Timken Q4 revenue beats estimates on higher pricing

Overview

• Bearings and industrial motion firm's Q4 revenue rose 3.5%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company cites higher pricing and favorable currency translation as revenue growth drivers

Outlook

• Timken expects 2026 EPS between $4.50 and $5.00

• Company forecasts 2026 adjusted EPS between $5.50 and $6.00

• Timken anticipates 2026 revenue growth of 2% to 4%

Result Drivers

• INDUSTRIAL MOTION GROWTH - Industrial Motion segment sales rose 8.4% due to higher demand across most sectors, higher pricing, and favorable currency translation

• ENGINEERED BEARINGS CHALLENGES - Engineered Bearings segment sales rose 0.9% with higher pricing and favorable currency translation, offset by lower end-market demand

• PRICING AND CURRENCY - Higher pricing and favorable foreign currency translation contributed to overall sales growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Timken Co is $87.00, about 9.5% below its February 3 closing price of $96.14

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn2DzMNNa

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