Timken to Participate in the Evercore ISI Industrial Conference [Accessibility Statement] Skip NavigationNORTH CANTON, Ohio, Feb. 25, 2026 /PRNewswire/ -- The Timken Company (NYSE: TKR; [www.timken.com]), a global technology leader in engineered bearings and industrial motion, will participate in the Evercore ISI Industrial Conference on Wednesday, March 11, 2026 in New York City. Participating on behalf of Timken will be Michael A. Discenza, executive vice president and chief financial officer, and Neil Fr ...

Question-and-Answer SessionMaybe to start, Lucian, you've now been in the seat for about 6 months. So it would be great just to get your high-level thoughts on what stood out during your time at Timken thus far and what opportunities you're most excited about going forward?Lucian BoldeaCEO, President & Director Yes. Look, I think the one sentence summary is it's -- I'm very lucky, came at the right time into a great company. And I think when you look at the position the company sits in, you start with the m ...

Timken Company (NYSE: TKR) 2026 Conference Summary Company Overview - **Company**: Timken Company - **Industry**: Machinery and Industrial Components - **Date of Conference**: February 18, 2026 Key Points Company Position and Financial Health - The company is experiencing strong cash generation and has a healthy balance sheet, indicating a solid financial position at the bottom of the industrial cycle [4][21] - Timken has made significant progress in divesting from automotive businesses and is now focused on growth opportunities [4][5] Strategic Priorities - The 80/20 strategy is a key focus, aiming to concentrate resources on the most profitable segments while discontinuing less profitable ones [6][10] - The company plans to simplify operations and customer mix to enhance efficiency and reduce costs [7][8] - Timken is committed to organic growth while also considering inorganic growth through mergers and acquisitions (M&A) [12][22] Growth Opportunities - The company is targeting growth in sectors such as automation, renewable energy, and defense, which are expected to drive demand [20][23] - Timken's industrial motions portfolio is positioned for global expansion, particularly in linear motion and lubrication businesses [13][14] Market Outlook - The company anticipates a 2% organic sales growth for 2026, driven by a combination of pricing and volume increases [35] - Key growth markets include aerospace and defense, renewable energy (with a focus on wind), and rail, while agriculture remains slow [39][40] Capital Allocation and M&A Strategy - Timken has maintained a disciplined capital allocation strategy, with a leverage target of 1.5-2.5 times [21][22] - The company has repurchased over 25% of its shares since 2013 and continues to view M&A as an attractive opportunity [22][23] - The M&A pipeline includes both smaller strategic acquisitions and potential transformative deals, focusing on macro trends like automation and electrification [23][24] Cost Management and Margin Outlook - Timken expects to be price-cost positive in 2026, with efforts to recapture margins lost due to tariffs [44][46] - The company is implementing cost-saving measures and has closed plants to reduce stranded costs, which will positively impact margins [46][49] Future Developments - The upcoming Investor Day will outline both short- to medium-term performance improvements and long-term transformation strategies [64][66] - The focus will be on elevating current performance and aligning technologies with macro trends to drive future growth [66][67] Automation and Labor - Timken is leveraging automation in its manufacturing processes, particularly in new state-of-the-art facilities in Asia [60][61] - The company is addressing labor challenges by enhancing automation and improving operational efficiencies [60][62] Conclusion - Timken Company is well-positioned for growth with a strong financial foundation, strategic focus on high-growth markets, and a commitment to operational efficiency and innovation. The upcoming Investor Day is expected to provide further insights into the company's future direction and growth strategies [66][67]

Financial Performance - Timken reported net sales of $4.58 billion in 2025, a slight increase of 0.2% compared to $4.57 billion in 2024[131]. - Net income for 2025 was $317.3 million, down 15.5% from $375.3 million in 2024, with diluted earnings per share decreasing to $4.11 from $4.99[131]. - Adjusted net income for 2025 was $374.5 million, compared to $409.4 million in 2024 and $508.1 million in 2023, reflecting a decrease in profitability[201]. - Adjusted EBITDA for 2025 was $795.8 million, down from $844.8 million in 2024, reflecting a decline of approximately 5.8%[206]. - The return on invested capital for 2025 was 9.8%, down from 11.0% in 2024, reflecting a decrease in profitability[210]. - Diluted earnings per share (EPS) for 2025 were $4.11, down from $4.99 in 2024 and $5.47 in 2023, indicating a decline in earnings per share[203]. - Adjusted EPS for 2025 was $5.33, compared to $5.79 in 2024 and $7.05 in 2023, reflecting a downward trend in adjusted earnings[203]. Segment Performance - The Engineered Bearings segment contributed significantly to sales, leveraging strong positions in various industries including wind energy and automotive[128]. - Engineered Bearings segment net sales decreased by $16.2 million or 0.5% in 2025, primarily due to lower demand in the Americas and Europe[148]. - Adjusted EBITDA for the Engineered Bearings segment decreased by $36.5 million or 6.0% in 2025, primarily due to incremental tariff costs[149]. - Industrial Motion segment net sales increased by $25.0 million or 1.6% in 2025, driven by acquisitions and favorable currency impacts[150]. - Adjusted EBITDA for the Industrial Motion segment decreased by $9.1 million or 3.0% in 2025, primarily due to lower volume and incremental tariff costs[151]. Cash Flow and Debt Management - Net cash provided by operating activities increased by $78.6 million to $554.3 million in 2025, driven by favorable working capital items[154]. - The Company aims to generate approximately $515 million in cash from operating activities in 2026, down from $554.3 million in 2025[133]. - The Company reduced total debt by $141 million and net debt by $132 million in 2025, strengthening its balance sheet[130]. - Net debt decreased to $1,557.6 million in 2025 from $1,689.5 million in 2024, with a net debt to capital ratio of 31.8%[160]. - The ratio of net debt to adjusted EBITDA for the trailing twelve months was 2.0 as of December 31, 2025, consistent with the ratio for December 31, 2024[205]. Capital Expenditures and Investments - Capital expenditures for 2025 were $148.2 million, down from $170.0 million in 2024, suggesting a potential shift in investment strategy[204]. - The Company plans capital expenditures in 2026 to be approximately 3.5% of sales[167]. Tax and Pension Obligations - Timken's effective tax rate for 2025 was 23.7%, a decrease from 24.1% in 2024, influenced by foreign jurisdiction earnings[141]. - The company recorded a net periodic benefit cost of $25.2 million for defined benefit pension plans in 2025, an increase from $12.2 million in 2024[192]. - The company expects net periodic benefit cost to decrease to approximately $12 million in 2026, compared to $25.2 million in 2025[193]. - The company anticipates contributing approximately $32 million to its defined benefit pension plans in 2026, down from $36.8 million in 2025[194]. Other Financial Metrics - Free cash flow for 2025 was $406.1 million, an increase from $305.7 million in 2024, indicating improved cash generation capabilities[204]. - The company recognized foreign currency exchange losses of $14.0 million in 2025, compared to $9.3 million in 2024[212]. - The company recorded a positive non-cash foreign currency translation adjustment of $215.6 million in 2025, compared to a negative adjustment of $156.4 million in 2024[212]. Dividends and Shareholder Returns - Timken's quarterly dividend was increased by 3% in Q2 2025, marking twelve consecutive years of higher annual dividends[130]. - A quarterly cash dividend of $0.35 per common share was declared on February 13, 2026, marking the 415th consecutive quarterly dividend[216]. Miscellaneous - The Company faced incremental tariff costs of $65 million in 2025, impacting overall profitability[138]. - Impairment and restructuring charges rose to $25.3 million in 2025, primarily due to CEO transition costs and facility closures[138]. - CEO transition expenses in 2025 amounted to $20.8 million, reflecting costs associated with leadership changes within the company[201]. - CEO transition expenses for 2025 included severance of $9.3 million related to the departure of former CEO Tarak B. Mehta[214]. - The company had outstanding letters of credit totaling $86.3 million as of December 31, 2025, with most expiring within 12 months[171]. - A 1% increase in global short-term interest rates would lead to an annual increase in interest expense of $1.3 million, impacting income from continuing operations by the same amount[221]. - As of December 31, 2025, the company had $371.8 million in foreign currency hedges in place, which would provide a benefit of $22.7 million from a uniform 10% weakening of the U.S. dollar against all currencies[222]. - The company manages commodity price risks primarily through supplier pricing agreements to stabilize purchase prices for raw materials, particularly steel and natural gas[223].

EWINEZw1IIF5f7CwGAJQ%252524%2526a%253Dwww.timken.com)%26a%3Dwww.timken.com)&a=www.timken.com)), a global technology leader in engineered bearings and industrial motion, designs a growing portfolio of next-generation products for diverse industries. For more than 125 years, Timken has used its specialized expertise to innovate and create customer-centric solutions that increase reliability and efficiency. Timken posted $4.6 billion in sales in 2025 and employs approximately 19,000 people globally, operating ...

Core Viewpoint - The Timken Company will participate in the Citi Global Industrial Tech and Mobility Conference, highlighting its role as a leader in engineered bearings and industrial motion [1][2]. Company Overview - The Timken Company is a global technology leader specializing in engineered bearings and industrial motion, with over 125 years of experience in creating customer-centric solutions [3]. - In 2025, Timken reported sales of $4.6 billion and employs approximately 19,000 people across 45 countries [3]. Conference Participation - Lucian Boldea, president and CEO, and Michael A. Discenza, vice president and CFO, will represent Timken at the conference [2]. - The fireside chat is scheduled for February 18, 2026, at 8:00 a.m. Eastern Time, and will be accessible via a live webcast on the company's website [1][2]. - A replay of the webcast will be available until March 4, 2026, along with materials shared during the conference [2].

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q4 2025 was $1.40, exceeding the high end of guidance [6] - Total sales in Q4 increased by 3.5% year-over-year, with organic revenue growth of more than 1% driven by higher pricing and volume growth in the industrial motion segment [6][7] - Free cash flow reached $141 million in Q4, allowing the company to return $36 million to shareholders and reduce debt by over $100 million [7][8] - The company ended the year with a net leverage of 2 times, indicating a strong balance sheet [8] Business Segment Data and Key Metrics Changes - Engineered bearings sales were $714 million in Q4, up 0.9% from last year, with organic sales down 1% due to lower volumes [15] - Industrial motion sales were $397 million in Q4, up 8.4% year-over-year, with organic sales increasing by 5.6% driven by higher demand across most sectors [16] - Adjusted EBITDA for engineered bearings was $115 million (16.1% of sales), down from $122 million (17.2% of sales) last year, impacted by unfavorable mix and tariff costs [16] - Adjusted EBITDA for industrial motion reflected solid operational execution, with margins improving due to higher volumes and pricing [17] Market Data and Key Metrics Changes - In the Americas, sales were flat, with growth in North America offset by lower revenue in Latin America [12] - Asia Pacific saw a 4% increase in sales, driven by growth in India, while revenue in China declined [12] - EMEA also experienced a 4% increase, led by growth in the industrial motion segment [12] Company Strategy and Development Direction - The company is focusing on strategic initiatives, including the 80/20 portfolio work, to exit underperforming businesses and prioritize actions that impact margins and growth [9] - New strategic leadership appointments have been made to align the organization with primary growth drivers and enhance customer service [10] - The company aims to leverage strengths in automation and electrification as key growth areas, with a focus on aligning the portfolio with macro trends [81][94] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving customer demand and order activity in 2026, with expectations for organic sales growth of 2% [8][38] - The company anticipates adjusted EPS to increase by around 8% at the midpoint of the guidance range for 2026 [8][19] - Management acknowledged macroeconomic uncertainties but emphasized the importance of executing strategic initiatives to drive performance [9][23] Other Important Information - The company plans to host an Investor Day on May 20, 2026, to provide further insights into its strategy and performance [5] - The company expects to generate around $350 million in free cash flow for the full year 2026, with a conversion rate of approximately 105% on GAAP net income [20] Q&A Session Summary Question: How did orders progress through Q4 and into January? - Management noted that Q4 went better than expected, with a strong order book and steady pacing of orders throughout the quarter, despite a weak December last year [30][31] Question: Can you provide more color on segment contribution to the full year guide? - Management indicated that the difference in performance between engineered bearings and industrial motion was largely due to mix issues, with expectations for improved margins year-on-year [35][36] Question: What are the expectations for volume growth in 2026? - Management expects volumes to be slightly lower in Q1 due to a challenging comparison from the previous year, with pricing expected to offset some of the volume decline [50] Question: Will there be significant revenue exits as part of the 80/20 process? - Management clarified that they do not intend to shrink significantly but will focus on simplifying operations and reallocating resources for growth [64][65] Question: What is the outlook for M&A activity? - Management stated that M&A remains a priority, with plans to clarify the strategy at the upcoming Investor Day [97]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q4 2025 was $1.40, exceeding the high end of guidance range [6] - Total sales in Q4 increased by 3.5% year-over-year, with organic revenue growth of more than 1% driven by higher pricing and volume in the Industrial Motion segment [6][7] - Free cash flow reached $141 million in Q4, allowing the company to return $36 million to shareholders and reduce debt by over $100 million [7][8] - The company ended the year with a net leverage of 2 times, indicating a strong balance sheet [8] Business Segment Data and Key Metrics Changes - Engineered Bearings sales were $714 million in Q4, up 0.9% year-over-year, with organic sales down 1% due to lower volumes offsetting higher pricing [15] - Industrial Motion sales were $397 million in Q4, up 8.4% year-over-year, with organic sales increasing by 5.6% driven by higher demand and pricing [16] - Adjusted EBITDA margins for Engineered Bearings were 16.1%, down from 17.2% the previous year, while Industrial Motion margins improved due to operational execution and higher volumes [16][17] Market Data and Key Metrics Changes - In the Americas, sales were flat, with growth in North America offset by declines in Latin America [12] - Asia Pacific saw a 4% increase in sales, driven by growth in India, while EMEA also experienced a 4% increase led by the Industrial Motion segment [12] - The company reported a backlog increase at the end of 2025, indicating encouraging order activity across several industrial markets [8] Company Strategy and Development Direction - The company is focusing on strategic initiatives such as the 80/20 portfolio work to exit underperforming businesses and prioritize high-impact actions for margin and growth [9] - New leadership appointments, including a Chief Technology Officer and Vice President of Marketing, aim to align the organization with primary growth drivers and enhance innovation [10] - The company plans to continue integrating acquisitions and driving synergies through global expansion [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, expecting organic revenue growth of 2% driven by higher pricing and modest volume growth despite ongoing trade volatility [8][38] - The company anticipates adjusted EPS to increase by around 8% at the midpoint of guidance for 2026, with a focus on generating stronger top and bottom line performance [19][22] - Management acknowledged macroeconomic uncertainties but emphasized the importance of executing strategic initiatives to improve performance [9][23] Other Important Information - The company plans to host an Investor Day on May 20, 2026, to provide further insights into its strategy and performance [5] - The company expects to generate around $350 million in free cash flow for the full year 2026, representing approximately 105% conversion on GAAP net income [20] Q&A Session Summary Question: Order trends in Q4 and January outlook - Management noted that Q4 orders were better than expected, with a strong order book contributing to optimism for 2026 despite some seasonal declines [30][32] Question: Segment contribution to full year guidance - Management explained that the difference in performance between Engineered Bearings and Industrial Motion was largely due to mix issues, with expectations for improved margins moving forward [35][36] Question: Headwinds from distribution inventories - Management indicated that distribution inventories are in good shape, with expectations for low single-digit growth next year [45][46] Question: Volume growth expectations for 2026 - Management expects volumes to be slightly lower in Q1 2026 due to a challenging comparison from the previous year, with pricing expected to offset this decline [50][51] Question: Impact of 80/20 strategy on revenue - Management clarified that the 80/20 strategy aims to simplify operations and focus on growth, with potential upfront costs before benefits materialize [55][56] Question: M&A strategy and portfolio focus - Management emphasized that M&A remains a priority, with plans to clarify the strategy at the upcoming Investor Day [97][98]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q4 2025 was $1.40, exceeding the high end of guidance range [5] - Total sales in Q4 increased by 3.5% year-over-year, with organic revenue growth of over 1% driven by higher pricing and volume in the industrial motion segment [5][10] - Free cash flow reached $141 million in Q4, allowing the company to return $36 million to shareholders and reduce debt by over $100 million [5][16] - The company ended 2025 with a net leverage of 2 times, indicating a strong balance sheet [6] Business Line Data and Key Metrics Changes - Engineered bearings sales were $714 million in Q4, up 0.9% from last year, with organic sales down 1% due to lower volumes offsetting higher pricing [13] - Industrial motion sales were $397 million in Q4, up 8.4% year-over-year, with organic sales increasing by 5.6% driven by higher demand and pricing [14] Market Data and Key Metrics Changes - In the Americas, sales were flat, with growth in North America offset by lower revenue in Latin America [11] - Asia Pacific saw a 4% increase in sales, driven by growth in India and other regions, despite lower revenue in China [11] - EMEA also experienced a 4% increase, led by growth in the industrial motion segment [11] Company Strategy and Development Direction - The company is focusing on strategic initiatives, including the 80/20 portfolio work, to exit underperforming businesses and prioritize high-impact actions for margin and growth [7][8] - New leadership appointments, including a Chief Technology Officer and Vice President of Marketing, aim to align the organization with growth drivers and enhance innovation [9] - The company plans to generate organic revenue growth, strong free cash flow, and higher margins in 2026, with an expected adjusted EPS increase of around 8% [6][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving customer demand and order activity in 2026, despite macroeconomic uncertainties [6][30] - The company anticipates a 2% organic sales growth in 2026, driven by higher pricing and modest volume growth [17][36] - Management highlighted the importance of the 80/20 approach in simplifying operations and enhancing margins, although benefits may take time to materialize [52] Other Important Information - The company plans to host an Investor Day on May 20, 2026, to provide further insights into its strategy and performance [4] - Adjusted EBITDA margins for Q4 were 16%, slightly down from 16.6% the previous year, with cost savings and pricing actions helping to mitigate headwinds [10][12] Q&A Session Summary Question: How did orders progress through Q4 and into January? - Management noted that Q4 orders were better than expected, with a strong order book contributing to optimism for 2026, despite some seasonal declines [27][30] Question: Can you provide more color on segment contributions to the full-year guide? - Management indicated that margins were impacted by mix issues in engineered bearings, while industrial motion performed strongly, contributing to overall positive expectations [31][34] Question: What are the expectations for volume growth in 2026? - Management expects volumes to be slightly lower in Q1 due to a strong comparison from the previous year, with overall organic sales expected to be flat year-over-year [46][47] Question: How will new executive appointments impact innovation and sales growth? - The new appointments are focused on creating a framework for growth, aligning the company with macro trends, and enhancing the innovation portfolio [88][90] Question: What is the company's stance on M&A activity? - Management clarified that M&A remains a priority, with a focus on defining strategy and identifying potential acquisitions while also considering divestitures [92][94]

Certain statements in this presentation (including statements regarding the Company's forecasts, beliefs, estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to Timken's plans, outlook, future financial performance, targets, projected sales, cash flows, liquidity, cost reduction measures and expectations regarding the future financial performance of the ...