Timken Q3 profit beats expectations on industrial motion demand; raises outlook

Timken

Wed 11:59

Overview
US advanced motion technology maker's Q3 sales rose 4.7% yr/yr, meeting analyst expectations
Adjusted EPS for Q3 increased 20% yr/yr, beating analyst expectations
Company raised full-year 2026 EPS outlook

Outlook
Timken raises 2026 EPS outlook to $4.05-$4.20; adjusted EPS now $6.35-$6.50
Company expects 2026 revenue to rise about 5.5% from 2025
Company expects 2027 organic sales to grow mid-single digits over 2026

Result Drivers
INDUSTRIAL MOTION DEMAND - Higher volumes in Industrial Motion, revenue from the Bijur Delimon acquisition and higher pricing drove sales growth
TARIFF REFUNDS - Adjusted EBITDA benefited from $12.4 mln in IEEPA tariff refunds
BELTS BUSINESS SALE - Sale of belts business expected to improve Industrial Motion segment margins

Company press release: ID:nPn2NynlJa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Meet
$1.21 bln
$1.21 bln (9 Analysts)
Q3 Adjusted EPS
Beat
$1.65
$1.48 (10 Analysts)
Q3 EPS
 
$1.34
 
Q3 Adjusted Net Income
Beat
$115.10 mln
$103.24 mln (7 Analysts)
Q3 Net Income
 
$93.80 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "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 $137.50, about 18.9% above its November 3 closing price of $115.66
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)