| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 49 | 32.4x | 17.8x | Around median | |
Growth | 39 | 5.5% | 7.1% | Bottom tier | |
Quality | 59 | 7.4% | 4.5% | Around median | |
Safety | 66 | 2.2x | 2.6x | Around median | |
Capital Return | 40 | 1.18% | 2.12% | Bottom tier | |
Momentum | 74 | 62.9% | 2.9% | Top tier | |
Sentiment | 62 | 9 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Timken Company is an advanced motion technology company that generates revenue through two main segments: Engineered Bearings and Industrial Motion. The two segments serve applications including aerospace and defense, infrastructure, automation and industrial solutions, industrial distribution and off-highway, and energy and power; the Industrial Motion portfolio also includes linear motion systems, lubrication systems, and precision drives used in automation and robotics. The Elevate to Outperform strategy focuses on optimizing the portfolio, increasing investment in strategic sectors, and expanding products regionally under the One Timken model.
In Q2 FY2026, revenue reached $1.26 billion, up 7.5% year over year, and grew organically by 4.4%, supported by higher volumes and pricing in both segments; the Bijur Delimon acquisition added approximately 1.8% to growth, while currency translation added 1.3%. According to rounded EDGAR data, gross profit was $399.3 million, net income was $28.9 million, and earnings per share were $0.41, while adjusted earnings per share were $1.83, up approximately 30% year over year, including a benefit of $0.08 per share from an IEEPA tariff refund.
Engineered Bearings represented approximately $807 million, or about 64% of Q2 FY2026 revenue, and grew approximately 4% with an adjusted EBITDA margin of 20%. Industrial Motion achieved record quarterly revenue of $454 million, or about 36% of revenue, growing 14.6% with an adjusted EBITDA margin of 23.3%, up 500 basis points year over year. At the company level, adjusted EBITDA reached $247 million with a margin of 19.6% versus 17.7% a year earlier, while free cash flow exceeded $80 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average target of $146.17 and a range between $130 and $160. The average is only $0.20 below the top of the 52-week range of $146.37, reflecting strong expectations but tying the valuation to execution of the raised FY2026 guidance and margin improvement; the $30 difference between the highest and lowest targets also reveals meaningful variation in assessments of that execution.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Timken's revenue increased to $1.26 billion, up 7.5% year over year, and grew organically by 4.4% due to higher volumes and pricing in both segments. Bijur Delimon added approximately 1.8% to sales, while currency translation contributed 1.3%. The adjusted EBITDA margin increased to 19.6% from 17.7%, and adjusted earnings per share reached $1.83, including $0.08 from an IEEPA tariff refund.
Industrial Motion achieved record quarterly revenue of $454 million in Q2 FY2026, up 14.6% with organic growth of 8%. Its adjusted EBITDA margin reached 23.3%, up 500 basis points year over year, with double-digit growth in linear motion systems and lubrication. The company expects the sale of the belts business in Q3 FY2026 to improve the segment's pro forma margin by more than 200 basis points.
Automation and robotics grew at a mid-teens rate during Q2 FY2026, while the strategic sectors collectively achieved high-single-digit organic growth. Transferring Rollon's European strength to the United States contributed to a second consecutive quarter of double-digit organic growth for the linear motion platform. Timken is also expanding Spinea solutions in the United States and Cone solutions in Europe, while precision drives and linear motion serve robotics, factory automation, and warehouse automation applications.
The company expects total revenue growth between 5% and 6% in FY2026, with organic growth of 3.5% at the midpoint. It raised its adjusted earnings per share range to $6.05–$6.35, implying growth of approximately 16% at the midpoint, and expects a consolidated adjusted EBITDA margin in the low-18% range. It also raised its free cash flow outlook to $375–$400 million, up $25 million from previous guidance.
Aerospace and defense sales increased by a high-single-digit percentage in Q2 FY2026, and the aerospace book-to-bill ratio remained well above 1 as the backlog grew. Timken is investing in production capacity and adding specialized labor, and training this workforce typically takes between six and nine months. Most of the $0.10 per-share headwind in the guidance bridge relates to these investments, but they are intended to convert existing backlog into additional production and revenue.
FY2026 guidance assumes second-half organic growth of approximately 2.5%, slower than the first half due to seasonality, pricing comparisons, declining belts sales, and geopolitical uncertainty. Q2 FY2026 also saw a significant decline in solar sales, while logistics, labor, and strategic investment costs increased. The second-half outlook does not include any additional IEEPA tariff refunds after the second quarter's $8 million benefit, while aerospace expansion requires successful coordination with a specialized and regulated supply chain.
