Timken Reports Modest Sales Growth in Q4 2025

By Chris Stiles • Wednesday, February 04 11:59 • Permanent Link

Timken Reports Fourth-Quarter and Full-Year 2025 Results

Timken Company (NYSE: TKR) shared its financial results for the fourth quarter and full year of 2025. The company reported sales of $1.11 billion for the fourth quarter, marking a 3.5% increase from the previous year. Additionally, the full-year 2025 sales were reported at $4.6 billion, reflecting a modest increase of 0.2% compared to 2024.

The diluted EPS for the fourth quarter was $0.89, with an adjusted EPS of $1.14. For the full year 2025, the diluted EPS stood at $4.11, while the adjusted EPS was $5.33. These figures represent a change from the prior year, with the fourth-quarter diluted EPS showing a decrease of 11.9% and the adjusted EPS down by 1.7%. The full-year diluted EPS experienced a decline of 17.6%, while the adjusted EPS decreased by 7.9% compared to 2024.

In terms of cash flow, Timken reported cash from operations of $554 million for the full year, with free cash flow amounting to $406 million. These figures show a notable increase from the previous year, with cash from operations up by 16.5% and free cash flow rising by 32.8%.

Looking ahead, the company provided an initial estimate for 2026 EPS, expecting it to be in the range of $4.50 to $5.00, with adjusted EPS projected to be between $5.50 and $6.00. Timken is also planning for a 2% to 4% increase in revenue for 2026 compared to 2025.

The company's net income margins for both the fourth quarter and the full year of 2025 experienced declines compared to the prior year. In the fourth quarter, the net income margin was 5.6%, down from 6.6% in the same period of 2024. For the full year, the net income margin was 6.3%, a decrease from 7.7% in 2024.

Timken also highlighted its performance across segments. In the engineered bearings segment, fourth-quarter sales increased by 0.9% compared to the same period in the previous year. However, the adjusted EBITDA margin declined to 16.1% from 17.2% in the fourth quarter of 2024. The industrial motion segment saw a more significant sales increase of 8.4% in the fourth quarter, with an adjusted EBITDA margin of 21.0%, up from 19.3% in the same period of 2024.

Following these announcements, the company's shares moved -0.19%, and are now trading at a price of $93.55. Check out the company's full 8-K submission here.

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