Timken (NYSE:TKR) Issues FY 2026 Earnings Guidance

Timken (NYSE:TKR) issued an update on its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 6.050-6.350 for the period, compared to the consensus EPS estimate of 6.140. The company issued revenue guidance of $4.8 billion-$4.8 billion, compared to the consensus revenue estimate of $4.8 billion.

Timken Stock Up 0.8%

Timken stock traded up $1.01 during midday trading on Wednesday, hitting $133.04. 219,491 shares of the company’s stock were exchanged, compared to its average volume of 896,563. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.55 and a current ratio of 2.88. The company has a market cap of $9.25 billion, a PE ratio of 30.24, a P/E/G ratio of 1.69 and a beta of 1.21. The firm has a 50-day moving average of $137.51 and a two-hundred day moving average of $116.33. Timken has a 12 month low of $70.57 and a 12 month high of $146.37.

Timken (NYSE:TKR) last posted its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $1.83 EPS for the quarter, beating the consensus estimate of $1.62 by $0.21. Timken had a net margin of 6.60% and a return on equity of 11.84%. The business had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same quarter in the previous year, the business posted $1.12 EPS. The company’s quarterly revenue was up 7.5% compared to the same quarter last year. Timken has set its FY 2026 guidance at 6.050-6.350 EPS. As a group, analysts expect that Timken will post 6.16 earnings per share for the current fiscal year.

Timken Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Tuesday, May 19th were given a dividend of $0.36 per share. This is a boost from Timken’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $1.44 annualized dividend and a yield of 1.1%. Timken’s payout ratio is 32.73%.

Analysts Set New Price Targets

TKR has been the topic of a number of analyst reports. Morgan Stanley set a $140.00 price target on Timken in a report on Thursday, May 21st. JPMorgan Chase & Co. raised their price objective on Timken from $150.00 to $160.00 and gave the company an “overweight” rating in a research report on Monday, July 13th. The Goldman Sachs Group lifted their target price on Timken from $128.00 to $142.00 and gave the company a “neutral” rating in a research note on Friday, July 10th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Timken in a report on Friday, July 17th. Finally, DA Davidson initiated coverage on shares of Timken in a research report on Tuesday, June 16th. They set a “neutral” rating and a $130.00 price target for the company. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $150.00.

Insider Transactions at Timken

In other news, Director Ajita G. Rajendra sold 8,450 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $131.34, for a total transaction of $1,109,823.00. Following the completion of the sale, the director owned 20,225 shares in the company, valued at approximately $2,656,351.50. This represents a 29.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director John M. Timken, Jr. sold 15,000 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $116.51, for a total value of $1,747,650.00. Following the completion of the sale, the director directly owned 264,744 shares of the company’s stock, valued at $30,845,323.44. The trade was a 5.36% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 69,079 shares of company stock valued at $8,296,144. Corporate insiders own 8.10% of the company’s stock.

Timken News Summary

Here are the key news stories impacting Timken this week:

• Positive Sentiment: Adjusted earnings and sales beat expectations. Timken reported second-quarter adjusted EPS of $1.83, above the $1.62-$1.63 analyst consensus, while revenue reached $1.26 billion versus expectations of approximately $1.23 billion. Sales increased 7.5% year over year, with organic growth of 4.4%. Timken Q2 earnings metrics
• Positive Sentiment: Industrial Motion provided strong growth. Engineered Bearings sales rose 3.8% to $807 million, while Industrial Motion sales jumped 14.6% to $453.9 million. Management highlighted margin-driven upside, with adjusted EBITDA margin of 19.6%. Timken earnings call highlights
• Positive Sentiment: Adjusted full-year guidance was raised or reaffirmed at a solid level. Timken now expects 2026 adjusted EPS of $6.05 to $6.35, compared with analyst expectations near $6.14, and revenue growth of roughly 5.5% at the midpoint. Timken second-quarter results
• Neutral Sentiment: Management’s earnings call remained confident, but investors are focused on whether margin improvement and demand growth can continue amid industrial-market uncertainty. Timken Q2 earnings call transcript
• Negative Sentiment: GAAP profitability deteriorated sharply. GAAP diluted EPS was $0.41, versus $1.12 a year earlier, and net income declined to $28.9 million. Results included an impairment charge tied to the anticipated belts-business divestiture; full-year GAAP EPS guidance is now $3.75-$4.05. This gap between GAAP and adjusted results likely contributed to the negative investor reaction. Timken Q2 sales and profit report

Institutional Investors Weigh In On Timken

A number of large investors have recently modified their holdings of TKR. Quadrant Capital Group LLC raised its position in shares of Timken by 3.2% in the 3rd quarter. Quadrant Capital Group LLC now owns 4,319 shares of the industrial products company’s stock valued at $325,000 after purchasing an additional 132 shares during the last quarter. Hilltop Holdings Inc. boosted its stake in Timken by 3.7% in the 3rd quarter. Hilltop Holdings Inc. now owns 3,997 shares of the industrial products company’s stock worth $300,000 after purchasing an additional 142 shares in the last quarter. Arkadios Wealth Advisors grew its position in Timken by 1.0% during the 4th quarter. Arkadios Wealth Advisors now owns 20,484 shares of the industrial products company’s stock worth $1,723,000 after purchasing an additional 206 shares during the last quarter. Franklin Resources Inc. increased its stake in Timken by 2.0% during the 3rd quarter. Franklin Resources Inc. now owns 10,998 shares of the industrial products company’s stock valued at $827,000 after purchasing an additional 216 shares in the last quarter. Finally, Mackenzie Financial Corp increased its stake in Timken by 3.1% during the 3rd quarter. Mackenzie Financial Corp now owns 8,360 shares of the industrial products company’s stock valued at $629,000 after purchasing an additional 255 shares in the last quarter. Hedge funds and other institutional investors own 89.08% of the company’s stock.

About Timken

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.