Timken (NYSE:TKR – Get Free Report) posted its quarterly earnings data on Wednesday. The industrial products company reported $1.65 earnings per share for the quarter, topping the consensus estimate of $1.48 by $0.17, FiscalAI reports. The company had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.21 billion. Timken had a net margin of 5.43% and a return on equity of 12.63%. The company’s revenue was up 4.7% on a year-over-year basis. During the same quarter last year, the business posted $1.37 earnings per share.
Here are the key takeaways from Timken’s conference call:
- Third-quarter sales rose 4.7% to $1.21 billion, with organic growth of 2.8%; adjusted EBITDA margin expanded to 18.5% and adjusted EPS increased 20% to $1.65. Results included a $12 million benefit from tariff refunds, so some of the earnings boost may not recur.
- Industrial Motion delivered 7.3% organic sales growth and an 80-basis-point margin increase, supported by broad demand and higher volumes. Engineered Bearings grew just 0.5% organically as a sharp China wind decline weighed on results.
- Timken raised its 2026 adjusted EPS outlook to $6.35–$6.50 while reaffirming 3.5% organic sales growth and $375–$400 million in free cash flow. Management also expects mid-single-digit organic sales growth in 2027, with third-quarter backlog up mid-single digits year over year.
- The company completed its belts divestiture and expects it to lift Industrial Motion EBITDA margins by more than 200 basis points in 2027; management said 80/20 initiatives are now underway across virtually the entire company. Executives expect these efforts to support growth and margin improvement, though benefits are still developing.
- Timken generated $221 million in third-quarter free cash flow, repurchased more than 500,000 shares, and ended the quarter with net leverage of 1.7 times EBITDA. Management cited the balance sheet as providing flexibility for future capital allocation.
Timken Stock Down 5.6%
NYSE TKR traded down $5.96 on Thursday, reaching $100.67. The company had a trading volume of 784,172 shares, compared to its average volume of 906,448. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.74 and a current ratio of 3.10. The firm has a market capitalization of $6.98 billion, a price-to-earnings ratio of 27.22, a price-to-earnings-growth ratio of 1.28 and a beta of 1.19. The company’s fifty day moving average is $116.49 and its 200-day moving average is $117.36. Timken has a 1-year low of $73.62 and a 1-year high of $146.37.
Analyst Upgrades and Downgrades
A number of research firms recently weighed in on TKR. Citigroup dropped their price target on Timken from $160.00 to $140.00 and set a “buy” rating for the company in a report on Monday, October 12th. Wall Street Zen raised Timken from a “hold” rating to a “buy” rating in a research note on Saturday, October 31st. Oppenheimer restated an “outperform” rating and set a $150.00 target price on shares of Timken in a report on Thursday, October 1st. JPMorgan Chase & Co. increased their target price on Timken from $150.00 to $160.00 and gave the stock an “overweight” rating in a report on Monday, July 13th. Finally, Bank of America upgraded Timken from a “neutral” rating to a “buy” rating and raised their target price for the company from $129.00 to $135.00 in a research note on Tuesday, September 1st. Seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Timken has a consensus rating of “Moderate Buy” and a consensus price target of $143.40.
Get Our Latest Research Report on Timken
Timken News Summary
Here are the key news stories impacting Timken this week:
- Positive Sentiment: Third-quarter adjusted EPS was $1.65, above the roughly $1.48 analyst consensus and up from $1.37 a year earlier. Sales rose 4.7% to $1.21 billion. Timken Reports Third-Quarter 2026 Results
- Positive Sentiment: Timken raised its full-year 2026 forecast, now expecting diluted EPS of $4.05–$4.20 and adjusted EPS of $6.35–$6.50. It also reported $221 million in free cash flow for the quarter. Timken Reports Third-Quarter 2026 Results
- Neutral Sentiment: Analysts’ average price target was reported at $145, although targets can vary and do not guarantee future performance. Analysts’ Average Target Price
- Negative Sentiment: A post-earnings analysis said margin expansion and transformation initiatives were overshadowed by weak organic growth, raising concerns about underlying demand and the durability of growth. Q3 2026 Deep Dive
- Negative Sentiment: Goldman Sachs lowered its price target to $126, a cautious signal that may have weighed on sentiment despite the earnings beat and guidance increase. Goldman Sachs Lowers Timken Price Target
Insider Activity
In other Timken news, Director Richard Kyle sold 13,637 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $126.63, for a total transaction of $1,726,853.31. Following the transaction, the director owned 183,724 shares of the company’s stock, valued at $23,264,970.12. The trade was a 6.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 8.10% of the stock is owned by company insiders.
About Timken
Timken is an industrial manufacturer that designs and produces engineered bearings and power transmission products. Its offerings include tapered and spherical roller bearings, precision bearings, seals, lubrication systems, gears, belts, chains, couplings, and other components used to manage friction, motion, and power transmission.
The company serves customers across a range of industries, including industrial machinery, renewable energy, transportation, aerospace, defense, agriculture, construction, and energy.
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