Earnings call transcript: Timken’s Q2 2025 beats EPS forecast but sees stock dip

Published 30/07/2025, 18:46
Earnings call transcript: Timken’s Q2 2025 beats EPS forecast but sees stock dip

Timken Company reported its second-quarter earnings for 2025, surpassing analyst expectations with an adjusted EPS of $1.42 against a forecast of $1.37. Despite this earnings beat, the stock saw a decline of 8.93% in pre-market trading, closing at $80.98. According to InvestingPro analysis, Timken currently appears undervalued based on its Fair Value calculation. The company’s revenue of $1.17 billion also exceeded expectations, though it was slightly down year-over-year. Timken’s outlook for 2025 remains cautious, with a projected revenue decline of approximately 1% and EPS guidance between $5.10 and $5.40.

Key Takeaways

  • Timken’s Q2 EPS of $1.42 surpassed the forecast of $1.37.
  • Revenue reached $1.17 billion, slightly exceeding expectations.
  • Stock dropped 8.93% in pre-market trading.
  • The company remains cautious about second-half demand.
  • Timken is optimistic about a 2026 industrial market recovery.

Company Performance

Timken’s performance in Q2 2025 demonstrated resilience, with the company managing to exceed both EPS and revenue forecasts despite facing a challenging market environment. Total sales were slightly down by less than 1% year-over-year, impacted by a 2.5% decline in organic sales. The company continues to focus on strategic growth areas like automation and robotics, which are expected to drive future performance.

Financial Highlights

  • Revenue: $1.17 billion, slightly down year-over-year.
  • Earnings per share: $1.42, down from $1.63 last year.
  • Adjusted EBITDA: $208 million with a 17.7% margin.
  • Free Cash Flow: $78 million.
  • Dividend increased by 3%.

Earnings vs. Forecast

Timken’s adjusted EPS of $1.42 exceeded the forecast of $1.37 by 3.65%. Revenue also surpassed expectations, coming in at $1.17 billion compared to the forecasted $1.15 billion, marking a 1.74% surprise.

Market Reaction

Despite the earnings beat, Timken’s stock experienced a significant decline, dropping 8.93% in pre-market trading. This movement contrasts with the company’s 52-week high of $90.49 and suggests investor concerns about the company’s cautious outlook and potential headwinds in the second half of the year.

Outlook & Guidance

For 2025, Timken projects a revenue decline of approximately 1% and an adjusted EPS range of $5.10 to $5.40. The company remains optimistic about a recovery in the industrial market by 2026, expecting positive impacts from trade certainty, potential tax reforms, and possible interest rate cuts.

Executive Commentary

Phil Frakassa, CFO, expressed optimism about the company’s future, stating, "We are increasingly optimistic about 2026 and are confident in the company’s ability to deliver higher levels of performance next year and beyond." CEO Rich Kyle highlighted the company’s focus on the humanoid robotics market, stating, "The humanoid market itself, we do we are working on applications today. We have a small amount of revenue."

Risks and Challenges

  • Uncertainty in trade policies could impact future demand.
  • Inflationary pressures necessitate cost-saving measures.
  • Potential challenges in integrating recent acquisitions.
  • Second-half demand remains uncertain, affecting revenue projections.
  • Global economic conditions could impact industrial sector recovery plans.

Q&A

During the earnings call, analysts raised concerns about the cautious outlook for the latter half of 2025. Questions focused on the impact of trade policies and the company’s strategies to manage ongoing challenges in the automotive OEM business. Timken’s management emphasized their proactive approach to addressing these issues, while maintaining a focus on strategic growth areas like automation and robotics.

Full transcript - Timken Co (TKR) Q2 2025:

Emily, Conference Operator: morning. My name is Emily, and I will be your conference operator today. At this time, I would like to welcome everyone to Timken’s Second Quarter Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.

Thank you. Mr. You may begin your conference.

Neil Frohnapple, Vice President of Investor Relations, Timken Company: Thank you, operator, and welcome, everyone, to our second quarter twenty twenty five earnings conference call. This is Neil Frohnapple, Vice President of Investor Relations for The Timken Company. We appreciate you joining us today. Before we begin our remarks this morning, I want to point out that we have posted presentation materials on the company’s website that we will reference as part of today’s review of the quarterly results. You can also access this material through the download feature on the earnings call webcast link.

With me today are The Timken Company’s President and CEO, Rich Kyle and Phil Frakassa, our Chief Financial Officer. We will have opening comments this morning from both Rich and Phil before we open up the call for your questions. During the Q and A, I would ask that you please limit your questions to one question and one follow-up at a time to allow everyone a chance to participate. During today’s call, you may hear forward looking statements related to our future financial results, plans and business operations. Our actual results may differ materially from those projected or implied due to a variety of factors, which we describe in greater detail in today’s press release and our reports filed with the SEC, which are available on the timken.com website.

We have included reconciliations between non GAAP financial information and its GAAP equivalent in the press release and presentation materials. Today’s call is copyrighted by The Timken Company and without express written consent, we prohibit any use, recording or transmission of any portion of the call. With that, I would like to thank you for your interest in the Timken Company, and I will now turn the call over to Rich.

Rich Kyle, President and CEO, Timken Company: Thanks, Neil. Good morning, and thank you for joining our call. Overall, second quarter results were in line with our expectations as the team is managing well through this period of uncertainty and continued soft market environment. Total sales in the quarter were down less than 1% from last year and organic sales were down 2.5% driven by lower demand in both segments, partially offset by higher pricing. Our total backlog at the June was up mid single digits compared to the first quarter, which is a positive indicator for 2026.

Adjusted EBITDA margins came in at 17.7% and adjusted EPS was $1.42 both below prior year driven by lower volumes, higher tariff costs and unfavorable currency. In the quarter, we generated $78,000,000 of free cash flow, raised our quarterly dividend by 3% and purchased 340,000 shares of stock. Temkin continues to create shareholder value through the compounding impact of our disciplined capital allocation actions. Turning to the outlook. We are focused on finishing the year strong while positioning the company for industrial expansion in 2026.

Phil will take you through the updated 2025 outlook and assumptions in detail, but we expect the operating environment to remain challenging over the rest of the year, primarily due to the uncertainty surrounding trade and its impact on costs, demand and other macros. Customer demand has been relatively stable year to date at low levels. However, we are reducing the high end of our full year earnings outlook to reflect a more cautious view second half primarily due to the volatile trade situation. The team remains focused on managing our costs to the current market demand as well as driving structural cost actions that will contribute to margin expansion over time. The Mexico plant will continue to ramp up and productivity will improve through the end of the year.

We are also on track to complete three plant closures in the second half of the year. These actions will mitigate the planned volume declines in the second half and positively impact margins in 2026. The tariff situation remains volatile, but our large U. S. Manufacturing footprint will serve us well to adapt to the changes and we remain confident in our ability to mitigate the direct impact from tariffs.

We continue to actively pass the cost into the market through repricing the portfolio, albeit with some expected lag in timing. Pricing was up sequentially compared to the first quarter, and we expect further price realization as we move through the second half. While still early, we are optimistic on the outlook for 2026. Backlog is inflected despite the trade situation. And as trade stabilizes and end user confidence improves, we expect industrial markets to expand.

Additionally, Timken will benefit next year from wins in the marketplace as well as the carryover of pricing and cost savings. Both our portfolio and our operating capabilities are better positioned to capitalize on industrial strength. We also expect a positive impact in ’26 from portfolio moves, including the automotive OE business we highlighted last quarter. Discussions with affected customers are ongoing and we expect the outcome to have a positive impact on our margins in 2026 and beyond. We also continue to invest in the parts of our portfolio with the highest returns and best growth potential.

An example of this is Timken’s position in the automation sector. We’re focused on scaling and high growth applications that include industrial robotics, factory automation, medical robotics and humanoids. With Rollon, ConeDrive, Spanea and CGI added to the Timken branded products, we have built a broad product offering to serve these applications and we will continue to invest to support future growth. The company’s customer focused innovation, application engineering expertise and advanced manufacturing capabilities are competitive strengths as the automation megatrend accelerates. With respect to the CEO search, the Board is working diligently to advance the process and bring it to a successful closure.

Interest in the role is strong, and members of the search committee are confident that we will soon identify the next leader to take Timken to new levels of performance. In the meantime, we continue to advance the company along the same strategic path. The Timken management team is strong, experienced and focused on executing our strategy. We’re confident in the company’s ability to deliver higher levels of performance and create shareholder value as we advance Timken as a global technology leader across diverse industrial markets. With that, let me turn over the call to Phil for a more detailed review of the numbers and outlook.

Phil Frakassa, Chief Financial Officer, Timken Company: Okay. Thanks, Rich, and good morning, everyone. For the financial review, I’m going to start on Slide 12 of the materials with a summary of our second quarter results. Overall, revenue for the quarter was $1,170,000,000 down less than 1% from last year. Adjusted EBITDA margins were 17.7 and adjusted EPS for the quarter was $1.42 Turning to Slide 13, let’s take a closer look at our second quarter sales.

Organically, sales were down 2.5% from last year with volumes lower but pricing higher across both segments. And the rate of organic decline improved modestly as compared to the first quarter. Looking at the rest of the revenue walk, the CGI acquisition contributed just over 1% of growth to the top line and foreign currency translation contributed modestly as well. On the right, you can see how the second quarter fared in terms of organic growth by region. This excludes both currency and acquisitions.

Let me provide a little color on each region. In Asia Pacific, we were up 2% from last year led by growth in China with a significant improvement in wind energy shipments. India was flat in the quarter at a good run rate while the rest of the region was lower. In The Americas, our largest region, we were down 3%. While the region continues to be relatively stable overall, we did see lower revenue in the distribution, off highway and auto truck sectors.

On the positive side, revenue

Rich Kyle, President and CEO, Timken Company: in

Phil Frakassa, Chief Financial Officer, Timken Company: the general industrial sector was up. And finally, we were down 5% in EMEA on continued industrial softness in that region. But I would point out that the year on year rate of decline has improved considerably as compared to the last several quarters and we saw revenue growth in distribution during the quarter, both of which are good signs. Turning to slide 14, adjusted EBITDA was $2.00 $8,000,000 or 17.7% of sales in the second quarter compared to $230,000,000 or 19.5% of sales last year. Looking at the year over year change in adjusted EBITDA dollars, the decrease was driven by the impact of lower volume, incremental gross tariff costs.

I’ll come back to tariffs in a moment. Unfavorable manufacturing mix and currency. These headwinds were partially offset by higher pricing including tariff related pricing, lower material and logistics costs and the benefit of the CGI acquisition. Let me comment a little further on these drivers. On price mix, pricing was positive in the quarter while mix was negative and pricing was also up sequentially from the first quarter due to the initial tariff related pricing actions we’ve put through.

So the net impact from tariffs was just slightly unfavorable in the quarter as pricing actions almost fully offset the incremental tariff costs. Looking at material and logistics, material was notably lower versus last year due in part to cost savings tactics and logistics was also slightly down. On the manufacturing line, performance was negatively impacted by a reduction in inventory levels versus last year, which drove unfavorable cost absorption. In addition, we continue to experience high ramp costs associated with our new belt facility in Mexico. Collectively, these items plus normal inflation more than offset the positive impact of savings from cost reduction actions in the quarter.

Currency was negative $5,000,000 driven by the weaker U. S. Dollar, which caused some transactional losses in the period. And finally, our CGI acquisition continues to perform well, contributing $4,000,000 of adjusted EBITDA, which was accretive to company margins in the quarter. Moving to slide 15, we posted second quarter net income of $79,000,000 or $1.12 per diluted share on a GAAP basis.

The quarter includes zero three zero dollars of net expense from special items, which is comprised of acquisition amortization, restructuring and other charges. On an adjusted basis, we earned $1.42 per share, down from $1.63 last year, but largely in line with our expectations. Interest expense in the second quarter was about $3,000,000 lower than last year, while our adjusted tax rate was 27% as expected. And diluted shares were down slightly, reflecting net share buybacks over the past twelve months. Now let’s move to our business segment results starting with engineered bearings on slide 16.

Engineered bearings sales were $777,000,000 in the quarter down 0.8% from last year with the change essentially all organic as the business continues to stabilize. Across regions, we saw lower end market demand in Europe and The Americas, mostly offset by higher revenue in Asia. Among market sectors, auto truck, off highway and heavy industries were down from last year as we expected. On the positive side, renewable energy and general industrial were both solidly higher versus last year. Engineered bearings adjusted EBITDA was $153,000,000 or 19.7% of sales in the quarter compared to $166,000,000 or 21.2% of sales last year.

The decline in segment margins reflects the impact of lower production volume, incremental gross tariff costs, unfavorable mix and currency, partially offset by higher pricing and the benefit of cost reduction actions along with lower material and logistics costs. Now let’s turn to Industrial Motion on Slide 17. Industrial Motion sales were $396,000,000 in the quarter, down 0.7% from last year. Organically, declined 5.9% as lower demand was partially offset by higher pricing. Most platforms posted lower revenue year over year.

Belts in chains saw the largest decline as it continues to be impacted by lower ag demand in North America. Lubrication Systems was lower on softer demand in Europe including our end user retrofit business. And the Drive Systems and Services platform was also down. Drive Systems was impacted by lower solar demand and marine timing, while Services was impacted by tough comps last year and some project push outs. Our backlog in services remains relatively strong.

On the positive side, our linear motion platform was up in the quarter driven by higher sales in North America including the benefit of some new business wins in the warehousing logistics sector. And finally, the CGI acquisition contributed 3.6% to the top line, while currency translation was a benefit of 1.6%. Industrial Motion adjusted EBITDA was $73,000,000 or 18.3% of sales in the quarter compared to $80,000,000 or 20% of sales last year. The decline in segment margins reflects the impact of lower volume, incremental gross tariff costs, Belts plant ramp inefficiencies and higher SG and A expense in the quarter driven by a discrete accrual for potential bad debt. On the positive side, pricing was favorable and the CGI acquisition was accretive to margins in the quarter.

Moving to slide 18, you can see that we generated operating cash flow of $111,000,000 in the second quarter. And after CapEx of $33,000,000 free cash flow was $78,000,000 We expect stronger cash flow in the back half of the year driven by normal seasonality and lower cash taxes. From a capital allocation standpoint, we returned $47,000,000 to shareholders through dividends and share repurchases during the quarter. We raised our dividend in May, setting 2025 up to be the twelfth straight year of annual dividend increases. And we bought back more than 340,000 shares of Timken stock.

Looking at the balance sheet, we ended the second quarter with net debt to adjusted EBITDA at 2.3 times, which is within our targeted range. With expected free cash flow in the second half and our longer term outlook for EBITDA growth, we remain in great position to deploy capital to create value for shareholders. Now let’s turn to the updated outlook for full year 2025 with a summary on Slide 19. You’ll note that we reduced the top end of our prior earnings guidance range as we are taking a cautious view on the second half. So let’s go through it in detail starting with sales.

Overall, we are maintaining the midpoint of our revenue guide at down just over 1%, but the components have changed. Organically, we now expect sales to be down around 2% at the midpoint, which is one percentage point lower than our prior guide. This is being offset by a one point improvement from currency, which takes currency to neutral to the top line for the full year. Acquisitions are unchanged as we still expect CGI to contribute just under 1% to our revenue for the year. And note that revenue in that business is up over 10% since we bought it.

Now let me provide a little more color on the updated organic revenue outlook. First, there is no change to our pricing assumption for the full year. We are successfully passing through higher tariff costs into the marketplace through pricing. So the change is entirely volume, which reflects a cautious view on second half demand given the continued trade related economic uncertainty. Year to date, our order intake rates have been improving and our backlog is up versus the end of the first quarter, both of which are good signs as we begin to look ahead to 2026.

On the bottom line, we now expect adjusted earnings per share in the range of $5.1 to $5.4 per share. Note that we held the low end of our prior outlook, but reduced the top end by $0.20 You’ll see a walk of the various puts and takes on a later slide, which I’ll hit in a moment. Our revised outlook implies that our full year consolidated adjusted EBITDA margin will be in the mid-seventeen percent range. And finally, we anticipate an adjusted tax rate of 27% and net interest expense of 95,000,000 to $100,000,000 for the year, both unchanged from our prior guide. Moving to cash flow, we’re affirming our prior outlook to generate $375,000,000 of free cash flow at the midpoint, which is more than 130% conversion on GAAP net income.

Moving to Slide 20, here we provide an overview and update on the direct impact of tariffs on Timken. We covered most of this on last quarter’s call, so let me just hit the changes. We’re currently estimating a full year net negative impact from tariffs of approximately $10,000,000 or $0.10 per share. This is an improvement from our prior estimate of $25,000,000 or $0.25 per share driven by the reduction in tariff rates between The U. S.

And China partially offset by higher assumed rates for other countries. The situation remains fluid, but our team is on track to fully mitigate this impact through pricing and other actions on a run rate basis by the end of the year and recapture margins in 2026. On Slide 21, we provide a bridge of the $0.10 per share reduction in our 2025 adjusted EPS outlook at the midpoint. Here you can see the positive $0.15 change related to tariffs, which I just covered. And you’ll also see a net favorable $0.10 impact from currency.

These items are more than offset by a negative change of $0.35 from organic, which reflects the lower volume assumption as well as unfavorable mix and our expectation for lower margins in the back half of the year due to the belt ramp and other incremental cost headwinds. With that said, we are still targeting significant cost savings for the full year which will offset inflation in labor and other input costs. In summary, Kimken is managing well through this period of elevated uncertainty and remains focused on finishing the year strong while positioning the company to capitalize on an industrial market recovery. We are increasingly optimistic about 2026 and are confident in the company’s ability to deliver higher levels of performance next year and beyond. This concludes our formal remarks and we’ll now open the line for questions.

Operator?

Emily, Conference Operator: Thank you. Our first question today comes from Kyle Mengers with Citigroup. Please go ahead, Kyle.

Kyle Mengers, Analyst, Citigroup: Good morning, guys. I was hoping if you could just unpack the trend to the organic volume guide a little bit more? I mean, sounds like based on your prepared remarks, trends in the quarter have been pretty stable really year to date, and then you’ve seen backlog growth in both the first quarter and second quarter. So could you just help me understand what you’re seeing and hearing in the markets and from customers that’s leading you to take down the second half organic growth guide? Or is it just you guys being cautious on tariff uncertainty?

Phil Frakassa, Chief Financial Officer, Timken Company: Hey, Kyle, it’s Phil. Thanks for the question. So I would put it more in the category of just wanting to be cautious on the second half of the year. We’re not seeing acceleration per se. We’re certainly not seeing any deceleration.

Markets remain stable. So we wanted to be a little cautious on back half demand just given the uncertainty around trade, which filters the markets, as you know. And we do believe that as we get more certainty around trade, you couple that with a tax bill, you couple that with maybe a rate cut as we move through the year, we do think all those things likely impact 26% a positive way, but it’s usually atypical for our markets to accelerate in the second half. So we just at this point in the year, given where we’re at, we just thought it was prudent to be a little bit more cautious on the outlook.

Kyle Mengers, Analyst, Citigroup: Got you. Helpful color. And then, starting to get more questions on humanoid robots from investors. Would love to hear from you guys just, your thoughts on Timken’s applications for humanoid robots and just in general, the size and potential that you see in robotics, I guess, for Timken.

Rich Kyle, President and CEO, Timken Company: Yes. So I’ll take that. The last part, robotics, if you open it up to automation, obviously, already a sizable market for us and one that I think we’re well positioned to grow in significantly. The CGI acquisition, which Phil talked about, is off to a good start is almost predominantly focused on medical robotics, but has an industrial play as well. Cone and Spanea and Timken have significant plays in factory automation and roll on with some specialty in warehouse automation, but also some of the other parts of factory automation.

The humanoid market itself, we do we are working on applications today. We have a small amount of revenue. We’d expect a good CAGR off that small amount of revenue, but it takes a few years of a good CAGR to even get up to $10,000,000 So I think it’s going be a relatively small number the next couple of years. We’re working with multiple OEMs on future designs. But I think it’s a longer term play for sure still on the humanoid side.

The other parts of the automation market are here today and growing.

Brian Blair, Analyst, Oppenheimer: Helpful. Thank you.

Phil Frakassa, Chief Financial Officer, Timken Company: Thanks Kyle.

Emily, Conference Operator: Thank you. Our next question comes from Brian Blair with Oppenheimer. Please go ahead Brian.

Brian Blair, Analyst, Oppenheimer: Thank you. Good morning, guys.

Phil Frakassa, Chief Financial Officer, Timken Company: Good morning, Brian. To

Analyst: follow-up on a question on the relative conservatism of the revised guide or to ask in a different way. What were month by month orders through Q2? And how does July look relative to the second quarter level?

Phil Frakassa, Chief Financial Officer, Timken Company: Yes. I would say on the second part of the question around July, look, we’ll close the books on July next week, but the sales rates we’re running would be in line to maybe slightly ahead of the midpoint of our guide. I think July, we’re off to a pretty good start relative to July. As far as the order intake rates go, I mean, we don’t typically comment on them month by month. But suffice it to say, think the order intake rates have been improving as we move through the year.

The order book was up or the backlog was up sequentially from the first quarter, kind of still sort of, I think, flattish year on year. But what we’re seeing from an order intake standpoint, backlog standpoint, obviously, gives us confidence. But I think the word on the second half would be more cautiousness than conservatism. Obviously, we moved some markets to the left on our market chart, heavy industries just because the spend was coming a little bit lower than we anticipated. Services is one where it’s generally it can be a discretionary spend.

So that’s one where we’ve been seeing some push outs there. Backlog remains high, And I think that revenue will come at some point, but we wanted to be a little bit more cautious there. And then with distribution, distribution can kind of bounce month to month. It’s been relatively stable. We’re relatively flat in the quarter.

North America was down a little bit. Europe was up a little bit, but we did kind of move distribution to the neutral column as well as sort of the basis for the more cautious guide, if you will. And then rail on the flip side, rail continues to perform well. We moved it over to be neutral despite freight car builds expected to be down significantly in North America this year. We’re seeing some new some good business activity in wind outside The United States and really protecting or expanding share even in our core market as well.

So just to give you a little bit of extra color, but we do feel confident that as we look ahead to ’26, we do feel that with some help on the trade front and some reasonable resolution there the remaining countries that are sort of up for debate, I do think we should be pretty good heading into ’26. Okay.

Analyst: Makes sense. I appreciate the color. Maybe offer a little more of an update on your discussions with auto OEMs. What’s a realistic time frame to finalize those discussions, negotiations? Is the expectation that you’ll still impact a little more than half of auto OE revenue?

And when you get to that point, are you willing to quantify or otherwise frame the margin lift as next three steps?

Rich Kyle, President and CEO, Timken Company: Yes. On the little more than half, I would say that’s still what we’re focusing on right now. Too early to say how the discussions are going to play out. They’re active. I would expect that we would be able when we get to the ’26 guidance, we would be able to estimate what the impact will be through the course of year.

Really don’t expect much impact at all through the first quarter of next year, but certainly would expect some positive uplift by the time you get to the second half of next year. And the outcome is uncertain. We’d expect some combination of exiting some parts of the portfolio and repricing some parts of the portfolio. And then in the repricing, some of it temporary between now and when we exit and some of it that extend into multiple years. So TBD, but would definitely expect some margin uplift from it in the 2026.

Brian Blair, Analyst, Oppenheimer: Okay. Understood. Thanks again.

Phil Frakassa, Chief Financial Officer, Timken Company: Thanks, Brian.

Emily, Conference Operator: Thank you. Our next question comes from Rob Wertheimer with Melius Research. Please go ahead, Rob.

Rob Wertheimer, Analyst, Melius Research: Thanks. Thank you. Good morning, guys. Hey, Rob. My question, Phil, you just kind of walked through some of those markets that changed.

I guess when I looked at it, was slightly surprised, not shocked on any of it, but slightly surprised just on distribution. I wonder if you could characterize where inventory levels are or whether there’s anything that drove that. Maybe it’s hesitancy around tariff. I wonder if you could describe in a little bit more detail the services, what that constitutes and what the decision making around that is? And I’ll ask my last one here.

It’s nice to see the recovery in renewables and wind, I suppose. I wonder if you could just give some sort of description of the strength there, threat from Chinese OEMs and just where you stand in that market. Thank you.

Phil Frakassa, Chief Financial Officer, Timken Company: Sure, Rob. Thanks for the question. So relative to distribution, obviously, it’s a short cycle part of our business. It we were we had moved it to be up kind of mid singles, call it, three to four, and then we moved it back to neutral, sort of leaning right. So I wouldn’t call it a five point change.

It was more of a kind of a low single digit point change in the outlook. From a and again, that was just really being cautious just given the short cycle nature of that market. Inventories where we see where we have visibility would suggest that inventories are at good levels for this level of demand. But that can obviously change quickly if the market weakens. But where we see inventory, which is mainly North America and then maybe to a lesser degree in Europe, would suggest inventories are in a pretty good spot.

And I would say that’s even true if we go move into the OEM part of our business. There is always it can vary by market, by customer around the world, but the larger markets that we serve, off highway and industrial markets, would suggest a lot of the destock that we had been anticipating is kind of behind us now. So we feel inventories are at good levels. We’re take going a little bit of our own inventory out in the second half just with normal seasonality. And then I think sets us up pretty well heading into next year.

On the services, so if you think of Timken service business, it’s mainly industrial services. I think high speed gearbox reconditioning, bearing reconditioning. We also do motor repair and typically tied to a gearbox repair, if you will. And that can be if you think some customers will have spares, and oftentimes, if you have a if something’s broken on a line, it’s got to be fixed immediately. That obviously gets done.

Sometimes there’s a spare, so you put the spare in, then it becomes a question of when you recondition the spare. And you can push that out for a little bit of time. And we do believe with the tariff uncertainty, it is causing some of that discretionary spend, whether it’s in services, whether it’s in automatic lubrication in the retrofit business, which is where we can retrofit older equipment with our automatic lubrication systems to eliminate the need for manual regreasing. That type of spend can get pushed out in an uncertain environment like this, which is kind of what we’re seeing. But overall, the backlog remains, and that business has been very consistent, very consistent, high margin business for us over time.

So no concerns there other than we got to get a little bit of this uncertainty behind us. And then last point on wind energy, we did see a really nice step up in demand in wind energy in the first half, and that was mainly driven by Asia or China more specifically. So it’s nice to see off of last year’s soft market conditions. I would tell you, as we looked at the numbers coming in, there was probably a little bit of pull ahead from second half to first half because there were some regulatory changes in China that went into effect June 1 that did provide a little bit of incentive to pull ahead some spend where that was possible. But we do think the market continues to improve.

We don’t we think the growth will be a little more muted in the second half given that pull ahead, but we do believe the market’s on its way to recovery. Obviously, it’ll be several years before we get back to where we were, but we’re confident with what we see. And then obviously, we did see some share shifts last year with the market being down so much as you typically might see in that kind of situation. But we did get some of that business back. Where we’re focused in terms of the gearbox and then being very thoughtful about where we play on the main shaft applications.

We feel there’s enough market there for us to compete, win and achieve our growth objectives.

Rich Kyle, President and CEO, Timken Company: Rob, the only point I’d add is going back to the distribution comment. The when we experienced unexpected cost pressures back when inflation was hitting a few years back and now with tariffs, we do realize price faster in distribution than we do in OEM. So that is positively impacting the revenue numbers. And OEM pricing will catch up to that in time.

Rob Wertheimer, Analyst, Melius Research: Perfect. Thanks, Rich. Thanks, guys.

Emily, Conference Operator: Thank you. Our next question comes from Angel Castillo with Morgan Stanley. Please go ahead.

Angel Castillo, Analyst, Morgan Stanley: Hi, good morning and thanks for taking my question. Sorry to but beat a dead horse I just wanted to clarify kind of understanding everything or interpreting it correctly. But sounds like your orders are at this point are suggesting kind of end of the year results would be above the midpoint or at the top end of your guide. So if we do get an atypical recovery, whether it’s because of the one big beautiful bill or some other factors, Am I understanding that correctly that that would put results then above the $540,000,000 and it’s just something that given the kind of abnormal nature of that, you’re just not underwriting at this point. But if and if so, if that’s correct, guess anything to consider in terms of potential pull forward of demand or push outs?

I think you mentioned some in services that maybe impacts your ability to see that if you do see an atypical recovery.

Phil Frakassa, Chief Financial Officer, Timken Company: Yes. So thanks for the question, Angel. I would say for us to exceed the high end of the guide would really require an acceleration in demand in the back half of the year. And right now, our guidance would assume that year over year organic revenue is down year on year in the second half. Headline

Speaker 9: will look a

Phil Frakassa, Chief Financial Officer, Timken Company: little better than the first half. When you take pricing out, it’s probably very consistent period to period. So if we were to see actually revenue growth in the second half, that would be what we would need to see in order to move to the high end above the high end of the guide. But, I mean, we’re we put the range out there because we feel that it’s a range that we’re confident in, we’re comfortable with, and and the high end of the guide would would assume, you know, kind of kind of flattish organic in the second half there roughly with pricing positive and then just a slight negative on the volume. So that would give you some sense.

That was one of the reasons, frankly, trimmed it is we didn’t want to assume an acceleration in demand in the second half. Just given where we’re at, we felt it was just more prudent to frame the guide around flat organic second half would get you sort of at the high end and then a little bit lower than where we than the midpoint would get you to the low end. And that’s just sort of where we pegged it.

Angel Castillo, Analyst, Morgan Stanley: That’s very helpful. Thank you. And then maybe just on back to some of the commentary around automation or robotics. Two questions, guess, on that. One, any particular, you know, aspects of your portfolio that you think, you still need in terms of going out there and getting some potential bolt ons to be able to participate in in that world kind of in the future as it pertains to, again, robotics or humanoids?

And as we think about the CEO ongoing transition, is what’s kind of the appetite to potentially do M and A while that’s ongoing? Or should we assume that that’s kind of M and A is on pause until we get a CEO announcement?

Rich Kyle, President and CEO, Timken Company: I’ll take the second one first. I would say we continue to pursue M and A. We haven’t done any since the CGI acquisition. But I think if we were to do something in while with the CEO search is going on or in the early days of a new CEO, it’s going to be something that’s probably bolt on and very close and similar to what we’ve been doing. And that’s the pipeline that we’ve been working and we’ll continue to work.

So I would certainly not say that an acquisition is out of the question during the CEO transition. Yes. Then the only

Phil Frakassa, Chief Financial Officer, Timken Company: thing I would add on the first part, Angel, the robotics. I mean, certainly, I would tell you we’re approaching it much like we do other high growth markets is, let’s form a cross functional team within the company. Let’s look at technology we have in the portfolio and what we think it’s going take to compete and win and then whether we’re going to do that organically or if there’s gaps in the portfolio. Certainly, M and A would come into play along the lines of what Rich talked about. But I’d tell you, in the area of robotics, again, humanoid is very early innings.

But in the broad area of robotics, we’ve got very good capabilities and drive systems. Certainly, precision bearings, if you will, as well as some other products. And I do think as we move forward, you’ll see us continue to improve the portfolio and our capabilities to be able to compete and win as that market grows.

Rich Kyle, President and CEO, Timken Company: Yes. And I’d say we don’t need anything else in our portfolio today to win with the portfolio we have. So we don’t have to have something to bundle with it, but there are certainly other technologies that could supplement what we have today and some potential things that we can do both organically But it’s not a necessity for what we for the portfolio we have to win in the coming years.

Angel Castillo, Analyst, Morgan Stanley: Very helpful. Thank you.

Emily, Conference Operator: Thank you. Our next question comes from Stephen Volkmann with Jefferies. Please go ahead, Stephen.

Neil Frohnapple, Vice President of Investor Relations, Timken Company0: Excellent. Good morning, everybody. I wanted to go back to the kind of auto contract project, whichever we’re calling that. I remember the last time you guys went through this, I think you ended up sort of exiting about onethree and repricing maybe twothree. Is that a reasonable way to think about this exercise?

Or is there something different about it this time?

Rich Kyle, President and CEO, Timken Company: Well, I think it is it’s a little different this time. I mean, that time we went in with a slightly different approach, we had automotive plants back then, etcetera, that required a lot of restructuring. We do not have an automotive plant in our portfolio today. We make automotive products in mixed industrial plants. So it’s I’d say it’s fairly different both in scale and complexity.

And I would say it’s too early to know what the mix is going to be. Probably also different than then, I mean, we’re at today has been it’s a niche for us that we’ve narrowed down to over the last ten years that we’re pretty sizable in, we’re pretty good at. We have a sizable U. S. Footprint.

So there’s some value there in what we do that it’s but again, it’s too early to see if we’re going to be able to successfully improve what we get paid for that value that we bring.

Neil Frohnapple, Vice President of Investor Relations, Timken Company0: Okay. All right. Good. That’s a good color. And then I just wanted to think a little bit about ’twenty six, and who knows where the markets will be, for God’s sake.

But it seems like you’ll have some tailwinds. You’ll have something from this auto project. And then I guess you have some plant closures as well. You’ll probably have a little bit of price cost as you get that fully implemented. Is it possible to kind of first of all, is that, like, is that a good list?

Is there anything I’m missing? And then second of all, any can any of that have numbers put around it yet?

Rich Kyle, President and CEO, Timken Company: It’s too early to put numbers. I think it’s a good list. I wouldn’t say it’s a conclusive list, but but to your point, I think there’s a lot of factors pointing to first to your point of who knows. And certainly, we don’t know. We don’t have that level of visibility as you know to most of our portfolio out past six months.

But there’s a lot of factors pointing to that it could be an upturn next year. And then there’s a lot of factors that we have a lot of self help. So a few comments on your list. First, I mean just the duration of the downturn that we’ve been in. It’s been quite a few quarters, Short cycle usually eight quarters, ten quarters is pretty long for us.

As you know, we because of the multiple points of our inventory in our own facilities and our OEMs and their dealers, our distributors and then end users, we swing more in both directions. And then I think the trend line you’re looking at as Phil said, mean even if even with the outlook we have today, we’re approaching zero sales with that outlook in the second half and which typically means you’re going to be heading to positive shortly thereafter versus I mean we typically once we start direction, we go that way for several quarters. So I think there’s a lot of factors pointing to that needs to be happening sooner rather than later, whether it’s the third quarter of this year or the first or second of next year. But at some point, that should invert. And also some trends within our orders as we implied.

Phil talked about moving from a more uncertain environment to a more certain environment. We took some steps with that recently with the Japanese and European Union trade agreements. There’s the tax certainty environment that we’re in now, which is also a positive. So I think those certainly are pointing to that as well. And then from a self help perspective, I think we’ve got self help on the put the auto OEM aside, which could be a negative on the top line next year.

But I think either way, would be a positive on the bottom line. But we’ve got some positives from a mix perspective. Our portfolio is better than the last upmarket that we went into. Our mix is better. And then we also have we will have a fair amount of carryover price next year as well as new price and some of the things that we have not been able to pass pricing through yet because of agreements as of the tariffs have hit.

So we’ll have some positive price heading into next year. And then also a really good self help story from a cost perspective, the three plants you talked about, some of the other productivity tools productivity measures that we’ve implemented both from a SG and A standpoint as well as from a manufacturing standpoint, I would expect to leverage those as volume improves. So I think we’ve got a good self help story and with some market help could be a good year next year.

Phil Frakassa, Chief Financial Officer, Timken Company: Yes. No, I think Rich hit it all, Steve. Only thing I would add is certainly with the cost savings actions being second half weighted and our Belts our plant ramps, which would be Belts is in the thick of it now, but we’ve also got the India plant ramping. As those plants ramp, I think that helps 26. So I think we’re going to start the year in a pretty good spot from a price cost standpoint.

And too early to talk about incrementals, as Rich said, but I do think it will put us in a good position. And if we’ve got some volume to work with, we’ve some demand to work with to print real good incrementals relative to what we would historically do at that point in the cycle. So I do think we’re in a pretty good spot there.

Rich Kyle, President and CEO, Timken Company: And finally, did throw in that another year of capital allocation and we will have bought a few shares of this year, not a lot, but we’ll have reduced debt through the course of the year if do not do another acquisition and then throw in next year’s cash flow as well. We would expect some benefit next year from capital allocation as well.

Neil Frohnapple, Vice President of Investor Relations, Timken Company0: Super. Alright. That that’s a lot there. I appreciate it, but you you forgot the humanoid robot inflection.

Speaker 9: We’ll we’ll put that in

Rich Kyle, President and CEO, Timken Company: the 27 bucket. Yeah.

Neil Frohnapple, Vice President of Investor Relations, Timken Company0: Thank you.

Emily, Conference Operator: Thank you. Our next question comes from Steve Barger with KeyBanc Capital Markets. Please go ahead.

Phil Frakassa, Chief Financial Officer, Timken Company: Hey, Steve. We can’t hear you.

Neil Frohnapple, Vice President of Investor Relations, Timken Company1: Oh, sorry about that.

Phil Frakassa, Chief Financial Officer, Timken Company: Go ahead. We can hear you now.

Neil Frohnapple, Vice President of Investor Relations, Timken Company2: Can you address great. Rich addressed some of the Timken specific dynamics around the back half guide. But we have seen a couple of other short cycle bearing companies return to modest but still positive organic growth. So I just want to ask about market share issues anywhere in the portfolio or any areas where pricing is getting more competitive and disadvantaging you? Anything like that going on?

Rich Kyle, President and CEO, Timken Company: No, I don’t think if we’re not comparing well to a peer right now, I would say it’s a mix issue. We don’t think we’re losing well, we know we’re not losing any share anywhere except with the automotive actions and that hasn’t kicked in yet, but we that’s likely for next year that we will lose some concede some share there by design. But we’re definitely not losing any share. And pricing is going up. It’s been going up and I think it will go up again next year.

It just needs to go up at least as much or more than what costs do, which again, we’ve got a little bit of lag. But I would say the both during the inflationary time as well as tariff time, the bearing industry has shown that we will recover those costs and I’m confident that Timken will do so.

Phil Frakassa, Chief Financial Officer, Timken Company: Yes. And maybe the only thing I would add Steve to that would be on the tariffs. While we do import product from several countries around the world, obviously, our U. S. Local for local content is pretty high relative to the main folks that we compete with.

So I do think as these trade deals get concluded and that we end up with, you know, maybe a smaller tariff regime around the world, I do think that’ll naturally benefit us here in The United States just given our relatively higher local for local content.

Neil Frohnapple, Vice President of Investor Relations, Timken Company0: Understood.

Neil Frohnapple, Vice President of Investor Relations, Timken Company2: And for automation, how integrated are the sales teams across lubrication, drive systems and linear motion? Are you optimized for selling the entire product line with one voice so you’re making sure you can kind of take share in what should be an expanding

Rich Kyle, President and CEO, Timken Company: I would say we do both today. We have product specialists. We have market specialists. And that’s fairly common for us, but we’re definitely getting cross selling benefits. But as an example, with the CGI acquisition, that was our really our first step into medical robotics.

They sell more into that space. We actually sold them bearings. So we were in that space as well with from a bearing perspective. And Cone and Spanea did a little bit in there, but we have not we don’t do a full integration there. We take the best of all parts.

Most of our sales base typically is a little bit of market, some geography and some product. Again, it’s most of what we do is a very technical sales, so you need a lot of product expertise within linear, within our harmonic drive, within a cycloidal drive, within a bearing, etcetera.

Neil Frohnapple, Vice President of Investor Relations, Timken Company2: Understood. And just as a follow on, if I look at your automation sector sales on Slide eight, it’s obviously been flat to a little down for a couple of years. Do you have enough visibility to assume that outgrows whatever the portfolio does in 2026?

Rich Kyle, President and CEO, Timken Company: Yes. I’d say the decline has been really in the factory automation space and that market has certainly been down. Too early to call whether that’s going be up next year, but our order trend and backlog and customer sentiment, I would say, would indicate that better times are ahead.

Phil Frakassa, Chief Financial Officer, Timken Company: Yes. And the only thing there, Steve, to keep in mind too is the automatic lubrication systems business that we have, which is an automation play, if you will, not robotics, but an automation play is heavily exposed to the off highway market. So as that market’s come down, it’s been impacted as well. So I think we’re in a good I think in a good spot there to return to growth next year, but I just wanted to point that out as well.

Neil Frohnapple, Vice President of Investor Relations, Timken Company2: Thanks. Appreciate it.

Emily, Conference Operator: Thank you. Our next question comes from Tim Thine with Raymond James. Please go ahead.

Neil Frohnapple, Vice President of Investor Relations, Timken Company3: Thank you, guys. Good morning. I I apologies in advance if these were were asked. I I was just bouncing between calls here, and and I’ll I’ll package them together. I I the first is on the China wind business.

I’m curious if you saw or perceived there to be any sort of pull forward or, I guess, pre buy in the first half. That was something that one of your peers had called out that potentially the first quarter was flattered by some pull forward ahead of some policy catalysts. So that’s question one. And then on the second, I’m curious with respect to the distribution segment and that kind of tweaked down. And maybe, Rich, just from your historical lens, how is that business historically or what has it told you about you know, in around cycle inflections?

I’m just curious if that if if that business directionally is is lower, has that, you know, been acted as sort of a a, you know, a lead indicator in in in inflection points historically I’m just curious what you would make, if anything, of that. Thank you.

Phil Frakassa, Chief Financial Officer, Timken Company: Yes. Hey, Tim, this is Phil. I’ll take the first part. On the wind, we did as we look at the results coming in Q2 and then obviously Q1 as well, we do believe there’s been some pull ahead of the regulatory change that went into effect June 1. So it will cause I think a more muted growth profile in the second half.

So we still expect to be up for the year certainly in wind, but it will be a little bit more muted in the second half because of that pull ahead.

Rich Kyle, President and CEO, Timken Company: Yes. And on the second question, Tim, our distribution partners, particularly when you look globally, both sell to smaller OEMs as well as the maintenance cycle. So I mean, we would tend to see more of an inventory impact through that channel that the end user reduces inventory when the distributor does, but less of a peak to peak, trough to trough decline or increase as well because the maintenance cycle as equipments run longer, etcetera, is significantly less cyclical than the new equipment capital part of it. I wouldn’t read too much into what we’re seeing. It’s pretty small number overall at this point.

Phil Frakassa, Chief Financial Officer, Timken Company: Yes, small change.

Neil Frohnapple, Vice President of Investor Relations, Timken Company3: All right. That makes sense. Thank you, guys.

Phil Frakassa, Chief Financial Officer, Timken Company: Thanks, Tim.

Emily, Conference Operator: Thank you. Our next question comes from Mike Schlisky with D. A. Davidson Companies. Please go ahead.

Speaker 9: Hi, good morning. You had mentioned backlog is being up sequentially. Any idea which end markets or groups were were driving were driving that? It sounds like they’re more positive on 2026. There’s some long cycle stuff in there, but just curious as to what’s the kind of hitting edge here of the upward inflection.

Phil Frakassa, Chief Financial Officer, Timken Company: Yeah. Hey. Thanks, Mike. This is Phil. So you’re right.

Backlog was up sequentially. And I would say pretty broad, and we’re seeing it where we needed to see it in terms of the industrial sectors, whether it be off highway. We’ve seen renewable go up. A lot of general industrial, probably not so much in heavy industries quite yet because that tends to be later cycle. But it’s been pretty broad across the portfolio.

We don’t typically go into too much detail kind of market by market, but it certainly wasn’t like idiosyncratic to one market or anything like that.

Speaker 9: Okay. Great. And then I also wanted to ask about just the two most recent kind of broad policy initiatives that came out, the big beautiful bill and then the agreement with, Europe on the tariffs. Just curious, you know, in the days following both of those announcements, and I think one was just the last couple of days, have you gotten any new quote requests or or calls from customers that were kind of on the sidelines waiting to get this kind of news? Did you get a kind of sudden influx of of some interest that you were kind of hoping for or kinda waiting on just the last couple of weeks here?

Rich Kyle, President and CEO, Timken Company: So I I’ll take the last part and I would say no. We we there’s nothing that sudden. And then I’ll take the generally and then let Phil maybe comment on some of the specifics once together. But I think in both cases, again, coming back to just certainty and knowing where the tariffs are going to be for a period with Europe, we can all between customers, etcetera, now all start operating to that, gives you more confidence to invest, which again drives a lot of our demand is when investment is made. Net weather, how successful impactful it is in increasing capital investment in The United States to the degree you believe that is going to happen, then I think the Timken Company is going be a significant beneficiary of that.

That will be relatively, I think, I wouldn’t say slow to play out, but it’s not a sudden thing that’s going to happen in the next week or month.

Phil Frakassa, Chief Financial Officer, Timken Company: Yes. Maybe one thing to add there, Mike. This is Phil. So Rich is right. I mean, typically, we would see it would take at least a couple of quarters for things like that to work its way into the top line, if you will.

But on tariffs, just one point. So the $0.10 headwind we have in the guide, in that guide, we have contemplated some escalation of tariff rates as we move forward. So certainly, if China goes back to 01/1945, that would probably require a relook at that number. But, you know, the movement in Europe up 5%, if there’s movements like that in other countries, you know, we we we have tried to contemplate that in the guide where I feel like we would have it covered provided it’s not a it’s not, you know, like what we had in China at the beginning of all this.

Speaker 9: Thanks very much.

Emily, Conference Operator: Thank you. Our next question comes from Chris Dankert with Loop Capital Markets. Please go ahead, Chris.

Neil Frohnapple, Vice President of Investor Relations, Timken Company1: Hey, good morning. Thanks for taking the question.

Speaker 9: Hey, Chris.

Neil Frohnapple, Vice President of Investor Relations, Timken Company1: I guess just on pricing.

Phil Frakassa, Chief Financial Officer, Timken Company: I want

Neil Frohnapple, Vice President of Investor Relations, Timken Company1: to make sure I’m understanding things correctly there. Phil, I think you said pricing in the quarter slightly less than the tariff impact. So maybe a little bit more than a point benefit in 2Q here. It sounded the full year guidance unchanged, so less than 2% price for the full year. Things are stepping up sequentially, correct?

But just it sounds like they’re fairly de minimis in terms of what we’re getting from the first quarter to the second and then second into the back half year. Is that the right way to think about it?

Phil Frakassa, Chief Financial Officer, Timken Company: Yes. So we certainly had positive price in the quarter, Chris. We came into the year talking about pre tariffs less than we said less than 50 bps of base pricing pre tariffs, and then we did talk about specifically $60,000,000 of pricing that we’re contemplating so far. So all in, we will be well above 1.5, 150 bps for the year. And I do think that’ll be more back half weighted because we did do some mid Q2 pricing and then we’ve got some mid Q3 pricing coming in as well.

So would expect pricing to step up year over year as we move through the back half of the year and then for the full year to be in that it’d be sort of in that 150 to 200 range for the full year.

Neil Frohnapple, Vice President of Investor Relations, Timken Company1: Got it. That’s helpful. Thanks, Phil. And then I guess just on the factory loading for the belts in Mexico. I guess if belt and ag are so weak right now, is that causing the factory loading to be a little bit weaker and then the margin to be lower than you would have expected there?

I mean is that $4,000,000 EBITDA headwind you called out the deck, is the majority of that tied to the belt plant less than the belts plant? Just any color you can give on that kind of getting that program up and running?

Rich Kyle, President and CEO, Timken Company: Our belt business is down. Ag is a significant market for us and that market is down. So that’s contributing. But it’s also a factor of we still have the plant in The U. S.

That will be closed at the August. We still have that. We still have training costs, ramp up costs and some inefficiencies in the Mexico facility. But again, we’ll see certainly the three plant costs that we have within the operation come out within the next couple of months. And nothing we’re seeing is all that atypical.

It takes a little time to replicate the capabilities in the other facility.

Phil Frakassa, Chief Financial Officer, Timken Company: Yes. I mean, big picture, Chris, that negative $4,000,000 in the walk, it’s the inventory change is a big piece because we liquidated some inventory this quarter. We actually built some last quarter that had a cost absorption impact. The belts would be negative as well and then offsetting that would be the cost savings actions that we’re implementing. So those would be sort of the three big buckets in there that are all in that single digit millions that would get us to that number.

Neil Frohnapple, Vice President of Investor Relations, Timken Company1: Got it. But that’s helpful. Thanks so much guys.

Emily, Conference Operator: Thank you. Our final question today comes from Michael Feniger with Bank of America. Please go ahead,

Neil Frohnapple, Vice President of Investor Relations, Timken Company4: Thank you. Hey, guys. Thanks for squeezing me in. I promise I’ll keep it short. Just on the margin guidance, the mid-seventeen percent versus I think prior was mid- to high 17%.

I might have missed this. It is it is it it sounds like it’s purely just your organic growth coming down a little bit. And is it the decremental you’re kind of assuming on that? Is that similar? Has has your view on that decremental changed a little bit as I know you’re trying to take some inventory out?

Just kind of trying to understand just the change in the margin guidance around that decremental in the back half. Yes.

Phil Frakassa, Chief Financial Officer, Timken Company: Got it. No, thanks, Mike. And we always have time for you. But on the decremental, so you’re right, the drop in the margins for the full year, really three things. Tariffs would have gotten better.

That would have been a favorable item in that walk. And then the two unfavorables would be the volume taking the volume outlook down a point at the volume leverage, if you will, would have been quite high. Then we are planning on mix to be, call it, more unfavorable than we had been previously contemplating, which again is additive to that. And then we also did assume some cost incremental cost headwinds with the Beltran taking

Neil Frohnapple, Vice President of Investor Relations, Timken Company1: a little bit longer than

Phil Frakassa, Chief Financial Officer, Timken Company: we anticipated as well as some of the other impacts we were seeing. So it was sort of a variety of things, but then driving a higher overall decremental slightly higher overall decremental, which kind of pushed the margins down that 50 bps or close to 50 bps from where we were before.

Brian Blair, Analyst, Oppenheimer: Thank you. Thanks, guys.

Phil Frakassa, Chief Financial Officer, Timken Company: Thanks, Mike.

Emily, Conference Operator: Thank you. There are no remaining questions at this time. Sir, do you have any final comments or remarks?

Neil Frohnapple, Vice President of Investor Relations, Timken Company: Yes. Thanks, Emily, and thank you, everyone, for joining us today. If you have any further questions after today’s call, please contact me. Thank you and this concludes our call.

Emily, Conference Operator: Thank you for participating in Timken’s second quarter earnings release conference call. You may now disconnect.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.