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Timken Company (TKR) Q3 2026 Earnings Report

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TKR Q3 2026 EPS Results

Actual EPS
$1.65
Consensus EPS
$1.48
Beat/Miss
Beat by +$0.17
One Year Ago EPS
$1.37

TKR Q3 2026 Revenue Results

Actual Revenue
$1.21B
Expected Revenue
$1.21B
Beat/Miss
Beat by +$2.04M
YoY Revenue Growth
+4.69%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/04/2026
Time
Before Open
Conference Call
Wednesday, November 4, 2026
TKR Upcoming Earnings

Timken Company's next earnings date is estimated for February 8, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

TKR Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 04, 2026|% Change Since:-4.54%|
Earnings Call Sentiment|Positive

The call was strongly positive overall. Timken reported solid revenue growth, 20% adjusted EPS growth, margin expansion, strong cash generation, improved leverage, a raised 2026 EPS outlook, and a constructive mid-single-digit organic growth outlook for 2027. Management also described meaningful progress on its Elevate to Outperform strategy, 80/20 program, One Timken operating model, and growth initiatives in automation, robotics, aerospace, and defense. These positives outweighed challenges from China wind weakness, EMEA softness, negative mix, inflationary costs, automotive OE exits, and capacity constraints.

Company Guidance

For full year 2026, Timken increased adjusted earnings per share guidance to $6.35-$6.50, expects total revenue to increase approximately 5.5%, reaffirmed organic revenue growth of 3.5% at the midpoint, estimates currency translation to contribute around 1.25% to sales, expects M&A to add 0.75% to full-year revenue on a net basis, and expects consolidated adjusted EBITDA margin to be in the mid-18% range at the midpoint; free cash flow guidance remains $375 million-$400 million. While it is still early and without providing a formal outlook, the company currently expects organic sales to increase by mid-single digits during 2027, with more than 200 basis points of Industrial Motion EBITDA margin improvement from the belts divestiture in 2027, including 60 to 70 basis points from belts.

  • Solid Third-Quarter Revenue and Organic GrowthTotal sales were $1.21 billion, up 4.7% year over year, while organic sales increased 2.8% to nearly 3%. Growth was driven by positive pricing and higher volumes in Industrial Motion. Excluding the significant decline in China wind energy sales, organic sales were up mid-single digits.
  • Margin Expansion and Earnings GrowthAdjusted EBITDA was $225 million, with margins expanding to 18.5% from 17.4% last year. Adjusted earnings per share increased 20% year over year to $1.65. The company said margin expansion was driven by positive price-cost performance and higher volumes.
  • Strong Cash Flow and Balance SheetOperating cash flow was $256 million and detailed quarterly free cash flow was $221 million, up significantly from the prior year; the CEO also cited over $228 million in free cash flow. Net debt to adjusted EBITDA improved to 1.7x from the prior quarter, driven by higher EBITDA and debt paydown.
  • Capital Returned to ShareholdersTimken repurchased more than 500,000 shares during the quarter and returned $89 million through share buybacks and dividends. Approximately 9 million shares remained under the repurchase authorization.
  • Industrial Motion Delivered Double-Digit GrowthIndustrial Motion sales increased 12.4% to $440 million, including 7.3% organic growth driven by higher demand across most market sectors and higher pricing. The Bijur Delimon acquisition added more than 5% to segment sales. Aerospace and defense grew nearly 20%, and linear motion systems posted double-digit gains.
  • Industrial Motion Margin ImprovementIndustrial Motion adjusted EBITDA margins increased 80 basis points year over year to 19.8%. The increase reflected higher volumes and favorable price mix, while organic segment incremental margins were approximately 30%.
  • Engineered Bearings Margin ExpansionEngineered Bearings adjusted EBITDA margins increased to 20.2% from 18.8% last year. Margins benefited from tariff refunds and favorable price mix, although higher operating costs partially offset the improvement.
  • Broad Growth in Key End MarketsEngineered Bearings reported growth in aerospace and defense, automation and industrial solutions, infrastructure, and industrial transportation and mobility. Industrial Motion also grew across automation and industrial solutions, infrastructure, and power and electrification.
  • Aerospace and Defense MomentumAerospace and defense was the strongest Engineered Bearings market sector in the quarter. In the Q&A, management said aerospace and defense revenue was up double digits on the bearing side and Industrial Motion was on a roughly 20% year-over-year trajectory. Capacity investments, additional hiring, equipment, infrastructure, and material are beginning to support higher output.
  • Strategic Transformation ProgressManagement said it had developed and deployed the Elevate to Outperform strategy, aligned teams around a disciplined execution framework, and made substantial progress toward its 2028 targets. Industrial Motion had delivered high single-digit organic sales growth and significant margin expansion year to date.
  • Belts Divestiture Supports Future MarginsTimken completed the divestiture of its belts business near the end of the quarter. Management expects the action to increase Industrial Motion EBITDA margins by more than 200 basis points in 2027, with approximately 60 to 70 basis points attributed to the belts action.
  • 80/20 Program Broadly OperationalizedBy October 10, virtually the entire company revenue base was covered by 80/20 training and initiatives. Work streams were fully underway with dashboards, KPIs, milestones, and a recurring review cadence. Minimum order values, customer segmentation, and key-account playbooks were implemented to reduce complexity, improve profitability without negatively impacting total revenue, and increase focus on priority customers.
  • Early 80/20 Customer and Margin BenefitsManagement said both improved price versus cost to serve and incremental growth or share-of-wallet opportunities were already occurring. Larger-customer opportunities began contributing meaningfully in September, while 80/20 benefits are expected to provide a net benefit in 2027 for both the top and bottom lines.
  • Automation, Robotics, and Technology ExpansionAutomation and robotics achieved double-digit growth during the quarter, and management reported double-digit year-over-year increases in related pipeline activity. Timken also completed a minority investment in an early-stage electroadhesive technology manufacturer intended to support automation and robotics and expand its systems-oriented motion technology offering.
  • One Timken Commercial and Operating ModelThe One Timken operating model is fully in place, including a chief commercial officer structure, a single customer-facing organization, a company-wide technology organization, and a chief operating officer structure responsible for the P&Ls. Management said these changes are intended to accelerate decision-making, integrate platforms, improve customer value, and increase accountability.
  • Integrated Solutions Creating Larger OpportunitiesCone Drive and Spinea combined complementary technologies to develop an integrated actuator solution for the commercial space industry. Management said one customer opportunity expanded from a gearbox sale to a subsystem opportunity that generated 2.5 to almost three times more revenue than the original opportunity.
  • Positive Backlog and Pipeline TrendsBacklog grew sequentially and was up mid-single digits year over year at the end of the third quarter. Pipeline growth in automation and robotics and aerospace and defense was described as a healthy double-digit increase. Infrastructure, aerospace, and general industrial order books also showed strength.
  • Raised 2026 EPS OutlookThe company increased its 2026 adjusted EPS outlook to $6.35-$6.50, representing 20% growth at the midpoint versus 2025. The increase was driven primarily by third-quarter outperformance, including tariff refunds, and included an additional $0.08 per share from a lower net interest expense outlook.
  • 2026 Revenue and Cash Flow Outlook ReaffirmedTimken maintained its outlook for total revenue growth of approximately 5.5%, organic revenue growth of 3.5% at the midpoint, and free cash flow of $375 million-$400 million. Currency translation is expected to contribute around 1.25% to sales and M&A approximately 0.75% on a net basis.
  • Constructive 2027 OutlookManagement expects organic sales to increase by mid-single digits in 2027, including the impact of planned auto OE exits. The outlook is expected to be driven by strategic initiatives, industrial market momentum, pricing, 80/20 benefits, and continued growth in automation and robotics and aerospace and defense.
  • Disciplined M&A StrategyManagement said its M&A pipeline is being aligned with strategic verticals and remains focused on bolt-ons rather than larger transactions. Potential transactions include complementary technology platforms, technical capabilities, and regional businesses that can be expanded across Timken's footprint.

TKR Earnings History

TKR earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 08, 20272026 (Q4)1.29-1.14――
Nov 04, 20262026 (Q3)1.481.651.3720.44% (+0.28)
Aug 04, 20262026 (Q2)1.621.831.4228.87% (+0.41)
May 06, 20262026 (Q1)1.501.671.419.29% (+0.27)
Feb 04, 20262025 (Q4)1.091.141.16-1.72% (-0.02)
Oct 29, 20252025 (Q3)1.241.371.2311.38% (+0.14)
Jul 30, 20252025 (Q2)1.361.421.63-12.88% (-0.21)
Apr 30, 20252025 (Q1)1.421.401.77-20.90% (-0.37)
Feb 05, 20252024 (Q4)0.991.161.37-15.33% (-0.21)
Nov 05, 20242024 (Q3)1.381.231.55-20.65% (-0.32)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed