Timken Reports Decline in Net Income Despite Sales Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy TKR?
Source: NASDAQ.COM
- Net Income Decline: Timken's net income for Q4 fell to $62.3 million from $71.2 million last year, despite net sales increasing from $1.07 billion to $1.11 billion, indicating pressure on profitability that may affect investor confidence.
- Earnings Per Share Drop: The company reported earnings per share of $0.89, down from $1.01 last year, with adjusted EPS also declining from $1.16 to $1.14, failing to meet analysts' expectations of $1.09, reflecting ongoing challenges in profitability.
- Adjusted EBITDA Decrease: Adjusted EBITDA slid from $178.2 million to $177.8 million, while operating income decreased from $113 million to $109.4 million, highlighting difficulties in cost control and operational efficiency.
- Cautious Future Outlook: Timken anticipates earnings per share for fiscal year 2026 to range between $4.50 and $5, with adjusted EPS between $5.50 and $6, and although revenue is expected to grow by 2% to 4%, concerns about profitability remain prevalent in the market.
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Analyst Views on TKR
Wall Street analysts forecast TKR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TKR is 89.80 USD with a low forecast of 85.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 102.150
Low
85.00
Averages
89.80
High
100.00
Current: 102.150
Low
85.00
Averages
89.80
High
100.00
About TKR
The Timken Company designs and manages a portfolio of engineered bearings and industrial motion products, and provides related services. Its Engineered Bearings segment features a range of product designs serving original equipment manufacturers and end-users. Its portfolio features Timken, GGB, and Fafnir brands and serves customers across industries, including wind energy, agriculture, construction, food and beverage, metals and mining, automotive and truck, aerospace, rail and more. The Industrial Motion segment includes a portfolio of engineered products, including industrial drives, automatic lubrication systems, linear motion products and systems, chains, belts, couplings, filtration systems and industrial clutches and brakes. Its portfolio features brands such as Philadelphia Gear, Cone Drive, Spinea, Rollon, Nadella, Groeneveld, BEKA, Des-Case, Diamond, Drives, Timken Belts, Lovejoy, PT Tech, Lagersmit, and CGI. It also offers specialty filtration products, augers and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Timken (TKR.US) Director Plans to Sell $3.21 Million in Common Stock, According to Form 144
Stock Sale Announcement: Kyle Richard, the director of Timken (TKR.US), plans to sell 30,206 shares of the company's common stock on February 6, with an estimated market value of around $3.21 million.
Reduction in Shareholding: Since November 25, 2025, Kyle Richard has reduced his shareholding in Timken by 15,837 shares, valued at approximately $1.28 million.
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- New Board Member: Sotera Health has appointed Richard G. Kyle as a new independent director, who previously served as CEO of Timken, bringing extensive global operations and financial management experience that is expected to positively impact the company's governance and strategic development.
- Leadership Enhancement: During his tenure at Timken, Kyle successfully drove financial transformation and strategic diversification, expanding the industrial motion product portfolio, and this experience will aid Sotera Health's continued growth and market expansion in the healthcare sector.
- Committee Involvement: As a board member, Kyle will participate in the Leadership Development and Compensation Committee and the Nominating and Corporate Governance Committee, enhancing Sotera Health's capabilities in corporate governance and talent management.
- Educational Background: Kyle holds a Bachelor of Science in Mechanical Engineering from Purdue University and an MBA from Northwestern University, providing a solid theoretical foundation for navigating complex business environments, further increasing his value on Sotera Health's board.
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- New Board Member: Sotera Health Company has appointed Richard G. Kyle as a new independent director, who will serve on the Leadership Development and Compensation Committee and the Nominating and Corporate Governance Committee, enhancing the company's governance structure.
- Rich Leadership Experience: Kyle previously served as CEO of Timken, where he drove financial transformation and strategic diversification, showcasing his strong background in global operations and financial management.
- Diverse Background: Before becoming CEO, Kyle held various senior leadership roles at Timken, accumulating extensive industry experience that will provide crucial support for Sotera Health's future growth.
- Strategic Value: Sotera Health's CEO Michael B. Petras emphasized that Kyle's leadership experience and governance expertise will serve as valuable assets for the company's continued growth, further solidifying its market position in the healthcare industry.
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- Live Webcast: The fireside chat is scheduled for 8:00 a.m. Eastern Time, allowing investors to watch live via Timken's website, enhancing interaction and transparency between the company and its investors.
- Replay Availability: A replay of the webcast will be accessible until March 4, 2026, ensuring that investors who cannot attend live can still access key information, further improving information accessibility.
- Company Background: Timken reported $4.6 billion in sales for 2025 and employs approximately 19,000 people globally, operating in 45 countries, demonstrating its global influence in engineered bearings and industrial motion.
See More
Timken Company Q4 2025 Earnings Call Highlights
- Strong Financial Performance: Timken reported total revenue of $1.11 billion in Q4, reflecting a 3.5% year-over-year increase, with adjusted earnings per share at $1.14, demonstrating resilience in a challenging environment and projecting 2% to 4% revenue growth for 2026.
- Cash Flow and Shareholder Returns: The company increased free cash flow to $141 million, successfully returning $36 million to shareholders while reducing debt by over $100 million in Q4, enhancing financial stability and shareholder confidence.
- Strategic Transformation and Leadership Changes: Timken is expanding its 80/20 principle and plans a comprehensive transformation roadmap over the next 36 months, introducing new strategic leadership roles to drive innovation and market share growth, indicating a strong focus on future growth.
- Market Outlook and Risks: Management expressed optimism for 2026, forecasting an 8% increase in earnings per share, but also cautioned about macroeconomic uncertainties and global trade risks, emphasizing the need for careful navigation of potential challenges.
See More
Timken (TKR) Q4 2025 Earnings Call Transcript
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Timken (TKR.US) Director Plans to Sell $3.21 Million in Common Stock, According to Form 144
Stock Sale Announcement: Kyle Richard, the director of Timken (TKR.US), plans to sell 30,206 shares of the company's common stock on February 6, with an estimated market value of around $3.21 million.
Reduction in Shareholding: Since November 25, 2025, Kyle Richard has reduced his shareholding in Timken by 15,837 shares, valued at approximately $1.28 million.
See More
Sotera Health Appoints New Independent Director
- New Board Member: Sotera Health has appointed Richard G. Kyle as a new independent director, who previously served as CEO of Timken, bringing extensive global operations and financial management experience that is expected to positively impact the company's governance and strategic development.
- Leadership Enhancement: During his tenure at Timken, Kyle successfully drove financial transformation and strategic diversification, expanding the industrial motion product portfolio, and this experience will aid Sotera Health's continued growth and market expansion in the healthcare sector.
- Committee Involvement: As a board member, Kyle will participate in the Leadership Development and Compensation Committee and the Nominating and Corporate Governance Committee, enhancing Sotera Health's capabilities in corporate governance and talent management.
- Educational Background: Kyle holds a Bachelor of Science in Mechanical Engineering from Purdue University and an MBA from Northwestern University, providing a solid theoretical foundation for navigating complex business environments, further increasing his value on Sotera Health's board.
See More
Sotera Health Appoints New Independent Director
- New Board Member: Sotera Health Company has appointed Richard G. Kyle as a new independent director, who will serve on the Leadership Development and Compensation Committee and the Nominating and Corporate Governance Committee, enhancing the company's governance structure.
- Rich Leadership Experience: Kyle previously served as CEO of Timken, where he drove financial transformation and strategic diversification, showcasing his strong background in global operations and financial management.
- Diverse Background: Before becoming CEO, Kyle held various senior leadership roles at Timken, accumulating extensive industry experience that will provide crucial support for Sotera Health's future growth.
- Strategic Value: Sotera Health's CEO Michael B. Petras emphasized that Kyle's leadership experience and governance expertise will serve as valuable assets for the company's continued growth, further solidifying its market position in the healthcare industry.
See More
Timken Company to Participate in Citi Global Industrial Tech Conference
- Conference Participation: Timken Company will participate in the Citi Global Industrial Tech and Mobility Conference on February 18, 2026, in Miami, with CEO Lucian Boldea and CFO Michael A. Discenza presenting, showcasing the company's leadership in industrial technology.
- Live Webcast: The fireside chat is scheduled for 8:00 a.m. Eastern Time, allowing investors to watch live via Timken's website, enhancing interaction and transparency between the company and its investors.
- Replay Availability: A replay of the webcast will be accessible until March 4, 2026, ensuring that investors who cannot attend live can still access key information, further improving information accessibility.
- Company Background: Timken reported $4.6 billion in sales for 2025 and employs approximately 19,000 people globally, operating in 45 countries, demonstrating its global influence in engineered bearings and industrial motion.
See More
Timken Company Q4 2025 Earnings Call Highlights
- Strong Financial Performance: Timken reported total revenue of $1.11 billion in Q4, reflecting a 3.5% year-over-year increase, with adjusted earnings per share at $1.14, demonstrating resilience in a challenging environment and projecting 2% to 4% revenue growth for 2026.
- Cash Flow and Shareholder Returns: The company increased free cash flow to $141 million, successfully returning $36 million to shareholders while reducing debt by over $100 million in Q4, enhancing financial stability and shareholder confidence.
- Strategic Transformation and Leadership Changes: Timken is expanding its 80/20 principle and plans a comprehensive transformation roadmap over the next 36 months, introducing new strategic leadership roles to drive innovation and market share growth, indicating a strong focus on future growth.
- Market Outlook and Risks: Management expressed optimism for 2026, forecasting an 8% increase in earnings per share, but also cautioned about macroeconomic uncertainties and global trade risks, emphasizing the need for careful navigation of potential challenges.
See More
Timken (TKR) Q4 2025 Earnings Call Transcript
See More
