.21 billion. Timken had a net margin of 5.43% and a return on equity of 12.63%. The company’s revenue was up 4.7% compared to the same quarter last year. During the same period in the previous year, the business earned $1.37 EPS.

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

TKR stock traded down $10.97 during trading on Wednesday, reaching $104.69. 1,445,632 shares of the company were exchanged, compared to its average volume of 901,652. The company has a 50-day moving average of $116.80 and a two-hundred day moving average of $117.29. The company has a market capitalization of $7.25 billion, a price-to-earnings ratio of 28.29, a P/E/G ratio of 1.26 and a beta of 1.19. Timken has a twelve month low of $73.62 and a twelve month high of $146.37. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.10 and a quick ratio of 1.74.

Analyst Ratings Changes

Several research firms have weighed in on TKR. Weiss Ratings raised shares of Timken from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 20th. JPMorgan Chase & Co. upped their price target on shares of Timken from $150.00 to $160.00 and gave the stock an “overweight” rating in a report on Monday, July 13th. Wall Street Zen raised Timken from a “hold” rating to a “buy” rating in a report on Saturday. The Goldman Sachs Group lifted their price target on Timken from $128.00 to $142.00 and gave the company a “neutral” rating in a research note on Friday, July 10th. Finally, DA Davidson set a $130.00 price target on Timken in a report on Friday, August 14th. Seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, Timken has an average rating of “Moderate Buy” and an average price target of $145.00.

Timken News Roundup

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

Insider Buying and Selling at Timken

In related news, Director Richard Kyle sold 13,637 shares of the business’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 sale, the director owned 183,724 shares in the company, valued at $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 available at this hyperlink. 8.10% of the stock is currently owned by company insiders.

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.