- Sales of $1.14 billion, down 4.2 percent from last year
- First-quarter diluted EPS of $1.11; adjusted EPS of $1.40
- Updates full-year 2025 outlook to reflect net impact from tariffs; now expects EPS of $3.90-$4.40, with adjusted EPS of $5.10-$5.60
The Timken Company reported first-quarter 2025 sales of $1.14 billion, down 4.2 percent from the same period a year ago. The decrease was driven by lower end-market demand in both segments, and unfavorable foreign currency translation, partially offset by the benefit of acquisitions. Organically, sales were down 3.1 percent from last year.
Timken posted net income in the first quarter of $78.3 million or $1.11 per diluted share. This compares to net income of $103.5 million or $1.46 per diluted share for the same period a year ago. The company’s net income margin in the quarter was 6.9 percent, compared to 8.7 percent in the first quarter of last year.
Excluding special items (detailed in the attached tables), adjusted net income in the first quarter was $98.6 million or $1.40 per diluted share. This compares to adjusted net income of $125.7 million or $1.77 per diluted share for the same period in 2024. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $208.1 million or 18.2 percent of sales, compared with $246.4 million or 20.7 percent of sales in the first quarter of last year.
Net cash provided by operations in the quarter was $58.6 million, and free cash flow was $23.4 million, both up from the prior year. During the quarter, Timken returned $48.2 million of cash to shareholders through the payment of its 411th consecutive quarterly dividend and the repurchase of approximately 300 thousand shares of company stock.
“Timken posted solid first-quarter results in a time of heightened uncertainty,” said Richard G. Kyle, president and chief executive officer. “Our team executed well in the quarter, delivering on cost actions and other initiatives to help offset the impact of continued soft demand. We remain focused on delivering resilient performance in the face of the international trade challenges that lie ahead.”
First-Quarter 2025 Segment Results
Engineered Bearings sales of $760.7 million decreased 5.2 percent from the same period a year ago, as higher renewable energy demand was more than offset by lower demand in other sectors and unfavorable foreign currency translation.
Adjusted EBITDA in the quarter was $159.2 million or 20.9 percent of sales, compared with $181.4 million or 22.6 percent of sales in the first quarter of last year. The decrease in adjusted EBITDA was driven primarily by the impact of lower volume, and unfavorable price/mix and foreign currency.
Industrial Motion sales of $379.6 million decreased 2.1 percent compared with the same period a year ago, as higher revenue in the drive systems platform and the benefit of acquisitions were more than offset by lower demand in other platforms and unfavorable foreign currency translation.
Adjusted EBITDA in the quarter was $67.1 million or 17.7 percent of sales, compared with $82.1 million or 21.2 percent of sales in the first quarter of last year. The decrease in adjusted EBITDA was driven primarily by lower volume and higher manufacturing costs compared to last year, partially offset by lower SG&A expenses and the benefit of acquisitions.
2025 Outlook
Timken is reducing its full-year 2025 outlook, with earnings per diluted share now forecasted to be in the range of $3.90 to $4.40 and adjusted earnings per diluted share in the range of $5.10 to $5.60. The updated outlook reflects an estimated net impact from tariffs and our expectation for slightly lower demand over the rest of the year. The company estimates a net direct impact from tariffs currently in place of approximately $25 million in 2025. Timken‘s current mitigation plans should enable it to fully offset the cost impact on a run-rate basis by the end of this year.
The company is now planning for 2025 revenue in the range of -2.5% to 0% in total compared to 2024. Timken is reaffirming its full-year cost reduction target, with actions expected to generate gross savings of approximately $75 million in 2025.
“We are focused on performing well through this unpredictable business environment,” said Kyle. “Our team is moving with urgency to deliver cost savings and is actively implementing pricing and other tactics to mitigate the impact from tariffs. Timken has successfully overcome similar challenges in the past, and we are confident we will navigate the current situation. We have a solid balance sheet, proven strategy and operating model, significant U.S. footprint, and an experienced management team that is committed to advancing the company in 2025 and beyond.”
Contact:
Investor Relations
Neil Frohnapple
234.262.2310
neil.frohnapple@timken.com
