The Timken Company reported fourth-quarter sales of $1.11 billion, an increase of 3.5 percent versus the prior year driven by higher pricing, favorable currency translation and volume gains in Industrial Motion. Organically, sales rose 1.3 percent. Net income totaled $62.3 million, or $0.89 per diluted share, down from $71.2 million and $1.01 per share a year ago, reflecting a net margin of 5.6 percent (versus 6.6 percent). Excluding special items, adjusted EPS was $1.14 (versus $1.16), and adjusted EBITDA margin narrowed 60 basis points to 16.0 percent. Industrial Motion revenue grew 8.4 percent to $396.8 million with a 21.0 percent adjusted EBITDA margin, while Engineered Bearings sales rose 0.9 percent to $714.2 million with a 16.1 percent margin.

For the full year, Timken generated $4.58 billion in sales, up 0.2 percent from 2024, with organic revenue declining 1.0 percent due to softer end-market demand. Reported net income reached $288.4 million ($4.11 per share), down from $352.7 million ($4.99), representing a 6.3 percent margin (versus 7.7 percent). Adjusted EBITDA totaled $795.8 million (17.4 percent margin) and adjusted EPS was $5.33. Operational cash flow strengthened to $554.3 million (up 16.5 percent), and free cash flow rose 32.8 percent to $406.1 million. The company returned $155.7 million to shareholders through dividends and repurchases, reduced debt by $140.7 million and ended the year with net debt at 2.0 times adjusted EBITDA.

Timken has set initial full-year 2026 guidance of total revenue growth of 2 to 4 percent and diluted EPS in the range of $4.50 to $5.00, with adjusted EPS of $5.50 to $6.00. The company expects to drive higher organic revenue, margin expansion and robust cash generation by focusing on strategic initiatives: structural margin improvement, accelerated growth in key end-market verticals and disciplined capital allocation to enhance shareholder value.