Timken(US:TKR)2025-10-29 10:53Financial Performance - Timken reported third-quarter 2025 net sales of $1.16 billion, an increase of 2.7% compared to $1.13 billion in the same period last year[3][4]. - The company's net income for the quarter was $69.3 million, or $0.99 per diluted share, down from $81.8 million, or $1.16 per diluted share, in the prior year[5][6]. - Adjusted EBITDA margin improved to 17.4%, up 50 basis points from 16.9% in the third quarter of 2024, with adjusted EBITDA of $201.7 million[3][7]. - Free cash flow for the quarter was $163.8 million, a significant increase of 85.7% from $88.2 million in the same period last year[8][6]. - Net income for Q3 2025 was $74.3 million, a decrease of 15.0% compared to $87.6 million in Q3 2024[26]. - Adjusted net income attributable to The Timken Company for Q3 2025 was $96.2 million, representing an increase of 10.6% from $87.0 million in Q3 2024[28]. - Adjusted diluted earnings per share (EPS) for Q3 2025 was $1.37, compared to $1.23 in Q3 2024, reflecting an increase of 11.4%[28]. - Consolidated EBITDA for the three months ended September 30, 2025, was $191.0 million, accounting for 16.5% of net sales, down from $195.2 million (17.3%) in 2024[32]. - Adjusted EBITDA for the three months ended September 30, 2025, was $201.7 million, or 17.4% of net sales, compared to $190.0 million (16.9%) in 2024[32]. Segment Performance - Engineered Bearings segment sales reached $765.8 million, up 3.4% year-over-year, driven by higher renewable energy demand and pricing[9]. - Industrial Motion segment sales were $391.3 million, reflecting a 1.3% increase, supported by the CGI acquisition and favorable pricing[11]. - Engineered Bearings segment net sales increased to $765.8 million in Q3 2025, up from $740.7 million in Q3 2024, while Industrial Motion segment net sales rose to $391.3 million from $386.1 million[23]. Guidance and Forecast - Timken updated its full-year 2025 EPS guidance to a range of $3.90 to $4.00, with adjusted EPS expected between $5.20 and $5.30[6][13]. - The company anticipates a slight revenue decline of approximately 0.75% for 2025, an improvement from previous forecasts[13]. - Forecasted full year GAAP diluted earnings per share for 2025 is between $3.90 and $4.00, with adjusted diluted earnings per share expected to be between $5.20 and $5.30[43]. Cash Flow and Investments - The company reported net cash provided by operating activities of $201.1 million for the three months ended September 30, 2025, compared to $123.2 million in 2024[36]. - Total cash used in investing activities was $45.5 million in Q3 2025, a significant decrease from $190.6 million in Q3 2024[26]. - Capital expenditures for Q3 2025 were $37.3 million, slightly higher than $35.0 million in Q3 2024[26]. - The company reported a net cash increase of $30.7 million in Q3 2025, contrasting with a decrease of $57.6 million in Q3 2024[26]. Balance Sheet and Financial Position - Total assets increased to $6,801.9 million as of September 30, 2025, compared to $6,411.0 million at the same time in 2024[25]. - Total liabilities rose to $3,505.1 million in Q3 2025, up from $3,426.9 million in Q3 2024, indicating a growth in financial obligations[25]. - Long-term debt stood at $2,091.4 million as of September 30, 2025, compared to $2,049.7 million in the previous year, indicating an increase in leverage[25]. - Total debt as of September 30, 2025, was $2,112.8 million, with net debt at $1,663.7 million, resulting in a net debt to capital ratio of 33.5%[34]. - The cash and cash equivalents balance was $449.1 million as of September 30, 2025, compared to $373.2 million in the previous year, showing improved liquidity[25]. - Inventories increased to $1,225.9 million in Q3 2025 from $1,195.6 million in Q3 2024, suggesting a buildup of stock[25]. Cost Management - The company reported unallocated corporate expenses of $(17.0) million in Q3 2025, down from $(22.6) million in Q3 2024, reflecting improved cost management[23]. - The company experienced a net loss of $55.8 million related to long-term debt payments in Q3 2025, compared to a net gain of $1.1 million in Q3 2024[26]. - The company is focused on leveraging its differentiated solutions to enhance margins and drive growth in profitable verticals[4].