• Market

• Sales of $1.26 billion, up 7.5 percent from last year
• Second-quarter diluted EPS of $0.41; adjusted EPS of $1.83
• Net income margin of 2.3 percent; adjusted EBITDA margin of 19.6 percent
• Updates 2026 EPS outlook; now expects 2026 EPS of $3.75-$4.05, raising adjusted EPS outlook to $6.05-$6.35

Timken reported second-quarter 2026 results. “The Timken team is successfully advancing our Elevate to Outperform strategy to accelerate profitable growth, structurally increase margins and create long-term shareholder value,” said Lucian Boldea, president and chief executive officer. “Second quarter results demonstrate our team’s strong execution and continued progress against these objectives combined with our ability to capitalize on improving customer demand. Our performance during the first half of the year, continued momentum, and disciplined execution framework gives us the confidence to raise our 2026 outlook.”

Second-Quarter 2026 Highlights

Timken delivered sales in the second quarter of $1.26 billion, up 7.5 percent from the same period a year ago. The increase was driven by higher volumes across both segments, higher pricing, revenue from the Bijur Delimon acquisition and favorable foreign currency translation. Organically, sales were up 4.4 percent as compared to the second quarter of 2025.

The company posted net income in the second quarter of $28.9 million or $0.41 per diluted share. This compares to net income of $78.5 million or $1.12 per diluted share for the same period a year ago. The company’s net income margin in the quarter was 2.3 percent, compared to 6.7 percent in the second quarter of last year. Net income in the current period includes an impairment charge related to the anticipated divestiture of the company’s belts business.

Excluding special items (detailed in the attached tables), adjusted net income in the second quarter was $128.4 million or $1.83 per diluted share. This compares to adjusted net income of $99.3 million or $1.42 per diluted share for the same period in 2025. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $247.2 million or 19.6 percent of sales, compared with $208.2 million or 17.7 percent of sales in the second quarter of last year. Adjusted EBITDA in the current period includes a net benefit of $8.0 million for IEEPA tariff refunds.

Net cash provided by operations in the quarter was $107.1 million, and free cash flow was $80.5 million. During the quarter, Timken increased its quarterly dividend by 3 percent and repurchased approximately 155 thousand shares of company stock. In total, the company returned $45.0 million of cash to shareholders through dividends and share repurchases during the quarter. The company ended the quarter with a strong balance sheet; net debt to adjusted EBITDA was 2.0 times as of June 30, 2026.

Second-Quarter 2026 Segment Results

Engineered Bearings sales of $807.0 million increased 3.8 percent from the same period a year ago driven primarily by higher volumes, the impact of higher pricing and favorable foreign currency translation.

Adjusted EBITDA in the quarter was $161.3 million or 20.0 percent of sales, compared with $153.4 million or 19.7 percent of sales in the second quarter of last year. The increase in adjusted EBITDA was driven primarily by positive price/mix, the impact of higher volume, a net benefit for tariff refunds and favorable foreign currency, partially offset by higher operating costs.

Industrial Motion sales of $453.9 million increased 14.6 percent compared with the same period a year ago driven primarily by higher demand across most platforms and end-market sectors, revenue from the Bijur Delimon acquisition, higher pricing and favorable foreign currency translation.

Adjusted EBITDA in the quarter was $105.6 million or 23.3 percent of sales, compared with $72.6 million or 18.3 percent of sales in the second quarter of last year. The increase in adjusted EBITDA was driven primarily by the impact of higher volume, positive price/mix, a net benefit for tariff refunds and contribution from the Bijur Delimon acquisition, partially offset by higher operating costs.

2026 Outlook

Timken is updating its 2026 outlook, with full-year earnings per diluted share now forecasted to be in the range of $3.75 to $4.05 and is raising its adjusted earnings per diluted share to the range of $6.05 to $6.35. The company is planning for 2026 revenue to be up approximately 5.5 percent in total at the midpoint from 2025, a slight increase from its prior outlook of 5 percent growth at the midpoint.