Timken reported Q3 2025 earnings, posting net sales of $1,157.1 million, up 2.7% year‑over‑year, and net income of $69.3 million, a 15% decline from the same quarter last year. Diluted earnings per share were $0.99, while adjusted earnings per share rose to $1.37. Net cash from operations reached $201.1 million and free cash flow climbed to $163.8 million.
Engineered Bearings segment sales were $765.8 million, up 3.4% year‑over‑year, with adjusted EBITDA of $144.2 million (18.8% margin). Industrial Motion sales were $391.3 million, up 1.3% year‑over‑year, and adjusted EBITDA was $74.5 million (19.0% margin). The acquisition of CGI contributed to revenue and earnings growth, offsetting weaker industrial‑services demand.
Q2 2025 sales were $1.17 billion, down 0.8% year‑over‑year, and adjusted earnings per share were $1.42. The Q3 results continue the trend of modest revenue growth but lower profitability due to tariff costs and competitive pricing.
Management updated the 2025 outlook, lowering the full‑year diluted EPS guidance to $3.90–$4.00 and adjusted EPS to $5.20–$5.30. Revenue guidance shows a 0.75% decline at the midpoint, reflecting a net tariff headwind of $25 million and a modest volume outlook while highlighting cost‑saving initiatives.
CEO Lucian Boldea, who assumed the role on September 1 2025, emphasized a $75 million cost‑saving program and an 80/20 portfolio review focused on automotive original equipment. The program aims to improve margins and free‑cash‑flow generation.
Timken’s acquisition of CGI added $200 million in revenue and $30 million in adjusted EBITDA in Q3, strengthening its position in high‑margin markets. The company continues to invest in renewable‑energy demand for Engineered Bearings and maintains pricing power in Industrial Motion.
The company projects that the 2025 cost‑saving program will offset inflationary pressures and support margin improvement, while the portfolio review may lead to divestitures of lower‑margin businesses.
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