The Timken Company reported a strong top-line performance for the second quarter of 2026, with sales increasing 7.5 per cent year-on-year to $1.26 billion, driven by higher volumes, improved pricing, contributions from the Bijur Delimon acquisition, and favourable foreign currency translation. On an organic basis, sales grew 4.4 per cent compared to the same period last year.
Despite the revenue growth, reported profitability was impacted by a one-time impairment charge related to the anticipated divestiture of the company’s belts business. Net income declined to $28.9 million, or $0.41 per diluted share, compared with $78.5 million, or $1.12 per diluted share, in the second quarter of 2025. Consequently, the company’s net income margin fell to 2.3 per cent from 6.7 per cent a year earlier.
Excluding special items, Timken delivered significantly stronger underlying earnings. Adjusted net income rose to $128.4 million, while adjusted earnings per diluted share (EPS) increased 28.9 per cent to $1.83, up from $1.42 in the prior-year quarter. Adjusted EBITDA improved to $247.2 million, representing 19.6 per cent of sales compared with 17.7 per cent in the second quarter of 2025, supported by higher volumes, favourable pricing and an $8 million benefit from IEEPA tariff refunds.
“The Timken team is successfully advancing our Elevate to Outperform strategy to accelerate profitable growth, structurally increase margins and create long-term shareholder value,” said Lucian Boldea, President and Chief Executive Officer. He added that the company’s strong first-half performance, improving customer demand and disciplined execution have provided the confidence to raise its outlook for the remainder of the year.
The company’s Engineered Bearings segment generated sales of $807 million, up 3.8 per cent year-on-year, with adjusted EBITDA rising to $161.3 million, or 20.0 per cent of sales. Meanwhile, the Industrial Motion business posted a stronger performance, with sales climbing 14.6 per cent to $453.9 million. Adjusted EBITDA for the segment increased to $105.6 million, representing 23.3 per cent of sales, supported by broad-based demand growth, pricing improvements and contributions from the Bijur Delimon acquisition.
Timken also maintained healthy cash generation during the quarter, reporting $107.1 million in operating cash flow and $80.5 million in free cash flow. The company increased its quarterly dividend by 3 per cent, repurchased approximately 155,000 shares, and returned $45 million to shareholders through dividends and share buybacks. Net debt to adjusted EBITDA stood at 2.0x at the end of June 2026.
Reflecting its confidence in business momentum, Timken has updated its full-year guidance. The company now expects 2026 revenue to grow approximately 5.5 per cent at the midpoint and has raised its adjusted EPS outlook to $6.05-$6.35, while forecasting reported EPS in the range of $3.75-$4.05.
Source: Timken
