Timken Company (the) · NYSE:TKR
Timken Company (the) — Q4 2024 Earnings Presentation
36 slides from Timken Company (the)'s earnings presentation, Feb 5, 2025
Slide 1: 4Q 2024 Earnings Investor Presentation
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 4Q 2024 Earnings Investor Presentation February 5, 2025 The Timken Company
Slide 2: Agenda
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Agenda 2 Neil Frohnapple Introduction Vice President of Investor Relations Overview and Tarak Mehta Business Update
Slide 3: Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 3 Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information Certain statements in this presentation
Slide 4: Overview and Business Update
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Overview and Business Update Tarak Mehta President and Chief Executive Officer The Timken Company
Slide 5: 4Q 2024 Performance Highlights
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 4Q 2024 Performance Highlights 5 Sales of $1.07 billion in 4Q-24, down 1.6% from last year ▪ Revenue down 2.6% organ
Slide 6: FY 2024 Performance Highlights
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason FY 2024 Performance Highlights 6 Posted revenue of $4.6 billion, down ~4% compared to 2023 ▪ Organic revenue down 5.
Slide 7: Initial Organic Growth Outlook – FY 2025 By Market/Sector
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Initial Organic Growth Outlook – FY 2025 By Market/Sector 7 (Market/Sector Placement Reflects Midpoint of Guidance)
Slide 8: 2025 Outlook
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2025 Outlook 8 Current 2025 Outlook (February 5, 2025) Current Outlook: Full-Year 2025 vs. 2024 Sales -2.5% at midpo
Slide 9: Update on Cost Actions and Strategic Initiatives
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Update on Cost Actions and Strategic Initiatives 9 Incremental Cost Actions (new) Ongoing Initiatives (previously an
Slide 10: Looking Ahead
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Looking Ahead 10 Focused on delivering solid performance in 2025 ▪ Taking a cautious view to start the year; expect
Slide 11: Financial Performance
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Financial Performance Phil Fracassa Executive Vice President and Chief Financial Officer The Timken Company
Slide 12: 4Q 2024 Financial Overview
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 4Q 2024 Financial Overview 12 Net Sales ($M) Adjusted EBITDA ($M) Earnings Per Share REPORTED (GAAP) ADJUSTED $195 $
Slide 13: 4Q 2024 Financial Highlights - Sales
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 4Q 2024 Financial Highlights - Sales 13 4Q-24 vs. 4Q-23 Sales by Geography – ORGANIC (Excludes Acquisitions (net) an
Slide 14: 4Q 2024 Financial Comparison – Adjusted EBITDA
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 4Q 2024 Financial Comparison – Adjusted EBITDA 14 $25 ($19) $195 ($5) ($31) $6 $178 $3 $4 17.9% 16.6% 4Q-23 Price/Mi
Slide 15: 4Q and FY-24 Financial Comparison – Net Income & Diluted EPS
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 4Q and FY-24 Financial Comparison – Net Income & Diluted EPS 15 4Q-23 4Q-24 FY-23 FY-24 $M EPS $M EPS $M EPS $M EPS
Slide 16: 4Q 2024 Segment Performance – Engineered Bearings
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 4Q 2024 Segment Performance 16 Engineered Bearings Net Sales ($M) Q4 Organic Sales by Market/Sector $724 $708 Sales
Slide 17: 4Q 2024 Segment Performance – Industrial Motion
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 4Q 2024 Segment Performance 17 Industrial Motion Net Sales ($M) Q4 Organic Sales by Platform $367 $366 Sales of $366
Slide 18: Cash Flow, Leverage & Capital Allocation
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Cash Flow, Leverage & Capital Allocation 18 Capital Structure ($M) ($M) 4Q-23 4Q-24 FY-23 FY-24 12/31/23 12/31/24 Ca
Slide 19: 2025 Outlook
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2025 Outlook 19 Current 2025 Outlook (February 5, 2025) Current Outlook: Full-Year 2025 vs. 2024 Sales -2.5% at midp
Slide 20: 2025 Adj. EPS Outlook Bridge
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2025 Adj. EPS Outlook Bridge 20 (Based on Midpoint of Guidance Range) $5.79 ~Flat ~($0.30) Full year outlook does no
Slide 21: Appendix: Backup Slides and GAAP Reconciliations
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Appendix: Backup Slides and GAAP Reconciliations The Timken Company
Slide 22: Tariffs and Estimated Impact on Timken
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Tariffs and Estimated Impact on Timken 22 Overview ▪ Timken is a U.S.-based global manufacturer; the U.S. represents
Slide 23: Consistent and Resilient Performance
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Consistent and Resilient Performance 23 Revenue ($B) Adj. EBITDA Margin Adj. EPS $4.8 19.7% $7.05 $4.5 $4.6 19.0% 18
Slide 24: Two High-Performing Segments
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Two High-Performing Segments 24 Engineered Bearings Industrial Motion Revenue ($B) Adj. EBITDA Margin Revenue ($B) A
Slide 25: Full Year 2024 Financial Overview
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Full Year 2024 Financial Overview 25 Net Sales ($M) Adjusted EBITDA ($M) Earnings Per Share REPORTED (GAAP) ADJUSTED
Slide 26: FY-24 Financial Overview – Sales and Adjusted EBITDA
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason FY-24 Financial Overview – Sales and Adjusted EBITDA 26 $4,769 ($276) $114 ($34) $4,573 2023 Sales Organic Acquisiti
Slide 27: Supplemental Information: EBITDA Adjustments and D&A by Segment
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Supplemental Information: EBITDA Adjustments and Depreciation & 27 Amortization by Segment (Unaudited) (Dollars in m
Slide 28: Supplemental Information: EBITDA Adjustments and D&A by Segment
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Supplemental Information: EBITDA Adjustments and Depreciation & 28 Amortization by Segment (Unaudited) (Dollars in m
Slide 29: GAAP Reconciliation: Net Income & EPS
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: Net Income & EPS 29 Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Earn
Slide 30: GAAP Reconciliation: 2020-2024 Net Income & EPS
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: 2020-2024 Net Income & EPS 30 Reconciliations of Adjusted Net Income to GAAP Net Income and Adj
Slide 31: GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net Income
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net 31 Income Reconciliation of EBITDA to GAAP Net
Slide 32: GAAP Reconciliation: 2020-2024 EBITDA, and EBITDA, After Adjustments to Net Income
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: 2020-2024 EBITDA, and EBITDA, After Adjustments 32 to Net Income Reconciliations of GAAP to Non
Slide 33: GAAP Reconciliation: Net Debt & Free Cash Flow
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: Net Debt & Free Cash Flow 33 Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt to
Slide 34: GAAP Reconciliation: Adjusted EPS and Free Cash Flow Outlook
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: Adjusted EPS and Free Cash Flow Outlook 34 Reconciliation of Adjusted Earnings per Share to GAA
Slide 35: GAAP Reconciliation: Net Sales to Organic Sales
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 35 GAAP Reconciliation: Net Sales to Organic Sales Reconciliation of Net Sales to Organic Sales (Unaudited) The foll
Slide 36: GAAP Reconciliation: Net Sales to Organic Sales
These materials were presented on Feb. 5, 2025 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 36 GAAP Reconciliation: Net Sales to Organic Sales Reconciliation of Net Sales to Organic Sales (Unaudited) The foll