Timken Company (NYSE:TKR) reported fourth-quarter results on Wednesday that exceeded market expectations, with sales rising 3.5% from a year earlier, lifting its shares in premarket trading.
The engineered bearings and industrial motion technology group saw its stock climb 2.97% ahead of the open following the earnings release.
Adjusted earnings per share for the quarter came in at $1.14, above analysts’ forecasts of $1.09. Revenue totaled $1.11 billion, beating the consensus estimate of $1.07 billion, while organic sales increased 1.3% year on year.
“We finished the year strong, delivering higher organic sales and cash flow in the fourth quarter versus the prior year,” said Lucian Boldea, president and chief executive officer. “The Timken team remains focused on our near-term strategic priorities designed to structurally improve margins, accelerate growth in key market verticals, and create significant value for shareholders.”
The increase in quarterly revenue was supported by higher pricing, favorable currency effects and stronger volumes in the Industrial Motion segment, where sales jumped 8.4% to $396.8 million. This strength was partly offset by softer end-market demand in the Engineered Bearings segment, which still posted a modest 0.9% rise in sales to $714.2 million.
For the full year 2025, Timken reported adjusted earnings of $5.33 per share on revenue of $4.58 billion, representing a 0.2% increase from the prior year. Operating cash flow reached $554.3 million, up 16.5% year on year.
Looking ahead, the company issued initial guidance for 2026, forecasting adjusted earnings per share of $5.50 to $6.00, compared with an analyst consensus of $5.97. Timken also expects full-year revenue growth in the range of 2% to 4%.
“We expect to generate organic revenue growth, strong cash flow, and higher margins and earnings in 2026,” Boldea added.