Timken (NYSE:TKR) Announces Earnings Results

Timken (NYSE:TKR) released its earnings results on Wednesday. The industrial products company reported $1.14 EPS for the quarter, topping the consensus estimate of $1.09 by $0.05, Briefing.com reports. Timken had a net margin of 6.54% and a return on equity of 11.88%. The company had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.07 billion. During the same quarter last year, the business earned $1.16 EPS. The business’s revenue was up 3.5% on a year-over-year basis. Timken updated its FY 2026 guidance to 5.500-6.000 EPS.

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

• Fourth-quarter results exceeded guidance on revenue and cash: total sales were up ~3.5% year‑over‑year (organic ~1–1.3%), the company generated $141 million of free cash flow in Q4 ($406 million for FY2025) and reduced net debt by over $130 million to ~2x leverage.
• Management gave a constructive 2026 outlook: revenue guidance of +2%–4% (organic ~+2% at midpoint), adjusted EPS guidance of $5.50–$6.00 (≈+8% at midpoint), margins targeted in the high‑17% range and expected free cash flow of ~$350 million.
• Enterprise 80/20 and leadership changes announced: Timken is expanding an 80/20 program (portfolio simplification, process optimization) and added a CTO, VP of Marketing and Regional President to drive growth — management says benefits will take time and may involve upfront implementation costs.
• Mixed segment and regional performance with tariff headwinds: Industrial Motion outperformed (Q4 sales +8.4%, organic +5.6% with margin gains), while Engineered Bearings saw lower organic volumes and mix pressure; tariffs were a ~$30 million headwind in 2025 and management expects to recapture ~$0.10–$0.15 of EPS from tariff mitigation in 2026.

Timken Price Performance

Shares of NYSE TKR traded up $1.61 during trading on Thursday, reaching $100.60. The company had a trading volume of 263,883 shares, compared to its average volume of 783,922. The company has a current ratio of 3.11, a quick ratio of 1.71 and a debt-to-equity ratio of 0.63. The stock has a market capitalization of $7.01 billion, a PE ratio of 23.78, a price-to-earnings-growth ratio of 1.87 and a beta of 1.21. Timken has a twelve month low of $56.20 and a twelve month high of $102.34. The stock has a 50-day moving average price of $88.43 and a two-hundred day moving average price of $80.94.

Timken Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, December 5th. Stockholders of record on Tuesday, November 25th were issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Tuesday, November 25th. Timken’s payout ratio is 33.10%.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on TKR shares. Oppenheimer upped their price objective on Timken from $90.00 to $104.00 and gave the stock an “outperform” rating in a report on Monday, January 26th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Timken in a research note on Wednesday, January 21st. Citigroup reissued a “buy” rating on shares of Timken in a report on Thursday. Wall Street Zen upgraded shares of Timken from a “hold” rating to a “buy” rating in a research report on Saturday, November 1st. Finally, JPMorgan Chase & Co. upped their price target on Timken from $80.00 to $85.00 and gave the stock a “neutral” rating in a report on Thursday, October 30th. Four research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $86.11.

Insider Buying and Selling

In related news, Director Richard G. Kyle sold 15,837 shares of the business’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $81.03, for a total value of $1,283,272.11. Following the completion of the transaction, the director owned 266,942 shares of the company’s stock, valued at approximately $21,630,310.26. The trade was a 5.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 8.70% of the company’s stock.

Hedge Funds Weigh In On Timken

Several institutional investors and hedge funds have recently modified their holdings of the company. Kestra Investment Management LLC purchased a new stake in Timken in the 2nd quarter worth approximately $42,000. Danske Bank A S acquired a new position in Timken in the third quarter valued at $45,000. EverSource Wealth Advisors LLC increased its stake in Timken by 1,954.3% in the second quarter. EverSource Wealth Advisors LLC now owns 719 shares of the industrial products company’s stock valued at $52,000 after purchasing an additional 684 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in Timken by 379.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 877 shares of the industrial products company’s stock worth $66,000 after buying an additional 694 shares during the period. Finally, Brooklyn Investment Group boosted its stake in Timken by 88.3% in the 3rd quarter. Brooklyn Investment Group now owns 3,304 shares of the industrial products company’s stock worth $248,000 after buying an additional 1,549 shares during the last quarter. Hedge funds and other institutional investors own 89.08% of the company’s stock.

Key Stories Impacting Timken

Here are the key news stories impacting Timken this week:

• Positive Sentiment: Q4 earnings and revenue beat consensus — Timken reported adjusted Q4 EPS of $1.14 (vs. $1.09 consensus) and revenue of $1.11B (vs. ~$1.07B expected), signaling stable demand across end markets. Read More.
• Positive Sentiment: Shares reacted positively to the beat — media coverage notes the stock rose following the Q4 beat, reflecting investor enthusiasm for the quarterly outperformance. Read More.
• Positive Sentiment: Strong cash flow and FCF — Timken reported $554M cash from operations and $406M free cash flow for FY‑2025, supporting balance‑sheet stability and potential capital allocation (buybacks/dividends). Read More.
• Neutral Sentiment: Management engagement — Timken will present at the Citi Global Industrial Tech & Mobility Conference (fireside chat Feb. 18), giving investors a chance for more color on strategy and outlook. Read More.
• Neutral Sentiment: Earnings call transcripts and analyses are available — investors can review the call transcript and slide deck for segment detail and management commentary. Read More.
• Negative Sentiment: FY‑2026 guidance slightly softer vs. consensus — Timken set adjusted EPS guidance at $5.50–$6.00 (consensus ~6.00) and revenue $4.7B–$4.8B; the guidance range is roughly in line on revenue but the EPS midpoint is a hair below Street expectations, which may limit multiple expansion. Read More.
• Negative Sentiment: GAAP vs adjusted dynamics — Q4 GAAP diluted EPS ($0.89) was lower than adjusted, and management provided a wider GAAP EPS estimate ($4.50–$5.00), so investors should watch the impact of one‑time items and accounting differences on reported results. Read More.

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.