• Market

• Sales of $1.21 billion, up 4.7 percent from last year
• Third-quarter diluted EPS of $1.34; adjusted EPS of $1.65
• Net income margin of 7.7 percent; adjusted EBITDA margin of 18.5 percent
• Cash from operations of $256 million and free cash flow of $221 million
• Raises 2026 EPS outlook; now expects 2026 EPS of $4.05-$4.20, with adjusted EPS of $6.35-$6.50

The Timken Company reported third-quarter 2026 results.

“In the third quarter, we delivered double-digit earnings growth versus last year and generated significant cash flow,” said Lucian Boldea, president and chief executive officer. “The continued execution of our Elevate to Outperform strategy gives us confidence in our 2026 outlook and our ability to achieve even stronger performance next year. While it is too early to provide a formal outlook for 2027, we currently expect organic sales to increase mid-single digits compared to 2026 driven by incremental growth from our strategic initiatives and further positive momentum across our industrial markets.”

Third-Quarter 2026 Highlights

Timken delivered sales in the third quarter of $1.21 billion, up 4.7 percent from the same period a year ago. The increase was driven primarily by higher volumes in the Industrial Motion segment, revenue from the Bijur Delimon acquisition and higher pricing. Organically, sales were up 2.8 percent as compared to the third quarter of 2025.

The company posted net income in the third quarter of $93.8 million or $1.34 per diluted share. This compares to net income of $69.3 million or $0.99 per diluted share for the same period a year ago. The company’s net income margin in the quarter was 7.7 percent, compared to 6.0 percent in the third quarter of last year.

Excluding special items (detailed in the attached tables), adjusted net income in the third quarter was $115.1 million or $1.65 per diluted share. This compares to adjusted net income of $96.2 million or $1.37 per diluted share for the same period in 2025. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $224.6 million or 18.5 percent of sales, compared with $201.7 million or 17.4 percent of sales in the third quarter of last year. Adjusted EBITDA in the current period includes a net benefit of $12.4 million for IEEPA tariff refunds.

Net cash provided by operations in the quarter was $256.1 million, and free cash flow was $221.4 million. During the quarter, Timken repurchased approximately 505 thousand shares of company stock. In total, the company returned $88.7 million of cash to shareholders through dividends and share repurchases in the third quarter. Timken also completed the previously announced sale of its belts business to Gates Industrial Corporation Ltd. at the end of the third quarter, which is expected to improve the adjusted EBITDA margins of the Industrial Motion segment. The company ended the quarter with a strong balance sheet; net debt to adjusted EBITDA was 1.7 times as of September 30, 2026.

Third-Quarter 2026 Segment Results

Engineered Bearings sales of $771.4 million increased 0.7 percent from the same period a year ago driven primarily by the impact of higher pricing and slightly favorable foreign currency translation.

Adjusted EBITDA in the quarter was $155.8 million or 20.2 percent of sales, compared with $144.2 million or 18.8 percent of sales in the third quarter of last year. The increase in adjusted EBITDA was driven primarily by a net benefit for tariff refunds, positive price/mix and favorable foreign currency, partially offset by higher operating costs.

Industrial Motion sales of $440.0 million increased 12.4 percent compared with the same period a year ago driven primarily by higher demand across most end-market sectors and platforms, revenue from the Bijur Delimon acquisition and higher pricing.

Adjusted EBITDA in the quarter was $87.0 million or 19.8 percent of sales, compared with $74.5 million or 19.0 percent of sales in the third quarter of last year. The increase in adjusted EBITDA was driven primarily by the impact of higher volume, positive price/mix and contribution from the Bijur Delimon acquisition, partially offset by higher operating costs.

2026 Outlook

Timken is increasing its 2026 outlook, with full-year earnings per diluted share now forecasted to be in the range of $4.05 to $4.20 and adjusted earnings per diluted share to the range of $6.35 to $6.50. The company is planning for 2026 revenue to be up approximately 5.5 percent in total from 2025.