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/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $1.17 $1.15

bln bln (9

Analysts

)

Q2 Beat $1.42 $1.36

Adjusted (11

EPS Analysts

)

Q2 EPS $1.12

Q2 Beat $99.30 $97.30

Adjusted mln mln (7

Net Analysts

Income )

Q2 Net $78.50

Income mln

Q2 Beat $208.20 $206.30

Adjusted mln mln (7

EBITDA 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 ( TKR ) is $82.00, about 1.2% above its July 29 closing price of $80.98

Press Release:

(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.)