Timken (TKR) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 4, 2026 astatine 11:35 AM CST 55 min read

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Wednesday, Feb. 4, 2026 astatine 11:00 a.m. ET

• President and Chief Executive Officer — Lucian Boldea

• Chief Financial Officer — Michael Discenza

• Director of Investor Relations — Neil Frohnapple

Lucian Boldea, and Michael Discenza, our Chief Financial Officer. We volition person opening comments this greeting from some Lucian and Mike earlier we unfastened up the telephone for your questions. During the Q&A, I would inquire that you delight bounds your questions to 1 question and 1 follow-up astatine a clip to let everyone a accidental to participate. During today's call, you whitethorn perceive forward-looking statements related to our fiscal results, plans, and concern operations. Our existent results whitethorn disagree materially from those projected oregon implied owed to a assortment of factors which we picture successful greater item successful today's property merchandise and successful our reports filed with the SEC, which are disposable connected the timken.com website.

We person included reconciliations betwixt non-GAAP fiscal accusation and its GAAP equivalent successful the property merchandise and presumption materials. Today's telephone is copyrighted by The Timken Company, and without explicit written consent, we prohibit immoderate use, recording, oregon transmission of immoderate information of the call. Finally, enactment that we are readying to big an Investor Day connected Wednesday, May 20, successful New York City. We anticipation that you volition articulation america either virtually oregon successful person. Please enactment tuned for much details. With that, I would similar to convey you for your involvement successful The Timken Company. And I volition present crook the telephone implicit to Lucian.

Lucian Boldea: Thanks, Neil, and bully morning, everyone. We admit your involvement successful Timken and for joining america today. I'd similar to commencement by thanking our Timken squad for their hard enactment and resilience. While 2025 presented a challenging marketplace environment, our squad executed with discipline, and we finished the twelvemonth strong. Turning to our results successful the 4th quarter, we achieved adjusted net per stock of $1.14, which exceeded the precocious extremity of our guidance range. Total income successful the 4th fourth were up 3.5% from past year. Organic gross was up much than 1%, driven by higher pricing and measurement maturation successful the Industrial Motion segment.

We accrued escaped currency travel to $141 million, enabling america to instrumentality $36 cardinal of currency to shareholders and trim indebtedness by much than $100 cardinal during the 4th quarter. The institution ended the twelvemonth with a beardown equilibrium expanse with nett leverage astatine lone 2 times, enabling america to proceed our balanced attack to superior allocation. Mike volition instrumentality you done the details of our 2026 outlook, but we expect to make integrated gross growth, beardown escaped currency flow, and higher margin. Overall, we expect adjusted EPS to summation astir 8% astatine the midpoint of the guidance range.