Timken Company (TKR) Morgan Stanley 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 continuous dividends.

• 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; strong aftermarket and distribution channels.

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

Segment performance and growth

• 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 in bearings, with non-tapered bearing sales growing at a 6%+ CAGR since 2001.

• Industrial motion segment expanded through $2.5B+ in M&A, adding brands and technologies.

• Cross-selling and synergies between segments enhance customer value and market reach.

Financial performance and capital allocation

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

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

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

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

• Dividend has increased for 11 consecutive years, with a 20-30% payout target on EPS.