Timken's Q2 sales beat estimates; warns of challenging operating environment

Timken

30/07/2025 12:01

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

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)