Timken Raises 2026 Outlook After Industrial Motion Rebound

The Tip Desk · November 4, 2026 · 3 min read

Third-quarter sales were $1.21 billion as Industrial Motion rose 12.4% and the company lifted full-year EPS to $4.05-$4.20.

The Timken Company (TKR), a leader in advanced motion technology, reported third-quarter 2026 sales of $1.21 billion, up 4.7 percent from a year earlier, and raised its full-year earnings outlook after Industrial Motion demand recovered.

Year-over-year sales growth slowed from 7.5 percent in the second quarter and 8.0 percent in the first. Organic sales rose 2.8 percent versus the third quarter of 2025, down from 4.4 percent organic growth in the second quarter and 4.3 percent in the first. The company said the reported increase was driven primarily by higher volumes in Industrial Motion, revenue from the Bijur Delimon acquisition and higher pricing.

Net income attributable to Timken was $93.8 million, or $1.34 a share, compared with $69.3 million, or $0.99 a share, a year earlier. The net income margin was 7.7 percent. Adjusted net income was $115.1 million, or $1.65 a share. Adjusted EBITDA was $224.6 million, or 18.5 percent of sales, and included a $12.4 million net benefit for IEEPA tariff refunds.

President and Chief Executive Officer Lucian Boldea said the company delivered double-digit earnings growth versus last year and generated significant cash flow.

Industrial Motion sales were $440.0 million, up 12.4 percent from $391.3 million a year earlier, which the company attributed primarily to higher demand across most end-market sectors and platforms, Bijur Delimon revenue and higher pricing. Segment adjusted EBITDA was $87.0 million, or 19.8 percent of sales. The company said the EBITDA increase was driven primarily by higher volume, positive price/mix and the Bijur Delimon contribution, partially offset by higher operating costs.

Engineered Bearings sales were $771.4 million, up 0.7 percent from $765.8 million a year earlier, after 3.8 percent growth in the second quarter and 6.0 percent in the first. The company said the increase was driven primarily by higher pricing and slightly favorable foreign currency translation. Adjusted EBITDA in the segment was $155.8 million, or 20.2 percent of sales, versus $144.2 million, or 18.8 percent of sales, a year earlier. The company said the EBITDA increase was driven primarily by a net benefit for tariff refunds, positive price/mix and favorable foreign currency, partially offset by higher operating costs.

Net cash from operations was $256.1 million, up 27.3 percent from $201.1 million a year earlier. Free cash flow was $221.4 million. During the quarter Timken repurchased about 505 thousand shares and returned $88.7 million of cash to shareholders through dividends and share repurchases.

Timken completed the previously announced sale of its belts business to Gates Industrial Corporation Ltd. at the end of the third quarter. The company said the transaction is expected to improve adjusted EBITDA margins in Industrial Motion. For the nine months ended September 30, 2026, it recorded $90.4 million of impairment, restructuring and reorganization charges related to the sale and the closure of its belts manufacturing facility in Springfield, Missouri.

Net debt to adjusted EBITDA was 1.7 times as of September 30, 2026, versus 2.0 times as of June 30.

Timken is increasing its 2026 outlook, with full-year diluted EPS now forecast at $4.05 to $4.20 and adjusted EPS at $6.35 to $6.50, from the second-quarter ranges of $3.75 to $4.05 and $6.05 to $6.35. The company is planning for 2026 revenue to be up approximately 5.5 percent from 2025. Boldea said it is too early to provide a formal 2027 outlook, but the company currently expects organic sales to increase mid-single digits compared with 2026, driven by incremental growth from strategic initiatives and further positive momentum across industrial markets.