NYSE$TKR

The Timken Company · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Timken's second-quarter performance aligned with expectations, featuring solid margins and strategic advancements.

Timken reported Q2 2024 sales of $1.18 billion, a 7.1% decrease from the previous year, with a net income of $96.2 million, or $1.36 per diluted share. Adjusted EPS was $1.63. The company updated its full-year outlook, expecting EPS of $5.00-$5.20 and adjusted EPS of $6.00-$6.20.

  • Sales reached $1.18 billion, meeting company expectations.
  • Second-quarter earnings per share (EPS) were $1.36; adjusted EPS was $1.63.
  • Net income margin was 8.1 percent; adjusted EBITDA margin was 19.5 percent.
  • Full-year 2024 outlook updated, with EPS expected to be $5.00-$5.20, and adjusted EPS of $6.00-$6.20.

Headline financials

Total Revenue

$1.18B

Previous: $1.27B-7.1%
EPS

$1.36

Previous: $2.01-32.3%
Net Income Margin

8.1%

Previous: 9.8%-17.3%
Adjusted EBITDA Margin

19.5%

Previous: 20.7%-5.8%
Capital Expenditures

-$37.3M

No prior period
Free Cash Flow

$96.2M

Previous: $125M-23.2%
Net Income

$96.2M

Previous: $125M-23.2%
Operating Income

$167M

Previous: $201M-16.7%
Gross Profit

$374M

Previous: $405M-7.8%
Cash & Equivalents

$470M

Previous: $344M+36.5%
Total Assets

$6.58B

Previous: $6.25B+5.2%
Stock-Based Comp

$7M

Previous: $6.1M+14.8%

Revenue & EPS history

Timken · Revenue · Quarterly

$1.18B

Q2 2024-7.1%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Timken · $1.14B total across 2 segments · Q3 2023

  • Engineered Bearings
    $776M
  • Industrial Motion
    $367M

Forward guidance

Timken updated its full-year 2024 outlook, expecting revenue to be down 3 to 4 percent. Earnings per diluted share are now forecasted to be in the range of $5.00 to $5.20 and adjusted earnings per diluted share in the range of $6.00 to $6.20.

Tailwinds

  • Company delivered strong margins in both segments
  • Continued to advance strategic initiatives
  • Expect to generate significant free cash flow
  • Focus on delivering resilient performance in 2024 through operational excellence
  • Company remains well-positioned for profitable growth

Headwinds

  • Revenue expected to be down 3 to 4 percent in total from 2023
  • Lower end-market demand
  • Organically, most platforms were lower as compared to the prior year
  • Renewable energy saw the most significant organic decline
  • Second-quarter sales decreased 7.1 percent from last year’s record level.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.7%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+14.9%

Q4 2015

Best reaction

-14.6%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.3%+7.0%+20.2%
Q4 2025+3.2%+13.3%+3.7%
Q3 2025+2.4%+0.9%+5.4%
Q1 2025-1.6%+1.7%+4.9%
Q4 2024+3.5%+3.3%-2.3%
Q3 2024-5.0%-7.8%-8.7%
Q2 2024-1.2%-5.4%-1.2%
Q1 2024+0.9%+3.2%-0.3%
Q4 2023-5.6%-3.9%-1.1%
Q3 2023+2.6%+3.6%+8.0%
Q2 2023-11.4%-13.1%-14.1%
Q1 2023-4.0%-1.6%+1.2%
Q4 2022-1.4%-3.2%+1.7%
Q3 2022+0.2%+4.0%+9.6%
Q2 2022+5.5%+2.5%+4.6%
Q1 2022+5.6%+2.4%+4.0%
Q4 2021-1.2%-1.7%-4.7%
Q3 2021+1.2%+2.5%-8.3%
Q2 2021-4.0%-4.4%-8.4%
Q1 2021+4.2%+2.0%+5.6%
Q4 2020-9.3%-7.2%+0.6%
Q3 2020+5.5%+13.0%+32.1%
Q2 2020+7.4%+13.5%+25.7%
Q1 2020-2.6%-3.4%+13.2%
Q4 2019-0.2%+2.2%-18.0%
Q3 2019-0.1%+8.1%+7.2%
Q2 2019-10.9%-12.6%-17.1%
Q1 2019+5.4%+7.2%-8.2%
Q4 2018-3.5%-0.5%-2.0%
Q3 2018+1.5%+8.1%+5.9%
Q2 2018+1.2%+1.1%+6.3%
Q1 2018+6.3%+8.2%+10.6%
Q4 2017-9.7%-8.6%-4.0%
Q3 2017-5.4%-8.8%-8.8%
Q2 2017-6.5%-7.8%-11.1%
Q1 2017+1.1%-0.2%-4.4%
Q4 2016+2.6%+3.1%+1.2%
Q3 2016-5.6%-6.7%+13.3%
Q2 2016+3.2%+2.9%+5.4%
Q1 2016-1.5%
Q4 2015+14.9%
Q3 2015+7.9%
Q2 2015+1.0%
Q1 2015-3.8%
Q4 2014-6.2%
Q3 2014+0.7%
Q2 2014-4.3%
Q1 2014+2.9%
Q4 2013+3.3%
Q3 2013-14.6%
Q2 2013-5.5%
Q1 2013+1.0%
Q4 2012+2.7%
Q3 2012+2.5%
Q2 2012-0.3%
Q1 2012-0.2%
Q4 2011+1.6%
Q1 2010+1.6%
Q3 2011+8.7%
Q2 2011-8.9%
Q1 2011+1.6%
Q4 2010-7.6%
Q4 2008-7.6%
Q3 2009+6.0%
Q3 2010+6.0%
Q2 2009-0.5%
Q2 2010-0.5%
Q4 2009-0.5%

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