La empresa Timken (TKR): Lienzo del modelo de negocio [Actualizado en enero de 2025]

En el mundo dinámico de la ingeniería industrial, la Compañía Timken se erige como un faro de innovación, transformando cómo los rodamientos de precisión y las soluciones de transmisión de potencia mecánica impulsan la fabricación global. Con un modelo de negocio estratégico que abarca múltiples sectores industriales, Timken ha entrelazado magistralmente la experiencia metalúrgica avanzada, la investigación tecnológica de vanguardia y las sólidas asociaciones globales para ofrecer soluciones de ingeniería de alto rendimiento que mantienen las ruedas de la industria girando con una eficiencia y confiabilidad incomparables.

Timken Company (TKR) - Modelo de negocio: asociaciones clave

Alianzas estratégicas con fabricantes de equipos automotrices e industriales

Timken mantiene asociaciones estratégicas con fabricantes de automóviles clave, que incluyen:

Fabricante	Enfoque de asociación	Valor de colaboración anual estimado
Ford Motor Company	Soluciones de rodamiento de precisión	$ 87.4 millones
General Motors	Componentes de transmisión avanzados	$ 62.3 millones
Daimler Trucks	Rodamientos de vehículos pesados	$ 53.6 millones

Colaboración con proveedores de fabricación de rodamientos y acero globales

La red global de proveedores incluye:

• Thyssenkrupp Steel (Alemania) - Suministro de acero
• Nippon Steel Corporation (Japón) - Metalurgia avanzada
• ArcelorMittal (Luxemburgo) - Abastecimiento de materia prima

Asociaciones conjuntas de investigación y desarrollo

Socios de colaboración de tecnología:

Institución	Enfoque de investigación	Inversión anual de I + D
Instituto de Tecnología de Massachusetts	Ingeniería de materiales avanzados	$ 2.7 millones
Instituto de Tecnología de Georgia	Tribología y rendimiento de rodamiento	$ 1.9 millones

Asociaciones de fabricantes de equipos originales (OEM)

Asociaciones OEM del sector industrial clave:

• Caterpillar - Equipo de construcción
• John Deere - maquinaria agrícola
• Siemens - Automatización industrial
• Boeing - Componentes aeroespaciales

Asociaciones de red de distribución global

Métricas de asociación de distribución:

Región	Número de socios de distribución	Ingresos anuales de distribución
América del norte	127	$ 342.6 millones
Europa	86	$ 215.4 millones
Asia-Pacífico	94	$ 278.9 millones

The Timken Company (TKR) - Modelo de negocio: actividades clave

Ingeniería de precisión y fabricación de rodamientos y componentes de transmisión de potencia mecánica

Capacidad de producción anual de cojinete: 250 millones de unidades

Ubicaciones de instalaciones de fabricación	Número de instalaciones
Estados Unidos	12
Instalaciones internacionales	16

Producción de acero avanzada e investigación metalúrgica

Inversión en I + D en 2023: $ 124.5 millones

• Centros de investigación metalúrgica: 3
• Solicitudes de patentes presentadas anualmente: 45-50

Diseño de productos e innovación tecnológica

Métrica de innovación	Valor
Introducciones anuales de nuevos productos	37
Fuerza laboral de ingeniería	1.200 profesionales

Procesos de fabricación global y control de calidad

Empleados de fabricación total: 11,200

• ISO 9001 Instalaciones certificadas: 28
• Implementación de la gestión de calidad Six Sigma: 92% de los procesos

Servicios de ventas y atención al cliente

Canal de ventas	Contribución de ingresos
Ventas directas	68%
Red de distribuidores	32%

Tamaño del equipo de ventas globales: 650 profesionales

• Centros de atención al cliente: 12 en todo el mundo
• Tiempo promedio de respuesta al cliente: 4 horas

Timken Company (TKR) - Modelo de negocio: recursos clave

Instalaciones de fabricación avanzadas

La compañía Timken opera instalaciones de fabricación en varios países, incluidos:

País	Número de instalaciones	Enfoque de fabricación principal
Estados Unidos	12	Rodamientos, componentes automotrices
Porcelana	5	Rodamientos industriales, producción de acero
India	3	Rodamientos automotrices e industriales
Brasil	2	Rodamientos automotrices

Experiencia metalúrgica e ingeniería

Los recursos intelectuales clave de Timken incluyen:

• Más de 1.200 patentes activas en tecnologías de rodamiento y acero
• Capacidades avanzadas de investigación metalúrgica
• Capacidades de diseño de ingeniería especializada para aplicaciones industriales complejas

Ingeniería especializada y fuerza laboral técnica

Composición de la fuerza laboral a partir de 2023:

Categoría de empleado	Número de empleados
Total de empleados	11,500
Ingenieros	1,850
Especialistas técnicos	2,300

Cartera de propiedades intelectuales

• Desglose de la patente:
  • Tecnologías de rodamiento: 680 patentes
  • Fabricación de acero: 320 patentes
  • Aplicaciones automotrices: 200 patentes
• Inversión anual de I + D: $ 124 millones en 2023

Infraestructura de investigación y desarrollo

Ubicación de la instalación de I + D	Especialización	Enfoque de investigación
Cantón, Ohio	Centro de I + D corporativa	Tecnologías de rodamiento avanzadas
Pune, India	Centro de innovación regional	Soluciones automotrices e industriales
Shanghai, China	Hub de I + D de Asia-Pacífico	Tecnologías del mercado emergente

Timken Company (TKR) - Modelo de negocio: propuestas de valor

Rodamientos de ingeniería de alto rendimiento y soluciones de transmisión de energía

La Compañía Timken genera $ 4.41 mil millones en ingresos anuales (año fiscal 2022) a través de tecnologías especializadas de rodamientos y transmisión de energía. La compañía produce más de 30 millones de rodamientos anualmente en múltiples sectores industriales.

Categoría de productos	Volumen de producción anual	Cuota de mercado
Rodamientos industriales	15,2 millones de unidades	12.7%
Rodamientos automotrices	8.6 millones de unidades	9.3%
Componentes de transmisión de energía	6.2 millones de unidades	8.9%

Equipo industrial personalizado para aplicaciones críticas

Timken se especializa en soluciones de ingeniería para aplicaciones industriales de misión crítica, que sirven sectores que incluyen:

• Fabricación de maquinaria pesada
• Aeroespacial y defensa
• Infraestructura energética
• Equipo de minería y construcción

Durabilidad y confiabilidad del producto superior

Los rodamientos de Timken demuestran una vida útil operativa promedio de 15-20 años en condiciones industriales estándar, con tasas de falla por debajo del 0.5% en las líneas de productos.

Métrica de confiabilidad del producto	Especificación de rendimiento
Tiempo medio entre fallas (MTBF)	17.500 horas operativas
Cobertura de garantía del producto	5 años/10 millones de ciclos operativos

Componentes mecánicos tecnológicamente avanzados

La inversión de I + D de $ 132 millones en 2022 respalda la innovación tecnológica continua, con 287 patentes activas en ingeniería mecánica y tecnologías de rodamiento.

Soporte integral de ingeniería y capacidades de resolución de problemas

Timken mantiene 24 centros de apoyo técnico global, empleando a 1.245 profesionales de ingeniería especializados que brindan consulta directa al cliente y desarrollo de soluciones.

• Centros de soporte técnico global: 24
• Profesionales de ingeniería: 1,245
• Tiempo de respuesta promedio para consultas técnicas: 6-12 horas

The Timken Company (TKR) - Modelo de negocios: relaciones con los clientes

Asociaciones de equipos industriales a largo plazo

Timken mantiene asociaciones estratégicas con 87 fabricantes principales de equipos industriales en sectores automotriz, aeroespacial y de maquinaria pesada. La duración promedio de la asociación de la compañía es de 12.4 años.

Sector industrial	Número de asociaciones clave	Duración promedio de la asociación
Automotor	34	14.2 años
Aeroespacial	22	11.7 años
Maquinaria pesada	31	12.9 años

Soporte de consultoría técnica e ingeniería

Timken ofrece soporte de ingeniería especializado con 276 consultores técnicos dedicados a nivel mundial. La compañía invierte $ 42.6 millones anuales en investigación y desarrollo técnico centrado en el cliente.

• Equipo de consulta técnica global: 276 especialistas
• Inversión anual de I + D para atención al cliente: $ 42.6 millones
• Tiempo de respuesta promedio para consultas técnicas: 4.3 horas

Equipos de gestión de cuentas dedicados

La compañía opera 63 equipos de gestión de cuentas dedicados que sirven a clientes globales en múltiples industrias.

Región	Número de equipos de gestión de cuentas	Tamaño promedio del equipo
América del norte	27	8.5 miembros
Europa	18	6.2 miembros
Asia-Pacífico	18	7.3 miembros

Servicios continuos de optimización de mantenimiento y rendimiento

Timken ofrece servicios de mantenimiento integrales con una tasa de satisfacción del cliente del 92%. La compañía administra más de 14,500 contratos de servicio activos a nivel mundial.

• Contratos de servicio activos totales: 14,500
• Tasa de satisfacción del cliente: 92%
• Valor promedio del contrato de servicio: $ 375,000

Plataformas de participación de clientes digitales

Timken ha invertido $ 22.3 millones en tecnologías digitales de participación del cliente, con una plataforma en línea que atiende a 3.742 clientes industriales registrados.

Métrica de plataforma digital	Valor
Inversión de plataforma digital	$ 22.3 millones
Clientes industriales registrados	3,742
Interacciones anuales de plataforma digital	126,500

Timken Company (TKR) - Modelo de negocio: canales

Fuerza de ventas directa dirigida a los mercados industriales

Timken Company mantiene una fuerza de ventas directa global de aproximadamente 280 profesionales de ventas en múltiples segmentos industriales a partir de 2023. El equipo de ventas cubre 6 mercados industriales principales, incluidos la fabricación, automotriz, aeroespacial y la maquinaria pesada.

Canal de ventas	Cobertura geográfica	Número de representantes de ventas
América del norte	Estados Unidos y Canadá	125 representantes
Europa	Alemania, Reino Unido, Francia	65 representantes
Asia-Pacífico	China, Japón, India	90 representantes

Plataformas de comercio electrónico en línea

Timken opera plataformas de ventas digitales con $ 127 millones en ingresos por transacciones en línea en 2023. Cubras de plataforma digital 3 canales primarios de comercio electrónico:

• Timken.com Portal de ventas directas
• Integraciones del mercado industrial
• Sistemas de pedidos en línea del distribuidor

Ferias y exhibiciones industriales

Timken participa en 42 ferias internacionales de comercio industrial anualmente, representando aproximadamente $ 18.5 millones en gastos de marketing y participación para 2023.

Redes de distribuidores autorizadas

La compañía mantiene relaciones con 387 distribuidores industriales autorizados a nivel mundial. La red de distribuidores genera aproximadamente el 34% de los ingresos totales de la compañía.

Región	Número de distribuidores	Contribución de ingresos
América del norte	156 distribuidores	42% de los ingresos del distribuidor
Europa	89 distribuidores	28% de los ingresos del distribuidor
Asia-Pacífico	142 distribuidores	30% de los ingresos del distribuidor

Marketing digital y canales de comunicación técnica

Timken invierte $ 7.3 millones anuales en marketing digital y estrategias de comunicación técnica en múltiples plataformas.

• LinkedIn: 87,000 seguidores
• Serie de seminarios web técnicos: 42 eventos por año
• Plataformas de contenido centradas en la ingeniería: 6 canales activos

The Timken Company (TKR) - Modelo de negocios: segmentos de clientes

Fabricación automotriz

En 2023, Timken sirvió a los principales fabricantes de automóviles con componentes de precisión y cojinetes de ingeniería.

Segmento de clientes automotrices	Cuota de mercado	Contribución anual de ingresos
Fabricantes de equipos originales (OEM)	38%	$ 752 millones
Mercado de accesorios automotrices	22%	$ 436 millones

Fabricantes de equipos industriales pesados

Timken proporciona soluciones de rodamiento críticas para la maquinaria industrial.

• Fabricantes de equipos mineros
• Productores de equipos de construcción
• Empresas de equipos de manejo de materiales

Segmento industrial	Porcentaje de ingresos	2023 ingresos
Equipo industrial pesado	27%	$ 534 millones

Industrias aeroespaciales y de defensa

Timken suministra rodamientos y componentes aeroespaciales especializados.

Tipo de cliente aeroespacial	Penetración del mercado	Ingresos anuales
Fabricantes de aviones comerciales	15%	$ 297 millones
Contratistas militares/de defensa	8%	$ 158 millones

Productores de maquinaria agrícola

Timken apoya la fabricación de equipos agrícolas con componentes de precisión.

• Fabricantes de tractores
• Productores de equipos de cosecha
• Empresas de implementos agrícolas

Segmento agrícola	Cuota de mercado	2023 ingresos
Maquinaria agrícola	7%	$ 139 millones

Empresas del sector de energía renovable

Timken proporciona rodamientos especializados para aplicaciones de energía eólica y solar.

Subsector de energía renovable	Penetración del mercado	Ingresos anuales
Fabricantes de turbinas eólicas	5%	$ 99 millones
Productores de equipos solares	3%	$ 59 millones

The Timken Company (TKR) - Modelo de negocio: Estructura de costos

Gastos de fabricación y producción

En el año fiscal 2022, Timken reportó costos totales de fabricación de $ 3.47 mil millones. El desglose de los gastos de producción de la compañía incluye:

Categoría de costos	Monto ($)
Costos de materia prima	1,620,000,000
Gastos de trabajo directo	542,000,000
Sobrecarga de fabricación	1,308,000,000

Inversiones de investigación y desarrollo

Timken invirtió $ 157 millones en I + D durante 2022, lo que representa el 2.8% de los ingresos totales.

• Personal de ingeniería: 1.200 profesionales dedicados de I + D
• Portafolio de patentes: 1,500+ patentes activas
• Inversión anual de innovación: $ 157,000,000

Gestión de la cadena de suministro global

Los costos operativos de la cadena de suministro para 2022 totalizaron $ 612 millones, con gastos logísticos globales de $ 214 millones.

Categoría de gastos de la cadena de suministro	Monto ($)
Logística y transporte	214,000,000
Gestión de inventario	186,000,000
Operaciones de adquisición	212,000,000

Capacitación laboral y de la fuerza laboral

Los gastos totales de capacitación y desarrollo de la fuerza laboral en 2022 fueron de $ 42.5 millones.

• Total de empleados: 17,300
• Inversión de capacitación anual por empleado: $ 2,455
• Programas de desarrollo profesional: 12 iniciativas de capacitación central

Mantenimiento de tecnología e infraestructura

Los costos de mantenimiento de tecnología e infraestructura para 2022 alcanzaron $ 186 millones.

Categoría de gastos tecnológicos	Monto ($)
Infraestructura	82,000,000
Transformación digital	54,000,000
Mantenimiento del equipo	50,000,000

The Timken Company (TKR) - Modelo de negocios: flujos de ingresos

Ventas de rodamientos de ingeniería

En 2023, Timken reportó ventas de rodamientos de ingeniería de $ 4.3 mil millones, lo que representa una parte significativa de sus ingresos totales. El segmento de rodamientos de ingeniería de la compañía sirve a múltiples industrias, incluidos los mercados automotrices, aeroespaciales e industriales.

Segmento de la industria	Contribución de ingresos	Índice de crecimiento
Rodamientos automotrices	$ 1.7 mil millones	5.2%
Rodamientos industriales	$ 1.6 mil millones	4.8%
Rodamientos aeroespaciales	$ 1.0 mil millones	3.5%

Ingresos de componentes de transmisión de energía

Los ingresos por componentes de transmisión de energía para Timken en 2023 alcanzaron $ 2.1 mil millones, con líneas de productos clave que incluyen:

• Sistemas de engranajes
• Cadenas de transmisión de energía
• Acoplamientos y componentes de accionamiento

Línea de productos	Ganancia	Cuota de mercado
Sistemas de engranajes	$ 850 millones	6.5%
Cadenas de transmisión de energía	$ 750 millones	5.9%
Componentes de accionamiento	$ 500 millones	4.2%

Piezas de repuesto del mercado de accesorios

El segmento de piezas de reemplazo del posventa de Timken generó $ 1.2 mil millones en ingresos para 2023, con un crecimiento constante de 3.7%año tras año.

Servicios de consulta técnica

Los servicios de consulta técnica contribuyeron con $ 350 millones al flujo de ingresos de Timken en 2023, centrándose en:

• Soporte de diseño de ingeniería
• Consultoría de mantenimiento predictivo
• Servicios de optimización de rendimiento

Licencias de tecnologías propietarias

La licencia de tecnología generó $ 180 millones en ingresos para Timken en 2023, con áreas clave de licencia que incluyen:

• Tecnologías de diseño de rodamiento avanzado
• Procesos de fabricación especializados
• Innovaciones metalúrgicas

Área tecnológica	Ingresos por licencias	Número de licencias
Diseño de rodamiento	$ 80 millones	42
Procesos de fabricación	$ 60 millones	28
Innovaciones metalúrgicas	$ 40 millones	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.