Financial Analysis

Note 2 - Acquisitions Acquisitions: On September 9, 2024, the Company acquired 100% of the capital stock of CGI, a Nevada-based manufacturer of precision drive systems serving medical robotics and other automation markets. CGI employs approximately 130 people and has its headquarters and manufacturing facilities in Carson City, Nevada. With its concentration on medical robotics, CGI enhances the Company's product portfolio by serving this attractive sector. The total purchase price for this acquisition was $167.1 million, net of cash acquired of $8.9 million. Results for CGI are reported in the Industrial Motion segment. The final purchase price allocation at fair value, net of cash acquired, is presented below: 2024 Assets: Accounts receivable $ 4.2 Inventories 13.7 Other current assets 0.3 Property, plant and equipment 20.6 Operating lease assets 2.6 Goodwill 61.2 Other intangible assets 100.4 Other non-current assets 3.0 Total assets acquired $ 206.0 Liabilities: Accounts payable, trade $ 0.6 Salaries, wages and benefits 1.5 Income taxes payable 0.2 Other current liabilities 1.3 Long-term operating lease liabilities 1.9 Deferred income taxes 27.7 Other non-current liabilities 5.7 Total liabilities assumed $ 38.9 Net assets acquired $ 167.1 Cash flow reconciling items: Working capital adjustment related to 2023 acquisitions paid in 2024 0.3 Cash paid for acquisitions, net of cash acquired $ 167.4 In determining the fair value of the amounts above, the Company utilized vario …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"Note 14 - Contingencies The Company is responsible for environmental remediation at various manufacturing facilities presently or formerly operated by the Company. In addition, the Company, through one of its subsidiaries, has currently been identified as a potentially responsible party for investigation and remediation under CERCLA, known as the Superfund, or similar state laws with respect to one site. Claims for investigation and remediation have been asserted against numerous other unrelated entities, which are believed to be financially solvent and are expected to fulfill their proportionate share of the obligation. On December 28, 2004, the United States Environmental Protection Agency (USEPA) sent Lovejoy, LLC (""Lovejoy"") a Special Notice Letter that identified Lovejoy as a potentially responsible party, together with at least 12 unrelated parties, at the Ellsworth Industrial Park Site, Downers Grove, DuPage County, Illinois (the Site). The Company acquired Lovejoy in 2016. Lovejoys Downers Grove property is situated within the Ellsworth Industrial Complex. The USEPA and the Illinois Environmental Protection Agency (IEPA) allege there have been one or more releases or threatened releases of hazardous substances, including, but not limited to, a release or threatened release on or from Lovejoy's property at the Site. The relief sought by the USEPA and IEPA includes further investigation and potential remediation of the Site and reimbursement of response costs. Lovejo …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 12 - Financing Arrangements Short-term debt as of December 31, 2025 and 2024 was as follows: 2025 2024 Borrowings under lines of credit for certain of the Companys foreign subsidiaries with various banks with interest rates ranging from 2.59% to 2.68% at December 31, 2025 and 3.36% to 3.95% at December 31, 2024 $ 24.5 $ 8.7 Short-term debt $ 24.5 $ 8.7 The lines of credit for certain of the Companys foreign subsidiaries provide for short-term borrowings, with most of these lines of credit being uncommitted. At December 31, 2025, the Companys foreign subsidiaries had borrowings outstanding of $24.5 million and bank guarantees of $6.2 million. The weighted-average interest rate on these lines of credit during the year were 2.77%, 4.19% and 4.24% in 2025 , 2024 and 2023, respectively. The weighted-average interest rate on lines of credit outstanding at December 31, 2025 and 2024 was 2.63% and 3.58%, respectively. Long-term debt as of December 31, 2025 and 2024 was as follows: 2025 2024 Variable-rate Senior Credit Facility with an average interest rate for Euro of 2.91% at December 31, 2025 $ 21.2 $ Fixed-rate Euro Senior Unsecured Notes (1) , maturing on September 7, 2027, with an interest rate of 2.02% 176.2 155.3 Variable-rate Term Loan (1) , maturing on December 5, 2027, with an interest rate of 4.94% at December 31, 2025 and of 5.58% at December 31, 2024 84.8 369.6 Fixed-rate Medium-Term Notes, Series A (1) , maturing at various dates through May 2028, with interest rat …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents details deemed most relevant to the users of the financial statements about total revenue for the years ended December 31, 2025, 2024 and 2023: December 31, 2025 Engineered Bearings Industrial Motion Total United States $ 1,245.8 $ 830.4 $ 2,076.2 Americas excluding United States 370.6 90.2 460.8 Europe / Middle East / Africa 587.2 540.0 1,127.2 Asia-Pacific 814.5 103.1 917.6 Net sales $ 3,018.1 $ 1,563.7 $ 4,581.8 December 31, 2024 Engineered Bearings Industrial Motion Total United States $ 1,281.6 $ 795.3 $ 2,076.9 Americas excluding United States 383.1 102.7 485.8 Europe / Middle East / Africa 599.2 520.7 1,119.9 Asia-Pacific 770.4 120.0 890.4 Net sales $ 3,034.3 $ 1,538.7 $ 4,573.0 December 31, 2023 Engineered Bearings Industrial Motion Total United States $ 1,266.1 $ 789.8 $ 2,055.9 Americas excluding United States 375.6 106.1 481.7 Europe / Middle East / Africa 678.6 499.7 1,178.3 Asia-Pacific 937.4 115.7 1,053.1 Net sales $ 3,257.7 $ 1,511.3 $ 4,769.0 The following table presents the percent of revenues by sales channel for the years ended December 31, 2025, 2024 and 2023: Revenue by sales channel 2025 2024 2023 Original equipment manufacturers 60% 55% 60% Distribution/end users 40% 45% 40%

DisaggregationOfRevenueTableTextBlock

Note 15 - Stock Compensation Under its long-term incentive plan, the Company's common shares have been made available for grant, at the discretion of the Compensation Committee of the Board of Directors or its designees, to officers, directors and other key employees. Grants can take the form of performance- or time-based restricted stock units, deferred shares and stock options. A summary of the awards granted in 2025 is presented below: Expected to be Settled in Equity Expected to be Settled in Cash Total Awards Granted Performance-based restricted stock units 281,465 7,170 288,635 Time-based restricted stock units 273,280 4,745 278,025 Deferred shares 137,100 137,100 Performance-based restricted stock units are calculated and awarded based on the achievement of specified performance objectives and cliff vest three years from the date of grant. Time-based restricted stock units generally vest in 25% increments annually beginning on the first anniversary of the grant. Deferred shares generally cliff vest in a range of two to five years from the date of grant. For time-based restricted stock units that are expected to settle in cash, the Company had $1.2 million and $2.1 million accrued in salaries, wages and benefits as of December 31, 2025 and 2024, respectively, on the Consolidated Balance Sheets. A summary of stock award activity, including performance-based restricted stock units, time-based restricted stock units and deferred shares that will settle in common shares for …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 21 - Fair Value The following tables present the fair value hierarchy for those assets and liabilities on the Consolidated Balance Sheets measured at fair value on a recurring basis as of December 31, 2025 and 2024: December 31, 2025 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 348.8 $ 347.6 $ 1.2 $ Cash and cash equivalents measured at net asset value 15.6 Restricted cash 1.0 1.0 Short-term investments 21.1 21.1 Foreign currency forward contracts 2.5 2.5 Total Assets $ 389.0 $ 348.6 $ 24.8 $ Liabilities: Foreign currency forward contracts $ 1.8 $ $ 1.8 $ Total Liabilities $ 1.8 $ $ 1.8 $ December 31, 2024 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 343.1 $ 341.8 $ 1.3 $ Cash and cash equivalents measured at net asset value 30.1 Restricted cash 0.4 0.4 Short-term investments 15.9 15.9 Foreign currency forward contracts 4.9 4.9 Total Assets $ 394.4 $ 342.2 $ 22.1 $ Liabilities: Foreign currency forward contracts $ 10.4 $ $ 10.4 $ Total Liabilities $ 10.4 $ $ 10.4 $ Cash and cash equivalents are highly liquid investments with maturities of 90 days or less when purchased that are valued at redemption value. Short-term investments are investments with maturities between 91 days and one year, and generally are valued at amortized cost, which approximates fair value. A portion of the cash and cash equivalents and short-term investments are valued based on net asset value. The Company uses publicly available market interest rates to me …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 9 - Goodwill and Other Intangible Assets Goodwill: The Company tests goodwill and indefinite-lived intangible assets for impairment at least annually, performing its annual impairment test as of October 1 st . Furthermore, goodwill and indefinite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company reviews goodwill for impairment at the reporting unit level. The Engineered Bearings segment has one reporting unit and the Industrial Motion segment has six reporting units. Changes in the carrying value of goodwill were as follows: Year ended December 31, 2025: Engineered Bearings Industrial Motion Total Beginning balance $ 692.0 $ 691.3 $ 1,383.3 Foreign currency translation adjustments and other changes 11.9 91.2 103.1 Ending balance $ 703.9 $ 782.5 $ 1,486.4 Year ended December 31, 2024: Engineered Bearings Industrial Motion Total Beginning balance $ 692.3 $ 677.3 $ 1,369.6 Acquisitions 61.4 61.4 Measurement period adjustments related to 2023 acquisitions 6.0 0.4 6.4 Impairment loss (1.5) (1.5) Foreign currency translation adjustments and other changes (6.3) (46.3) (52.6) Ending balance $ 692.0 $ 691.3 $ 1,383.3 The acquisition of CGI added goodwill of $61.4 million in 2024. Goodwill arising from this acquisition is attributed to the expected synergies, including future cost savings, and other benefits expected to be generated by combining the companies. The goo …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 5 - Income Taxes Income before income taxes, based on geographic location of the operations to which such earnings are attributable, is provided below. As the Company has elected to treat certain foreign subsidiaries as branches for U.S. income tax purposes, pretax income attributable to the United States shown below may differ from the pretax income reported in the Companys annual U.S. federal income tax return. Income before income taxes: 2025 2024 2023 United States $ 71.1 $ 175.6 $ 173.8 Non-United States 344.9 318.6 356.7 Income before income taxes $ 416.0 $ 494.2 $ 530.5 The provision for income taxes consisted of the following: 2025 2024 2023 Current: Federal $ 34.4 $ 28.6 $ 10.4 State and local 7.3 9.1 3.8 Foreign 84.2 116.5 119.9 $ 125.9 $ 154.2 $ 134.1 Deferred: Federal $ (17.0) $ (6.6) $ (12.1) State and local (2.2) (2.7) (1.5) Foreign (8.0) (26.0) 2.0 $ (27.2) $ (35.3) $ (11.6) United States and foreign tax provision on income $ 98.7 $ 118.9 $ 122.5 Income taxes paid (net of refunds received): 2025 2024 2023 Federal $ 19.2 $ 58.8 $ 79.9 State and local 8.2 5.9 9.3 Foreign Brazil 10.4 * * China 32.1 37.2 52.4 France 11.6 * 15.2 India 25.0 23.3 25.9 Italy 13.4 * 16.4 Mexico 7.5 * * Others 17.4 58.3 41.2 Total net income tax payments $ 144.8 $ 183.5 $ 240.3 * Jurisdiction below the threshold for the periods presented. These income tax payments included $45.2 million and $55.2 million in 2024 and 2023, respectively, for U.S. federal taxes that were recorded in o …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 11 - Leasing The Company enters into operating and finance leases for manufacturing facilities, warehouses, sales offices, information technology equipment, plant equipment, vehicles and certain other equipment. Lease expense for the years ended December 31, 2025, 2024 and 2023 was as follows: 2025 2024 2023 Operating lease expense $ 41.7 $ 32.7 $ 33.5 Amortization of right-of-use assets on finance leases 2.8 3.0 2.2 Total lease expense $ 44.5 $ 35.7 $ 35.7 Cash flows from operating and financing leases for the years ended December 31, 2025, 2024 and 2023 was as follows: 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 46.3 $ 35.7 $ 33.6 Financing cash flows from finance leases 2.8 2.8 2.1 The following tables present the impact of leasing on the Consolidated Balance Sheets at December 31, 2025 and 2024: Operating Leases 2025 2024 Lease assets: Operating lease assets $ 152.9 $ 130.6 Lease liabilities: Short-term operating lease liabilities $ 33.1 $ 32.0 Long-term operating lease liabilities 100.8 84.0 Total operating lease liabilities $ 133.9 $ 116.0 Short-term operating lease liabilities at December 31, 2025 and 2024 are included in other current liabilities on the Consolidated Balance Sheets. Finance Leases 2025 2024 Lease assets: Property, plant and equipment, net $ 7.2 $ 8.4 Lease liabilities: Current portion of long-term debt $ 2.6 $ 2.7 Long-term debt 4.9 6.1 Total finance lease liab …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements: New Accounting Guidance Adopted: In December 2023, the FASB issued Accounting Standards Update (""ASU"") 2023-09, Income Taxes (Topic 40). ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid. The amendments in this update require that public entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The amendments require that all entities disclose on an annual basis the amount of income taxes paid disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. For public entities, the new guidance is effective for annual periods beginning after December 15, 2024. The Company adopted the new guidance in the fourth quarter of 2025. Refer to Note 5 - Income Taxes for additional information. New Accounting Guidance Issued and Not Yet Adopted: In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). ASU 2024-03 requires that a public entity disclose detailed information about types of expense. Specifically, a public entity would disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Note 16 - Impairment and Restructuring Charges Impairment and restructuring charges by segment were as follows: Year ended December 31, 2025: Engineered Bearings Industrial Motion Unallocated Corporate Total Impairment charges $ 0.1 $ $ $ 0.1 Severance and related benefit costs 9.8 4.3 9.5 23.6 Exit costs 0.9 0.7 1.6 Total $ 10.8 $ 5.0 $ 9.5 $ 25.3 Year ended December 31, 2024: Engineered Bearings Industrial Motion Unallocated Corporate Total Impairment charges $ 2.0 $ 1.5 $ $ 3.5 Severance and related benefit costs 2.6 5.0 7.6 Exit costs 2.0 0.3 2.3 Total $ 6.6 $ 6.8 $ $ 13.4 Year ended December 31, 2023: Engineered Bearings Industrial Motion Unallocated Corporate Total Impairment charges $ 4.9 $ 28.3 $ $ 33.2 Severance and related benefit costs 5.5 5.6 11.1 Exit costs 0.9 0.3 1.2 Total $ 11.3 $ 34.2 $ $ 45.5 The following discussion explains the major impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts in the tables above. Corporate: On March 31, 2025, Timken announced that the Company and Tarak B. Mehta, President and CEO, had mutually agreed that Mr. Mehta would depart from the Company, including resigning as a member of the Companys Board of Directors, effective immediately. During the three months ended March 31, 2025, the Company recorded severance expense of $9.3 million, plus related taxes, for Mr. Mehta's settlement arrangement and release of claims in connection w …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Note 4 - Revenue The following table presents details deemed most relevant to the users of the financial statements about total revenue for the years ended December 31, 2025, 2024 and 2023: December 31, 2025 Engineered Bearings Industrial Motion Total United States $ 1,245.8 $ 830.4 $ 2,076.2 Americas excluding United States 370.6 90.2 460.8 Europe / Middle East / Africa 587.2 540.0 1,127.2 Asia-Pacific 814.5 103.1 917.6 Net sales $ 3,018.1 $ 1,563.7 $ 4,581.8 December 31, 2024 Engineered Bearings Industrial Motion Total United States $ 1,281.6 $ 795.3 $ 2,076.9 Americas excluding United States 383.1 102.7 485.8 Europe / Middle East / Africa 599.2 520.7 1,119.9 Asia-Pacific 770.4 120.0 890.4 Net sales $ 3,034.3 $ 1,538.7 $ 4,573.0 December 31, 2023 Engineered Bearings Industrial Motion Total United States $ 1,266.1 $ 789.8 $ 2,055.9 Americas excluding United States 375.6 106.1 481.7 Europe / Middle East / Africa 678.6 499.7 1,178.3 Asia-Pacific 937.4 115.7 1,053.1 Net sales $ 3,257.7 $ 1,511.3 $ 4,769.0 Net sales by geographic area are reported by the destination of net sales. When reviewing revenues by sales channel, the Company separates net sales to OEMs from sales to distributors and end users. The following table presents the percent of revenues by sales channel for the years ended December 31, 2025, 2024 and 2023: Revenue by sales channel 2025 2024 2023 Original equipment manufacturers 60% 55% 60% Distribution/end users 40% 45% 40% In addition to disaggregating revenue …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Note 3 - Segment Information The Company operates under two reportable segments: (1) Engineered Bearings and (2) Industrial Motion. Description of types of products and services from which each reportable segment derives its revenues: The Company ' s reportable segments are product business units that serve customers in diverse industrial markets. Each reportable segment is managed to address specific customer needs in these diverse market segments. The Engineered Bearings portfolio features bearings with precision tolerances, proprietary internal geometries and quality materials. Products include tapered, spherical, cylindrical, thrust, ball, plain, miniature, precision and housed unit bearings that deliver strong performance, consistency and reliability. The portfolio serves OEMs and end users in the following markets: industrial distribution, renewable energy, automotive, rail, aerospace, metals and mining, heavy truck, agriculture and turf, and construction. Beyond products sold to OEMs, aftermarket sales to individual end users, equipment owners, operators and maintenance shops are handled directly or through the Company's extensive network of authorized automotive and heavy truck distributors. The Industrial Motion portfolio features products such as drives, breathers, seals, automatic lubrication systems, linear motion products, chain, belts, couplings, industrial clutches and brakes, and gears and gearboxes. The portfolio products and services are sold to OEMs and en …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 19 - Sale of Shares of Timken India Limited On June 20, 2023, the Company completed the sale of 7.6 million shares of TIL, a publicly traded subsidiary of the Company, generating net proceeds of $229.0 million after income taxes of $55.2 million and transaction costs. The sale reduced the Companys ownership in TIL from 67.80 percent to 57.70 percent. On May 28, 2024, the Company completed the sale of 5.0 million shares of TIL, generating net proceeds of $186.8 million after income taxes of $45.2 million and transaction costs. The sale reduced the Companys ownership in TIL from 57.70 percent to 51.05 percent. The India market remains strategically important to Timken, and the Company is not contemplating any further sale transactions at the present time. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing