TIMKEN COTKR
TIMKEN CO Segments Disclosure
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 end users in markets that place heavy demands on operating equipment they make or use. This includes: industrial distribution, automation, agriculture and turf, services, marine, renewable energy, aerospace and construction. This segment also supports aftermarket sales through its global network of authorized industrial distributors and through the provision of services directly to end users. In addition, the Company’s industrial drivetrain services offer end users a broad portfolio of maintenance support and capabilities that include repair and service for bearings and gearboxes as well as electric motor rewind, repair and services.
Measurement of segment profit or loss and segment assets:
The Company's Chief Operating Decision Maker ("CODM") is the President and Chief Executive Officer. The primary measurement used by the CODM to measure the financial performance of each segment is adjusted EBITDA. The CODM considers actual and budget results provided on a regular basis for both segment's profit measures when making decisions about allocating capital and personnel to the segments.
The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.
Note 3 - Segment Information (continued)
Business Segment Information:
The following tables provide segment financial information and a reconciliation of segment results to consolidated results for the year ended December 31, 2025:
| Engineered Bearings | Industrial Motion | Total | |||||||||
| Net sales | $ | 3,018.1 | $ | 1,563.7 | $ | 4,581.8 | |||||
Cost of products sold (1) | (2,135.7) | (1,047.0) | |||||||||
Selling, general and administrative expenses (2) | (413.5) | (269.5) | |||||||||
Other segment items (3) | 4.4 | (0.4) | |||||||||
Depreciation and amortization (4) | 98.4 | 50.6 | |||||||||
| Adjusted EBITDA for reportable segments | $ | 571.7 | $ | 297.4 | $ | 869.1 | |||||
| Unallocated corporate expense | (73.3) | ||||||||||
| Impairment, restructuring and reorganization charges | (20.7) | ||||||||||
| Corporate pension and other postretirement benefit related expense | (10.8) | ||||||||||
| Gain on divestitures and sale of certain assets | 2.6 | ||||||||||
| CEO transition expenses | (20.8) | ||||||||||
| Depreciation and amortization | (230.1) | ||||||||||
| Interest expense | (110.3) | ||||||||||
| Interest income | 10.3 | ||||||||||
| Income before income taxes | $ | 416.0 | |||||||||
Year ended December 31, 2024:
| Engineered Bearings | Industrial Motion | Total | |||||||||
| Net sales | $ | 3,034.3 | $ | 1,538.7 | $ | 4,573.0 | |||||
Cost of products sold (1) | (2,106.9) | (1,008.5) | |||||||||
Selling, general and administrative expenses (2) | (419.3) | (269.1) | |||||||||
Other segment items (3) | 4.5 | (0.1) | |||||||||
Depreciation and amortization (4) | 95.6 | 45.5 | |||||||||
| Adjusted EBITDA for reportable segments | $ | 608.2 | $ | 306.5 | $ | 914.7 | |||||
| Unallocated corporate expense | (69.9) | ||||||||||
| Impairment, restructuring and reorganization charges | (17.8) | ||||||||||
| Corporate pension and other postretirement benefit income | 1.3 | ||||||||||
| Acquisition-related charges | (13.0) | ||||||||||
| Tax indemnification and related items | 1.1 | ||||||||||
| Gain on divestitures and sale of certain assets | 14.7 | ||||||||||
| CEO transition expenses | (3.7) | ||||||||||
| Property losses and related expenses | (1.2) | ||||||||||
| Depreciation and amortization | (221.8) | ||||||||||
| Interest expense | (125.1) | ||||||||||
| Interest income | 14.9 | ||||||||||
| Income before income taxes | $ | 494.2 | |||||||||
Note 3 - Segment Information (continued)
Year ended December 31, 2023:
| Engineered Bearings | Industrial Motion | Total | |||||||||
| Net sales | $ | 3,257.7 | $ | 1,511.3 | $ | 4,769.0 | |||||
Cost of products sold (1) | (2,246.0) | (979.7) | |||||||||
Selling, general and administrative expenses (2) | (425.4) | (253.0) | |||||||||
Other segment items (3) | 4.2 | (0.1) | |||||||||
Depreciation and amortization (4) | 92.1 | 41.3 | |||||||||
| Adjusted EBITDA for reportable segments | $ | 682.6 | $ | 319.8 | $ | 1,002.4 | |||||
| Unallocated corporate expense | (62.7) | ||||||||||
| Impairment, restructuring and reorganization charges | (59.3) | ||||||||||
| Corporate pension and other postretirement benefit expense | (20.6) | ||||||||||
| Acquisition-related charges | (31.8) | ||||||||||
| Gain on divestitures and sale of certain assets | 5.2 | ||||||||||
| Depreciation and amortization | (201.3) | ||||||||||
| Interest expense | (110.7) | ||||||||||
| Interest income | 9.3 | ||||||||||
| Income before income taxes | $ | 530.5 | |||||||||
(1) Cost of products sold exclude acquisition-related and reorganization charges, and property losses and related expenses.
(2) Selling, general, and administrative expenses exclude acquisition-related charges and CEO transition expenses.
(3) Other segment items is Other (expense) income, net and exclude gain on divestitures and sale of certain assets, and tax indemnification and
related items.
(4) Depreciation and amortization excludes acquisition intangible amortization and depreciation recognized in reorganization charges, if any.
The following tables provide additional segment financial information:
| 2025 | 2024 | |||||||
| Assets employed at year-end: | ||||||||
| Engineered Bearings | $ | 3,293.5 | $ | 3,126.1 | ||||
| Industrial Motion | 2,962.8 | 2,822.6 | ||||||
Corporate (5) | 420.5 | 462.3 | ||||||
| $ | 6,676.8 | $ | 6,411.0 | |||||
(5) Corporate assets include corporate buildings and cash and cash equivalents.
| 2025 | 2024 | 2023 | |||||||||
| Capital expenditures: | |||||||||||
| Engineered Bearings | $ | 102.5 | $ | 120.3 | $ | 140.7 | |||||
| Industrial Motion | 44.3 | 49.1 | 46.2 | ||||||||
| Corporate | 1.4 | 0.6 | 0.9 | ||||||||
| $ | 148.2 | $ | 170.0 | $ | 187.8 | ||||||
| Depreciation and amortization: | |||||||||||
| Engineered Bearings | $ | 111.0 | $ | 108.6 | $ | 107.2 | |||||
| Industrial Motion | 118.2 | 111.6 | 92.7 | ||||||||
| Corporate | 0.9 | 1.6 | 1.4 | ||||||||
| $ | 230.1 | $ | 221.8 | $ | 201.3 | ||||||
Note 3 - Segment Information (continued)
Geographic Financial Information:
| 2025 | 2024 | |||||||
| Property, Plant and Equipment, net: | ||||||||
| United States | $ | 468.0 | $ | 470.0 | ||||
| China | 255.8 | 264.5 | ||||||
| India | 191.8 | 174.2 | ||||||
| Rest of world | 442.0 | 398.2 | ||||||
| $ | 1,357.6 | $ | 1,306.9 | |||||
Long-lived assets by geographic area are reported by the location of the subsidiary. Refer to Note 4 - Revenue for further information pertaining to geographic net sales information.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.