Timken(US:TKR) Prnewswire·2026-02-04 11:51Core Insights - The Timken Company reported a strong finish to 2025, with higher organic sales and cash flow in Q4 compared to the previous year [3][4][12] - The company anticipates organic revenue growth, strong cash flow, and improved margins and earnings in 2026 [3][16] Financial Performance - Q4 2025 net sales reached $1.11 billion, a 3.5% increase from Q4 2024, driven by higher pricing and favorable foreign currency translation [2][3] - Net income for Q4 2025 was $62.3 million, or $0.89 per diluted share, down from $71.2 million, or $1.01 per diluted share in Q4 2024 [4][12] - Adjusted EBITDA margin for Q4 2025 was 16.0%, a decrease of 60 basis points from 16.6% in Q4 2024 [2][5] Segment Performance - Engineered Bearings segment sales were $714.2 million, up 0.9% year-over-year, primarily due to higher pricing [7][24] - Industrial Motion segment sales increased by 8.4% to $396.8 million, driven by higher demand and pricing [9][24] Full-Year Results - Total sales for 2025 were $4.58 billion, a modest increase of 0.2% compared to 2024, with organic sales down 1.0% [11][13] - Full-year net income was $288.4 million, or $4.11 per diluted share, compared to $352.7 million, or $4.99 per diluted share in 2024 [13][14] Cash Flow and Shareholder Returns - Net cash from operations for 2025 was $554.3 million, up 16.5% from $475.7 million in 2024 [15] - Free cash flow for the year was $406.1 million, a 32.8% increase from $305.7 million in 2024 [15] - The company returned $155.7 million to shareholders through dividends and share repurchases in 2025 [15] 2026 Outlook - The company projects 2026 diluted EPS in the range of $4.50 to $5.00 and adjusted EPS between $5.50 and $6.00 [12][16] - Revenue growth for 2026 is expected to be between 2% and 4% compared to 2025 [16]