- Sales of $1.16 billion, up 2.7 percent from last year
- Third-quarter diluted EPS of $0.99; adjusted EPS of $1.37
- Net income margin of 6.0 percent; adjusted EBITDA margin of 17.4 percent
- Strong cash from operations of $201 million; free cash flow of $164 million
- Updates full-year 2025 outlook; now expects EPS of $3.90-$4.00, with adjusted EPS of $5.20-$5.30
The Timken Company reported third-quarter 2025 results.
“We achieved higher sales, operating earnings and cash flow in the quarter compared to last year,” said Lucian Boldea, president and chief executive officer. “Our team is operating with rigor, focused on finishing the year strong, and moving with urgency to position the company for earnings growth in 2026.
“I am excited to lead Timken forward and see many opportunities to create value and support the evolving needs of our customers by leveraging our portfolio of differentiated, mission-critical solutions. We intend to approach our portfolio with an 80/20 mindset to structurally improve margins, grow faster in the most profitable verticals, and create significant value for shareholders.”
Third-Quarter 2025 Highlights
Timken delivered sales in the third quarter of $1.16 billion, up 2.7 percent from the same period a year ago. The increase was driven by higher pricing, favorable foreign currency translation and revenue from the CGI acquisition, partially offset by lower end-market demand in the Industrial Motion segment. Organically, sales were up 0.6 percent as compared to the third quarter of 2024.
The company posted net income in the third quarter of $69.3 million or $0.99 per diluted share. This compares to net income of $81.8 million or $1.16 per diluted share for the same period a year ago. The company’s net income margin in the quarter was 6.0 percent, compared to 7.3 percent in the third quarter of last year. Net income in the year-ago period benefited from a gain on sale of real estate.
Excluding special items (detailed in the attached tables), adjusted net income in the third quarter was $96.2 million or $1.37 per diluted share. This compares to adjusted net income of $87.0 million or $1.23 per diluted share for the same period in 2024. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $201.7 million or 17.4 percent of sales, compared with $190.0 million or 16.9 percent of sales in the third quarter of last year.
Net cash provided by operations in the quarter was $201.1 million, up from $123.2 million in the same period a year ago. Free cash flow for the quarter was $163.8 million, up from $88.2 million in the year-ago period.
Third-Quarter 2025 Segment Results
Engineered Bearings sales of $765.8 million increased 3.4 percent from the same period a year ago driven primarily by higher renewable energy demand, higher pricing and favorable foreign currency translation.
Adjusted EBITDA in the quarter was $144.2 million or 18.8 percent of sales, compared with $138.4 million or 18.7 percent of sales in the third quarter of last year. The increase in adjusted EBITDA was driven primarily by favorable price/mix, lower material & logistics costs and the impact of higher volume, partially offset by incremental tariff costs and an unfavorable impact from foreign currency.
Industrial Motion sales of $391.3 million increased 1.3 percent compared with the same period a year ago, as revenue from the CGI acquisition, higher pricing and favorable foreign currency translation more than offset lower services revenue and renewable energy demand.
Adjusted EBITDA in the quarter was $74.5 million or 19.0 percent of sales, compared with $74.2 million or 19.2 percent of sales in the third quarter of last year. Adjusted EBITDA in the current quarter benefited from favorable price/mix, lower SG&A expenses and the benefit of the CGI acquisition, offset by the impact of lower volume, incremental tariff costs and higher material & logistics costs.
Outlook
Timken is updating its 2025 outlook, with full-year earnings per diluted share now forecasted to be in the range of $3.90 to $4.00 and adjusted earnings per diluted share in the range of $5.20 to $5.30. The company is now planning for 2025 revenue to be down approximately 0.75 percent in total at the midpoint, a slight improvement versus the midpoint of its prior outlook.
