Timken Company (NYSE:TKR) announced adjusted earnings for the second quarter that outperformed analyst projections, even as the firm trimmed its full-year outlook due to persistent trade difficulties.
Shares of the engineered bearings manufacturer held steady after hours, dipping just 0.02% following the earnings release.
The company reported adjusted earnings of $1.42 per share for Q2, exceeding the consensus estimate of $1.37. Revenue reached $1.17 billion, slightly beating the expected $1.15 billion but representing a 0.8% decline compared to the same quarter last year. Organic sales dropped 2.5% year-over-year, reflecting softer demand in key markets; this was partially balanced by contributions from the CGI acquisition, favorable pricing strategies, and currency effects.
Cash flow remained robust, with $111.3 million generated from operations and free cash flow totaling $78.2 million for the quarter. Despite this, the 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 forward, Timken lowered the upper range of its full-year adjusted earnings guidance to $5.10–$5.40 per share, slightly below the analyst consensus of $5.37. The company forecasts a revenue decline between 0.5% and 2.0% in 2025 compared to 2024.
The revised outlook reflects a cautious stance on demand in the second half and ongoing trade-related headwinds. However, management remains optimistic about 2026 and is positioning the business to benefit from expected growth in the industrial market.
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