Overview

• U.S. engineered bearings maker's Q1 sales rose 8%, beating analyst expectations

• Q1 adjusted EPS increased to $1.67, beating analyst expectations

• Company raised 2026 outlook for EPS and adjusted EPS

Outlook

• Timken raises 2026 full-year EPS outlook to $4.70-$5.20

• Company expects 2026 adjusted EPS of $5.75-$6.25

• Timken sees 2026 revenue up about 5% at midpoint from 2025

Result Drivers

• HIGHER PRICING - Co said sales growth in both segments was driven in part by higher pricing

• FAVORABLE CURRENCY - Co cited favorable foreign currency translation as a contributor to sales growth

• INDUSTRIAL MOTION DEMAND - Co said higher demand across most sectors drove Industrial Motion segment sales

Company press release: ID:nPn5KL38sa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$1.23 bln	$1.17 bln (10 Analysts)
Q1 Adjusted EPS	Beat	$1.67	$1.49 (12 Analysts)
Q1 EPS		$1.40
Q1 Adjusted Net Income	Beat	$117.30 mln	$103.62 mln (8 Analysts)
Q1 Net Income		$98.20 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Timken Co is $117.00, about 6.7% above its May 5 closing price of $109.63

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

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