- Sales of $1.11 billion in the fourth quarter, up 3.5 percent from prior year
- Fourth-quarter diluted EPS of $0.89; adjusted EPS of $1.14
- Full-year 2025 diluted EPS of $4.11; adjusted EPS of $5.33
- Cash from operations of $554 million; free cash flow of $406 million for the full year
- Company provides initial estimate for 2026 EPS of $4.50-$5.00, with adjusted EPS of $5.50-$6.00
| 4Q-25 | 4Q-24 | % Change | FY-2025 | FY-2024 | % Change | |
| Net Sales (mils.) | $1,111.0 | $1,073.6 | 3.5 % | $4,581.8 | $4,573.0 | 0.2 % |
| Net Income Margin | 5.6 % | 6.6 % | (100 bps) | 6.3 % | 7.7 % | (140 bps) |
| Adjusted EBITDA Margin | 16.0 % | 16.6 % | (60 bps) | 17.4 % | 18.5 % | (110 bps) |
| Diluted EPS | $0.89 | $1.01 | (11.9 %) | $4.11 | $4.99 | (17.6 %) |
| Adjusted EPS | $1.14 | $1.16 | (1.7 %) | $5.33 | $5.79 | (7.9 %) |
| Net Cash from Operations | $183.3 | $178.6 | 2.6 % | $554.3 | $475.7 | 16.5 % |
| Free Cash Flow | $140.7 | $125.0 | 12.6 % | $406.1 | $305.7 | 32.8 % |
The Timken today reported fourth-quarter 2025 results. “We finished the year strong, delivering higher organic sales and cash flow in the fourth quarter versus the prior year,” said Lucian Boldea, president and chief executive officer. “The Timken team remains focused on our near-term strategic priorities designed to structurally improve margins, accelerate growth in key market verticals, and create significant value for shareholders.
“We expect to generate organic revenue growth, strong cash flow, and higher margins and earnings in 2026. As we continue to execute on our strategic priorities, I’m excited for the many opportunities to take Timken’s performance to new levels.”
Fourth-Quarter 2025 Highlights
Timken delivered sales in the fourth quarter of $1.11 billion, up 3.5 percent from the same period a year ago. The increase was driven by higher pricing, favorable foreign currency translation and higher volumes in the Industrial Motion segment, partially offset by lower end-market demand in the Engineered Bearings segment. Organically, sales were up 1.3 percent as compared to the fourth quarter of 2024.
The company posted net income in the fourth quarter of $62.3 million or $0.89 per diluted share. This compares to net income of $71.2 million or $1.01 per diluted share for the same period a year ago. The company’s net income margin in the quarter was 5.6 percent, compared to 6.6 percent in the fourth quarter of 2024.
Excluding special items (detailed in the attached tables), adjusted net income in the fourth quarter was $80.4 million or $1.14 per diluted share. This compares to adjusted net income of $81.5 million or $1.16 per diluted share for the same period in 2024. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $177.8 million or 16.0 percent of sales, compared with $178.2 million or 16.6 percent of sales in the fourth quarter of 2024.
Net cash provided by operations in the quarter was $183.3 million, up from $178.6 million in the same period a year ago. Free cash flow for the quarter was $140.7 million, up from $125.0 million in the year-ago period.
Fourth-Quarter 2025 Segment Results
Engineered Bearings sales of $714.2 million increased 0.9 percent from the same period a year ago driven primarily by higher pricing and favorable foreign currency translation, partially offset by lower end-market demand.
Adjusted EBITDA in the quarter was $114.9 million or 16.1 percent of sales, compared with $122.0 million or 17.2 percent of sales in the fourth quarter of 2024. The decrease in adjusted EBITDA was driven primarily by incremental tariff costs and the impact of lower volume, partially offset by lower operating costs, lower material & logistics costs and the favorable impact of currency.
Industrial Motion sales of $396.8 million increased 8.4 percent compared with the same period a year ago driven primarily by higher demand across most sectors, higher pricing and favorable foreign currency translation.
Adjusted EBITDA in the quarter was $83.2 million or 21.0 percent of sales, compared with $70.7 million or 19.3 percent of sales in the fourth quarter of 2024. The increase in adjusted EBITDA was driven primarily by the impact of higher volume and lower operating costs, partially offset by incremental tariff costs.
2025 Full-Year Results and Highlights
For 2025, sales were $4.6 billion, up 0.2 percent compared with 2024. The modest increase was driven primarily by higher pricing, revenue from the CGI acquisition and favorable foreign currency translation, mostly offset by lower end-market demand across both segments. Organically, 2025 sales were down 1.0 percent versus 2024.
Net income was $288.4 million or $4.11 per diluted share for the year, compared with net income of $352.7 million or $4.99 per diluted share a year ago. The company’s net income margin for the year was 6.3 percent, compared to 7.7 percent in 2024.
Excluding special items, adjusted net income was $374.5 million or $5.33 per diluted share in 2025. This compares with adjusted net income of $409.4 million or adjusted earnings of $5.79 per diluted share in 2024. Adjusted EBITDA for the year was $795.8 million or 17.4 percent of sales, compared with $844.8 million or 18.5 percent of sales in 2024.
Net cash from operations for the full year was $554.3 million, up from $475.7 million in 2024. Free cash flow was $406.1 million, up from $305.7 million in 2024. During the year, Timken increased its quarterly dividend with 2025 marking its twelfth consecutive year of higher annual dividends. In total, Timken returned $155.7 million to shareholders during the year through dividends and the repurchase of 780 thousand shares of company stock. In addition, the company reduced total debt by $140.7 million and net debt by $131.9 million. Timken ended the year with a strong balance sheet; net debt to adjusted EBITDA was 2.0 times as of December 31, 2025.
2026 Outlook
Timken is setting an initial outlook for 2026 earnings per diluted share in the range of $4.50 to $5.00 and adjusted earnings per diluted share in the range of $5.50 to $6.00. The company is planning for 2026 revenue to be up in the range of 2% to 4% in total compared to 2025.
