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Summary:
• Q1 revenue increased 8% while adjusted EPS rose nearly 20% YoY, prompting Timken to raise its FY26 revenue, margin and earnings guidance.
• Company advanced its portfolio transformation through the acquisition of Bijur Delimon and divestment of its belts business under the 80/20 strategy.
• Strong order momentum, margin expansion and Industrial Motion growth reinforce confidence in higher earnings and organic growth for 2026.
The Print Times
The Timken Company reported a strong start to 2026, delivering higher sales, improved profitability and margin expansion in the first quarter, while raising its full-year guidance following robust demand across key industrial markets and continued execution of its strategic transformation initiatives.
The Timken Company, a leader in advanced motion technology, designs and manufactures highly engineered systems and components for customers in strategic end markets, including aerospace and defense, power and electrification, and automation and industrial solutions. With more than 125 years of specialized expertise and a multinational presence, Timken is a trusted partner worldwide, innovating and powering performance across the application lifecycle. The company posted $4.6 billion in sales in 2025 and employs approximately 19,000 people, operating from 45 countries
Speaking during the Q1 2026 Earnings Conference Call, Mr. Lucian Boldea, President, Chief Executive Officer & Director, said the company achieved double-digit earnings growth and made significant progress in executing its 80/20 strategic initiative aimed at simplifying operations, optimizing its portfolio and accelerating profitable growth.
Timken reported total revenue of US$1.23 billion, up 8% year-on-year, with organic sales increasing 4.3%, driven by higher pricing across both business segments and stronger demand in the Industrial Motion segment. Adjusted EBITDA margin improved to 18.8%, compared with 18.2% in the corresponding period last year, while adjusted earnings per share increased nearly 20% to US$1.67.
The company also strengthened its balance sheet, ending the quarter with net leverage of 2.1x, while repurchasing approximately 280,000 shares and completing the acquisition of Bijur Delimon, a move expected to strengthen Timken's Industrial Motion portfolio and increase its automated lubrication systems business to nearly US$400 million in annual revenue.
As part of its portfolio optimization strategy, Timken also announced the sale of its belts business to Gates, a transaction expected to close during the third quarter of 2026. According to the company, both strategic actions are aligned with its 80/20 initiative and are expected to create a higher-margin, faster-growing Industrial Motion business.
Mr. Boldea said the company has expanded its 80/20 discipline across the entire organization, with nearly 300 leaders trained to drive operational simplification and improve execution. A dedicated transformation office has also been established to oversee implementation across major business functions.
Reflecting improved business momentum, Timken raised its 2026 organic revenue growth outlook to 3%, while increasing its total sales growth guidance to 4%-6%, compared with the earlier guidance of 2%-4%. The company also raised its adjusted EPS guidance to US$5.75-US$6.25, implying approximately 13% earnings growth at the midpoint, compared with the earlier expectation of around 8%.
The revised outlook also reflects a more favorable price-cost impact from tariffs and stronger order trends across several industrial markets.
Timken said its order backlog at the end of the quarter increased both sequentially and year-on-year, supported by improving customer demand across most end markets.
Regionally, Americas organic sales grew 6%, while EMEA increased 5%. Asia-Pacific declined 1%, as stronger demand in India was offset by softer demand in China.
The Engineered Bearings segment reported sales of US$806 million, up 6%, driven by pricing and favorable currency translation. Aerospace, heavy industries, general industrial, renewable energy and off-highway markets recorded growth during the quarter.
The Industrial Motion segment delivered a record quarterly performance, with sales rising 12% to US$425 million. Organic sales increased 7%, supported by stronger demand across most sectors, higher pricing and contribution from the Bijur Delimon acquisition. Segment EBITDA margin improved significantly to 21.5%, reflecting higher volumes, favorable pricing and strong operational execution.
Operating cash flow for the quarter stood at US$39 million, with free cash flow remaining positive despite the seasonally weaker first quarter. Timken expects free cash flow to improve significantly during the remainder of the year and has maintained its full-year guidance of US$350-US$375 million.
Looking ahead, the company expects stronger year-on-year organic revenue, EBITDA margins and earnings during the second quarter, while maintaining confidence that its 80/20 transformation, portfolio optimization and growth investments will continue to enhance long-term profitability and shareholder value.
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