Timken's Q2 sales beat estimates; warns of challenging operating environment
Overview
Timken Q2 sales of $1.17 bln beat analyst expectations, per LSEG data
Adjusted EPS of $1.42 beats consensus, despite 12.9% decline yr/yr
Co updates FY 2025 EPS outlook to $3.90-$4.20, adjusted EPS $5.10-$5.40
Outlook
Timken forecasts 2025 EPS of $3.90-$4.20, adjusted EPS $5.10-$5.40
Company expects 2025 revenue to decline 0.5%-2.0% compared to 2024
Timken sees challenging operating environment due to trade situation
Company optimistic about 2026 industrial market expansion
Result Drivers
LOWER DEMAND - Sales decline driven by lower end-market demand, offset by CGI acquisition and favorable pricing
TARIFF COSTS - Incremental tariff costs impacted adjusted EBITDA margins in both segments
CGI ACQUISITION - Revenue from CGI acquisition helped offset lower demand in Industrial Motion segment
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $1.17 bln | $1.15 bln (9 Analysts) |
Q2 Adjusted EPS | Beat | $1.42 | $1.36 (11 Analysts) |
Q2 EPS |
| $1.12 |
|
Q2 Adjusted Net Income | Beat | $99.30 mln | $97.30 mln (7 Analysts) |
Q2 Net Income |
| $78.50 mln |
|
Q2 Adjusted EBITDA | Beat | $208.20 mln | $206.30 mln (7 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "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 $82.00, about 1.2% above its July 29 closing price of $80.98
Press Release: ID:nPn3PGzya
