Timken Stock Plunges 10%, Wiping Out $816 Million, Even After Raising Its 2026 Profit Outlook
The bearings maker lifted its full-year earnings forecast, and a tariff refund helped its margin, yet the shares fell 10.19% in Wednesday trading.
Timken, which makes engineered bearings and industrial motion products, saw its shares fall 10.19% to $103.88 in Wednesday trading as of 12:52 p.m. ET, erasing $816 million in market value. The drop came the same day the company raised its 2026 outlook alongside third-quarter results.
A higher forecast, a lower stock
For 2026, management is targeting revenue about 5.5% above 2025 and adjusted EPS between $6.35 and $6.50.
Adjusted EPS for the quarter was $1.65, versus $1.37 in the year-ago period. A net $12.4 million tariff refund lifted the 18.5% adjusted EBITDA margin.
Free cash flow came in at $221.4 million, up from $163.8 million a year earlier, the company said. Shares were on pace for their biggest one-day drop in at least 275 trading sessions, since Oct. 1, 2025.
Industrial Motion outruns bearings
Timken makes bearings, the mechanical parts that reduce friction between moving components, along with gear drives, lubrication systems, belts, chain, couplings, seals and repair services. Its customers span industrial distribution, renewable energy, automation, aerospace, rail and mining, among others.
Industrial Motion sales rose 12.4% to $440.0 million. Engineered Bearings grew only 0.7%, to $771.4 million.
Up 38% this year, then a slide
Before Wednesday, the stock was up about 38% year to date as of Tuesday's close, ahead of the S&P 500's roughly 11% gain. It had already slipped to 20% below its highest close of the past year, set on June 30.
The company's prior quarterly filing showed revenue of $1.3 billion, up 7.5% from a year earlier, with net income of $28.9 million. Timken's market value stood at $7.2 billion at the time of the report.
Despite the sell-off, the shares remained well ahead of the S&P 500 for the year as of Tuesday's close, up about 38% against roughly 11%.
Sources
- Here's What Key Metrics Tell Us About Timken (TKR) Q3 Earnings — Yahoo Finance
- Timken (TKR) Surpasses Q3 Earnings Estimates — Yahoo Finance
- Timken: Q3 Earnings Snapshot – WTOP News — wtop.com
- Timken: Q3 Earnings Snapshot — Associated Press
- Timken Reports Third-Quarter 2026 Results – Company Announcement - FT.com — Financial Times
- The company's filing (Timken Co.) — SEC filing
- Timken Co. — Form 10-Q for the quarter ended 2026-06-30 (quarterly results) — SEC EDGAR
