The Timken Company (TKR): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde dynamique de l'ingénierie industrielle, la société Timken est un phare de l'innovation, transformant comment les roulements de précision et les solutions de transmission de puissance mécanique conduisent la fabrication mondiale. Avec un modèle commercial stratégique qui s'étend sur plusieurs secteurs industriels, Timken a magistralement tissé une expertise métallurgique avancée, des recherches technologiques de pointe et des partenariats mondiaux robustes pour offrir des solutions d'ingénierie haute performance qui maintiennent les roues de l'industrie à tourner avec une efficacité et une fiabilité inégalées.

The Timken Company (TKR) - Modèle d'entreprise: partenariats clés

Alliances stratégiques avec les fabricants d'équipements automobiles et industriels

Timken entretient des partenariats stratégiques avec les principaux constructeurs automobiles, notamment:

Fabricant	Focus de partenariat	Valeur de collaboration annuelle estimée
Ford Motor Company	Solutions de palier de précision	87,4 millions de dollars
General Motors	Composants de transmission avancés	62,3 millions de dollars
Camions de daimler	Roulements de véhicules robustes	53,6 millions de dollars

Collaboration avec des fournisseurs mondiaux de roulements et de fabrication d'acier

Le réseau mondial des fournisseurs comprend:

• Thyssenkrupp Steel (Allemagne) - Alimentation en acier
• Nippon Steel Corporation (Japon) - Métallurgie avancée
• ArcelorMittal (Luxembourg) - Source des matières premières

Partenariats de recherche et développement conjoints

Partenaires de collaboration technologique:

Institution	Focus de recherche	Investissement annuel de R&D
Institut de technologie du Massachusetts	Ingénierie des matériaux avancés	2,7 millions de dollars
Georgia Institute of Technology	Tribologie et performance de roulement	1,9 million de dollars

Partenariats des fabricants d'équipements d'origine (OEM)

Partenariats OEM du secteur industriel clés:

• Caterpillar - équipement de construction
• John Deere - Machines agricoles
• Siemens - Automatisation industrielle
• Boeing - Composants aérospatiaux

Partenariats du réseau mondial de distribution

Partenariat de distribution Mesures:

Région	Nombre de partenaires de distribution	Revenus de distribution annuelle
Amérique du Nord	127	342,6 millions de dollars
Europe	86	215,4 millions de dollars
Asie-Pacifique	94	278,9 millions de dollars

The Timken Company (TKR) - Modèle d'entreprise: activités clés

Ingénierie de précision et fabrication de roulements et composants de transmission de puissance mécanique

Capacité de production annuelle des roulements: 250 millions d'unités

Emplacements des installations de fabrication	Nombre d'installations
États-Unis	12
Installations internationales	16

Production avancée en acier et recherche métallurgique

Investissement en R&D en 2023: 124,5 millions de dollars

• Centres de recherche métallurgique: 3
• Demandes de brevet déposées chaque année: 45-50

Conception de produits et innovation technologique

Métrique d'innovation	Valeur
Présentation annuelle de produits de nouveaux produits	37
Travail d'ingénierie	1 200 professionnels

Processus mondiaux de fabrication et de contrôle de la qualité

Total des employés de la fabrication: 11 200

• Installations certifiées ISO 9001: 28
• Mise en œuvre de la gestion de la qualité Six Sigma: 92% des processus

Services de vente et de support client

Canal de vente	Contribution des revenus
Ventes directes	68%
Réseau de distribution	32%

Taille de l'équipe de vente mondiale: 650 professionnels

• Centres de support client: 12 dans le monde
• Temps de réponse moyen du client: 4 heures

The Timken Company (TKR) - Modèle d'entreprise: Ressources clés

Installations de fabrication avancées

La société Timken exploite des installations de fabrication dans plusieurs pays, notamment:

Pays	Nombre d'installations	Focus de fabrication primaire
États-Unis	12	Roulements, composants automobiles
Chine	5	Roulements industriels, production d'acier
Inde	3	Roulements automobiles et industriels
Brésil	2	Roulements automobiles

Expertise de métallurgisme et d'ingénierie propriétaire

Les principales ressources intellectuelles de Timken comprennent:

• Plus de 1 200 brevets actifs dans les technologies de roulements et d'acier
• Capacités de recherche métallurgique avancée
• Capacités de conception d'ingénierie spécialisées pour des applications industrielles complexes

Ingénierie qualifiée et main-d'œuvre technique

Composition de la main-d'œuvre en 2023:

Catégorie des employés	Nombre d'employés
Total des employés	11,500
Ingénieurs	1,850
Spécialistes techniques	2,300

Portefeuille de propriété intellectuelle

• Ventilation des brevets:
  • Technologies de roulement: 680 brevets
  • Fabrication en acier: 320 brevets
  • Applications automobiles: 200 brevets
• Investissement annuel de R&D: 124 millions de dollars en 2023

Infrastructure de recherche et de développement

Emplacement de l'installation de R&D	Spécialisation	Focus de recherche
Canton, Ohio	Centre de R&D d'entreprise	Technologies de roulement avancé
Pune, Inde	Centre d'innovation régional	Solutions automobiles et industrielles
Shanghai, Chine	Hub de R&D Asie-Pacifique	Technologies de marché émergentes

The Timken Company (TKR) - Modèle d'entreprise: propositions de valeur

Roulements d'ingénierie haute performance et solutions de transmission de puissance

La société Timken génère 4,41 milliards de dollars de revenus annuels (2022 exercices) grâce à des technologies spécialisées de roulements et de transmission de puissance. La société produit plus de 30 millions de roulements par an dans plusieurs secteurs industriels.

Catégorie de produits	Volume de production annuel	Part de marché
Roulements industriels	15,2 millions d'unités	12.7%
Roulements automobiles	8,6 millions d'unités	9.3%
Composants de transmission de puissance	6,2 millions d'unités	8.9%

Équipement industriel personnalisé pour les applications critiques

Timken est spécialisé dans les solutions d'ingénierie pour les applications industrielles critiques, desservant les secteurs, notamment:

• Fabrication de machines lourdes
• Aérospatial et défense
• Infrastructure énergétique
• Équipement d'exploitation et de construction

Durabilité et fiabilité des produits supérieurs

Les roulements Timken démontrent une durée de vie opérationnelle moyenne de 15 à 20 ans dans des conditions industrielles standard, avec des taux de défaillance inférieurs à 0,5% entre les gammes de produits.

Métrique de fiabilité du produit	Spécifications de performance
Temps moyen entre les échecs (MTBF)	17 500 heures d'opération
Couverture de garantie du produit	5 ans / 10 millions de cycles opérationnels

Composants mécaniques technologiquement avancés

L'investissement en R&D de 132 millions de dollars en 2022 soutient l'innovation technologique continue, avec 287 brevets actifs en génie mécanique et en technologies de roulement.

Soutien complet de l'ingénierie et capacités de résolution de problèmes

Timken entretient 24 centres de soutien technique mondial, employant 1 245 professionnels de l'ingénierie spécialisés qui offrent une consultation client directe et un développement de solutions.

• Centres de soutien technique mondial: 24
• Professionnels d'ingénierie: 1 245
• Temps de réponse moyen pour les demandes techniques: 6-12 heures

The Timken Company (TKR) - Modèle d'entreprise: relations clients

Partenariats d'équipement industriel à long terme

Timken entretient des partenariats stratégiques avec 87 principaux fabricants d'équipements industriels dans des secteurs de l'automobile, de l'aérospatiale et des machines lourdes. La durée moyenne des partenariats de l'entreprise est de 12,4 ans.

Secteur de l'industrie	Nombre de partenariats clés	Durée du partenariat moyen
Automobile	34	14,2 ans
Aérospatial	22	11.7 ans
Machinerie lourde	31	12,9 ans

Conseil technique et support d'ingénierie

Timken fournit un support d'ingénierie spécialisé avec 276 consultants techniques dédiés à l'échelle mondiale. La société investit 42,6 millions de dollars par an dans la recherche et le développement techniques axés sur le client.

• Équipe mondiale de consultation technique: 276 spécialistes
• Investissement annuel de R&D pour le support client: 42,6 millions de dollars
• Temps de réponse moyen pour les demandes techniques: 4,3 heures

Équipes de gestion des comptes dédiés

La société exploite 63 équipes de gestion de compte dédiées desservant des clients mondiaux dans plusieurs secteurs.

Région	Nombre d'équipes de gestion des comptes	Taille moyenne de l'équipe
Amérique du Nord	27	8,5 membres
Europe	18	6.2 membres
Asie-Pacifique	18	7.3 membres

Services de maintenance et d'optimisation des performances en cours

Timken offre des services de maintenance complets avec un taux de satisfaction client de 92%. La société gère plus de 14 500 contrats de service actif dans le monde.

• Contrats de services actifs totaux: 14 500
• Taux de satisfaction client: 92%
• Valeur du contrat de service moyen: 375 000 $

Plates-formes de fiançailles clients numériques

Timken a investi 22,3 millions de dollars dans les technologies numériques d'engagement client, avec une plate-forme en ligne desservant 3 742 clients industriels enregistrés.

Métrique de la plate-forme numérique	Valeur
Investissement de plate-forme numérique	22,3 millions de dollars
Clients industriels enregistrés	3,742
Interactions annuelles sur la plate-forme numérique	126,500

The Timken Company (TKR) - Modèle d'entreprise: canaux

Force de vente directe ciblant les marchés industriels

La société Timken maintient une force de vente directe mondiale d'environ 280 professionnels de la vente dans plusieurs segments industriels en 2023. L'équipe de vente couvre 6 marchés industriels primaires, notamment la fabrication, l'automobile, l'aérospatiale et les machines lourdes.

Canal de vente	Couverture géographique	Nombre de représentants commerciaux
Amérique du Nord	États-Unis et Canada	125 représentants
Europe	Allemagne, Royaume-Uni, France	65 représentants
Asie-Pacifique	Chine, Japon, Inde	90 représentants

Plateformes de commerce électronique en ligne

Timken exploite des plateformes de vente numérique avec 127 millions de dollars de revenus de transactions en ligne en 2023. Couvertures de plate-forme numérique 3 canaux de commerce électronique primaires:

• Timken.com Portail de vente directe
• Intégrations du marché industriel
• Distributeur Systèmes de commande en ligne

Salons et expositions commerciales industrielles

Timken participe à 42 salons industriels internationaux chaque année, représentant environ 18,5 millions de dollars en dépenses de marketing et d'engagement pour 2023.

Réseaux de distributeurs autorisés

La société entretient des relations avec 387 distributeurs industriels autorisés dans le monde. Le réseau de distributeurs génère environ 34% du total des revenus de l'entreprise.

Région	Nombre de distributeurs	Contribution des revenus
Amérique du Nord	156 distributeurs	42% des revenus des distributeurs
Europe	89 distributeurs	28% des revenus des distributeurs
Asie-Pacifique	142 distributeurs	30% des revenus des distributeurs

Canaux de marketing numérique et de communication technique

Timken investit 7,3 millions de dollars par an dans des stratégies de marketing numérique et de communication technique sur plusieurs plateformes.

• LinkedIn: 87 000 abonnés
• Série de webinaires techniques: 42 événements par an
• Plateformes de contenu axées sur l'ingénierie: 6 canaux actifs

The Timken Company (TKR) - Modèle d'entreprise: segments de clientèle

Fabrication automobile

En 2023, Timken a servi de grands constructeurs automobiles avec des composants de précision et des roulements d'ingénierie.

Segment de clientèle automobile	Part de marché	Contribution annuelle des revenus
Fabricants d'équipements d'origine (OEM)	38%	752 millions de dollars
Marché secondaire automobile	22%	436 millions de dollars

Fabricants d'équipements industriels lourds

Timken fournit des solutions de roulement critiques pour les machines industrielles.

• Fabricants d'équipements d'exploitation
• Producteurs d'équipements de construction
• Sociétés d'équipement de manutention des matériaux

Segment industriel	Pourcentage de revenus	Revenus de 2023
Équipement industriel lourd	27%	534 millions de dollars

Industries aérospatiales et de la défense

Timken fournit des roulements et composants aérospatiaux spécialisés.

Type de client aérospatial	Pénétration du marché	Revenus annuels
Fabricants d'avions commerciaux	15%	297 millions de dollars
Entrepreneurs militaires / défense	8%	158 millions de dollars

Producteurs de machines agricoles

Timken prend en charge la fabrication d'équipements agricoles avec des composants de précision.

• Fabricants de tracteurs
• Producteurs d'équipements de récolte
• Agriculture implémente les entreprises

Segment agricole	Part de marché	Revenus de 2023
Machines agricoles	7%	139 millions de dollars

Sociétés du secteur des énergies renouvelables

Timken fournit des roulements spécialisés pour les applications d'énergie éolienne et solaire.

Sous-secteur d'énergie renouvelable	Pénétration du marché	Revenus annuels
Fabricants d'éoliennes	5%	99 millions de dollars
Producteurs d'équipements solaires	3%	59 millions de dollars

The Timken Company (TKR) - Modèle d'entreprise: Structure des coûts

Frais de fabrication et de production

Au cours de l'exercice 2022, Timken a déclaré des coûts de fabrication totaux de 3,47 milliards de dollars. La rupture des dépenses de production de l'entreprise comprend:

Catégorie de coûts	Montant ($)
Coût des matières premières	1,620,000,000
Dépenses de main-d'œuvre directes	542,000,000
Fabrication des frais généraux	1,308,000,000

Investissements de recherche et développement

Timken a investi 157 millions de dollars dans la R&D en 2022, ce qui représente 2,8% des revenus totaux.

• Personnel d'ingénierie: 1 200 professionnels de la R&D dédiés
• Portefeuille de brevets: plus de 1 500 brevets actifs
• Investissement annuel sur l'innovation: 157 000 000 $

Gestion mondiale de la chaîne d'approvisionnement

Les coûts d'exploitation de la chaîne d'approvisionnement pour 2022 ont totalisé 612 millions de dollars, avec des dépenses logistiques mondiales de 214 millions de dollars.

Catégorie de dépenses de la chaîne d'approvisionnement	Montant ($)
Logistique et transport	214,000,000
Gestion des stocks	186,000,000
Opérations d'approvisionnement	212,000,000

Formation de main-d'œuvre et de main-d'œuvre

Les frais totaux de formation et de développement de la main-d'œuvre en 2022 étaient de 42,5 millions de dollars.

• Total des employés: 17 300
• Investissement annuel de formation par employé: 2 455 $
• Programmes de développement professionnel: 12 initiatives de formation de base

Maintenance de technologie et d'infrastructure

Les coûts de maintenance de la technologie et des infrastructures pour 2022 ont atteint 186 millions de dollars.

Catégorie de dépenses technologiques	Montant ($)
Infrastructure informatique	82,000,000
Transformation numérique	54,000,000
Entretien de l'équipement	50,000,000

The Timken Company (TKR) - Modèle d'entreprise: Strots de revenus

Ventes de roulements d'ingénierie

En 2023, Timken a déclaré des ventes de 4,3 milliards de dollars, ce qui représente une partie importante de leurs revenus totaux. Le segment des roulements d'ingénierie de la société sert plusieurs industries, notamment les marchés automobiles, aérospatiaux et industriels.

Segment de l'industrie	Contribution des revenus	Taux de croissance
Roulements automobiles	1,7 milliard de dollars	5.2%
Roulements industriels	1,6 milliard de dollars	4.8%
Roulements aérospatiaux	1,0 milliard de dollars	3.5%

Revenus des composants de transmission de puissance

Les revenus des composants de transmission de puissance pour Timken en 2023 ont atteint 2,1 milliards de dollars, avec des gammes de produits clés, notamment:

• Systèmes de vitesse
• Chaînes de transmission de puissance
• Accouplements et composants d'entraînement

Gamme de produits	Revenu	Part de marché
Systèmes de vitesse	850 millions de dollars	6.5%
Chaînes de transmission de puissance	750 millions de dollars	5.9%
Composants d'entraînement	500 millions de dollars	4.2%

Pièces de remplacement du marché secondaire

Le segment des pièces de rechange de rechange de Timken a généré 1,2 milliard de dollars de revenus pour 2023, avec une croissance constante d'une année à l'autre de 3,7%.

Services de consultation technique

Les services de consultation technique ont contribué 350 millions de dollars à la source de revenus de Timken en 2023, en se concentrant sur:

• Support de conception d'ingénierie
• Conseil de maintenance prédictive
• Services d'optimisation des performances

Licence des technologies propriétaires

Les licences technologiques ont généré 180 millions de dollars de revenus pour Timken en 2023, avec des zones de licence clés, notamment:

• Technologies de conception de roulement avancé
• Processus de fabrication spécialisés
• Innovations métallurgiques

Zone technologique	Revenus de licence	Nombre de licences
Conception de roulement	80 millions de dollars	42
Processus de fabrication	60 millions de dollars	28
Innovations métallurgiques	40 millions de dollars	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.