The strong beat and raised guidance, particularly the 5% revenue growth outlook (up from 3%), signal accelerating end-market demand and successful portfolio optimization. The upcoming Investor Day on May 20 could provide further catalysts. However, the sharp drop in free cash flow ($0.5M vs $23.4M) and working capital build warrant monitoring. The stock should trade up on the beat and raise.
Price Chart
Executive Summary
Timken reported strong Q1 2026 results with revenue of $1.23B (+8% YoY) and GAAP diluted EPS of $1.40 (+26.1% YoY), beating consensus estimates of $1.50 EPS and $1.16B revenue. The company raised its full-year 2026 outlook, now expecting EPS of $4.70-$5.20 and adjusted EPS of $5.75-$6.25, with revenue growth of ~5% at the midpoint, up from prior guidance of 3% growth.
Key Financial Metrics
Key Facts
- Q1 2026 revenue of $1.23B, up 8% YoY and above $1.16B consensus
- GAAP diluted EPS of $1.40, up 26.1% YoY, vs $1.50 consensus (beat by 26.7% on adjusted basis)
- Adjusted EPS of $1.67, up 19.3% YoY
- Net income margin expanded 110 bps to 8.0%
- Adjusted EBITDA margin expanded 60 bps to 18.8%
- Raised full-year 2026 EPS guidance to $4.70-$5.20 (GAAP) and $5.75-$6.25 (adjusted)
- Revenue growth guidance raised to ~5% at midpoint from prior ~3%
- Industrial Motion segment sales up 12% YoY with adjusted EBITDA margin expanding 380 bps to 21.5%
- Engineered Bearings segment sales up 6% YoY, but adjusted EBITDA margin contracted 120 bps to 19.7%
- Free cash flow of $0.5M, down from $23.4M in Q1 2025 due to working capital build and acquisition spending
- Acquired Bijur Delimon during the quarter; announced planned sale of belts business
- Returned $53.3M to shareholders via dividends and share repurchases
- Net debt to adjusted EBITDA at 2.1x, consistent with year-end 2025
Financial Impact
Revenue beat consensus by ~$70M (6%); adjusted EPS beat by $0.17 (11.3%); guidance raised by $0.50-$0.70 at midpoint
Risk Factors
- Free cash flow collapsed to near zero ($0.5M) from $23.4M a year ago, driven by working capital build and acquisition spending
- Engineered Bearings segment margin contracted 120 bps despite higher pricing, due to tariff costs and higher operating costs
- Net debt increased to $1.73B from $1.56B at year-end 2025, raising leverage slightly
- Tariff costs remain a headwind across both segments
- Integration risk from Bijur Delimon acquisition
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000098362-26-000029 |
| Document: tkr-20260506.htm | 0000098362-26-000029 |
| Document: 0000098362-26-000029-index-headers.html | 0000098362-26-000029 |
| Document: 0000098362-26-000029-index.html | 0000098362-26-000029 |
| Document: 0000098362-26-000029.txt | 0000098362-26-000029 |
| 8-K Data (Synthetic) | 0000098362-26-000029 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 4, 2026 11w ago | 8-K | $132.03 | awaiting T+60 | — | $110.49 (−16.31%) |
Jul 31, 2026 12w ago | 8-K | $137.55 | awaiting T+60 | — | $110.49 (−19.67%) |
Jul 6, 2026 16w ago | 8-K | $138.06 $116.75 | ▼ −15.44% | ▼ −17.43% | $110.49 (−19.97%) |
May 8, 2026 24w ago | 8-K | $117.39 $131.32 | ▲ +11.87% | ▲ +7.47% | $110.49 (−5.88%) |
May 8, 2026 24w ago | Insider Cluster | $117.97 $132.03 | ▲ +11.92% | ▲ +7.08% | $110.49 (−6.34%) |
May 8, 2026 24w ago | Insider Cluster | $117.97 $132.03 | ▲ +11.92% | ▲ +7.08% | $110.49 (−6.34%) |
May 6, 2026 24w ago | 8-K | $119.70 $137.55 | ▲ +14.91% | ▲ +12.85% | $110.49 (−7.69%) |
Apr 21, 2026 26w ago | 8-K | $106.79 $137.78 | ▲ +29.02% | ▲ +24.24% | $110.49 (+3.46%) |
Mar 17, 2026 31w ago | DEFA14A | $98.59 $137.09 | ▲ +39.05% | ▲ +29.19% | $110.49 (+12.07%) |
US Market Status
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