Timken Company (TKR) Baird 55th Annual Global Industrial Conference summary

Company Overview and Market Positioning

• Operates with a strong global franchise, recognized for technical leadership and robust product portfolio, with engineered bearings making up two-thirds and industrial motion one-third of the business, both with near 20% margins for 2024.

• Over 40% of revenue comes from recurring aftermarket sales, supported by a global manufacturing footprint that enables nimble supply chains and regional flexibility.

• Focuses on high-value, engineered-to-order applications in critical industries such as wind energy, mining, aerospace, and rail, where reliability and performance are essential.

• Achieved double-digit sales growth in new markets over the past decade, now representing a third of the business.

• Generated $3 billion in cash flow over 10 years, with ongoing share repurchases and 12 consecutive years of dividend increases.

Key Financial Performance and Metrics

• Achieved $4.6B in revenue and $845M adjusted EBITDA in 2024, with an 18.5% EBITDA margin and $5.79 adjusted EPS.

• Free cash flow for 2024 was $306M, with over $1.6B generated in the last five years.

• 3Q 2025 net sales reached $1,157M, adjusted EBITDA $202M, and adjusted EPS $1.37.

• Net debt/adjusted EBITDA ratio was 2.1x as of September 30, 2025.

• 413 consecutive quarterly dividends paid, with 11 years of annual dividend increases.

Strategic Priorities and Operational Initiatives

• Adopting an 80/20 approach to prioritize high-return investments and improve margins by focusing on the most profitable verticals.

• Committed to a 20% margin target, leveraging fixed cost capacity and portfolio mix to drive short-term margin improvement.

• Pursuing organic growth by expanding into fast-growing regions, launching new products, and globalizing acquired businesses.

• Further acquisition integration and leveraging aftermarket presence are expected to deliver additional synergies.

• Emphasis on cross-selling and synergies through complementary product offerings.