TKR NYSE Russell 1000 Earnings call
Timken Company (TKR) · Q2 2026 results and valuation
Share price: $110.56 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 6 May 2026
Net income down 70.6% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−70.6%
Net income vs Q1 2026
Outlook given
Net income 28.9M vs 98.2M
Revenue +2.4%
Against the same quarter last year (Q2 2025) it is −63.2%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Key theme
The company's growth depends on the aerospace supply chain and the ability of suppliers to produce more and customers to consume more products.
Valuation
Is Timken Company undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 0.6% growth a year (3-year revenue growth), the model's fair value is $55.19 a share — the stock trades 100% above it. Today's price assumes 8.6% growth a year.
Current price
$110.56
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.6% for 10 yrs
Fair value / share
$55.19
Buy below
$41.39
Price vs fair value
Overvalued 100%
Price vs buy-below price
Overvalued 167%
Read between the lines
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Guidance
TKR expects to complete the belts divestiture in the third quarter to improve margins in Industrial Motion.
Source quote
“But I would say that relative to margins, particularly in Industrial Motion, so we expect to complete the belts divestiture in the third quarter.”
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Figure
Total revenue for the quarter was $1.23 billion, which rose 8% from last year.
Source quote
“Overall, total revenue for the quarter was $1.23 billion, which was up 8% from last year.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“And of course, with the increasing order book and the pent-up demand, we see it as a long-term opportunity with some short-term cost.”
“And so a little bit of the headwind, if you will, in the guide would be related to just lower belt sales.”
“And then as our other strategic initiatives kick in, 80/20 improvements, strategic growth in the portfolio that Lucian outlined, where we're growing in the higher-margin platforms, you could expect those...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.26B | 1.23B | +2.4% | 1.17B | +7.5% |
| Gross profit | 399.3M | 394.0M | +1.3% | 360.3M | +10.8% |
| Operating income | 84.8M | 168.6M | −49.7% | 147.8M | −42.6% |
| Net income | 28.9M | 98.2M | −70.6% | 78.5M | −63.2% |
| EPS | 0.41 | 1.40 | −70.7% | 1.12 | −63.4% |
| P/E today 32.5 | 39.4 | 22.9 | +16.5 | 16.5 | +22.9 |
Topics
Most discussed now
- You start with Rollon, that business, linear motion, the portfolio in general, very applicable to areas like factory automation…
- On the other side of the ledger, certainly, solar really ended up impacting the power and electrification market where the...
Faded since Q1 2026
- Dropped From an acquisition standpoint, in the short term, until Timken has its strategy fully defined and laid out, it will...
- Dropped Timken has reorganized its commercial teams, verticalized them, and built regional teams with autonomy to operate under a global framework.
- Fading Timken has an entire portfolio in the Industrial Motion acquired businesses that are more regional in nature.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Director or officer change; Other events · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K