The Timken Company

Second-quarter revenue was $1.26 billion, up 7.5% from last year; organic sales rose 4.4%. Adjusted EPS was $1.83, up nearly 30% year over year, and adjusted EBITDA margin was 19.6% versus 17.7% last year. Adjusted EBITDA was $247 million. Engineered Bearings sales were $807 million, up nearly 4%, with adjusted EBITDA margin of 20.0%; Industrial Motion sales were $454 million, up 14.6%, with adjusted EBITDA margin of 23.3%. Operating cash flow was $107 million and free cash flow was more than $80 million. For 2026, management raised total sales guidance to up 5% to 6%, organic revenue to up 3.5% at the midpoint, adjusted EPS to $6.05 to $6.35, EBITDA margin to the low 18% range at the midpoint, and free cash flow to $375 million to $400 million. The outlook still includes the belts business, and management said the midpoint implies incremental margin of more than 30% for the full year.

Lucian Boldea said the quarter reflected strong execution and progress on the company’s “Elevate to Outperform” strategy, with all three pillars moving forward: portfolio optimization, focused investment in strategic verticals, and better use of the multinational footprint. He pointed to high single-digit organic growth in strategic verticals, mid-teens growth in automation and robotics, and strong performance in aerospace and defense and linear motion. His tone was confident but measured, emphasizing urgency, discipline, and caution around geopolitical uncertainty and seasonality.

Mike Discenza emphasized the quarter’s operating leverage and margin performance, noting $247 million of adjusted EBITDA, 19.6% margin, and incremental margins above 40% organically even before the tariff refund benefit. He said pricing added $14 million in the quarter, tariffs were a $6 million net favorable impact versus last year, Bijur Delimon contributed $4 million of adjusted EBITDA at a high-teens margin, and operating cash flow was $107 million with free cash flow above $80 million. On capital allocation, management returned $45 million to shareholders in the quarter and ended with net debt to adjusted EBITDA at 2x, in the middle of the targeted range.

Analysts focused on the apparent moderation in second-half organic growth, asking whether management was seeing weaker orders, more 80/20 rationalization, or just conservatism. Management said it does not see a slowdown, described the order book as robust and mostly stable sequentially, and cited geopolitical uncertainty and normal seasonality as reasons for a more cautious back-half guide. Questions also centered on aerospace and defense investment, and management said it is adding capacity and headcount to catch up with backlog and rising demand, with the $0.10 second-half EPS headwind largely tied to those strategic investments. Other questions covered pricing, tariff refunds, and the new CCO/COO roles; management said tariff refunds were roughly 50/50 between segments in the quarter and that the organizational changes are meant to strengthen One Timken execution and accountability.