The Timken Company Q1 FY2026 earnings call

• Thanked Timken team for hard work in Q1. • Total sales up 8% from last year, organic revenue grew >4% driven by industrial motion. • Expanded EBITDA margins to 18.8% and adjusted earnings per share increased nearly 20% to $1.67. • Repurchased shares and acquired Bijou Delamont. • Raising guidance for organic revenue, margins, and earnings. • Advancing 80-20 portfolio work, including sale of belts business and acquisition of Bijou Delamont. • Leadership transition for engineer bearing segment with Tim Graham as interim president. • Double-digit organic growth in linear motion platform in Americas driven by factory automation wins.

Engineered bearings: Sales were $806 million in the quarter, up 6% from last year. Organic sales up 3% driven by higher pricing, currency translation added 3%. Adjusted EBITDA was $159 million, or 19.7% of sales, margins negatively impacted by higher operating costs. Industrial motion: Sales were $425 million, an all-time quarterly record, up 12% from last year. Organically, sales increased 7% driven by higher demand and pricing. Currency translation was a benefit of 4.2%, Bezier Delamont acquisition added 0.8%. Adjusted EBITDA margins came in at 21.5% of sales, up significantly from last year due to strong operational execution, higher volumes, and favorable price mix.

• Raised full-year net sales outlook to 4%-6% increase, up from prior 2%-4%. Organic revenue expected up 3% at midpoint, 1% from M&A, 1% from currency. • Adjusted earnings per share range $5.75-$6.25, midpoint up 25 cents from prior. • 2026 consolidated adjusted EBITDA margin expected ~18% at midpoint, up from 17.4% in 2025. • Second quarter expected organic revenue, adjusted EBITDA margins, and adjusted EPS higher than last year, but adjusted EPS modestly lower sequentially due to incremental inflation and pulled forward customer activity. • Full-year free cash flow expected $350-$375 million, ~105% conversion on gap net income at midpoint.

• Continued volatility around trade and geopolitics. • Uncertainty around the situation in the Middle East potentially impacting customer activity. • Fluid situation related to additional tariffs, though 232 impact sized up as best possible. • Potential incremental cost inflation over the rest of the year.

Q: About the $0.15 benefit from tariffs and potential rebates/ additional tariffs, A: Big drivers on tariffs are IEPA and India, no refunds assumed in guidance, fluid situation on additional tariffs.

Q: About $0.10 cost inflation, A: Somewhat a placeholder, depends by region, already taking price actions.

Q: About slower organic growth in rest of year, A: Likely 1% pulled from Q2 to Q1, uncertainty from Iran conflict, order book still robust.

Q: About portfolio transformation and M&A pipeline, A: Still work in progress, opportunistic M&A, belts divestiture will structurally increase industrial motion margins.

Q: About 2Q EPS sequential decline and industrial motion outlook, A: Normal seasonal step down, industrial motion not as heavy European as thought, growth driven by various regions and sectors.