TKR · The Timken Company

The Timken Company delivered strong Q1 2026 results, with net sales of $1.23 billion, an 8% increase from $1.14 billion in Q1 2025, primarily driven by higher pricing, favorable foreign currency translation, and increased volumes in the Industrial Motion segment, which grew 12% to $425.1 million. Engineered Bearings sales rose 6% to $806.2 million on pricing and currency tailwinds, though volumes were flat. Adjusted EBITDA reached $231.0 million, or 18.8% of sales, up from 18.2%, reflecting operational leverage despite tariff and cost pressures. GAAP net income was $98.2 million ($1.40 diluted EPS), up from $78.3 million ($1.11), with adjusted net income at $117.3 million ($1.67 EPS). CEO Lucian Boldea highlighted double-digit earnings growth, margin expansion, and improving demand, crediting strategic actions like the Bijur Delimon acquisition for lubrication systems in rail, power, and mining, and the planned belts business sale under their 80/20 portfolio approach. Balance sheet remains solid with net debt to adjusted EBITDA at 2.1x. Cash from operations was $39.3 million, supporting $53.3 million in shareholder returns via the 415th consecutive dividend and 282,000 shares repurchased. The company raised its full-year 2026 outlook, now expecting ~5% revenue growth at midpoint (up from 3%) and adjusted EPS of $5.75-$6.25, signaling confidence in momentum ahead of Investor Day on May 20.