Financial Data and Key Metrics Changes - Revenue for Q2 2024 was just under $1.2 billion, down 7% from last year's record revenue, and flat sequentially from Q1 2024 [5][12] - Adjusted EBITDA margins were 19.5%, compared to 20.7% last year, reflecting strong operational execution despite lower organic sales volume [15][17] - Earnings per share (EPS) were $1.63, negatively impacted by revenue decline, a higher tax rate, and increased interest costs [5][18] Business Line Data and Key Metrics Changes - Engineered Bearings sales were $783 million, down 8.6% year-over-year, primarily due to lower wind energy demand in China [19] - Industrial Motion sales were $399 million, down 3.9% from last year, with organic sales declining 9.2% [20] - Excluding wind energy, organic revenue would have been down less than 3% from last year, indicating resilience in other sectors [13][39] Market Data and Key Metrics Changes - In the Americas, revenue was down about 1%, with growth in distribution, on-highway auto, and aerospace, while marine and heavy industry sectors were lower [14] - Asia Pacific saw an 18% decline, driven by lower wind energy demand in China, partially offset by growth in India [15] - EMEA experienced a 12% decline, mainly due to industrial weakness in Western Europe [15] Company Strategy and Development Direction - The company aims to strengthen its portfolio through bolt-on M&A and capital allocation, with a focus on operational excellence and cost management [8][11] - The CEO transition is on track for early September, with confidence in future growth under new leadership [11] - The company is committed to achieving long-term financial targets and expects markets to rebound in 2025 and beyond [11][24] Management's Comments on Operating Environment and Future Outlook - Management noted that while the second half of 2024 is expected to see seasonal revenue declines, year-over-year results are anticipated to improve significantly due to easing comparisons in renewable energy [9][10] - The company remains cautious about a broad second-half strengthening in industrial markets, with guidance for adjusted EPS in the range of $6 to $6.20 [25][26] - Management expressed optimism about the potential recovery in the renewable energy sector, particularly in China, but acknowledged the challenges in returning to peak levels [29][58] Other Important Information - The company returned $54 million to shareholders through dividends and share repurchases during the quarter, with a 3% increase in the quarterly dividend [22] - The net debt position stands below the midpoint of the targeted leverage range, reflecting strong cash flow and capital allocation strategies [8][22] - The company expects free cash flow to exceed $350 million for the year, with ongoing investments in manufacturing footprint expansions [27] Q&A Session Summary Question: Can you elaborate on the status of the renewable energy business? - Management indicated that the renewable energy business, particularly in China, appears to have bottomed out, with expectations for potential growth next year, although returning to peak levels may take longer [29] Question: What are the potential EBITDA drivers for 2025 unrelated to volume? - Management highlighted that footprint actions, capital allocation strategies, and targeted cost initiatives would contribute to EBITDA improvements in 2025 [30] Question: How does the company view capital allocation in the current environment? - Management emphasized that capital allocation would continue to be a meaningful contributor to results, focusing on accretive M&A and share buybacks [33] Question: What is the outlook for the first quarter of 2025? - Management noted that historical trends suggest a typical seasonal bump from Q4 to Q1, with expectations for organic growth to return in the first quarter of 2025 [35] Question: How are orders trending in the core businesses? - Orders, excluding wind energy, are down year-on-year but flattish sequentially, supporting the overall outlook [38] Question: What is the performance of the industrial distribution segment? - The industrial distribution segment showed stable performance in line with normal seasonality, with broad support across various regions [43] Question: What are the expectations for cost savings and structural cost reductions? - Management indicated ongoing operational excellence initiatives and facility consolidations would yield cost savings, contributing to margin support in 2024 and beyond [46][48]

Timken Reports Second-Quarter 2024 Results NORTH CANTON, Ohio: July 31, 2024 — The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, today reported second-quarter 2024 sales of $1.18 billion, down 7.1 percent from last year's record level. Organically, sales were down 7.7 percent, with most of the decline attributable to significantly lower renewable energy demand in China. Sales were relatively flat compared to the first quarter on an organ ...

Sales of $1.18 billion, in line with company expectations Second-quarter earnings per share of $1.36; adjusted EPS of $1.63 Net income margin of 8.1 percent; adjusted EBITDA margin of 19.5 percent Updates full-year 2024 outlook; now expects EPS of $5.00-$5.20, with adjusted EPS of $6.00-$6.20 NORTH CANTON, Ohio, July 31, 2024 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, today reported second-quarter 2024 sales of $1. ...

Timken (TKR) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the oth ...

Price and EPS Surprise Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. This maker of bearings and power transmissions has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 14.69%. The Zacks Earnings ESP compares the Most Accurate Estimate to th ...

NORTH CANTON, Ohio, July 10, 2024 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, will release its second-quarter 2024 financial results on Wednesday, July 31, prior to the opening of the New York Stock Exchange. The company will host a conference call that day to discuss its financial performance with investors and securities analysts. The financial results and conference call materials will be available online at http ...

NORTH CANTON, Ohio, July 9, 2024 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, has been recognized among Newsweek's America's Greatest Workplaces and U.S. News & World Report's Best Companies to Work For. The Newsweek ranking is based on a study by data research firm Plant-A Insights, which collected over 1.5 million comprehensive company reviews from more than 250,000 employees. U.S. News determined its list using a ...

It has been about a month since the last earnings report for Timken (TKR) . Shares have lost about 4% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Timken due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Timken Tops Q1 Earnings Estimates, Raises '24 View Timke ...

Financial Data and Key Metrics Changes - The company reported revenue of just under $1.2 billion for the first quarter, down 5.7% from the previous year [20] - Adjusted EBITDA margin was 20.7%, a decrease of only 30 basis points year-over-year, reflecting strong margin performance despite lower organic volume [20][49] - Earnings per share (EPS) was $1.77, down 15% from last year's record quarter, marking the fourth highest quarter in company history [16][23] Business Line Data and Key Metrics Changes - Engineered Bearings sales were $803 million, down 10.9% from last year, with organic sales down 10.3% due to lower demand across most sectors [24] - Industrial Motion segment sales were $388 million, up 7.1% from last year, but organic sales declined 6.5% as lower demand was partially offset by higher pricing [25] - Acquisitions completed last year contributed positively, with adjusted EBITDA from acquisitions at $13 million, reflecting a 26% margin on net acquisition revenue [50] Market Data and Key Metrics Changes - In the Americas, revenue was down 4% year-over-year, with Off-Highway sectors leading the decline, while services and aerospace showed notable increases [21] - Asia-Pacific saw a 21% decline, primarily driven by a significant drop in wind energy in China, although India experienced double-digit growth in rail and industrial demand [21] - EMEA region was down 9%, with most sectors lower, particularly in Western Europe, while services showed an increase [21] Company Strategy and Development Direction - The company is focused on capitalizing on secular growth trends such as infrastructure spending, reshoring, defense, automation, and sustainability [9] - There is a commitment to disciplined capital allocation towards CapEx, dividends, M&A, and share repurchases, with a bias towards M&A [9] - The company aims to achieve long-term financial targets and scale as a diversified global industrial leader [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the demand situation has stabilized, there are no imminent catalysts for growth, particularly in the wind energy sector, which saw a decline of over 50% in revenue [7] - The outlook for the remainder of the year is cautiously optimistic, with expectations for flattish revenue in Q2 and seasonal declines in the second half [17] - Management expressed confidence in the growth potential of the portfolio and ongoing investments in digital capabilities and operational excellence initiatives [45] Other Important Information - The company ended the first quarter with net debt of just under $2 billion, maintaining a net debt to adjusted EBITDA ratio of 2.1 times, well within the targeted range [54] - The company reaffirmed its full-year free cash flow outlook of approximately $425 million, representing over 110% conversion on GAAP net income [57] Q&A Session Summary Question: What are the trends in Industrial Distribution and the outlook for Q2? - Management indicated that distribution markets performed slightly stronger than expected, with a nice step-up from Q4 to Q1, and channel inventory is flattish to down a little [35][59] Question: Can you provide updates on the integration and performance of recent acquisitions? - Management reported that integration efforts are ahead of schedule, particularly for cost-related improvements, while revenue-focused acquisitions are performing well [84] Question: What percentage of the portfolio is facing secular growth drivers? - Approximately 29% of the portfolio is aligned with secular growth drivers such as renewable energy and automation [88] Question: What is the confidence level for Q3 being up year-over-year on an organic basis? - Management indicated that while Q2 is expected to be down high single digits, they anticipate revenue to start flattening out in the back half of the year due to easier comps [92]

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR For the transition period from to Commission file number: 1-1169 THE TIMKEN COMPANY (Exact name of registrant as specified in its charter) Ohio 34-0577130 (State or other jurisdiction of incorporation ...