On this page of StockholderLetter.com we present the latest annual shareholder letter from TIMKEN CO — ticker symbol TKR. Reading current and past TKR letters to shareholders can bring important insights into the investment thesis.
The Timken Company 2025 ANNUAL REPORT
2025 Performance OPERATING DATA 2025 Net Sales 2024 $ 4,581.8 $ 4,573.0 795.8 844.8 Adjusted EBITDA1 Adjusted EBITDA Margin1 17.4% 18.5% Adjusted Net Income1 374.5 409.4 Free Cash Flow1 406.1 305.7 SHAREHOLDER RETURNS Adjusted EPS1 5.33 Dividends 5.79 1.39 1.35 Ratio of Net Debt to Adjusted EBITDA2 2.0 2.0 Adjusted Return on Invested Capital1 9.8% OTHER KEY RATIOS REVENUE ADJUSTED EARNINGS PER SHARE 1 Dollars in Millions ADJUSTED EBITDA MARGIN 1 DIVIDENDS PER SHARE $1.39 $1.35 $1.30 2021 2022 2023 2024 2025 $1.23 2021 2022 2023 2024 2025 $1.19 17.4% 18.5% 19.7% 19.0% $5.33 $5.18 $5.79 17.4 % $7.05 $6.46 $4,581.8 $4,573.0 $4,769.0 $4,496.7 $4,132.9 2021 2022 2023 2024 2025 11.0% 2021 2022 2023 2024 2025 10-YEAR TOTAL SHAREHOLDER RETURN 3 13.8% 1 See pages 38 through 42 of the company s Annual Report on Form 10-K for reconciliations to the most directly comparable generally accepted accounting principles (GAAP) financial measures for 2021 to 2025. Adjusted Return on Invested Capital is defined as adjusted net operating profit after taxes divided by average invested capital. Free Cash Flow is defined as net cash provided by operating activities minus capital expenditures. 2 The Ratio of Net Debt to Adjusted EBITDA is defined as net debt at December 31 of the applicable year divided by adjusted EBITDA for the twelve months ended December 31 of the applicable year. See pages 32 and 41 for the reconciliations of net debt and adjusted EBITDA to the most directly comparable GAAP financial measures. 3 Total shareholder return for the company was calculated on an annualized basis and assumes quarterly reinvestment of dividends. See Item 5 in the company s Annual Report on Form 10-K for more details on total shareholder return. Certain statements set forth in this Annual Report to Shareholders that are not historical in nature (including the company s forecasts, beliefs, expectations, and targets) are forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this report. See the discussion of forward-looking statements in Management s Discussion and Analysis of Financial Condition and Results of Operations in the company s Annual Report on Form 10-K.
Lucian Boldea President and Chief Executive Officer Dear Stakeholders, I m excited to lead The Timken Company into a new era of enhanced performance. Since joining as president and CEO in September, I ve carefully assessed the company, and I am confident we have a solid foundation with powerful potential to create value. Our strengths run deep: technical leadership recognized across the industrial world, a robust portfolio of complementary products and dedicated teams that excel at solving complex customer challenges. Going forward, we are committed to driving profitable growth by sharpening our focus on the markets, regions, customers and product lines that deliver the highest returns. We also remain focused on disciplined operational execution and winning market share where we compete. I m confident we are positioned to enhance shareholder value. 1
2025 in Review Our 2025 results reflect higher pricing and cost We also generated free cash flow of $4061 million, actions to help offset trade-related headwinds up significantly from the prior year. and soft industrial conditions. We generated significant cash flow during the year that Adjusted earnings per share totaled $5.33.1 We strengthened our balance sheet and enabled us continued to return capital to shareholders, to return capital to shareholders. making annualized dividend payments of $1.39 per share, marking 12 consecutive years of increased We served customers with speed and reliability dividend payments, and repurchasing approximately during the year, delivering net sales of $4.6 billion $57 million in shares during the year. and an adjusted EBITDA margin of 17.4 percent. 1 2 1 See Footnote 1 on the inside front cover.
Strong Foundation Built over 125 years, the Timken franchise is incredibly strong. Our company is recognized globally for technical leadership, innovation and deep customer commitment. We excel at adding value in engineered-to-order, mission-critical applications where quality and reliability matter most. We maximize efficiencies with a product portfolio that reaches shared customers through the same sales channels. We have operating discipline, world-class engineering talent and excellent processes. Driving value creation with 80/20 rigor. We are extending 80/20 discipline across our entire enterprise, using it to help optimize our product portfolio and manufacturing footprint. We are reviewing every business, product line and market segment to double down where returns are outsized and pivoting away from areas that no longer meet our expectations. Raising our organic growth profile. From this foundation, we are advancing our near-term We are increasing our market focus to drive strategic priorities designed to structurally improve outperformance in the most attractive verticals. margins, accelerate growth in key market verticals We are also taking steps to globalize sales from and create significant value for shareholders. Here s acquired businesses by capitalizing on the Timken what we ve put in motion to accomplish that: brand and footprint to accelerate their expansion into new geographies. Unleashing commercial potential. We ve made leadership updates to advance technology innovation and expand our regional presence. This organizational design positions us to take advantage of our complementary product lines to grow sales and accelerate our ability to serve customers with integrated solutions. The Timken franchise is incredibly strong. Our company is recognized globally for technical leadership, innovation and deep customer commitment. 3
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TKR Shareholder/Stockholder Letter Transcript:

The Timken Company
2025 ANNUAL REPORT

2025 Performance
OPERATING DATA
2025
Net Sales
2024
$ 4,581.8
$ 4,573.0
795.8
844.8
Adjusted EBITDA1
Adjusted EBITDA Margin1
17.4%
18.5%
Adjusted Net Income1
374.5
409.4
Free Cash Flow1
406.1
305.7
SHAREHOLDER RETURNS
Adjusted EPS1

5.33
Dividends

5.79
1.39
1.35
Ratio of Net Debt to Adjusted EBITDA2
2.0
2.0
Adjusted Return on Invested Capital1
9.8%
OTHER KEY RATIOS
REVENUE
ADJUSTED
EARNINGS PER SHARE 1
Dollars in Millions
ADJUSTED
EBITDA MARGIN 1
DIVIDENDS
PER SHARE
$1.39
$1.35
$1.30
2021 2022 2023 2024 2025
$1.23
2021 2022 2023 2024 2025
$1.19
17.4%
18.5%
19.7%
19.0%
$5.33
$5.18
$5.79
17.4 %
$7.05
$6.46
$4,581.8
$4,573.0
$4,769.0
$4,496.7
$4,132.9
2021 2022 2023 2024 2025
11.0%
2021 2022 2023 2024 2025
10-YEAR TOTAL SHAREHOLDER RETURN 3 13.8%
1 See pages 38 through 42 of the company   s Annual Report on Form 10-K for reconciliations to the most directly comparable generally accepted accounting principles (GAAP) financial
measures for 2021 to 2025. Adjusted Return on Invested Capital is defined as adjusted net operating profit after taxes divided by average invested capital. Free Cash Flow is defined as
net cash provided by operating activities minus capital expenditures.
2 The Ratio of Net Debt to Adjusted EBITDA is defined as net debt at December 31 of the applicable year divided by adjusted EBITDA for the twelve months ended December 31 of the
applicable year. See pages 32 and 41 for the reconciliations of net debt and adjusted EBITDA to the most directly comparable GAAP financial measures.
3 Total shareholder return for the company was calculated on an annualized basis and assumes quarterly reinvestment of dividends. See Item 5 in the company   s Annual Report on Form 10-K
for more details on total shareholder return.
Certain statements set forth in this Annual Report to Shareholders that are not historical in nature (including the company   s forecasts, beliefs, expectations, and targets) are    forwardlooking    statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on forward-looking statements, which
speak only as of the date of this report. See the discussion of forward-looking statements in Management   s Discussion and Analysis of Financial Condition and Results of Operations in
the company   s Annual Report on Form 10-K.

Lucian Boldea
President and
Chief Executive Officer
Dear Stakeholders,
I   m excited to lead The Timken Company into a new era of enhanced
performance. Since joining as president and CEO in September, I   ve carefully
assessed the company, and I am confident we have a solid foundation
with powerful potential to create value. Our strengths run deep: technical
leadership recognized across the industrial world, a robust portfolio of
complementary products and dedicated teams that excel at solving complex
customer challenges.
Going forward, we are committed to driving profitable growth by
sharpening our focus on the markets, regions, customers and product lines
that deliver the highest returns.
We also remain focused on disciplined operational execution and winning
market share where we compete. I   m confident we are positioned to enhance
shareholder value.
1

2025 in Review
Our 2025 results reflect higher pricing and cost
We also generated free cash flow of $4061 million,
actions to help offset trade-related headwinds
up significantly from the prior year.
and soft industrial conditions. We generated
significant cash flow during the year that
Adjusted earnings per share totaled $5.33.1 We
strengthened our balance sheet and enabled us
continued to return capital to shareholders,
to return capital to shareholders.
making annualized dividend payments of $1.39 per
share, marking 12 consecutive years of increased
We served customers with speed and reliability
dividend payments, and repurchasing approximately
during the year, delivering net sales of $4.6 billion
$57 million in shares during the year.
and an adjusted EBITDA margin of 17.4 percent.
1
2
1
See Footnote 1 on the inside front cover.

Strong Foundation
Built over 125 years, the Timken franchise is
incredibly strong. Our company is recognized globally
for technical leadership, innovation and deep
customer commitment. We excel at adding value in
engineered-to-order, mission-critical applications
where quality and reliability matter most. We
maximize efficiencies with a product portfolio that
reaches shared customers through the same sales
channels. We have operating discipline, world-class
engineering talent and excellent processes.
Driving value creation with 80/20 rigor.
We are extending 80/20 discipline across our
entire enterprise, using it to help optimize our
product portfolio and manufacturing footprint.
We are reviewing every business, product line and
market segment to double down where returns
are outsized and pivoting away from areas that
no longer meet our expectations.
Raising our organic growth profile.
From this foundation, we are advancing our near-term
We are increasing our market focus to drive
strategic priorities designed to structurally improve
outperformance in the most attractive verticals.
margins, accelerate growth in key market verticals
We are also taking steps to globalize sales from
and create significant value for shareholders. Here   s
acquired businesses by capitalizing on the Timken  
what we   ve put in motion to accomplish that:
brand and footprint to accelerate their expansion
into new geographies.
Unleashing commercial potential.
We   ve made leadership updates to advance
technology innovation and expand our regional
presence. This organizational design positions us to
take advantage of our complementary product lines
to grow sales and accelerate our ability to serve
customers with integrated solutions.
   The Timken franchise is incredibly strong. Our company
is recognized globally for technical leadership, innovation
and deep customer commitment.   
3


shareholder letter icon 3/17/2026 Letter Continued (Full PDF)
 

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