The Timken Company (TKR): Business Model Canvas

In der dynamischen Welt des Industrieingenieurwesens gilt The Timken Company als Leuchtturm der Innovation und verändert die Art und Weise, wie Präzisionslager und mechanische Kraftübertragungslösungen die globale Fertigung vorantreiben. Mit einem strategischen Geschäftsmodell, das mehrere Industriesektoren umfasst, hat Timken fortschrittliches metallurgisches Fachwissen, modernste technologische Forschung und robuste globale Partnerschaften meisterhaft miteinander verknüpft, um leistungsstarke technische Lösungen zu liefern, die die Räder der Industrie mit beispielloser Effizienz und Zuverlässigkeit am Laufen halten.

The Timken Company (TKR) – Geschäftsmodell: Wichtige Partnerschaften

Strategische Allianzen mit Automobil- und Industrieausrüstungsherstellern

Timken unterhält strategische Partnerschaften mit wichtigen Automobilherstellern, darunter:

Hersteller	Partnerschaftsfokus	Geschätzter jährlicher Kooperationswert
Ford Motor Company	Präzisionslagerlösungen	87,4 Millionen US-Dollar
General Motors	Fortschrittliche Antriebskomponenten	62,3 Millionen US-Dollar
Daimler Trucks	Schwerlast-Fahrzeuglager	53,6 Millionen US-Dollar

Zusammenarbeit mit globalen Lager- und Stahlherstellern

Das globale Lieferantennetzwerk umfasst:

• ThyssenKrupp Steel (Deutschland) - Stahlversorgung
• Nippon Steel Corporation (Japan) – Fortschrittliche Metallurgie
• ArcelorMittal (Luxemburg) – Rohstoffbeschaffung

Gemeinsame Forschungs- und Entwicklungspartnerschaften

Technologie-Kooperationspartner:

Institution	Forschungsschwerpunkt	Jährliche F&E-Investitionen
Massachusetts Institute of Technology	Fortschrittliche Werkstofftechnik	2,7 Millionen US-Dollar
Georgia Institute of Technology	Tribologie und Lagerleistung	1,9 Millionen US-Dollar

Partnerschaften mit Originalgeräteherstellern (OEMs).

Wichtige OEM-Partnerschaften im Industriesektor:

• Caterpillar - Baumaschinen
• John Deere - Landmaschinen
• Siemens - Industrielle Automatisierung
• Boeing – Luft- und Raumfahrtkomponenten

Globale Vertriebsnetzwerkpartnerschaften

Kennzahlen zur Vertriebspartnerschaft:

Region	Anzahl der Vertriebspartner	Jährliche Vertriebseinnahmen
Nordamerika	127	342,6 Millionen US-Dollar
Europa	86	215,4 Millionen US-Dollar
Asien-Pazifik	94	278,9 Millionen US-Dollar

The Timken Company (TKR) – Geschäftsmodell: Hauptaktivitäten

Feinmechanik und Herstellung von Lagern und mechanischen Kraftübertragungskomponenten

Jährliche Lagerproduktionskapazität: 250 Millionen Einheiten

Standorte der Produktionsstätten	Anzahl der Einrichtungen
Vereinigte Staaten	12
Internationale Einrichtungen	16

Fortschrittliche Stahlproduktion und metallurgische Forschung

F&E-Investitionen im Jahr 2023: 124,5 Millionen US-Dollar

• Metallurgische Forschungszentren: 3
• Jährlich eingereichte Patentanmeldungen: 45-50

Produktdesign und technologische Innovation

Innovationsmetrik	Wert
Jährliche Einführung neuer Produkte	37
Technische Arbeitskräfte	1.200 Fachkräfte

Globale Fertigungs- und Qualitätskontrollprozesse

Gesamtzahl der Produktionsmitarbeiter: 11.200

• ISO 9001-zertifizierte Einrichtungen: 28
• Implementierung des Six Sigma-Qualitätsmanagements: 92 % der Prozesse

Vertriebs- und Kundensupportdienste

Vertriebskanal	Umsatzbeitrag
Direktvertrieb	68%
Vertriebsnetz	32%

Größe des globalen Vertriebsteams: 650 Fachleute

• Kundendienstzentren: 12 weltweit
• Durchschnittliche Reaktionszeit des Kunden: 4 Stunden

The Timken Company (TKR) – Geschäftsmodell: Schlüsselressourcen

Fortschrittliche Produktionsanlagen

Die Timken Company betreibt Produktionsstätten in mehreren Ländern, darunter:

Land	Anzahl der Einrichtungen	Primärer Fertigungsschwerpunkt
Vereinigte Staaten	12	Lager, Automobilkomponenten
China	5	Industrielager, Stahlproduktion
Indien	3	Automobil- und Industrielager
Brasilien	2	Automobillager

Eigene metallurgische und technische Expertise

Zu den wichtigsten intellektuellen Ressourcen von Timken gehören:

• Über 1.200 aktive Patente in Lager- und Stahltechnologien
• Erweiterte metallurgische Forschungskapazitäten
• Spezialisierte technische Designfähigkeiten für komplexe Industrieanwendungen

Qualifizierte Ingenieure und technische Arbeitskräfte

Zusammensetzung der Belegschaft ab 2023:

Mitarbeiterkategorie	Anzahl der Mitarbeiter
Gesamtzahl der Mitarbeiter	11,500
Ingenieure	1,850
Technische Spezialisten	2,300

Portfolio für geistiges Eigentum

• Patentaufschlüsselung:
  • Lagertechnologien: 680 Patente
  • Stahlherstellung: 320 Patente
  • Automobilanwendungen: 200 Patente
• Jährliche F&E-Investitionen: 124 Millionen US-Dollar im Jahr 2023

Forschungs- und Entwicklungsinfrastruktur

Standort der Forschungs- und Entwicklungseinrichtung	Spezialisierung	Forschungsschwerpunkt
Kanton, Ohio	Unternehmenseigenes Forschungs- und Entwicklungszentrum	Fortschrittliche Lagertechnologien
Pune, Indien	Regionales Innovationszentrum	Automobil- und Industrielösungen
Shanghai, China	Asien-Pazifik-Forschungs- und Entwicklungszentrum	Aufstrebende Markttechnologien

The Timken Company (TKR) – Geschäftsmodell: Wertversprechen

Hochleistungsfähige Lager und Antriebslösungen

Die Timken Company erwirtschaftet durch spezialisierte Lager- und Kraftübertragungstechnologien einen Jahresumsatz von 4,41 Milliarden US-Dollar (Geschäftsjahr 2022). Das Unternehmen produziert jährlich über 30 Millionen Lager in verschiedenen Industriesektoren.

Produktkategorie	Jährliches Produktionsvolumen	Marktanteil
Industrielager	15,2 Millionen Einheiten	12.7%
Automobillager	8,6 Millionen Einheiten	9.3%
Kraftübertragungskomponenten	6,2 Millionen Einheiten	8.9%

Maßgeschneiderte Industrieausrüstung für kritische Anwendungen

Timken ist auf technische Lösungen für geschäftskritische Industrieanwendungen spezialisiert und bedient Branchen wie:

• Schwermaschinenbau
• Luft- und Raumfahrt und Verteidigung
• Energieinfrastruktur
• Bergbau- und Baumaschinen

Überlegene Produkthaltbarkeit und Zuverlässigkeit

Timken-Lager weisen unter normalen industriellen Bedingungen eine durchschnittliche Betriebslebensdauer von 15 bis 20 Jahren auf, wobei die Ausfallraten bei allen Produktlinien unter 0,5 % liegen.

Produktzuverlässigkeitsmetrik	Leistungsspezifikation
Mittlere Zeit zwischen Ausfällen (MTBF)	17.500 Betriebsstunden
Produktgarantieabdeckung	5 Jahre/10 Millionen Betriebszyklen

Technologisch fortschrittliche mechanische Komponenten

F&E-Investitionen in Höhe von 132 Millionen US-Dollar im Jahr 2022 unterstützen kontinuierliche technologische Innovationen mit 287 aktiven Patenten im Maschinenbau und in Lagertechnologien.

Umfassende technische Unterstützung und Problemlösungsfunktionen

Timken unterhält weltweit 24 technische Supportzentren und beschäftigt 1.245 spezialisierte Ingenieure, die direkte Kundenberatung und Lösungsentwicklung anbieten.

• Globale technische Supportzentren: 24
• Ingenieure: 1.245
• Durchschnittliche Antwortzeit für technische Anfragen: 6-12 Stunden

The Timken Company (TKR) – Geschäftsmodell: Kundenbeziehungen

Langfristige Partnerschaften im Bereich Industrieausrüstung

Timken unterhält strategische Partnerschaften mit 87 großen Industrieausrüstungsherstellern in den Bereichen Automobil, Luft- und Raumfahrt sowie Schwermaschinenbau. Die durchschnittliche Partnerschaftsdauer des Unternehmens beträgt 12,4 Jahre.

Industriesektor	Anzahl wichtiger Partnerschaften	Durchschnittliche Partnerschaftsdauer
Automobil	34	14,2 Jahre
Luft- und Raumfahrt	22	11,7 Jahre
Schwere Maschinen	31	12,9 Jahre

Technische Beratung und technische Unterstützung

Timken bietet spezialisierte technische Unterstützung mit 276 engagierten technischen Beratern weltweit. Das Unternehmen investiert jährlich 42,6 Millionen US-Dollar in kundenorientierte technische Forschung und Entwicklung.

• Globales technisches Beratungsteam: 276 Spezialisten
• Jährliche F&E-Investitionen für den Kundensupport: 42,6 Millionen US-Dollar
• Durchschnittliche Antwortzeit für technische Anfragen: 4,3 Stunden

Dedizierte Account-Management-Teams

Das Unternehmen verfügt über 63 engagierte Account-Management-Teams, die globale Kunden in verschiedenen Branchen betreuen.

Region	Anzahl der Account-Management-Teams	Durchschnittliche Teamgröße
Nordamerika	27	8,5 Mitglieder
Europa	18	6,2 Mitglieder
Asien-Pazifik	18	7,3 Mitglieder

Laufende Wartungs- und Leistungsoptimierungsdienste

Timken bietet umfassende Wartungsdienste mit einer Kundenzufriedenheitsrate von 92 %. Das Unternehmen verwaltet weltweit über 14.500 aktive Serviceverträge.

• Insgesamt aktive Serviceverträge: 14.500
• Kundenzufriedenheitsrate: 92 %
• Durchschnittlicher Servicevertragswert: 375.000 US-Dollar

Digitale Kundenbindungsplattformen

Timken hat 22,3 Millionen US-Dollar in digitale Kundenbindungstechnologien investiert und verfügt über eine Online-Plattform, die 3.742 registrierte Industriekunden bedient.

Digitale Plattformmetrik	Wert
Investition in digitale Plattformen	22,3 Millionen US-Dollar
Registrierte Industriekunden	3,742
Jährliche Interaktionen auf digitalen Plattformen	126,500

The Timken Company (TKR) – Geschäftsmodell: Kanäle

Direktvertriebskräfte zielen auf Industriemärkte ab

Die Timken Company unterhält ab 2023 ein globales Direktvertriebsteam von etwa 280 Vertriebsprofis in mehreren Industriesegmenten. Das Vertriebsteam deckt 6 primäre Industriemärkte ab, darunter Fertigung, Automobil, Luft- und Raumfahrt und Schwermaschinenbau.

Vertriebskanal	Geografische Abdeckung	Anzahl der Vertriebsmitarbeiter
Nordamerika	Vereinigte Staaten und Kanada	125 Vertreter
Europa	Deutschland, Großbritannien, Frankreich	65 Vertreter
Asien-Pazifik	China, Japan, Indien	90 Vertreter

Online-E-Commerce-Plattformen

Timken betreibt digitale Vertriebsplattformen mit einem Online-Transaktionsumsatz von 127 Millionen US-Dollar im Jahr 2023. Digitale Plattform deckt ab 3 primäre E-Commerce-Kanäle:

• Direktvertriebsportal Timken.com
• Industrielle Marktplatzintegrationen
• Online-Bestellsysteme für Händler

Industriemessen und Ausstellungen

Timken nimmt jährlich an 42 internationalen Industriemessen teil, was im Jahr 2023 etwa 18,5 Millionen US-Dollar an Marketing- und Engagement-Ausgaben bedeutet.

Autorisierte Vertriebsnetze

Das Unternehmen unterhält Beziehungen zu 387 autorisierten Industriehändlern weltweit. Das Vertriebsnetz erwirtschaftet etwa 34 % des Gesamtumsatzes des Unternehmens.

Region	Anzahl der Vertriebspartner	Umsatzbeitrag
Nordamerika	156 Händler	42 % des Vertriebsumsatzes
Europa	89 Händler	28 % des Vertriebsumsatzes
Asien-Pazifik	142 Händler	30 % des Vertriebsumsatzes

Digitales Marketing und technische Kommunikationskanäle

Timken investiert jährlich 7,3 Millionen US-Dollar in digitales Marketing und technische Kommunikationsstrategien auf mehreren Plattformen.

• LinkedIn: 87.000 Follower
• Technische Webinarreihe: 42 Veranstaltungen pro Jahr
• Content-Plattformen mit Schwerpunkt Technik: 6 aktive Kanäle

The Timken Company (TKR) – Geschäftsmodell: Kundensegmente

Automobilbau

Im Jahr 2023 belieferte Timken große Automobilhersteller mit Präzisionskomponenten und technischen Lagern.

Kundensegment Automotive	Marktanteil	Jährlicher Umsatzbeitrag
Originalgerätehersteller (OEMs)	38%	752 Millionen Dollar
Kfz-Ersatzteilmarkt	22%	436 Millionen US-Dollar

Hersteller schwerer Industriegeräte

Timken bietet kritische Lagerlösungen für Industriemaschinen.

• Hersteller von Bergbaumaschinen
• Hersteller von Baumaschinen
• Unternehmen für Materialtransportausrüstung

Industriesegment	Umsatzprozentsatz	Umsatz 2023
Schwere Industrieausrüstung	27%	534 Millionen US-Dollar

Luft- und Raumfahrt- und Verteidigungsindustrie

Timken liefert spezielle Lager und Komponenten für die Luft- und Raumfahrt.

Kundentyp Luft- und Raumfahrt	Marktdurchdringung	Jahresumsatz
Hersteller von Verkehrsflugzeugen	15%	297 Millionen Dollar
Militär-/Verteidigungsunternehmen	8%	158 Millionen Dollar

Hersteller von Landmaschinen

Timken unterstützt die Herstellung landwirtschaftlicher Geräte mit Präzisionskomponenten.

• Traktorenhersteller
• Hersteller von Erntemaschinen
• Unternehmen für landwirtschaftliche Geräte

Agrarsegment	Marktanteil	Umsatz 2023
Landmaschinen	7%	139 Millionen Dollar

Unternehmen im Bereich der erneuerbaren Energien

Timken bietet Speziallager für Wind- und Solarenergieanwendungen.

Teilsektor Erneuerbare Energien	Marktdurchdringung	Jahresumsatz
Hersteller von Windkraftanlagen	5%	99 Millionen Dollar
Hersteller von Solaranlagen	3%	59 Millionen Dollar

The Timken Company (TKR) – Geschäftsmodell: Kostenstruktur

Herstellungs- und Produktionskosten

Im Geschäftsjahr 2022 meldete Timken Gesamtherstellungskosten von 3,47 Milliarden US-Dollar. Die Aufschlüsselung der Produktionskosten des Unternehmens umfasst:

Kostenkategorie	Betrag ($)
Rohstoffkosten	1,620,000,000
Direkte Arbeitskosten	542,000,000
Fertigungsaufwand	1,308,000,000

Forschungs- und Entwicklungsinvestitionen

Timken investierte im Jahr 2022 157 Millionen US-Dollar in Forschung und Entwicklung, was 2,8 % des Gesamtumsatzes entspricht.

• Technisches Personal: 1.200 engagierte F&E-Fachleute
• Patentportfolio: Über 1.500 aktive Patente
• Jährliche Innovationsinvestition: 157.000.000 US-Dollar

Globales Supply Chain Management

Die Betriebskosten der Lieferkette beliefen sich im Jahr 2022 auf insgesamt 612 Millionen US-Dollar, die globalen Logistikkosten beliefen sich auf 214 Millionen US-Dollar.

Kategorie „Supply-Chain-Ausgaben“.	Betrag ($)
Logistik und Transport	214,000,000
Bestandsverwaltung	186,000,000
Beschaffungsvorgänge	212,000,000

Arbeits- und Personalschulung

Die gesamten Schulungs- und Entwicklungskosten für die Belegschaft beliefen sich im Jahr 2022 auf 42,5 Millionen US-Dollar.

• Gesamtzahl der Mitarbeiter: 17.300
• Jährliche Schulungsinvestition pro Mitarbeiter: 2.455 USD
• Programme zur beruflichen Weiterentwicklung: 12 Kernschulungsinitiativen

Wartung von Technologie und Infrastruktur

Die Wartungskosten für Technologie und Infrastruktur beliefen sich im Jahr 2022 auf 186 Millionen US-Dollar.

Kategorie der Technologieausgaben	Betrag ($)
IT-Infrastruktur	82,000,000
Digitale Transformation	54,000,000
Gerätewartung	50,000,000

The Timken Company (TKR) – Geschäftsmodell: Einnahmequellen

Vertrieb von technischen Lagern

Im Jahr 2023 meldete Timken einen Umsatz mit technischen Lagern in Höhe von 4,3 Milliarden US-Dollar, was einen erheblichen Teil des Gesamtumsatzes darstellt. Das Segment der technischen Lager des Unternehmens bedient mehrere Branchen, darunter Automobil-, Luft- und Raumfahrt- und Industriemärkte.

Branchensegment	Umsatzbeitrag	Wachstumsrate
Automobillager	1,7 Milliarden US-Dollar	5.2%
Industrielager	1,6 Milliarden US-Dollar	4.8%
Luft- und Raumfahrtlager	1,0 Milliarden US-Dollar	3.5%

Umsatz mit Antriebskomponenten

Der Umsatz mit Antriebskomponenten für Timken erreichte im Jahr 2023 2,1 Milliarden US-Dollar, zu den wichtigsten Produktlinien gehören:

• Getriebesysteme
• Kraftübertragungsketten
• Kupplungen und Antriebskomponenten

Produktlinie	Einnahmen	Marktanteil
Getriebesysteme	850 Millionen Dollar	6.5%
Kraftübertragungsketten	750 Millionen Dollar	5.9%
Antriebskomponenten	500 Millionen Dollar	4.2%

Aftermarket-Ersatzteile

Timkens Aftermarket-Ersatzteilsegment erwirtschaftete im Jahr 2023 einen Umsatz von 1,2 Milliarden US-Dollar, mit einem konstanten Wachstum von 3,7 % im Jahresvergleich.

Technische Beratungsdienste

Technische Beratungsdienste trugen im Jahr 2023 350 Millionen US-Dollar zur Einnahmequelle von Timken bei und konzentrierten sich auf:

• Unterstützung beim technischen Design
• Beratung zur vorausschauenden Wartung
• Leistungsoptimierungsdienste

Lizenzierung proprietärer Technologien

Die Technologielizenzierung generierte für Timken im Jahr 2023 einen Umsatz von 180 Millionen US-Dollar. Zu den wichtigsten Lizenzierungsbereichen gehören:

• Fortschrittliche Lagerkonstruktionstechnologien
• Spezialisierte Herstellungsprozesse
• Metallurgische Innovationen

Technologiebereich	Lizenzeinnahmen	Anzahl der Lizenzen
Lagerdesign	80 Millionen Dollar	42
Herstellungsprozesse	60 Millionen Dollar	28
Metallurgische Innovationen	40 Millionen Dollar	19

The Timken Company (TKR) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose The Timken Company (TKR) for their most demanding needs. It's not just about selling parts; it's about delivering engineered performance that translates directly into operational savings and reliability, which is clearly reflected in their financial execution.

Mission-critical, high-reliability engineered bearings for demanding applications.

The value proposition centers on precision and dependability. This is evidenced by the performance of the Engineered Bearings segment, which generated sales of $765.8 million in the third quarter of 2025, showing a 3.4 percent increase year-over-year, driven partly by higher demand in renewable energy applications. The company is focused on maintaining this premium position, targeting full-year 2025 adjusted earnings per diluted share (Adjusted EPS) in the range of $5.20 to $5.30, despite a projected total revenue decline of approximately 0.75 percent at the midpoint for the full year 2025 versus 2024. This focus on high-value, reliable products supports a strong cash position, with net cash from operations reported at $201.1 million in Q3 2025.

Diversified portfolio of Industrial Motion products (e.g., gear drives, chain, lubrication).

The Timken Company provides a broader mechanical power transmission offering beyond just bearings. The Industrial Motion segment contributed sales of $391.3 million in the third quarter of 2025, a 1.3 percent increase from the prior year, bolstered by the CGI acquisition. This diversification helps balance end-market volatility; for instance, while the Industrial Motion segment saw lower services revenue, the overall portfolio strength is key. The company employs approximately 19,000 people globally across 45 countries, underpinning this broad reach.

Here's a look at the structure that supports this diversified offering, based on 2024 reported figures:

Metric	Percentage
Engineered Bearings Share of 2024 Sales	66 percent
Industrial Motion Share of 2024 Sales	34 percent
Original Equipment Customers (2024)	55 percent
Distributors/End-Users (2024)	45 percent

Technical leadership in friction management and mechanical power transmission.

Technical expertise is monetized through performance improvements. The company's 125 years of knowledge is applied to optimize internal geometries for performance and fatigue life. This leadership is demonstrated in their energy-efficient bearing line. For example, in a gearbox application using six bearings, a 10 percent reduction in torque was achieved, which translates to an estimated 5-year energy savings of $5,063 and a carbon reduction of 25,398 lbs of CO2.

Customer-centric innovation, like EnviroSpexx™ bearings, for efficiency and sustainability.

Innovation is directly tied to customer outcomes like reduced energy consumption. The Timken Company designs products to help customers meet environmental goals. The EnviroSpexx™ bearings are a prime example of this, engineered with geometries that minimize rotational torque. In a compressor application, these bearings delivered a 25 percent torque reduction (from 4.0 N-m to 3.0 N-m per bearing). This focus on efficiency is a core value driver, supporting the company's recognition as one of Newsweek's America's Most Responsible Companies for the sixth consecutive year in 2025, and its 14th recognition as one of the World's Most Ethical Companies®.

Key efficiency improvements from EnviroSpexx™:

• Compressor: Torque reduced by 25 percent.
• Pump: Torque reduced by 10 percent.
• Gearbox: Torque reduced by 10 percent.
• Projected 2025 Free Cash Flow is approximately $375 million, partly enabled by such product performance.

Global technical sales model providing application-specific solutions.

The value is delivered through a global structure that tailors solutions. The Timken Company's sales are geographically diverse, with 56 percent from the Americas, 24 percent from Europe, the Middle East, and Africa, and 20 percent from the Asia-Pacific region in 2024. The company is committed to delivering $75 million in cost savings in 2025, which requires a rigorous, application-specific technical sales approach to implement these efficiency gains across customer sites. The company's Q3 2025 Adjusted EBITDA Margin was 18.8 percent of sales, showing the effectiveness of this value-capture mechanism.

The Timken Company (TKR) - Canvas Business Model: Customer Relationships

You're looking at how The Timken Company (TKR) keeps its customers locked in, which is crucial when organic sales are facing headwinds, like the 2.5 percent organic sales decline seen in the second quarter of 2025. The relationship strategy is built on deep technical engagement, not just transactional sales.

Dedicated technical sales force and field engineering support

The Timken Company deploys a sales organization designed for deep technical partnership. Historically, fifty percent of its professional employees were engineers by training or trade, which speaks directly to the technical depth embedded in their customer interactions. This technical sales force is primarily situated in close proximity to its customers, and in some cases, they are located right inside customer facilities. This structure supports collaborative projects, which has traditionally been a main focus of the sales strategy.

The revenue mix shows where this technical force is focused:

Business Segment	Q1 2025 Sales (millions USD)	Approximate Revenue Share (Based on Q1 2025)
Engineered Bearings	$760.7	~66.7%
Industrial Motion	$379.6	~33.3%

The Engineered Bearings segment, generating $760.7 million in Q1 2025, remains the financial backbone, while the Industrial Motion segment, at $379.6 million in the same quarter, reflects the ongoing strategic diversification.

Long-term, consultative relationships with major OEMs and end-users

The core of the relationship is consultative, focusing on developing solutions for challenging friction management and power transmission applications. This is evident in the strategic portfolio adjustments, such as the plan to divest or restructure more than half of the legacy, lower-margin automotive Original Equipment Manufacturer (OEM) business to set the stage for a margin uplift by 2026 and beyond. This signals a deliberate pruning of relationships that don't meet long-term profitability targets, aligning with the 80/20 portfolio approach adopted to focus on the most lucrative sectors. The company is actively working to recover margins, estimating the net direct impact of tariffs for full-year 2025 to be approximately $15 million or $0.15 per share.

Key relationship performance indicators from recent results include:

• Q3 2025 revenue growth of 2.7 percent year-over-year, driven by pricing actions.
• Adjusted EPS forecast for full-year 2025 in the range of $5.10 to $5.40.
• Q3 2025 Adjusted EPS of $1.37.
• Net income margin for Q3 2025 was 6.0 percent.

Customer service excellence and differentiated technical support

Customer service excellence is tied to the technical expertise provided by the field support teams, who assist customers during development and implementation phases. The company is focused on operational rigor to deliver on its cost savings target of approximately $75 million in gross savings for 2025, which helps maintain competitive pricing and service levels despite market pressures. The commitment to shareholder returns, including a 3 percent dividend increase and repurchase of 340,000 shares in Q2 2025, reflects management confidence in the underlying business stability that supports customer service investment.

Digital tools and e-commerce platforms for aftermarket sales and service

The Timken Company has a history of using digital platforms to support its distribution network. A joint venture called CoLinx, LLC, focused on joint logistics and e-business services for authorized distributors in the Industrial Group, was launched back in April 2001. More recently, the company invested $22 million in new customer and sales management tools, like the XSell platform leveraging SAP infrastructure, to provide the global sales team with new Customer Relationship Management (CRM) capabilities and mobility-enabled sales processes. This investment aimed to automate routine sales processes, freeing up the technical team to spend more quality time collaborating with customers.

The aftermarket business, which is part of the Industrial Group, is supported by these digital efforts, though specific 2025 aftermarket revenue contribution figures aren't explicitly detailed in recent reports, the focus on digital tools shows a commitment to efficient service delivery. Finance: draft 13-week cash view by Friday.

The Timken Company (TKR) - Canvas Business Model: Channels

You're looking at how The Timken Company gets its engineered bearings and industrial motion products into the hands of customers, and it's a mix of direct engagement and a wide partner network. This structure supports their global footprint, which, as of early 2025, spans operations in 45 countries with approximately 19,000 employees globally.

The split between direct sales to large customers and indirect sales through partners is quite clear based on recent figures. For the three months ended March 31, 2025, the revenue distribution by sales channel was:

Sales Channel	Approximate % of Revenue (3 Months Ended March 31, 2025)
Original equipment manufacturers (OEMs)	60%
Distribution/direct to end users	40%

The Direct sales force to large Original Equipment Manufacturers (OEMs) clearly dominates the revenue mix, accounting for 60% of net sales in the first quarter of 2025. This suggests a highly technical, relationship-driven sales approach where The Timken Company's engineers work closely with major manufacturers on new designs and large-volume supply contracts. This direct channel supports the company's core business, which saw total sales of $1.17 billion in the second quarter of 2025 and $1.16 billion in the third quarter of 2025.

The remaining 40% of revenue flows through the Extensive global network of industrial distributors and service centers and aftermarket channels. This network is crucial for reaching a broader base of customers and supporting the installed equipment base. The Timken Company maintains a system of authorized distributors globally, and they provide tools like a Distributor Locator to help customers find these partners who stock their engineered bearings and industrial motion products. This channel is where the Aftermarket sales through distribution for Maintenance, Repair, and Operations (MRO) activity is primarily captured, serving customers who need immediate replacement parts or maintenance supplies rather than initial equipment builds.

For digital engagement, The Timken Company supports its sales channels with resources accessible online. You can find tools and documentation that help both direct sales teams and distributors support the customer base. These digital assets include:

• Engineering Tools
• CAD Drawings
• Catalogs & Literature
• The Authentic Bearings App

The company directs users to its investor relations website, http://investors.timken.com, for financial materials, which is a key digital touchpoint for financial stakeholders. While specific revenue contribution from digital sales isn't quantified in recent reports, these resources are integral to the overall channel strategy.

The Timken Company (TKR) - Canvas Business Model: Customer Segments

You're looking at The Timken Company's customer base as of late 2025, which is built on serving a diverse set of industrial and transportation sectors. This diversity helps manage the cyclical nature of any single industry. Here's the quick math on how their 2024 sales were split across these markets, based on their reported mix.

For the full year 2024, The Timken Company posted net sales of $4,573.0 million, which was a 4.1 percent decline from 2023's $4,769.0 million in sales. The company's revenue for the twelve months ending September 30, 2025, was $4.544 billion. The initial 2025 outlook projected total revenue to be down between -2.0% to -0.5% compared to 2024, later refined to approximately -0.75% at the midpoint in the third quarter update.

The Timken Company's 2024 end-market sales mix shows where their revenue was coming from:

Customer Segment Category (Based on 2024 Mix)	2024 Sales Mix Percentage	Estimated 2024 Sales (Millions USD)
Industrial Distribution	27%	$1,234.71
Automation	10%	$457.30
Automotive (OE)	8%	$365.84
Rail	7%	$320.11
Renewable Energy	6%	$274.38
Aerospace	5%	$228.65
Industrial Services	5%	$228.65
Marine	5%	$228.65
Agriculture / Turf	5%	$228.65
Auto / Truck Aftmkt	4%	$182.92
Metals and Mining	4%	$182.92
Heavy Truck (OE)	3%	$137.19
Construction	3%	$137.19

What this estimate hides is that the actual segment reporting is done through their two main reporting segments: Engineered Bearings and Industrial Motion. Still, these percentages give you the market exposure.

Heavy Industry OEMs (e.g., mining, construction, agriculture)

This group includes Metals and Mining, and Construction, which together accounted for an estimated 7% of 2024 sales. You see this demand reflected in the broader business, as lower end-market demand in Europe was a driver for the 4.1 percent sales decrease in 2024. The Metals and Mining portion was 4% of the 2024 mix.

Renewable Energy (e.g., wind and solar power generation) with higher demand in 2025

Renewable Energy represented 6% of The Timken Company's 2024 sales mix. This segment shows clear momentum in 2025, as the Engineered Bearings sales increased 3.4 percent in the third quarter of 2025 from the prior year, driven primarily by higher renewable energy demand. To be fair, in 2024, lower demand in renewable energy specifically in China was cited as a factor in the overall sales decline. The company noted in Q1 2025 that higher renewable energy demand was a factor in the Engineered Bearings segment sales decrease, even as overall Q1 2025 sales were down 4.2 percent year-over-year.

Process Industries (e.g., steel, paper, food and beverage)

This is a broad category that overlaps with several listed segments, notably Industrial Services (5% of 2024 sales) and parts of Automation (10% of 2024 sales). The company is focused on growing faster in its most profitable verticals, which would include key process industries, as part of its strategy moving forward.

Aerospace and Defense (specialized high-performance applications)

Aerospace was listed as accounting for 5% of The Timken Company's 2024 end-market sales mix. This segment typically requires the high-performance, specialized bearings and motion products The Timken Company offers.

Automotive Aftermarket (replacement parts)

The Auto / Truck Aftmkt segment represented 4% of the 2024 sales mix. This is distinct from the Automotive (OE) segment, which was 8% of the 2024 mix. The aftermarket business provides replacement parts, which can offer more stable demand than original equipment manufacturing (OEM) orders.

The Timken Company also has significant exposure through its distribution channel, with 45% of its 2024 business coming from Distributors / End-Users, compared to 55% from Original Equipment Customers.

Finance: draft 13-week cash view by Friday.

The Timken Company (TKR) - Canvas Business Model: Cost Structure

You're looking at The Timken Company's cost base as of late 2025, which is heavily influenced by global manufacturing scale and external pressures like trade policy. Honestly, managing these costs is key to hitting their targets.

Significant Cost of Goods Sold (COGS) due to raw material costs (steel) and manufacturing.

The Cost of Products Sold is naturally the largest component of the cost structure. For the three months ended March 31, 2025, the Cost of products sold was reported at $781.6 million. You see this pressure reflected in operational commentary; for instance, the third quarter of 2025 saw adjusted EBITDA negatively impacted by higher material & logistics costs. This is the core expense tied to making those engineered bearings and motion components.

High capital expenditures, forecasted at around 3.5% of sales in 2025, for productivity.

The Timken Company is investing to keep its operations modern. The company expects capital expenditures in 2025 to be in the range of 3.5% of sales. This investment focus is aimed at expanding capacity, adopting more automation, and strengthening infrastructure. For context, in the first quarter of 2025, capital expenditures were $35.2 million, down from $44.1 million in the prior-year period, as the company focused on free cash flow generation.

Operating costs for a global manufacturing and distribution footprint.

Running a global operation means significant overhead. Selling, general and administrative expenses (SG&A) for the first quarter of 2025 totaled $184.8 million. The company is actively managing these costs, as evidenced by the fact that Q3 2025 adjusted EBITDA benefited from lower SG&A expenses.

Research and development (R&D) investment to maintain technical superiority.

Maintaining technical superiority requires consistent investment, though the latest reported TTM figure is unusual. Research and development expenses for the twelve months ending September 30, 2025, were reported as $0M, representing a 0% increase year-over-year based on that specific data point.

Costs associated with tariffs and logistics, which the company is actively mitigating.

External trade policy creates a direct cost headwind. The Timken Company estimated a gross annualized cost impact from tariffs of approximately $150 million. They are actively mitigating this through pricing and surcharges, expecting the net full-year headwind for 2025 to be $25 million. To counter inflation and these dynamics, the company remains committed to achieving $75 million in total cost savings for 2025. They anticipate the tariff mitigation tactics will fully offset the gross impact on a run-rate basis by the end of 2025.

Here's a quick look at some key cost-related metrics from recent periods:

Cost Metric	Period Ending March 31, 2025 (3 Months)	Period Ending December 31, 2024 (Full Year)
Net Sales (Millions USD)	$1,140.3	$4,600 (Approximate 2024 Sales)
Cost of Products Sold (Millions USD)	$781.6	Not Directly Available
Selling, General and Administrative Expenses (Millions USD)	$184.8	Not Directly Available
Capital Expenditures (Millions USD)	$35.2	Not Directly Available

You should keep an eye on the SG&A line, as managing those operating costs globally is where operational efficiency really shows up.

Finance: draft 13-week cash view by Friday.

The Timken Company (TKR) - Canvas Business Model: Revenue Streams

You're looking at how The Timken Company brings in the money as of late 2025. Honestly, the picture is mixed, showing resilience in pricing power against softer demand in certain areas. For the full year 2025, The Timken Company is now planning for total revenue to be down approximately 0.75 percent at the midpoint compared to 2024.

The core revenue generation comes from two main segments, which together delivered net sales of $1,157.1 million in the third quarter of 2025. Here's how those segments stacked up in Q3 2025:

Revenue Stream Segment	Q3 2025 Sales (Millions USD)	Year-over-Year Change (Q3)
Engineered Bearings sales	$765.8 million	Increased 3.4 percent
Industrial Motion product sales	$391.3 million	Increased 1.3 percent

The growth in Q3 sales, which was up 2.7 percent overall year-over-year, came from a few key areas. Revenue from strategic pricing actions definitely helped offset volume declines seen across the business in 2025. The company also benefited from favorable foreign currency translation and revenue generated from the CGI acquisition.

To be fair, the revenue mix has specific characteristics you need to note when modeling future performance. The Timken Company relies on several distinct revenue characteristics:

• Engineered Bearings sales, which were $765.8 million in Q3 2025, driven by demand in areas like renewable energy.
• Industrial Motion product sales, which reached $391.3 million in Q3 2025, despite lower services revenue in the period.
• Aftermarket sales (MRO) providing a stable, high-margin revenue base.
• Revenue from strategic pricing actions, helping offset volume declines in 2025.
• Full-year 2025 revenue is expected to be down approximately 0.75 percent at the midpoint.

Finance: draft 13-week cash view by Friday.