Description

Timken vs Inflation: How Cost Savings, Pricing Actions, and Tariff Recovery Are Rebalancing the P&L!

The Timken Company reported its fourth-quarter financial results for 2025, presenting a mixed picture of their performance and future outlook. The company achieved adjusted earnings per share (EPS) of $1.14, surpassing the high end of the guidance range. Total sales increased by 3.5% year-over-year, with organic revenue growing by over 1%, driven by higher pricing and volume growth in the Industrial Motion segment. The company’s strategic initiatives, including price adjustments and cost-saving measures, were instrumental in mitigating margin pressures from tariffs and unfavorable mix effects. From a financial performance standpoint, Timken posted total revenue of $1.11 billion in the quarter and generated a free cash flow of $141 million. This enabled the company to return $36 million to shareholders and reduce debt by over $100 million, ending the year with a net leverage ratio of 2x. Adjusted EBITDA margins were reported at 16%, a slight decline from 16.