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Sep 30
Timken Q3 2025 Earnings Report
Timken reported higher sales, operating earnings, and cash flow in the third quarter of 2025 compared to the previous year.
Key Takeaways
The Timken Company delivered a solid third quarter in 2025, with sales reaching $1.16 billion, a 2.7% increase year-over-year. This growth was primarily driven by higher pricing, favorable foreign currency translation, and the CGI acquisition, despite some softness in end-market demand within the Industrial Motion segment. The company reported net income of $69.3 million and adjusted EPS of $1.37, exceeding last year's adjusted EPS. Free cash flow saw a significant increase, highlighting strong operational performance.
Net sales increased by 2.7% to $1.16 billion in Q3 2025, driven by pricing, foreign currency, and the CGI acquisition.
Diluted EPS was $0.99, while adjusted diluted EPS rose by 11.4% to $1.37.
Net income margin was 6.0%, a decrease from 7.3% in the prior year, partly due to a one-time gain on real estate sale in 2024.
Free cash flow surged by 85.7% to $163.8 million, demonstrating strong cash generation.
Timken
Timken
Timken Revenue by Segment
Revenue by Segment
Engineered Bearings Revenue
CapyFin.comIndustrial Motion Revenue
CapyFin.com Forward Guidance
Timken has updated its 2025 full-year outlook, forecasting GAAP diluted EPS between $3.90 and $4.00, and adjusted diluted EPS between $5.20 and $5.30. The company anticipates a slight improvement in total revenue, now expecting it to be down approximately 0.75% at the midpoint.
Positive Outlook
- Full-year adjusted EPS guidance of $5.20 to $5.30 indicates continued profitability.
- Total revenue forecast improved slightly, now expected to be down approximately 0.75% at the midpoint.
- Management is focused on finishing the year strong and positioning for earnings growth in 2026.
- Strategic approach with an 80/20 mindset to structurally improve margins and grow faster in profitable verticals.
- Leveraging a portfolio of differentiated, mission-critical solutions to support evolving customer needs.
Challenges Ahead
- Full-year GAAP diluted EPS forecast is between $3.90 and $4.00, lower than adjusted EPS.
- Overall revenue is still expected to be down approximately 0.75% for the full year.
- The outlook is subject to various risks including fluctuations in customer demand, changes in financial health of customers, and logistical issues.
- Potential impacts from changes in raw material costs, energy prices, and other production costs.
- Uncertainties related to global or regional general economic conditions and capital markets.