Timken Company (TKR) D.A. Davidson Diversified Industrials & Services Conference presentation summary

Company overview and strategy

• Operates in engineered bearings and industrial motion, with 19,000 employees in 45 countries and over a century of dividend payments.

• 2024 revenue reached $4.6B, with adjusted EBITDA of $845M and a 1.9% dividend yield.

• Sales are geographically diversified: 56% Americas, 24% EMEA, 20% Asia-Pacific.

• Business split: 66% engineered bearings, 34% industrial motion; 55% sales to OEMs, 45% to distributors/end-users.

• Focus on expanding in newer, high-growth sectors like renewable energy, automation, and services.

Segment performance and growth drivers

• Engineered bearings segment delivered $3.1B revenue in 2024 with 20%+ EBITDA margins.

• Industrial motion segment achieved $1.5B revenue in 2024, growing at a 14% CAGR since 2015.

• Product diversification and M&A have driven growth, with over $2.5B deployed to acquisitions since 2011.

• Strong cross-selling and synergies between bearings and motion products enhance customer value.

• Focused investments in automation, robotics, and digital capabilities to capture emerging trends.

Financial performance and capital allocation

• 2024 adjusted EPS was $5.79, with free cash flow of $306M and adjusted EBITDA margin of 18.5%.

• Q2 2025 sales were $1.17B, down 0.8% year-over-year, with adjusted EBITDA margin at 17.7%.

• Net debt/EBITDA at 2.3x as of June 2025; quarterly dividend increased by 3% to $0.35/share.

• Over $1.6B free cash flow generated in the last five years, with a 95% conversion rate.

• Capital allocation prioritizes organic growth, M&A, dividends, and share repurchases.