Timken (NYSE:TKR) Issues Earnings Results, Beats Expectations By $0.05 EPS

Timken (NYSE:TKR) released its earnings results on Wednesday. The industrial products company reported $1.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.09 by $0.05, Briefing.com reports. Timken had a net margin of 6.29% and a return on equity of 11.52%. The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. During the same period in the prior year, the firm earned $1.16 EPS. The firm’s quarterly revenue was up 3.5% on a year-over-year basis. Timken updated its FY 2026 guidance to 5.500-6.000 EPS.

Here are the key takeaways from Timken’s conference call:

• Fourth-quarter results exceeded guidance on revenue and cash: total sales were up ~3.5% year?over?year (organic ~1–1.3%), the company generated $141 million of free cash flow in Q4 ($406 million for FY2025) and reduced net debt by over $130 million to ~2x leverage.
• Management gave a constructive 2026 outlook: revenue guidance of +2%–4% (organic ~+2% at midpoint), adjusted EPS guidance of $5.50–$6.00 (?+8% at midpoint), margins targeted in the high?17% range and expected free cash flow of ~$350 million.
• Enterprise 80/20 and leadership changes announced: Timken is expanding an 80/20 program (portfolio simplification, process optimization) and added a CTO, VP of Marketing and Regional President to drive growth — management says benefits will take time and may involve upfront implementation costs.
• Mixed segment and regional performance with tariff headwinds: Industrial Motion outperformed (Q4 sales +8.4%, organic +5.6% with margin gains), while Engineered Bearings saw lower organic volumes and mix pressure; tariffs were a ~$30 million headwind in 2025 and management expects to recapture ~$0.10–$0.15 of EPS from tariff mitigation in 2026.

Timken Stock Up 3.9%

Shares of TKR traded up $4.00 during midday trading on Friday, reaching $106.15. 213,839 shares of the company were exchanged, compared to its average volume of 830,140. Timken has a 1-year low of $56.20 and a 1-year high of $106.32. The stock has a 50-day moving average price of $88.85 and a 200-day moving average price of $81.09. The company has a current ratio of 2.82, a quick ratio of 1.71 and a debt-to-equity ratio of 0.56. The company has a market cap of $7.39 billion, a price-to-earnings ratio of 25.83, a P/E/G ratio of 1.97 and a beta of 1.21.

Timken Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 5th. Shareholders of record on Tuesday, November 25th were given a $0.35 dividend. The ex-dividend date of this dividend was Tuesday, November 25th. This represents a $1.40 annualized dividend and a yield of 1.3%. Timken’s dividend payout ratio (DPR) is 34.06%.

Analyst Ratings Changes

TKR has been the topic of several recent analyst reports. Wall Street Zen raised shares of Timken from a “hold” rating to a “buy” rating in a research note on Saturday, November 1st. The Goldman Sachs Group reissued a “neutral” rating and set a $88.00 price target on shares of Timken in a research note on Thursday, October 30th. Oppenheimer set a $108.00 target price on Timken in a research note on Thursday. JPMorgan Chase & Co. raised their price target on Timken from $85.00 to $90.00 and gave the stock a “neutral” rating in a research note on Thursday. Finally, Citigroup restated a “buy” rating on shares of Timken in a report on Thursday. Four equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $87.11.

Insider Activity at Timken

In related news, Director Richard G. Kyle sold 15,837 shares of the business’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $81.03, for a total transaction of $1,283,272.11. Following the transaction, the director directly owned 266,942 shares of the company’s stock, valued at approximately $21,630,310.26. The trade was a 5.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 8.70% of the company’s stock.

Institutional Trading of Timken

A number of hedge funds have recently made changes to their positions in TKR. UBS Group AG boosted its stake in shares of Timken by 734.7% in the third quarter. UBS Group AG now owns 2,286,250 shares of the industrial products company’s stock valued at $171,880,000 after purchasing an additional 2,012,352 shares during the period. Invesco Ltd. lifted its holdings in Timken by 124.5% in the 3rd quarter. Invesco Ltd. now owns 1,358,154 shares of the industrial products company’s stock worth $102,106,000 after buying an additional 753,275 shares in the last quarter. The Manufacturers Life Insurance Company boosted its position in Timken by 22.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 726,557 shares of the industrial products company’s stock valued at $52,712,000 after buying an additional 133,404 shares during the last quarter. Bank of America Corp DE grew its holdings in Timken by 9.0% during the 3rd quarter. Bank of America Corp DE now owns 565,912 shares of the industrial products company’s stock worth $42,545,000 after acquiring an additional 46,610 shares in the last quarter. Finally, Millennium Management LLC increased its position in shares of Timken by 36.4% in the 3rd quarter. Millennium Management LLC now owns 477,907 shares of the industrial products company’s stock worth $35,929,000 after purchasing an additional 127,634 shares during the last quarter. Hedge funds and other institutional investors own 89.08% of the company’s stock.

About Timken

The Timken Company is a global manufacturer specializing in engineered bearings and mechanical power transmission products. Its core offerings include tapered and cylindrical roller bearings, spherical and plain bearings, mounted bearing units, and precision gear drives. Timken’s products serve a broad range of industries, from industrial machinery and aerospace to automotive, rail, wind energy and heavy equipment.

Beyond bearings, Timken’s portfolio extends to industrial chains, belts, couplings and related components designed to optimize power transmission systems.