Timken Company (TKR) Investor presentation summary

Business overview and strategic positioning

• Over 125 years of engineering expertise with 2025 net sales of $4.6B, 19,000 employees in 45 countries, and a 2025 adjusted EBITDA margin of 17.4%.

• Sales split: 66% engineered bearings, 34% industrial motion; focus on high-growth sectors like aerospace, electrification, automation, and infrastructure.

• Strategic verticals expected to grow at a high single-digit CAGR from 2025-2028, outpacing the rest of the business.

• Positioned to leverage megatrends such as automation, AI-driven power demand, aerospace expansion, and urban infrastructure buildout.

• Technology offerings span bearings, actuators, drives, and sensors for advanced applications in robotics, aerospace, and industrial automation.

Strategic initiatives and operational execution

• Three-pillar strategy: optimize portfolio, focus resources on strategic verticals, and leverage multinational footprint.

• Portfolio optimization includes divesting low-margin businesses (e.g., Belts) and acquiring high-growth assets (e.g., Bijur Delimon).

• Aggressive regional expansion targets >10% growth in key platforms and regions such as the U.S., Brazil, China, and India.

• Product complexity reduction with 25% of SKUs identified for harmonization, focusing on high-revenue products and customers.

• Disciplined capital allocation framework prioritizes organic growth, margin improvement, innovation, and strategic M&A.

Financial performance and targets

• 2025 adjusted EPS of $5.33 and free cash flow of $406M, with a 3-year FCF yield of 6.4%.

• 2028 targets: $5.0-5.2B sales, 21-23% adjusted EBITDA margin, >$1.3B cumulative free cash flow, and >55% EPS growth vs. 2025.

• Margin expansion of ~500 bps expected by 2028, driven by portfolio optimization, strategic verticals, and global expansion.

• Net leverage target maintained at 1.5x-2.5x; strong investment-grade balance sheet.

• 1Q 2026 net sales of $1.23B (+8%), adjusted EBITDA margin of 18.8%, and adjusted EPS of $1.67.