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Timken Reports First-Quarter 2025 Results
TKRTimken(TKR) Prnewswire·2025-04-30 10:51

Core Insights - The Timken Company reported first-quarter 2025 net sales of 1.14billion,adecreaseof4.21.14 billion, a decrease of 4.2% compared to the same period last year, attributed to lower end-market demand and unfavorable foreign currency translation, partially offset by acquisitions [1][13] - Net income for the quarter was 78.3 million, or 1.11perdilutedshare,downfrom1.11 per diluted share, down from 103.5 million, or 1.46perdilutedshare,intheprioryear[2][26]−Thecompanyhasadjusteditsfull−year2025outlook,forecastingdilutedearningspershareintherangeof1.46 per diluted share, in the prior year [2][26] - The company has adjusted its full-year 2025 outlook, forecasting diluted earnings per share in the range of 3.90 to 4.40andadjustedearningspersharebetween4.40 and adjusted earnings per share between 5.10 and 5.60,reflectingtheimpactoftariffsandexpectedlowerdemand[9][51]FinancialPerformance−First−quarteradjustedEBITDAwas5.60, reflecting the impact of tariffs and expected lower demand [9][51] Financial Performance - First-quarter adjusted EBITDA was 208.1 million, representing 18.2% of sales, down from 246.4millionor20.7246.4 million or 20.7% of sales in the same quarter last year [3][6] - The net income margin for the quarter was 6.9%, a decline from 8.7% in the previous year [2][19] - Free cash flow increased to 23.4 million from 5.2millionintheprioryear,withnetcashprovidedbyoperationsrisingto5.2 million in the prior year, with net cash provided by operations rising to 58.6 million [4][41] Segment Performance - Engineered Bearings segment sales were 760.7million,down5.2760.7 million, down 5.2% year-over-year, primarily due to lower demand in various sectors [5][19] - Industrial Motion segment sales decreased by 2.1% to 379.6 million, with higher revenue in some platforms offset by lower demand in others [7][19] - Adjusted EBITDA for the Engineered Bearings segment was 159.2million,or20.9159.2 million, or 20.9% of sales, compared to 181.4 million or 22.6% of sales in the prior year [6][19] Outlook and Strategic Initiatives - The company is implementing cost reduction measures expected to generate gross savings of approximately 75millionin2025[10][11]−Timkenanticipatesanetdirectimpactfromtariffsofabout75 million in 2025 [10][11] - Timken anticipates a net direct impact from tariffs of about 25 million in 2025, with plans to mitigate these costs by year-end [9][10] - The management remains focused on navigating the unpredictable business environment and is actively pursuing pricing and cost-saving strategies [11][30]