TKRMEDIUM SIGNALFINANCIAL10-K

TKR shows mixed financial performance with gross profit growing to $1.3B while revenue declined and interest expense increased substantially.

The combination of declining revenue yet expanding gross margins suggests improved operational efficiency or favorable product mix shifts, though rising interest costs from $74.6M to $110.7M indicate increased debt servicing burden. The company's operational footprint consolidation (from 124 to 116 facilities) alongside expanded brand portfolio suggests ongoing strategic restructuring.

Comparing 2026-02-13 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

TKR delivered a mixed financial picture with gross profit expanding 16.8% to $1.3B despite a 25.4% revenue decline, indicating meaningful margin improvement. Operating cash flow grew 16.5% to $554.3M and stockholders equity increased 12.7% to $3.2B, demonstrating solid cash generation and balance sheet strength. However, interest expense rose substantially to $110.7M and net income fell 18.2% to $288.4M, reflecting higher financing costs pressuring bottom-line profitability.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+48.4%
$74.6M→$110.7M

Interest expense surged 48.4% — significant debt increase or rising rates materially impacting earnings.

Share Buybacks
Cash Flow
+41.7%
$40.5M→$57.4M

Share repurchases increased 41.7% — management returning capital, signals confidence in intrinsic value.

Revenue
P&L
-25.4%
$107.4M→$80.1M

Revenue softened 25.4% — monitor whether this is cyclical or structural.

Capital Expenditure
Cash Flow
+20.3%
$148.3M→$178.4M

Capex increased 20.3% — ongoing investment in capacity or infrastructure for future growth.

Net Income
P&L
-18.2%
$352.7M→$288.4M

Net income declined 18.2% — review whether driven by operations, interest costs, or non-recurring items.

Gross Profit
P&L
+16.8%
$1.1B→$1.3B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Operating Cash Flow
Cash Flow
+16.5%
$475.7M→$554.3M

Operating cash flow grew 16.5% — strong conversion of earnings to cash, healthy business fundamentals.

Stockholders Equity
Balance Sheet
+12.7%
$2.8B→$3.2B

Equity base grew 12.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Current Liabilities
Balance Sheet
+12.4%
$820.5M→$922.1M

Current liabilities rose 12.4% — increased short-term obligations, watch current ratio.

Operating Income
P&L
-11.5%
$611.1M→$540.6M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

LANGUAGE CHANGES
NEW — 2026-02-13
PRIOR — 2025-02-20
ADDED
The Company s growing portfolio features many strong brands, including Timken , GGB , Philadelphia Gear , Cone Drive , CGI , Rollon , Nadella , Rosa Sistemi , Diamond , Drives , Groeneveld , BEKA , Des-Case , Lovejoy , PT Tech , Torsion Control Products and Lagersmit .
Today, the Company's global footprint consists of 116 manufacturing facilities and service centers, 29 technology and engineering centers, and 74 distribution centers and warehouses, supported by a team comprised of approximately 19,000 employees.
These engineered products are highly customized to control movements with different variability and complexity based on the application, and serve a wide range of industries, including passenger rail, aerospace, packaging and logistics, medical and automation.
The Company is primarily focused on energy, defense, water and mining markets.
These gear drive designs are custom-engineered to meet demanding user specifications, for a wide array of size, footprint and gear arrangements, all designed to operate in technically challenging application environments.
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REMOVED
As of June 28, 2024, the aggregate market value of the registrant s common shares held by non-affiliates of the registrant was $ 4,985,749,739 based on the closing sale price as reported on the New York Stock Exchange.
The Company s growing portfolio features many strong brands, including Timken , GGB , Philadelphia Gear , Cone Drive , Rollon , Nadella , Diamond , Drives , Groeneveld , BEKA , Des-Case , Lovejoy , Lagersmit and CGI.
Today, the Company's global footprint consists of 124 manufacturing facilities and service centers, 28 technology and engineering centers, and 77 distribution centers and warehouses, supported by a team comprised of approximately 19,000 employees.
These engineered products are highly customized to control movements with different variability and complexity based on the application.
Rollon and Nadella products serve a wide range of industries, including passenger rail, aerospace, packaging and logistics, medical and automation.
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