The Timken Company (TKR)
Description
Timken is a global manufacturer of engineered bearings and industrial motion products and related services, serving diverse end markets including automotive, energy, aerospace, and heavy industrial sectors.
Historical Reports
Financial Information
- Report Date
- 2025-04-30
- Report Period
- Q1 2025
- Debt
- $21,271 million
- Debt History
- Debt increased by 3.1% from $20,627 million at December 2024 to $21,271 million at March 2025.
- Debt Trend
- Increasing
Profit Information
- Profit
- $783 million
- Profit History
- Profit decreased by 24.4% compared with $1,035 million in Q1 2024.
- Profit Trend
- Decreasing
Detailed Report
Timken Company Q1 2025 Financial Report
Report Date: 2025-04-30
Period Covered: Quarterly Period Ended March 31, 2025
Executive Summary
- Net Sales: $11,403 million (–4.2% YoY)
- Operating Income: $1,440 million (–22.0% YoY)
- Net Income Attributable to Timken: $783 million (–24.4% YoY)
- Earnings Per Share (Diluted): $1.11 (vs. $1.46 in Q1 2024)
Profit and Loss Analysis
- Volume & Mix: Lower demand in automotive, heavy truck and industrial markets drove a 4.2% decline in net sales.
- Pricing & Cost: Unfavorable price mix and higher manufacturing costs partially offset by disciplined cost control and pricing surcharges related to tariffs.
- Restructuring & Impairment: Q1 2025 included $109 million in restructuring and impairment charges vs. $– in Q1 2024, driven by a CEO succession package and manufacturing footprint realignment.
- Foreign Exchange: FX headwinds reduced revenue by $194 million and operating earnings by $– million.
- Tax Rate: Effective tax rate improved to 22.7% (vs. 27.9% in Q1 2024) due to reversal of uncertain tax positions and favorable discrete items.
Balance Sheet & Liquidity
- Total Assets: $65,704 million
- Total Liabilities: $34,814 million
- Equity: $30,890 million
- Cash & Short-Term Investments: $3,761 million
- Net Debt: $17,510 million
- Net Debt / Capital: 36.2%
Cash Flow and Capital Deployment
- Operating Cash Flow: $586 million (Q1 2024: $493 million)
- Capital Expenditures: $352 million (Q1 2024: $441 million)
- Free Cash Flow: $234 million
- Share Repurchase: $232 million; Dividend Paid: $251 million
Pros and Cons
Pros:
- Strong liquidity with $3.8 billion cash and $8.2 billion in undrawn credit lines.
- Improved working capital drove a 19% increase in operating cash flow.
- Investment-grade credit ratings and disciplined capital allocation.
Cons:
- End-market softness in key segments depressed volumes.
- Tariff surcharges and FX headwinds trimmed margins.
- One-time restructuring and impairment actions weighed on Q1 profitability.
Statistics Breakdown
Segment Revenue Q1 2025:
- Engineered Bearings: $7,607 million
- Industrial Motion: $3,796 million
Adjusted EBITDA Q1 2025:
- Engineered Bearings: $1,592 million (Margin 20.9%)
- Industrial Motion: $671 million (Margin 17.7%)
Company Direction Insights
Timken is navigating a soft global demand environment in Q1, mitigated by strong pricing discipline, cost controls and incremental tariff surcharges. The company’s robust cash-flow generation and liquidity position underpin its ability to invest selectively in growth markets and return capital to shareholders. Going forward, management expects full-year 2025 revenues to be down low- to mid‐single digits, with margins supported by efficiency programs and acquired businesses. Key challenges include foreign exchange volatility, tariff uncertainty and end-market cyclicality, while opportunities lie in aftermarket growth, electrification in automotive and expansion of industrial motion solutions globally.