Timken Reports Third-Quarter 2025 Results

Core Insights - The Timken Company reported third-quarter 2025 results showing a 2.7% increase in net sales to $1.16 billion compared to the same period last year, driven by higher pricing and favorable foreign currency translation [3][12] - The company experienced a decline in net income margin to 6.0% from 7.3% year-over-year, with diluted EPS decreasing by 14.7% to $0.99, while adjusted EPS increased by 11.4% to $1.37 [4][5][12] - Timken's net cash from operations rose significantly by 63.2% to $201.1 million, and free cash flow increased by 85.7% to $163.8 million [6][12] Financial Performance - Net sales for Q3 2025 were $1,157.1 million, up from $1,126.8 million in Q3 2024, reflecting a 2.7% increase [2] - Net income for the quarter was $69.3 million, or $0.99 per diluted share, compared to $81.8 million, or $1.16 per diluted share, in the prior year [4][12] - Adjusted net income was $96.2 million, or $1.37 per diluted share, compared to $87.0 million, or $1.23 per diluted share, in Q3 2024 [5][12] Segment Performance - Engineered Bearings segment sales reached $765.8 million, a 3.4% increase driven by renewable energy demand and higher pricing [7] - Industrial Motion segment sales were $391.3 million, up 1.3%, benefiting from the CGI acquisition and favorable pricing [9] Operational Highlights - Adjusted EBITDA for the quarter was $201.7 million, representing 17.4% of sales, compared to $190.0 million or 16.9% of sales in Q3 2024 [5][12] - The company emphasized a focus on improving margins and growth in profitable verticals, aiming for significant shareholder value [3] Outlook - Timken updated its full-year 2025 earnings per diluted share forecast to a range of $3.90 to $4.00, with adjusted EPS expected between $5.20 and $5.30 [11][12]