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NORTH CANTON - Timken Company (NYSE:TKR) reported second-quarter adjusted earnings that exceeded analyst expectations, while the company reduced its full-year guidance amid ongoing trade challenges.
The global engineered bearings manufacturer’s stock remained essentially flat in after hours trading, dipping just 0.02% following the announcement.
Timken posted adjusted earnings of $1.42 per share for the second quarter, beating the analyst consensus of $1.37. Revenue came in at $1.17 billion, slightly above estimates of $1.15 billion but down 0.8% YoY. The company’s organic sales declined 2.5% compared to the same period last year, as lower end-market demand in both segments was partially offset by revenue from the CGI acquisition, favorable pricing, and foreign currency translation.
The company generated strong cash flow with $111.3 million from operations and free cash flow of $78.2 million during the quarter. However, adjusted EBITDA margin contracted to 17.7% from 19.5% in the prior-year period.
"Timken delivered second-quarter results that were largely in line with expectations, as our team continues to manage through this period of elevated uncertainty," said Richard G. Kyle, president and chief executive officer. "We have implemented pricing and other actions to mitigate the impact of tariffs, and we remain focused on serving customers and driving cost initiatives to deliver resilient financial performance in 2025."
Looking ahead, Timken lowered the high end of its full-year guidance, now expecting adjusted earnings of $5.10 to $5.40 per share, compared to the analyst consensus of $5.37. The company projects 2025 revenue to decline between 0.5% and 2.0% compared to 2024.
The company cited a cautious view on second-half demand and ongoing challenges in the trade environment as reasons for the revised outlook. Despite near-term headwinds, management expressed optimism about 2026 and is positioning the business to capitalize on an anticipated industrial market expansion.
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