Timken (NYSE:TKR – Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 6.050-6.350 for the period, compared to the consensus EPS estimate of 6.140. The company issued revenue guidance of $4.8 billion-$4.8 billion, compared to the consensus revenue estimate of $4.8 billion.
Analyst Ratings Changes
Several research firms have issued reports on TKR. The Goldman Sachs Group lifted their target price on Timken from $128.00 to $142.00 and gave the company a “neutral” rating in a research note on Friday, July 10th. Evercore reaffirmed an “outperform” rating and issued a $158.00 price objective on shares of Timken in a report on Monday, May 11th. Weiss Ratings reissued a “hold (c+)” rating on shares of Timken in a report on Friday, July 17th. Oppenheimer raised their target price on Timken from $147.00 to $150.00 and gave the stock an “outperform” rating in a report on Tuesday, July 21st. Finally, DA Davidson initiated coverage on Timken in a research report on Tuesday, June 16th. They issued a “neutral” rating and a $130.00 price objective on the stock. Six investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $150.00.
Check Out Our Latest Stock Report on Timken
Timken Trading Down 6.8%
Timken (NYSE:TKR – Get Free Report) last issued its earnings results on Tuesday, August 4th. The industrial products company reported $1.83 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.62 by $0.21. Timken had a return on equity of 11.84% and a net margin of 6.60%.The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same period last year, the company earned $1.12 EPS. The company’s revenue for the quarter was up 7.5% on a year-over-year basis. Timken has set its FY 2026 guidance at 6.050-6.350 EPS. On average, equities research analysts expect that Timken will post 6.16 earnings per share for the current fiscal year.
Timken Increases Dividend
The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Tuesday, May 19th were paid a $0.36 dividend. This is a boost from Timken’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $1.44 annualized dividend and a dividend yield of 1.1%. Timken’s dividend payout ratio is currently 32.73%.
Insider Transactions at Timken
In other Timken news, Director Richard G. Kyle sold 37,181 shares of Timken stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $117.34, for a total transaction of $4,362,818.54. Following the completion of the sale, the director directly owned 206,455 shares in the company, valued at $24,225,429.70. This trade represents a 15.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John M. Timken, Jr. sold 15,000 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $116.51, for a total value of $1,747,650.00. Following the transaction, the director owned 264,744 shares of the company’s stock, valued at approximately $30,845,323.44. This represents a 5.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 69,079 shares of company stock worth $8,296,144. 8.10% of the stock is currently owned by company insiders.
Timken News Summary
Here are the key news stories impacting Timken this week:
- Positive Sentiment: Adjusted earnings and sales exceeded expectations. Timken reported adjusted EPS of $1.83, above the roughly $1.62-$1.63 consensus, while sales rose 7.5% year over year to $1.26 billion, surpassing the $1.23 billion estimate. Timken Q2 Earnings and Revenues Surpass Estimates
- Positive Sentiment: Underlying demand improved across both operating segments. Organic sales increased 4.4%; Engineered Bearings revenue grew 3.8% to $807 million, and Industrial Motion revenue advanced 14.6% to $453.9 million. Adjusted EBITDA margin was 19.6%. Timken Reports Second-Quarter 2026 Results
- Positive Sentiment: Adjusted full-year guidance was raised or reaffirmed at a solid level. Timken now expects 2026 adjusted EPS of $6.05-$6.35, broadly in line with the approximately $6.14 analyst consensus, with revenue expected near $4.8 billion and about 5.5% growth at the midpoint.
- Neutral Sentiment: Cash generation remained positive, with $107.1 million of operating cash flow and $80.5 million of free cash flow. However, the quarter’s net margin was only 2.3%, compared with 6.7% a year earlier.
- Negative Sentiment: GAAP results were sharply affected by an impairment charge tied to the anticipated divestiture of the belts business. GAAP diluted EPS was $0.41 versus $1.12 a year ago, and Timken lowered its full-year GAAP EPS outlook to $3.75-$4.05, creating a potential overhang despite the adjusted earnings beat. Timken Q2 Sales Rise 7.5%
- Negative Sentiment: Recent insider activity was entirely selling: eight reported open-market sales and no purchases during the past six months, which may add to investor caution but is not directly tied to the quarter’s operating performance.
Institutional Inflows and Outflows
Institutional investors have recently added to or reduced their stakes in the company. Kestra Investment Management LLC acquired a new stake in Timken during the 2nd quarter worth $42,000. Danske Bank A S purchased a new position in shares of Timken during the third quarter worth about $45,000. EverSource Wealth Advisors LLC raised its stake in Timken by 1,954.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 719 shares of the industrial products company’s stock valued at $52,000 after acquiring an additional 684 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Timken by 379.2% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 877 shares of the industrial products company’s stock valued at $66,000 after purchasing an additional 694 shares during the period. Finally, Group One Trading LLC purchased a new stake in shares of Timken during the fourth quarter worth approximately $94,000. Hedge funds and other institutional investors own 89.08% of the company’s stock.
Timken Company Profile
The Timken Company is a global manufacturer specializing in engineered bearings and mechanical power transmission products. Its core offerings include tapered and cylindrical roller bearings, spherical and plain bearings, mounted bearing units, and precision gear drives. Timken’s products serve a broad range of industries, from industrial machinery and aerospace to automotive, rail, wind energy and heavy equipment.
Beyond bearings, Timken’s portfolio extends to industrial chains, belts, couplings and related components designed to optimize power transmission systems.
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