Timken Company (TKR) Investor 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 diverse: 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 high-growth sectors like automation, renewable energy, and services.

Segment performance and growth

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

• Industrial motion segment grew to $1.5B revenue in 2024, with a 19% EBITDA margin.

• Industrial motion more than doubled addressable market, leveraging M&A and technical expertise.

• Over $2.5B deployed to M&A since 2011, driving a 14% revenue CAGR in industrial motion.

• Product diversification and cross-selling between segments enhance customer value and margin.

Financial performance and capital allocation

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

• 2Q 2025 sales were $1.17B, down 0.8% year-over-year; adjusted EBITDA margin declined to 17.7%.

• Free cash flow conversion averaged 95% over the last decade, with over $1.6B generated in the past five years.

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

• Dividend increased for 11 consecutive years, with a 2024 yield of 1.9%.