Timken ( (TKR) ) has released its Q1 earnings. Here is a breakdown of the information Timken presented to its investors.
The Timken Company, a global leader in engineered bearings and industrial motion, designs innovative products for various industries, enhancing reliability and efficiency. In its first-quarter 2025 earnings report, Timken announced a 4.2% decrease in sales to $1.14 billion compared to the previous year, primarily due to reduced end-market demand and unfavorable foreign currency impacts, partially offset by acquisitions. The company reported a diluted EPS of $1.11 and an adjusted EPS of $1.40, reflecting a decline from last year’s figures.
Key financial metrics revealed a net income margin of 6.9%, down from 8.7% the previous year, and an adjusted EBITDA margin of 18.2%, a decrease from 20.7%. The Engineered Bearings segment saw a 5.2% sales decline, while Industrial Motion sales dropped by 2.1%. Despite these challenges, Timken managed to increase its free cash flow to $23.4 million and returned $48.2 million to shareholders through dividends and share repurchases.
Looking ahead, Timken has adjusted its full-year 2025 outlook, anticipating EPS between $3.90 and $4.40, with adjusted EPS ranging from $5.10 to $5.60. This revision accounts for the net impact of tariffs and expected lower demand. The company aims to achieve cost savings of approximately $75 million for the year, focusing on mitigating tariff impacts and maintaining resilient performance amid international trade challenges.
Timken’s management remains confident in navigating the current economic landscape, leveraging its solid balance sheet, strategic initiatives, and experienced leadership to advance the company in 2025 and beyond.