The Timken Company reported fourth-quarter sales of $1.11 billion, a 3.5% increase versus the year-ago period, driven by higher pricing, favorable currency translation and volume gains in its Industrial Motion segment. Fourth-quarter diluted EPS was $0.89, down 11.9% from $1.01 in Q4 2024, while adjusted EPS of $1.14 declined 1.7% year-over-year. Full-year 2025 net sales edged up 0.2% to $4.58 billion; diluted EPS fell 17.6% to $4.11 and adjusted EPS declined 7.9% to $5.33. Net income margin contracted by 140 basis points to 6.3%, and adjusted EBITDA margin narrowed by 110 basis points to 17.4%.

In the Engineered Bearings segment, Q4 sales of $714.2 million rose 0.9% on higher pricing and currency benefits but were offset by softer end-market demand; adjusted EBITDA margin contracted to 16.1% from 17.2% a year earlier, reflecting incremental tariff costs and volume declines. Industrial Motion delivered $396.8 million in Q4 sales, up 8.4%, with adjusted EBITDA margin expanding to 21.0% from 19.3%, driven by higher volumes, lower operating costs and favorable translation, partially offset by tariffs.

Timken generated $183.3 million of operating cash flow and $140.7 million of free cash flow in Q4, up 2.6% and 12.6% year-over-year, respectively; full-year operating cash flow grew 16.5% to $554.3 million and free cash flow soared 32.8% to $406.1 million. In 2025 the company returned $155.7 million to shareholders through dividends and repurchasing 780,000 shares, while reducing net debt by $131.9 million to a 2.0× net debt/adjusted EBITDA ratio. For 2026, management forecasts total revenue growth of 2%–4%, diluted EPS of $4.50–$5.00 and adjusted EPS of $5.50–$6.00, underpinned by strategic margin improvement and continued cash generation.