Timken Company (TKR) Q1 2026 earnings summary

Executive summary

• Achieved double-digit earnings growth and margin expansion in Q1 2026, with total sales up 8% year-over-year and organic revenue up 4.3%, driven by higher pricing, favorable currency, and Industrial Motion demand.

• Raised full-year 2026 guidance for organic revenue, margins, and adjusted EPS, reflecting improved demand, positive price-cost impacts, and strong Q1 performance.

• Executed strategic portfolio actions: divested Belts business and acquired Bijur Delimon, both aligned with 80/20 initiatives to simplify and strengthen the portfolio.

• Backlog increased both sequentially and year-over-year, supporting higher organic sales outlook.

• Leadership transition underway in Engineered Bearings, with interim leadership ensuring continuity.

Financial highlights

• Q1 2026 revenue was $1.23 billion, up 8% year-over-year; adjusted EBITDA margin rose to 18.8%.

• Adjusted EPS increased nearly 20% to $1.67; adjusted EBITDA was $231 million.

• Operating cash flow was $39.3 million; free cash flow was $0.5 million, with expectations for significant improvement through the year.

• Returned $53.3 million to shareholders via buybacks and dividends; 282,000 shares repurchased in Q1.

• Net debt to adjusted EBITDA was 2.1x at quarter-end.

Outlook and guidance

• Full-year 2026 net sales outlook raised to 4%-6% growth (midpoint 5%), with organic revenue up 3%.

• Adjusted EPS guidance increased to $5.75-$6.25, up from prior $5.50-$6.00.

• Adjusted EBITDA margin expected at ~18% for 2026.

• Free cash flow for 2026 projected at $350-$375 million, ~105% conversion on GAAP net income.

• Operating cash flow for 2026 forecast at ~$530 million; capex to be ~3.4% of sales.