Timken Company (TKR) Q1 2026 earnings summary

Executive summary

• Achieved 8% year-over-year sales growth in Q1 2026, with strong performance in Industrial Motion and Engineered Bearings, driven by higher pricing, favorable currency, and volume growth.

• Adjusted EPS increased 19% to $1.67, and adjusted EBITDA margin expanded to 18.8%.

• Raised full-year 2026 guidance for organic revenue, margins, and earnings, reflecting improved demand and order activity.

• Executed strategic portfolio actions, including the acquisition of Bijur Delimon and the announced sale of the Belts business.

• Backlog increased both sequentially and year-over-year, supporting continued momentum.

Financial highlights

• Q1 2026 total revenue was $1.23 billion, up 8% year-over-year, with organic sales up 4.3%.

• Adjusted EBITDA was $231 million (18.8% margin), up from 18.2% last year.

• Adjusted EPS for Q1 was $1.67, up from $1.40 in Q1 2025.

• Operating cash flow was $39.3 million; free cash flow was $0.5 million, with expectations for improvement through the year.

• Returned $53 million to shareholders via buybacks and dividends in Q1.

Outlook and guidance

• Raised 2026 net sales outlook to 4%-6% growth (midpoint 5%), with organic revenue up 3%.

• Adjusted EPS guidance increased to $5.75-$6.25, up from prior $5.50-$6.00.

• Full-year adjusted EBITDA margin expected at ~18%, up from 17.4% in 2025.

• Free cash flow guidance of $350-$375 million, ~105% conversion on GAAP net income.

• Q2 organic revenue, adjusted EBITDA margin, and adjusted EPS expected higher year-over-year, but EPS to be modestly lower sequentially due to inflation and order timing.