Timken ( (TKR) ) has released its Q2 earnings. Here is a breakdown of the information Timken presented to its investors.
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The Timken Company, a global leader in engineered bearings and industrial motion, designs innovative products for various industries, leveraging over 125 years of expertise to enhance reliability and efficiency.
In its second-quarter 2025 earnings report, Timken announced sales of $1.17 billion, a slight decrease of 0.8% from the previous year, with a diluted EPS of $1.12 and an adjusted EPS of $1.42. The company generated strong cash from operations amounting to $111 million and free cash flow of $78 million.
Key financial metrics revealed a net income margin of 6.7%, down from 8.1% the previous year, and an adjusted EBITDA margin of 17.7%, compared to 19.5% in 2024. The decrease in sales was attributed to lower end-market demand, partially offset by the CGI acquisition and favorable pricing. Timken also increased its quarterly dividend by 3% and repurchased over 340,000 shares, returning $47 million to shareholders.
Segment-wise, Engineered Bearings sales decreased by 0.8%, while Industrial Motion sales fell by 0.7%. The decline in adjusted EBITDA for both segments was primarily due to lower volume and incremental tariff costs, despite favorable pricing and the benefits from the CGI acquisition.
Looking ahead, Timken has adjusted its full-year 2025 outlook, now expecting EPS between $3.90 and $4.20, with adjusted EPS ranging from $5.10 to $5.40. The company remains cautious about the second half of the year due to ongoing trade uncertainties but is optimistic about 2026, focusing on positioning itself for future industrial market expansion.