Timken Reports Second-Quarter 2026 Results

Sales of $1.26 billion, up 7.5 percent from last year Second-quarter diluted EPS of $0.41; adjusted EPS of $1.83 Net income margin of 2.3 percent; adjusted EBITDA margin of 19.6 percent Updates 2026 EPS outlook; now expects 2026 EPS of $3.75-$4.05, raising adjusted EPS outlook to $6.05-$6.35 NORTH CANTON, Ohio , Aug. 4, 2026 /PRNewswire/ -- The Timken Company (NYSE: TKR ) ( www.timken.com ), a leader in advanced motion technology, today reported second-quarter 2026 results.

2Q-26 2Q-25 % Change Net Sales (mils.) $1,260.9 $1,173.4 7.5 % Net Income Margin 2.3 % 6.7 % (440 bps) Adjusted EBITDA Margin 19.6 % 17.7 % 190 bps Diluted EPS $0.41 $1.12 (63.4) % Adjusted EPS $1.83 $1.42 28.9 % Net Cash from Operations (mils.) $107.1 $111.3 (3.8) % Free Cash Flow $80.5 $78.2 2.9 %

Timken delivered sales in the second quarter of $1.26 billion, up 7.5 percent from the same period a year ago. The increase was driven by higher volumes across both segments, higher pricing, revenue from the Bijur Delimon acquisition and favorable foreign currency translation. Organically, sales were up 4.4 percent as compared to the second quarter of 2025.

The company posted net income in the second quarter of $28.9 million or $0.41 per diluted share. This compares to net income of $78.5 million or $1.12 per diluted share for the same period a year ago. The company's net income margin in the quarter was 2.3 percent, compared to 6.7 percent in the second quarter of last year. Net income in the current period includes an impairment charge related to the anticipated divestiture of the company's belts business.

Excluding special items (detailed in the attached tables), adjusted net income in the second quarter was $128.4 million or $1.83 per diluted share. This compares to adjusted net income of $99.3 million or $1.42 per diluted share for the same period in 2025. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $247.2 million or 19.6 percent of sales, compared with $208.2 million or 17.7 percent of sales in the second quarter of last year. Adjusted EBITDA in the current period includes a net benefit of $8.0 million for IEEPA tariff refunds.

Net cash provided by operations in the quarter was $107.1 million, and free cash flow was $80.5 million. During the quarter, Timken increased its quarterly dividend by 3 percent and repurchased approximately 155 thousand shares of company stock. In total, the company returned $45.0 million of cash to shareholders through dividends and share repurchases during the quarter. The company ended the quarter with a strong balance sheet; net debt to adjusted EBITDA was 2.0 times as of June 30, 2026.

Second-Quarter 2026 Segment Results Engineered Bearings sales of $807.0 million increased 3.8 percent from the same period a year ago driven primarily by higher volumes, the impact of higher pricing and favorable foreign currency translation. Adjusted EBITDA in the quarter was $161.3 million or 20.0 percent of sales, compared with $153.4 million or 19.7 percent of sales in the second quarter of last year. The increase in adjusted EBITDA was driven primarily by positive price/mix, the impact of higher volume, a net benefit for tariff refunds and favorable foreign currency, partially offset by higher operating costs. Industrial Motion sales of $453.9 million increased 14.6 percent compared ...