Timken Company (the) · NYSE:TKR
Timken Company (the) — The Timken Company — Investor Presentation (June 2026)
38 slides from Timken Company (the)'s investor presentation, June 2026
Slide 1: Investor Presentation June 2026
Investor Presentation June 2026 © THE TIMKEN COMPANY
Slide 2: Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information
Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information Certain statements in this presentation (including statements regarding the company's forecasts, beliefs, estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the
Slide 3: Timken Today: A Motion Technology Leader
Timken Today: A Motion Technology Leader Net Sales Adj. EBITDA Margin Adj. EPS More Than 125 Years of engineering expertise 66% Engineered Bearings1 34% Industrial Motion1 $4.6B 17.4% $5.33 2025 Net Sales 2025 Adj. EBITDA Margin 2025 Adj. EPS 19K Employees Free Cash Flow Free Cash Flow Yield Net Lev
Slide 4: Attractive End-Market Sector Sales Mix
Attractive End-Market Sector Sales Mix Aerospace & Power & Automation & Industrial Transportation Defense Electrification Industrial Solutions Infrastructure & Mobility 6-8% 6-8% 4-6% 2-3% 2-3% Market growth 2025-28E Market growth 2025-28E Market growth 2025-28E Market growth 2025-28E Market growth
Slide 5: Positioned to Leverage Megatrends
Positioned to Leverage Megatrends Automation & AI-Driven Power Demand & Robotics Electrification ~10% ~15% Global industrial Global data center automation electricity demand market CAGR1 CAGR2 Labor constraints, smart factory investment, AI compute growth, power density, precision manufacturing dema
Slide 6: Focused on Strategic Verticals to Deliver Strong Growth
Focused on Strategic Verticals to Deliver Strong Growth End-Market Aerospace & Power & Automation & Industrial Transportation Infrastructure Sectors Defense Electrification Industrial Solutions & Mobility Strategic > Commercial Aerospace > Power Generation > Automation & Robotics > Construction > Ma
Slide 7: Automation & Robotics Technology: Smart Factory Ecosystem
Power & Automation & Industrial Transportation Aerospace & Defense Infrastructure Electrification Industrial Solutions & Mobility Automation & Robotics Technology Select Example: Smart Factory Ecosystem Lubrication for HVAC Systems Plain & Roller Bearings for Compressors Linear Systems for CNC Machi
Slide 8: Automation & Robotics Technology: Humanoid
Power & Automation & Industrial Transportation Aerospace & Defense Infrastructure Electrification Industrial Solutions & Mobility Automation & Robotics Technology Technology Example: Humanoid 6 Rotatory Actuators Premium offering of technology and for Shoulders solutions across bearings, encoders, 2
Slide 9: Aerospace & Defense Technology
Power & Automation & Industrial Transportation Aerospace & Defense Infrastructure Electrification Industrial Solutions & Mobility Aerospace & Defense Technology Select Example: Aerospace & Defense Ecosystem Marine Drive Systems for Navy Fleets Bearings & Actuators for Helicopters Precision Bearings
Slide 10: 3 Strategic Pillars
3 Strategic Pillars Deploying Our 80/20 Mindset to Accelerate Profitable Growth and Drive Shareholder Value PILLAR 1 PILLAR 2 PILLAR 3 Optimize Focus Leverage the Resources to Our Multinational Portfolio Strategic Verticals Footprint Executed Across 3 Time Horizons 10
Slide 11: 3 Time Horizons
3 Time Horizons HORIZON 3 Scale the Advantage Institutionalize proactive portfolio management, disciplined M&A integration and enterprise operating rigor 2028+ HORIZON 2 Evolve the Model Accelerate growth in strategic verticals, expand Industrial Motion platforms and increase customer share of walle
Slide 12: Disciplined Execution Framework
Disciplined Execution Framework Strong Fundamentals Enhanced Execution • Technical sales model • One commercial team • Deep technical relationships • Components → systems • Customized & differentiated components Customer Facing • Brand equity & experienced global teams • CTO to drive tech integratio
Slide 13: Industrial Motion: Early Wins and Select Priorities
Industrial Motion: Early Wins and Select Priorities PILLAR 1 PILLAR 2 PILLAR 3 Optimize Focus Resources to Leverage Our the Portfolio Strategic Verticals Multinational Footprint Belts divestiture expected to Target >80% of incremental capital One commercial team applying an structurally increase Ind
Slide 14: 2026 M&A Actions Aligned with 80/20
2026 M&A Actions Aligned with 80/20 Acquisition Divestiture Strong Strategic Fit Divestment of Belts business • Timken is a natural owner • Consistent with 80/20 • Accelerates growth in mindset to structurally strategic verticals improve margins • Accretive to Industrial • Redeploying resources to $
Slide 15: Aggressive Regional Expansion
Aggressive Regional Expansion Leveraging Timken’s Strong OEM and Distributor Network Key Platforms Key Target Regions Linear Motion Systems U.S., Brazil, China and India Lubrication Systems Precision Drives Europe, S. Korea, Power Transmission China and Australia Solutions Examples of regional expan
Slide 16: Engineered Bearings: Early Wins and Select Priorities
Engineered Bearings: Early Wins and Select Priorities PILLAR 1 PILLAR 2 PILLAR 3 Optimize Focus Resources to Leverage Our the Portfolio Strategic Verticals Multinational Footprint Exiting low-margin business and Target >80% of incremental capital Operate as One Timken to best serve focusing on highe
Slide 17: Reduce Product Complexity Aligned with 80/20
Reduce Product Complexity Aligned with 80/20 25% of SKUs Identified for Harmonization 10% of SKUs and 6% of customers drive 80% of sales – 50% of SKUs and 50% customers only ~1% of revenue – serve exceptionally well redeploy resources ~94% Share of revenue per product quartile ~5% ~1% ~0% Quartile 1
Slide 18: Financial Targets & Capital Allocation
Financial Targets & Capital Allocation
Slide 19: Financial Targets Summary
Financial Targets Summary 2028 Targets Total Sales Adj. EBITDA Margin Adj. EPS Free Cash Flow in 2028 in 2028 in 2028 cumulative $5.0-5.2B 21-23% ~$8.50 ~$1.3B Mid-Single Digit +~500 bps1 >55% growth +$200M Organic growth CAGR vs. 2025A of 17.4% vs. 2025A of $5.33 vs. 2023-2025 total: ~$1.1B 1. At m
Slide 20: Revenue Growth Target
Revenue Growth Target Expecting Mid-Single Digit Organic CAGR (2025-2028E) Contribution to organic CAGR (basis points) 30-50 bps $5.0-5.2B 50-100 bps 350-400 bps $4.6B ~$4.4B 2025 Portfolio 2025 PF1 Market growth Strategic verticals Global platform 2028E Revenue optimization Revenue outgrowth expans
Slide 21: Margin Expansion Opportunity of ~500 bps
Margin Expansion Opportunity of ~500 bps Key Drivers of 2028E Adj. EBITDA Margin Target 50-100 bps 21-23% 100-150 bps 150-200 bps 100-150 bps 17.4% 2025 Market growth, Portfolio optimization Strategic verticals Global platform 2028E Adj. EBITDA margin net of investment outgrowth expansion Adj. EBITD
Slide 22: Expecting Growth and Margin Expansion Across Segments
Expecting Growth and Margin Expansion Across Segments Total Sales Margins 2025 2028E 2025 Sales 2028E Sales CAGR Adj. EBITDA Adj. EBITDA Margin Margin Engineered Bearings ~$3.0B ~$3.2B ~2% ~19% 21% – 23% Industrial Motion ~$1.6B ~$1.9B ~7% ~19% 25% – 27% 1 Total Company ~$4.6B ~$5.0-5.2B ~4% ~17.4%
Slide 23: Increasing Free Cash Flow
Increasing Free Cash Flow Expecting ~$1.3B Over a 3-Year Period ~$1.3B 2026 – 2028 Targets • Assumes ~95% FCF to GAAP Net Income ~$1.1B • CapEx: ~3.5% of sales +$200M • Tax rate: ~26.5% • Positive drivers: Higher margins and 80/20 initiatives 2023-2025 2026E-2028E Free cash flow is defined as net ca
Slide 24: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework Invest in Core Business Organic Growth, Margin Improvement, Innovation (R&D) CapEx Target: 3.5% of Sales Dividend 1 Pay Attractive Dividend Acquisitions Share Repurchase Strategic Fit and Financially Attractive Important Option of Returning Capital to Shareho
Slide 25: Capital Deployment Optionality
Capital Deployment Optionality Free Cash Flow and Earnings Growth Allow for Significant Capital Deployment ~$2.4B Core Principles for Future Acquisitions Strategic Fit ~$1.9B • Timken is a natural owner • Alignment with the strategic verticals ~$1,600 M&A and Financially Attractive Share repurchases
Slide 26: Strong Investment-Grade-Rated Balance Sheet
Strong Investment-Grade-Rated Balance Sheet Net Leverage Capital Structure ($M) 2.5x 2.1x 12/31/25 2.0x 2.0x 1.5x-2.5x 1.9x 1.7x Cash $ 364 1.5x Total Debt 1,922 Net Debt $1,558 Adj. EBITDA (TTM) $ 796 Net Debt/Adj. EBITDA 2.0x 2021 2022 2023 2024 2025 Target Reaffirming Net Leverage Target Range of
Slide 27: Why Timken
Why Timken A Proven Franchise Entering Its Next Value-Creation Chapter Strong Foundation Strategic Verticals Elevate to Committed to to Build On Aligned with Outperform Financial Targets Megatrends Leadership in mission-critical Automation & Robotics Pillar 1: Optimize the Portfolio 2028E motion sys
Slide 28: 1Q 2026 Performance Highlights
1Q 2026 Performance Highlights
Slide 29: 1Q 2026 Financial Overview
1Q 2026 Financial Overview Net Sales ($M) Adjusted EBITDA ($M) Earnings Per Share REPORTED (GAAP) ADJUSTED $1,231 $1.67 $231 $208 $1.40 $1.40 $1,140 $1.11 +8.0% 18.2% 18.8% 1Q-25 1Q-26 1Q-25 1Q-26 1Q-25 1Q-26 1Q-25 1Q-26 See appendix for reconciliations of adjusted EBITDA, adjusted EBITDA margin, an
Slide 30: Organic Growth Outlook – FY 2026 by Market/Sector
These materials were presented on May 6, 2026 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason. Organic Growth Outlook – FY 2026 by Market/Sector Market/Sector Placement Reflects Midpoint of Outlook Negative Neut
Slide 31: Appendix: GAAP Reconciliations
Appendix: GAAP Reconciliations
Slide 32: GAAP Reconciliation: Net Income & EPS
GAAP Reconciliation: Net Income & EPS Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Earnings Per Share to GAAP Earnings Per Share: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investo
Slide 33: GAAP Reconciliation: 2021-2025 EBITDA, and EBITDA, After Adjustments to Net Income
GAAP Reconciliation: 2021-2025 EBITDA, and EBITDA, After Adjustments to Net Income Reconciliations of GAAP to Non-GAAP Measures: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Management believes con
Slide 34: GAAP Reconciliation: Net Debt
GAAP Reconciliation: Net Debt Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt to Capital, and the Ratio of Net Debt to Adjusted EBITDA: (Unaudited) These reconciliations are provided as additional relevant information about the Company's financial position deemed useful to investors.
Slide 35: GAAP Reconciliation: Consolidated Free Cash Flow
GAAP Reconciliation: Consolidated Free Cash Flow Reconciliation of Free Cash Flow to GAAP Net Cash Provided by Operating Activities: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's 2023-2025 performance is deemed useful to investors. Manage
Slide 36: GAAP Reconciliation: Net Income & EPS
GAAP Reconciliation: Net Income & EPS Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Earnings Per Share to GAAP Earnings Per Share: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investo
Slide 37: GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net Income
GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net Income Reconciliation of EBITDA to GAAP Net Income, EBITDA Margin to Net Income as a Percentage of Sales, and EBITDA Margin, After Adjustments, to Net Income as a Percentage of Sales, and EBITDA, After Adjustments, to Net Income:
Slide 38: TIMKEN
TIMKEN
The Timken Company — Investor Presentation (June 2026) on 6ix