Timken Reports Second-Quarter 2025 Results
Timken (NYSE:TKR) reported Q2 2025 results with sales of $1.17 billion, down 0.8% year-over-year. The company posted net income of $78.5 million, or $1.12 per diluted share, compared to $96.2 million or $1.36 per share in Q2 2024.
Key financial metrics include adjusted EPS of $1.42, strong cash from operations of $111.3 million, and free cash flow of $78.2 million. The company returned $47.0 million to shareholders through dividends and share repurchases.
Timken updated its 2025 outlook, now expecting revenue to decline -2.0% to -0.5% compared to 2024, with adjusted EPS guidance of $5.10-$5.40, reflecting a cautious view on second-half demand amid challenging market conditions.
Timken (NYSE:TKR) ha comunicato i risultati del secondo trimestre 2025 con vendite pari a 1,17 miliardi di dollari, in calo dello 0,8% rispetto all'anno precedente. L'azienda ha registrato un utile netto di 78,5 milioni di dollari, ovvero 1,12 dollari per azione diluita, rispetto a 96,2 milioni di dollari o 1,36 dollari per azione nel secondo trimestre 2024.
I principali indicatori finanziari includono un utile per azione rettificato di 1,42 dollari, una solida generazione di cassa dalle operazioni pari a 111,3 milioni di dollari e un flusso di cassa libero di 78,2 milioni di dollari. L'azienda ha restituito 47,0 milioni di dollari agli azionisti tramite dividendi e riacquisti di azioni.
Timken ha aggiornato le previsioni per il 2025, prevedendo ora un calo dei ricavi compreso tra -2,0% e -0,5% rispetto al 2024, con una guidance sull'utile per azione rettificato tra 5,10 e 5,40 dollari, riflettendo una visione prudente sulla domanda nella seconda met脿 dell'anno, in un contesto di mercato difficile.
Timken (NYSE:TKR) inform贸 resultados del segundo trimestre de 2025 con ventas de 1.17 mil millones de d贸lares, una disminuci贸n del 0.8% interanual. La compa帽铆a report贸 un ingreso neto de 78.5 millones de d贸lares, o 1.12 d贸lares por acci贸n diluida, en comparaci贸n con 96.2 millones de d贸lares o 1.36 d贸lares por acci贸n en el segundo trimestre de 2024.
Los principales indicadores financieros incluyen un EPS ajustado de 1.42 d贸lares, un s贸lido flujo de caja operativo de 111.3 millones de d贸lares y un flujo de caja libre de 78.2 millones de d贸lares. La empresa devolvi贸 47.0 millones de d贸lares a los accionistas mediante dividendos y recompra de acciones.
Timken actualiz贸 su perspectiva para 2025, esperando ahora que los ingresos disminuyan entre -2.0% y -0.5% en comparaci贸n con 2024, con una gu铆a de EPS ajustado de 5.10 a 5.40 d贸lares, reflejando una visi贸n cautelosa sobre la demanda en la segunda mitad del a帽o en medio de condiciones de mercado desafiantes.
Timken (NYSE:TKR)鞚� 2025雲� 2攵勱赴 鞁れ爜鞚� 氚滍憸頃橂┌ 毵れ稖鞎§澊 11鞏� 7觳滊 雼煬搿� 鞝勲厔 霃欔赴 雽�牍� 0.8% 臧愳唽頄堨姷雼堧嫟. 須岇偓電� 靾滌澊鞚� 7,850毵� 雼煬, 頋劃 欤茧嫻靾滌澊鞚� 1.12雼煬毳� 旮半頄堨溂氅�, 鞚措姅 2024雲� 2攵勱赴鞚� 9,620毵� 雼煬 霕愲姅 欤茧嫻 1.36雼煬鞕� 牍勱祼霅╇媹雼�.
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Timken鞚� 2025雲� 鞝勲鞚� 鞐呺嵃鞚错姼頃橂┌, 2024雲� 雽�牍� 毵れ稖鞚� -2.0%鞐愳劀 -0.5% 靷澊 臧愳唽頃� 瓴冹溂搿� 鞓堨儊頃橁碃 鞛堨溂氅�, 臁办爼 欤茧嫻靾滌澊鞚� 臧�鞚措崢鞀る姅 5.10词5.40雼煬搿�, 鞏措牑鞖� 鞁滌灔 靸來櫓 靻嶌棎靹� 頃橂皹旮� 靾橃殧鞐� 雽�頃� 鞁犾頃� 鞁滉皝鞚� 氚橃榿頃橁碃 鞛堨姷雼堧嫟.
Timken (NYSE:TKR) a annonc茅 ses r茅sultats du deuxi猫me trimestre 2025 avec un chiffre d'affaires de 1,17 milliard de dollars, en baisse de 0,8 % par rapport 脿 l'ann茅e pr茅c茅dente. La soci茅t茅 a r茅alis茅 un b茅n茅fice net de 78,5 millions de dollars, soit 1,12 dollar par action dilu茅e, contre 96,2 millions de dollars ou 1,36 dollar par action au deuxi猫me trimestre 2024.
Les principaux indicateurs financiers comprennent un b茅n茅fice par action ajust茅 de 1,42 dollar, un flux de tr茅sorerie op茅rationnel solide de 111,3 millions de dollars et un flux de tr茅sorerie libre de 78,2 millions de dollars. La soci茅t茅 a revers茅 47,0 millions de dollars aux actionnaires sous forme de dividendes et de rachats d'actions.
Timken a mis 脿 jour ses pr茅visions pour 2025, s'attendant d茅sormais 脿 une baisse du chiffre d'affaires comprise entre -2,0 % et -0,5 % par rapport 脿 2024, avec une guidance de b茅n茅fice par action ajust茅 entre 5,10 et 5,40 dollars, refl茅tant une vision prudente de la demande au second semestre dans un contexte de march茅 difficile.
Timken (NYSE:TKR) meldete die Ergebnisse f眉r das zweite Quartal 2025 mit einem Umsatz von 1,17 Milliarden US-Dollar, was einem R眉ckgang von 0,8 % im Jahresvergleich entspricht. Das Unternehmen erzielte einen Nettogewinn von 78,5 Millionen US-Dollar bzw. 1,12 US-Dollar je verw盲sserter Aktie, verglichen mit 96,2 Millionen US-Dollar oder 1,36 US-Dollar je Aktie im zweiten Quartal 2024.
Wichtige Finanzkennzahlen umfassen ein bereinigtes Ergebnis je Aktie von 1,42 US-Dollar, einen starken operativen Cashflow von 111,3 Millionen US-Dollar und einen freien Cashflow von 78,2 Millionen US-Dollar. Das Unternehmen gab 47,0 Millionen US-Dollar an die Aktion盲re in Form von Dividenden und Aktienr眉ckk盲ufen zur眉ck.
Timken aktualisierte seine Prognose f眉r 2025 und erwartet nun einen Umsatzr眉ckgang von -2,0 % bis -0,5 % im Vergleich zu 2024, mit einer bereinigten Ergebnisprognose je Aktie von 5,10 bis 5,40 US-Dollar, was eine vorsichtige Einsch盲tzung der Nachfrage in der zweiten Jahresh盲lfte angesichts herausfordernder Marktbedingungen widerspiegelt.
- Strong cash from operations of $111.3 million and free cash flow of $78.2 million
- Increased quarterly dividend by 3% and repurchased over 340,000 shares
- Higher renewable energy demand and successful pricing actions
- CGI acquisition contributing to revenue
- Sales declined 0.8% year-over-year to $1.17 billion
- Net income margin decreased to 6.7% from 8.1% year-over-year
- Adjusted EBITDA margin declined to 17.7% from 19.5%
- Lowered high-end of full-year 2025 outlook
- Incremental tariff costs impacting both segments
Insights
Timken reports lower Q2 earnings with reduced guidance amid challenging industrial environment and tariff impacts.
Timken's Q2 2025 results reveal a company navigating headwinds while maintaining operational discipline. Revenue declined
The margin story shows increasing pressure, with adjusted EBITDA margin contracting
Despite challenges, Timken's cash generation remains a bright spot, with
The reduced 2025 guidance is particularly significant. Timken now expects full-year adjusted EPS of
While near-term challenges persist, management expressed optimism about 2026, suggesting they're positioning for an anticipated industrial market expansion. This indicates they view current headwinds as cyclical rather than structural issues affecting their long-term competitive position.
- Sales of
$1.17 billion - Second-quarter diluted EPS of
$1.12 $1.42 - Strong cash from operations of
$111 million $78 million - Updates full-year 2025 outlook; now expects EPS of
$3.90 -$4.20 $5.10 -$5.40
2Q-25 | 2Q-24 | % Change | |||||||||
Net Sales (mils.) | (0.8)听% | ||||||||||
Net Income Margin | 6.7听% | 8.1听% | (140 bps) | ||||||||
Adjusted EBITDA Margin | 17.7听% | 19.5听% | (180 bps) | ||||||||
Diluted EPS | (17.6)听% | ||||||||||
Adjusted EPS | (12.9)听% |
听
Timken posted net income in the second quarter of
Excluding special items (detailed in the attached tables), adjusted net income in the second quarter was
Net cash provided by operations in the quarter was
"Timken delivered second-quarter results that were largely in line with expectations, as our team continues to manage through this period of elevated uncertainty," said Richard G. Kyle, president and chief executive officer. "We have implemented pricing and other actions to mitigate the impact of tariffs, and we remain focused on serving customers and driving cost initiatives to deliver resilient financial performance in 2025."
Second-Quarter 2025 Segment Results
Engineered Bearings听sales of
Adjusted EBITDA in the quarter was
Industrial Motion听sales of
Adjusted EBITDA in the quarter was
2025 Outlook
Timken is reducing the high-end of its full-year 2025 outlook, with earnings per diluted share now forecasted to be in the range of
"We expect the operating environment to remain challenging in the second half, as the trade situation and related macro effects continue to develop," said Kyle. "Looking further ahead, we are optimistic about 2026 and are beginning to take steps to position the business to capitalize on an industrial market expansion. Our team is confident in the company's ability to deliver higher levels of performance and compelling value for shareholders through the execution of our strategy and disciplined capital allocation."
Conference Call Information
Timken will host a conference call today at 11 a.m. Eastern Time to review its financial results. Presentation materials will be available online in advance of the call for interested investors and securities analysts.
Conference Call: | Wednesday, July 30, 2025 | ||||
11:00 a.m. Eastern Time | |||||
Live Dial-In: 833-470-1428 | |||||
Or 404-975-4839 | |||||
Access Code: 584372 | |||||
(Call in 10 minutes prior to be included.) | |||||
Conference Call Replay: | Replay Dial-In available through | ||||
Aug. 13, 2025: | |||||
866-813-9403 or 929-458-6194 | |||||
Replay Passcode: 502808 | |||||
Live Webcast: |
| ||||
Register in advance: |
|
听
About The Timken Company
The Timken Company (NYSE: TKR; ), a global technology leader in engineered bearings and industrial motion, designs a growing portfolio of next-generation products for diverse industries. For more than 125 years, Timken has used its specialized expertise to innovate and create customer-centric solutions that increase reliability and efficiency. Timken posted
Certain statements in this release (including statements regarding the company's forecasts, estimates, plans and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the company's future financial performance, including information under the heading "Outlook," are forward-looking.
The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the finalization of the company's financial statements for the second quarter of 2025; fluctuations in customer demand for the company's products or services; unanticipated changes in business relationships with customers or their purchases from the company; changes in the financial health of the company's customers, which may have an impact on the company's revenues, earnings and impairment charges; logistical issues associated with port closures, delays or increased costs; the impact of changes to the company's accounting methods; political risks associated with government instability; recent world events that have increased the risks posed by international trade disputes, tariffs, sanctions and hostilities; strained geopolitical relations between countries in which we have significant operations; weakness in global or regional general economic conditions and capital markets (as a result of financial stress affecting the banking system or otherwise); changes in wages, shipping costs, raw material costs, energy and fuel prices, and other production costs; changes in customer demand or tariff rates and other costs associated with tariffs; the company's ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms; fluctuations in currency valuations or interest rates; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion, synergies, and expected cashflow generation within expected timeframes or at all; the company's ability to effectively adjust prices for its products in response to changing dynamics; the impact on the company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; the introduction of new disruptive technologies, such as artificial intelligence; unplanned plant shutdowns; the effects of government-imposed restrictions, commercial requirements, and company goals associated with climate change and emissions or other sustainability initiatives; unanticipated litigation, claims, investigations remediation, or assessments; the rapidly evolving global regulatory landscape and the corresponding heightened operational complexity and compliance risks; restrictions on the use of, or claims or remediation associated with, per- and polyfluoroalkyl substances or polytetrafluoroethylene; the company's ability to maintain positive relations with unions and works councils; the company's ability to compete for skilled labor and to attract, retain and develop management, other key employees, and skilled personnel; negative impacts to the company's operations or financial position as a result of pandemics, epidemics, or other public health concerns and associated governmental measures; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, acquisitions, capital investments, and cost reduction actions. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Media Relations:
Scott Schroeder
234.262.6420
[email protected]
Investor Relations:
Neil Frohnapple
234.262.2310
[email protected]
The Timken Company | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
(Dollars in millions, except share data) (Unaudited) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||
Net sales | $ | 1,173.4 | $ | 1,182.3 | $ | 2,313.7 | $ | 2,372.6 | ||||||
Cost of products sold | 813.1 | 808.7 | 1,594.7 | 1,601.4 | ||||||||||
Selling, general & administrative expenses | 189.7 | 184.1 | 374.5 | 374.8 | ||||||||||
Amortization of intangible assets | 19.9 | 19.0 | 38.9 | 39.0 | ||||||||||
Impairment and restructuring charges | 2.9 | 3.3 | 13.8 | 5.6 | ||||||||||
Operating Income | 147.8 | 167.2 | 291.8 | 351.8 | ||||||||||
Non-service pension and other postretirement expense | (1.2) | (1.0) | (2.4) | (2.0) | ||||||||||
Other (expense) income, net | (3.4) | 1.2 | (3.7) | 0.3 | ||||||||||
Interest expense, net | (26.8) | (29.5) | (51.0) | (58.9) | ||||||||||
Income Before Income Taxes | 116.4 | 137.9 | 234.7 | 291.2 | ||||||||||
Provision for income taxes | 30.7 | 35.9 | 57.6 | 78.6 | ||||||||||
Net Income | 85.7 | 102.0 | 177.1 | 212.6 | ||||||||||
Less: Net income attributable to noncontrolling interest | 7.2 | 5.8 | 20.3 | 12.9 | ||||||||||
Net Income Attributable to The Timken Company | $ | 78.5 | $ | 96.2 | $ | 156.8 | $ | 199.7 | ||||||
Net Income per Common Share Attributable to The Timken Company Common Shareholders | ||||||||||||||
听听听听Basic Earnings per share | $ | 1.13 | $ | 1.37 | $ | 2.24 | $ | 2.84 | ||||||
听听听听Diluted Earnings per share | $ | 1.12 | $ | 1.36 | $ | 2.23 | $ | 2.82 | ||||||
Average Shares Outstanding | 69,751,965 | 70,364,539 | 69,877,737 | 70,301,757 | ||||||||||
Average Shares Outstanding - assuming dilution | 70,075,084 | 70,849,254 | 70,283,847 | 70,850,792 | ||||||||||
听
BUSINESS SEGMENTS | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
(Dollars in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||
Engineered Bearings | ||||||||||||
Net sales | $ | 777.4 | $ | 783.4 | $ | 1,538.1 | $ | 1,585.9 | ||||
Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA)听(1) | $ | 153.4 | $ | 166.2 | $ | 312.6 | $ | 347.6 | ||||
Adjusted EBITDA Margin听(1) | 19.7 | % | 21.2 | % | 20.3 | % | 21.9 | % | ||||
Industrial Motion | ||||||||||||
Net sales | $ | 396.0 | $ | 398.9 | $ | 775.6 | $ | 786.7 | ||||
Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA)听(1) | $ | 72.6 | $ | 79.7 | $ | 139.7 | $ | 161.8 | ||||
Adjusted EBITDA Margin听(1) | 18.3 | % | 20.0 | % | 18.0 | % | 20.6 | % | ||||
Unallocated corporate expense听(1) | $ | (17.8) | $ | (15.7) | $ | (36.0) | $ | (32.8) | ||||
Consolidated | ||||||||||||
Net sales | $ | 1,173.4 | $ | 1,182.3 | $ | 2,313.7 | $ | 2,372.6 | ||||
Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA)听(1) | $ | 208.2 | $ | 230.2 | $ | 416.3 | $ | 476.6 | ||||
Adjusted EBITDA Margin听(1) | 17.7 | % | 19.5 | % | 18.0 | % | 20.1 | % | ||||
EBITDA is a non-GAAP measure defined as operating income plus other income (expense) and excluding depreciation and amortization. EBITDA Margin is a non-GAAP measure defined as EBITDA as a percentage of net sales. EBITDA and EBITDA Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting EBITDA and EBITDA Margin is useful to investors as these measures are representative of the core operations of the Company. See below for reconciliation of Consolidated EBITDA and Consolidated EBITDA Margin. | ||||||||||||
(1)听Consolidated adjusted EBITDA is a non-GAAP measure defined as EBITDA less impairment, restructuring and reorganization charges, acquisition costs, including transaction costs and the amortization of the inventory step-up, actuarial gains and losses associated with the remeasurement of the Company's defined benefit pension and other postretirement benefit plans, property losses and recoveries, gains and losses on the sale of real estate and divestitures, and other items from time to time that are not part of the Company's core operations. Consolidated adjusted EBITDA Margin is a non-GAAP measure defined as Consolidated adjusted EBITDA as a percentage of net sales. Management believes Consolidated adjusted EBITDA and Consolidated adjusted EBITDA Margin are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting adjusted EBITDA and adjusted EBITDA Margin is useful to investors as these measures are representative of the core operations of the Company. See below for reconciliation of Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin. Segment Adjusted EBITDA is the measurement of segment profit and loss. The Company's Chief Operating Decision Maker ("CODM") utilizes Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin to evaluate segment performance and allocates resources. See the Company's Form 10-Q for a reconciliation of Segment Adjusted EBITDA to income before income taxes. | ||||||||||||
听
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in millions) | (Unaudited) | ||||||
June 30, | December 31, | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 419.3 | $ | 373.2 | |||
Restricted cash | 1.5 | 0.4 | |||||
Accounts receivable, net | 785.6 | 664.6 | |||||
Unbilled receivables | 153.2 | 140.8 | |||||
Inventories, net | 1,222.1 | 1,195.6 | |||||
Other current assets | 138.0 | 142.3 | |||||
Total Current Assets | 2,719.7 | 2,516.9 | |||||
Property, plant and equipment, net | 1,351.3 | 1,306.9 | |||||
Operating lease assets | 132.5 | 130.6 | |||||
Goodwill and other intangible assets | 2,531.4 | 2,389.8 | |||||
Other assets | 79.0 | 66.8 | |||||
Total Assets | $ | 6,813.9 | $ | 6,411.0 | |||
LIABILITIES | |||||||
Accounts payable | $ | 347.0 | $ | 321.7 | |||
Short-term debt, including current portion of long-term debt | 58.7 | 13.0 | |||||
Income taxes | 13.8 | 24.4 | |||||
Accrued expenses | 450.2 | 461.4 | |||||
Total Current Liabilities | 869.7 | 820.5 | |||||
Long-term debt | 2,139.6 | 2,049.7 | |||||
Accrued pension benefits | 145.3 | 157.7 | |||||
Accrued postretirement benefits | 29.8 | 29.8 | |||||
Long-term operating lease liabilities | 85.7 | 84.0 | |||||
Other non-current liabilities | 271.0 | 285.2 | |||||
Total Liabilities | 3,541.1 | 3,426.9 | |||||
EQUITY | |||||||
The Timken Company shareholders' equity | 3,094.7 | 2,826.5 | |||||
Noncontrolling interest | 178.1 | 157.6 | |||||
Total Equity | 3,272.8 | 2,984.1 | |||||
Total Liabilities and Equity | $ | 6,813.9 | $ | 6,411.0 | |||
听
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
(Dollars in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||
Cash Provided by (Used in) | ||||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net Income | $ | 85.7 | $ | 102.0 | $ | 177.1 | $ | 212.6 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 57.2 | 54.2 | 112.3 | 109.5 | ||||||||
Impairment charges | 鈥� | 1.9 | 鈥� | 1.9 | ||||||||
Stock-based compensation expense | 6.9 | 7.0 | 14.4 | 11.5 | ||||||||
Pension and other postretirement expense | 1.9 | 1.7 | 3.7 | 3.3 | ||||||||
Pension and other postretirement benefit contributions and payments | (4.6) | (3.9) | (28.4) | (16.1) | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
听 Accounts receivable | (21.0) | (25.1) | (91.8) | (131.2) | ||||||||
听 Unbilled receivables | 5.9 | (13.3) | (12.3) | (3.8) | ||||||||
听 Inventories | 5.2 | (9.5) | 20.5 | (20.6) | ||||||||
听 Accounts payable | 2.8 | (6.9) | 23.0 | 13.8 | ||||||||
听 Accrued expenses | (11.4) | 10.7 | (27.4) | (20.5) | ||||||||
听 Income taxes | (25.5) | 6.0 | (22.0) | 26.5 | ||||||||
听 Other, net | 8.2 | (0.2) | 0.8 | (13.0) | ||||||||
Net Cash Provided by Operating Activities | $ | 111.3 | $ | 124.6 | $ | 169.9 | $ | 173.9 | ||||
INVESTING ACTIVITIES | ||||||||||||
Capital expenditures | $ | (33.1) | $ | (37.3) | $ | (68.3) | $ | (81.4) | ||||
Investments in short-term marketable securities, net | 3.9 | 1.1 | 4.7 | 20.8 | ||||||||
Other, net | 0.1 | 1.3 | 2.0 | 1.2 | ||||||||
Net Cash Used in Investing Activities | $ | (29.1) | $ | (34.9) | $ | (61.6) | $ | (59.4) | ||||
FINANCING ACTIVITIES | ||||||||||||
Cash dividends paid to shareholders | $ | (24.4) | $ | (23.9) | $ | (49.5) | $ | (48.4) | ||||
Purchase of treasury shares | (22.6) | (29.7) | (45.7) | (29.7) | ||||||||
Proceeds from exercise of stock options | 0.2 | 3.4 | 0.5 | 5.4 | ||||||||
Payments related to tax withholding for stock-based compensation | (0.3) | (1.1) | (9.8) | (10.0) | ||||||||
Net (payments) proceeds from credit facilities | (1.1) | (499.2) | 26.9 | (481.5) | ||||||||
Net (payments) proceeds on long-term debt | (6.1) | 287.9 | (7.3) | 286.6 | ||||||||
Proceeds on sale of shares in Timken India Limited | 鈥� | 232.3 | 鈥� | 232.3 | ||||||||
Other, net | 鈥� | (6.7) | 鈥� | (6.7) | ||||||||
Net Cash Used in Financing Activities | $ | (54.3) | $ | (37.0) | $ | (84.9) | $ | (52.0) | ||||
Effect of exchange rate changes on cash | 16.4 | (4.0) | 23.8 | (10.8) | ||||||||
Increase in Cash, Cash Equivalents and Restricted Cash | $ | 44.3 | $ | 48.7 | $ | 47.2 | $ | 51.7 | ||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 376.5 | 422.3 | 373.6 | 419.3 | ||||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $ | 420.8 | $ | 471.0 | $ | 420.8 | $ | 471.0 | ||||
听
Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Earnings Per Share to GAAP Earnings Per Share: | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes that the non-GAAP measures of adjusted net income and adjusted diluted earnings per share are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting adjusted net income and adjusted diluted earnings per share is useful to investors as these measures are representative of the Company's core operations. | ||||||||||||||||||||||||||||||
(Dollars in millions, except share data) | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
2025 | EPS | 2024 | EPS | 2025 | EPS | 2024 | EPS | |||||||||||||||||||||||
Net Income Attributable to The Timken Company | $ | 78.5 | $ | 1.12 | $ | 96.2 | $ | 1.36 | $ | 156.8 | $ | 2.23 | $ | 199.7 | $ | 2.82 | ||||||||||||||
Adjustments:听(1) | ||||||||||||||||||||||||||||||
Acquisition intangible amortization | $ | 19.9 | $ | 19.0 | $ | 38.9 | $ | 39.0 | ||||||||||||||||||||||
听 听Impairment, restructuring and reorganization charges (2) | 5.0 | 4.9 | 8.2 | 9.6 | ||||||||||||||||||||||||||
听 听Acquisition-related charges (3) | 鈥� | 3.0 | 鈥� | 7.7 | ||||||||||||||||||||||||||
听 听Gain on sale of certain assets听(4) | (0.1) | (0.2) | (1.3) | (0.9) | ||||||||||||||||||||||||||
听 听CEO transition expenses听(5) | 3.2 | 1.1 | 11.8 | 1.2 | ||||||||||||||||||||||||||
听 听Noncontrolling interest of above adjustments听(6) | 1.0 | 鈥� | 4.8 | (0.1) | ||||||||||||||||||||||||||
听 听Provision for income taxes听(7) | (8.2) | (8.8) | (21.3) | (15.3) | ||||||||||||||||||||||||||
听听听听听听Total Adjustments: | 20.8 | 0.30 | 19.0 | 0.27 | 41.1 | 0.59 | 41.2 | 0.58 | ||||||||||||||||||||||
Adjusted Net Income Attributable to The Timken Company | $ | 99.3 | $ | 1.42 | $ | 115.2 | $ | 1.63 | $ | 197.9 | $ | 2.82 | $ | 240.9 | $ | 3.40 | ||||||||||||||
(1)听Adjustments are pre-tax, with the net tax provision listed separately. | ||||||||||||||||||||||||||||||
(2)听Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; (iv) impairment of assets; and (v) related depreciation and amortization. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges.听However, management believes these actions are not representative of the Company's core operations. | ||||||||||||||||||||||||||||||
(3)听Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact. | ||||||||||||||||||||||||||||||
(4)听Represents the net gain resulting from the sale of certain assets. | ||||||||||||||||||||||||||||||
(5)听On March 31, 2025, the Company announced that Tarak B. Mehta, President and Chief Executive Officer ("CEO") of the Company would be departing from the Company, effective immediately, and Richard G. Kyle would be serving as interim President and CEO. CEO transition expenses primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, and incremental stock compensation expense related to a deferred share award issued to Mr. Kyle. During 2024, the Company announced that Mr. Kyle, President and CEO of the Company would be retiring from his position as CEO as of February 15, 2025, and that Mr. Mehta would be appointed CEO on September 5, 2024. CEO transition expenses for 2024 relate to the acceleration of certain stock compensation awards for Mr. Kyle and other one-time costs associated with the transition in 2024. | ||||||||||||||||||||||||||||||
(6)听Represents the noncontrolling interest impact of the adjustments listed above, as well as the reversal of uncertain tax positions related to Timken India Limited. | ||||||||||||||||||||||||||||||
(7)听Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods. | ||||||||||||||||||||||||||||||
听
Reconciliation of EBITDA to GAAP Net Income, EBITDA Margin to Net Income as a Percentage of Sales, and EBITDA Margin, After Adjustments, to Net Income as a Percentage of Sales, and EBITDA, After Adjustments, to Net Income: | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. 听Management believes consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure that is useful to investors as it is representative of the Company's performance and that it is appropriate to compare GAAP net income to consolidated EBITDA. Management also believes that adjusted EBITDA, adjusted EBITDA margin and EBITDA margin are useful to investors as they are representative of the Company's core operations and are used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. | ||||||||||||||||||||
(Dollars in millions) | Three Months Ended | Six Months Ended | ||||||||||||||||||
2025 | Percentage | 2024 | Percentage | 2025 | Percentage | 2024 | Percentage | |||||||||||||
Net Income | $ | 85.7 | 7.3 | % | $ | 102.0 | 8.6 | % | $ | 177.1 | 7.7 | % | $ | 212.6 | 9.0 | % | ||||
Provision for income taxes | 30.7 | 35.9 | 57.6 | 78.6 | ||||||||||||||||
Interest expense | 29.8 | 34.6 | 56.3 | 66.8 | ||||||||||||||||
Interest income | (3.0) | (5.1) | (5.3) | (7.9) | ||||||||||||||||
Depreciation and amortization | 57.2 | 54.2 | 112.3 | 109.5 | ||||||||||||||||
Consolidated EBITDA | $ | 200.4 | 17.1 | % | $ | 221.6 | 18.7 | % | $ | 398.0 | 17.2 | % | $ | 459.6 | 19.4 | % | ||||
Adjustments: | ||||||||||||||||||||
听 Impairment, restructuring and reorganization | $ | 4.7 | $ | 4.7 | $ | 7.8 | $ | 9.0 | ||||||||||||
听 Acquisition-related charges听(2) | 鈥� | 3.0 | 鈥� | 7.7 | ||||||||||||||||
听 Gain on sale of certain assets听(3) | (0.1) | (0.2) | (1.3) | (0.9) | ||||||||||||||||
听 CEO transition expenses听(4) | 3.2 | 1.1 | 11.8 | 1.2 | ||||||||||||||||
听 听 听Total Adjustments | 7.8 | 0.6 | % | 8.6 | 0.8 | % | 18.3 | 0.8 | % | 17.0 | 0.7 | % | ||||||||
Adjusted EBITDA | $ | 208.2 | 17.7 | % | $ | 230.2 | 19.5 | % | $ | 416.3 | 18.0 | % | $ | 476.6 | 20.1 | % | ||||
(1)听Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; and (iv) impairment of assets. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges.听However, management believes these actions are not representative of the Company's core operations.听 | ||||||||||||||||||||
(2)听Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact. | ||||||||||||||||||||
(3)听Represents the net gain resulting from sale of certain assets. | ||||||||||||||||||||
(4)听On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Richard G. Kyle would be serving as interim President and CEO. CEO transition expenses primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, and incremental stock compensation expense related to a deferred share award issued to Mr. Kyle. During 2024, the Company announced that Mr. Kyle, President and CEO of the Company would be retiring from his position as CEO as of February 15, 2025, and that Mr. Mehta would be appointed CEO on September 5, 2024. CEO transition expenses for 2024 relate to the acceleration of certain stock compensation awards for Mr. Kyle and other one-time costs associated with the transition in 2024. | ||||||||||||||||||||
听
Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt to Capital, and the Ratio of Net Debt to Adjusted EBITDA: | ||||||||||||
(Unaudited) | ||||||||||||
These reconciliations are provided as additional relevant information about the Company's financial position deemed useful to investors. Capital, used for the ratio of net debt to capital, is a non-GAAP measure defined as total debt less cash and cash equivalents plus total shareholders' equity. Management believes Net Debt, the Ratio of Net Debt to Capital, Adjusted EBITDA (see next page), and the Ratio of Net Debt to Adjusted EBITDA are important measures of the Company's financial position, due to the amount of cash and cash equivalents on hand. The Company presents net debt to adjusted EBITDA because it believes it is more representative of the Company's financial position as it is reflective of the ability to cover its net debt obligations with results from its core operations. | ||||||||||||
(Dollars in millions) | ||||||||||||
June 30, | December 31, | |||||||||||
Short-term debt, including current portion of long-term debt | $ | 58.7 | $ | 13.0 | ||||||||
Long-term debt | 2,139.6 | 2,049.7 | ||||||||||
听听Total Debt | $ | 2,198.3 | $ | 2,062.7 | ||||||||
Less: Cash and cash equivalents | (419.3) | (373.2) | ||||||||||
Net Debt | $ | 1,779.0 | $ | 1,689.5 | ||||||||
Total Equity | $ | 3,272.8 | $ | 2,984.1 | ||||||||
Ratio of Net Debt to Capital | 35.2 | % | 36.1 | % | ||||||||
Adjusted EBITDA for the Twelve Months Ended | $ | 784.5 | $ | 844.8 | ||||||||
Ratio of Net Debt to Adjusted EBITDA | 2.3 | 2.0 | ||||||||||
Reconciliation of Free Cash Flow to GAAP Net Cash Provided by Operating Activities: | ||||||||||||
(Unaudited) | ||||||||||||
Management believes that free cash flow is a non-GAAP measure that is useful to investors because it is a meaningful indicator of cash generated from operating activities available for the execution of its business strategy. | ||||||||||||
(Dollars in millions) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Net cash provided by operating activities | $ | 111.3 | $ | 124.6 | $ | 169.9 | $ | 173.9 | ||||
Less: capital expenditures | (33.1) | (37.3) | (68.3) | (81.4) | ||||||||
Free cash flow | $ | 78.2 | $ | 87.3 | $ | 101.6 | $ | 92.5 | ||||
听
Reconciliation of EBITDA, After Adjustments, to GAAP Net Income: | ||||||
(Unaudited) | ||||||
The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure that is useful to investors as it is representative of the Company's performance and that it is appropriate to compare GAAP net income to consolidated EBITDA. Management also believes that the non-GAAP measure of adjusted EBITDA is useful to investors as it is representative of the Company's core operations and is used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. | ||||||
(Dollars in millions) | Twelve Months Ended | Twelve Months Ended | ||||
Net Income | $ | 339.8 | $ | 375.3 | ||
Provision for income taxes | 97.9 | 118.9 | ||||
Interest expense | 114.6 | 125.1 | ||||
Interest income | (12.3) | (14.9) | ||||
Depreciation and amortization | 224.6 | 221.8 | ||||
Consolidated EBITDA | $ | 764.6 | $ | 826.2 | ||
Adjustments: | ||||||
听 Impairment, restructuring and reorganization charges (1) | $ | 16.6 | $ | 17.8 | ||
听 Corporate pension and other postretirement benefit related income (2) | (1.3) | (1.3) | ||||
听 Acquisition-related charges (3) | 5.3 | 13.0 | ||||
听 Gain on sale of certain assets (4) | (15.1) | (14.7) | ||||
听 Property losses and related expenses (5) | 1.2 | 1.2 | ||||
听 CEO transition expenses (6) | 14.3 | 3.7 | ||||
Tax indemnification and related items | (1.1) | (1.1) | ||||
听 听 听Total Adjustments | 19.9 | 18.6 | ||||
Adjusted EBITDA | $ | 784.5 | $ | 844.8 | ||
(1)听Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii) severance related to cost reduction initiatives; and (iv) impairment of assets. The Company re-assesses its operating footprint and cost structure periodically, and makes adjustments as needed that result in restructuring charges.听However, management believes these actions are not representative of the Company's core operations. | ||||||
(2)听Corporate pension and other postretirement benefit related income represents actuarial gains that resulted from the remeasurement of plan assets and obligations as a result of changes in assumptions or experience. The Company recognizes actuarial gains and losses in connection with the annual remeasurement in the fourth quarter, or if specific events trigger a remeasurement. | ||||||
(3)听Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact. | ||||||
(4)听Represents the net gain resulting from sale of certain assets. Gain on sale of certain assets for the third quarter of 2024 included | ||||||
(5)听Represents property loss and related expenses incurred during the periods presented resulting from property loss that occurred during the second quarter of 2024 at one of the Company's plants in | ||||||
(6)听On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Richard G. Kyle would be serving as interim President and CEO. CEO transition expenses for the twelve months ended June 30, 2025, primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, and incremental stock compensation expense related to a deferred share award issued to Mr. Kyle. During 2024, the Company announced that Mr. Kyle, President and CEO of the Company would be retiring from his position as CEO as of February 15, 2025, and that Mr. Mehta would be appointed CEO on September 5, 2024. CEO transition expenses for 2024 relate to the acceleration of certain stock compensation awards for Mr. Kyle and other one-time costs associated with the transition in 2024. | ||||||
听
Reconciliation of Net Sales to Organic Sales | |||||||||||||
(Unaudited) | |||||||||||||
The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes that net sales, excluding the impact of acquisitions, divestitures and foreign currency exchange rate changes, allow investors and the Company to meaningfully evaluate the percentage change in net sales on a comparable basis from period to period. | |||||||||||||
Three Months Ended | Three Months Ended | $ Change | % Change | ||||||||||
Net sales | $ | 1,173.4 | $ | 1,182.3 | $ | (8.9) | (0.8) | % | |||||
Less: Acquisitions | 14.0 | 鈥� | 14.0 | NM | |||||||||
听听听听听听听听听Currency | 6.6 | 鈥� | 6.6 | NM | |||||||||
Net sales, excluding the impact of acquisitions and currency | $ | 1,152.8 | $ | 1,182.3 | $ | (29.5) | (2.5) | % | |||||
听
Reconciliation of Adjusted Earnings per Share to GAAP Earnings per Share for Full Year 2025 Outlook: | |||||||||||
(Unaudited) | |||||||||||
The following reconciliation is provided as additional relevant information about the Company's outlook deemed useful to investors.听Forecasted full year adjusted diluted earnings per share is an important financial measure that management believes is useful to investors as it is representative of the Company's expectation for the performance of its core business operations. | |||||||||||
Low End Earnings | High End | ||||||||||
Forecasted full year GAAP diluted earnings per share | $ | 3.90 | $ | 4.20 | |||||||
Forecasted Adjustments: | |||||||||||
听听Impairment, restructuring and other special items, net听(1) | 0.40 | 0.40 | |||||||||
听 Acquisition-related intangible amortization expense, net | 0.80 | 0.80 | |||||||||
Forecasted full year adjusted diluted earnings per share | $ | 5.10 | $ | 5.40 | |||||||
(1)听Impairment, restructuring and other special items, net do not include the impact of any potential future mark-to-market pension and other postretirement remeasurement adjustments, because the amounts will not be known until incurred. | |||||||||||
听
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