The Timken Company (TKR) AI Stock Analysis

The Timken Company designs, manufactures, and oversees the production of engineered bearings and power transmission products across two main segments: Mobile Industries and Process Industries. Mobile Industries supplies bearings, seals, lubrication systems, and transmission components for agriculture, construction, mining, automotive, rail, and aviation applications, including rotor-head assemblies and turbine engine components. Process Industries provides industrial bearings, linear motion products, and power transmission components to original equipment manufacturers and end-users, alongside repair services for gearboxes and electric motors through authorized distributors. The company markets under brands such as Timken, Philadelphia Gear, Drives, Cone Drive, Rollon, Lovejoy, Diamond, BEKA, and Groeneveld.

Timken increased revenue from $4.13B in FY2021 to $4.77B in FY2023, before revenue fell 4.1% in FY2024 to $4.57B and rose 0.2% to $4.58B in FY2025. Net income peaked at $408.0M in FY2023, decreasing to $352.7M in FY2024 and $288.4M in FY2025, while diluted EPS contracted from $7.02 in FY2023 to $5.33 in FY2025. Operating margin was 12.4% in FY2025, compared to 13.8% in FY2023. Over the trailing twelve months, revenue was $4.76B with net profit margin of 5.4% and diluted EPS of $3.69. For the quarter ending June 30, 2026, quarterly revenue grew 7.5% year-over-year, while quarterly earnings fell 63.4%.

As of June 30, 2026, Timken held $399.1M in cash and short-term investments against $2.08B in total debt, leaving net debt at $1.68B. Shareholders' equity was $3.19B, resulting in a debt-to-equity ratio of 0.65, supported by a current ratio of 3.10. Total assets stood at $6.83B. In FY2025, operating cash flow reached $554.3M and free cash flow was $406.1M. Capital allocation in FY2025 included capital expenditures of $148.2M, share buybacks of $57.4M, and dividend payments of $98.3M, contributing to an 8.5% reduction in share count over 5 years.

Timken trades at a trailing P/E of 30.5x, above the 24.8x median of its US-listed Industrials peers, while its forward P/E of 15.4x sits below the peer median of 17.2x. The enterprise value of $9.96B reflects an EV/EBITDA of 13.8x, matching the peer median of 13.9x, and a price-to-sales of 1.6x against the peer median of 1.5x. Over the past year, Timken gained 53.9%, outperforming the S&P 500 (SPY) return of 16.8%. Over 5 years, the stock returned 69.5%, trailing the S&P 500 return of 83.0%.

Timken pays a quarterly dividend with a forward annualized payout of $1.44 per share, translating to a dividend yield of 1.28%. The payout ratio is 23.6%. The company has paid consecutive dividends for 42 years, with an annualized 5-year dividend growth rate of 4.2%. Its last ex-dividend date was August 18, 2026.

Wall Street coverage includes 5 Strong Buy, 2 Buy, and 5 Hold ratings, with 0 Sell or Strong Sell ratings. The mean price target of $144.20 represents a 28.3% premium over the last close of $112.39. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $6.27 on revenue of $4.85B. For the following fiscal year, 12 analysts estimate revenue of $5.00B and EPS of $7.28. Timken beat EPS expectations in all 4 of its last 4 quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of The Timken Company (TKR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: TKR income statement, TKR balance sheet, TKR key metrics, TKR analyst forecast, TKR chart. See the TKR stock overview for the latest quote and news.