The Timken Company (TKR): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico da engenharia industrial, a Timken Company é um farol de inovação, transformando como os rolamentos de precisão e as soluções de transmissão de energia mecânica impulsionam a fabricação global. Com um modelo de negócios estratégico que abrange vários setores industriais, a TIMKEN se uniu magistralmente à experiência metalúrgica avançada, à pesquisa tecnológica de ponta e às parcerias globais robustas para fornecer soluções de engenharia de alto desempenho que mantêm as rodas da indústria girando com eficiência e confiabilidade incomparáveis.

The Timken Company (TKR) - Modelo de negócios: Parcerias -chave

Alianças estratégicas com fabricantes de equipamentos automotivos e industriais

Timken mantém parcerias estratégicas com os principais fabricantes automotivos, incluindo:

Fabricante	Foco em parceria	Valor estimado de colaboração anual
Ford Motor Company	Soluções de rolamento de precisão	US $ 87,4 milhões
General Motors	Componentes avançados de transmissão	US $ 62,3 milhões
Caminhões daimler	Rolamentos de veículos pesados	US $ 53,6 milhões

Colaboração com fornecedores globais de rolamento e fabricação de aço

A rede global de fornecedores inclui:

• THYSSENKrupp Steel (Alemanha) - Fornecimento de aço
• Nippon Steel Corporation (Japão) - Metalurgia Avançada
• ArcelorMittal (Luxemburgo) - Fornecimento de matéria -prima

Parcerias conjuntas de pesquisa e desenvolvimento

Parceiros de colaboração de tecnologia:

Instituição	Foco na pesquisa	Investimento anual de P&D
Instituto de Tecnologia de Massachusetts	Engenharia de Materiais Avançados	US $ 2,7 milhões
Instituto de Tecnologia da Geórgia	Tribologia e desempenho do rolamento	US $ 1,9 milhão

Parcerias de fabricantes de equipamentos originais (OEMs)

Principais parcerias OEM do setor industrial:

• Caterpillar - Equipamento de construção
• John Deere - máquinas agrícolas
• Siemens - Automação Industrial
• Boeing - componentes aeroespaciais

Parcerias de rede de distribuição global

Métricas de Parceria de Distribuição:

Região	Número de parceiros de distribuição	Receita anual de distribuição
América do Norte	127	US $ 342,6 milhões
Europa	86	US $ 215,4 milhões
Ásia-Pacífico	94	US $ 278,9 milhões

The Timken Company (TKR) - Modelo de negócios: Atividades -chave

Engenharia e fabricação de precisão de rolamentos e componentes de transmissão de energia mecânica

Capacidade anual de produção de rolamentos: 250 milhões de unidades

Locais das instalações de fabricação	Número de instalações
Estados Unidos	12
Instalações internacionais	16

Produção avançada de aço e pesquisa metalúrgica

Investimento de P&D em 2023: US $ 124,5 milhões

• Centros de pesquisa metalúrgica: 3
• Pedidos de patente arquivados anualmente: 45-50

Design de produto e inovação tecnológica

Métrica de inovação	Valor
Introdução anual de novos produtos	37
Força de trabalho de engenharia	1.200 profissionais

Processos globais de fabricação e controle de qualidade

Total de funcionários de manufatura: 11.200

• Instalações certificadas ISO 9001: 28
• Six Sigma Quality Management Implementação: 92% dos processos

Serviços de vendas e suporte ao cliente

Canal de vendas	Contribuição da receita
Vendas diretas	68%
Rede de distribuidores	32%

Tamanho da equipe de vendas global: 650 profissionais

• Centros de suporte ao cliente: 12 em todo o mundo
• Tempo médio de resposta ao cliente: 4 horas

The Timken Company (TKR) - Modelo de negócios: Recursos -chave

Instalações de fabricação avançadas

A empresa Timken opera instalações de fabricação em vários países, incluindo:

País	Número de instalações	Foco primário de fabricação
Estados Unidos	12	Rolamentos, componentes automotivos
China	5	Rolamentos industriais, produção de aço
Índia	3	Rolamentos automotivos e industriais
Brasil	2	Rolamentos automotivos

Experiência metalúrgica e de engenharia proprietária

Os principais recursos intelectuais de Timken incluem:

• Mais de 1.200 patentes ativas em tecnologias de rolamentos e aço
• Capacidades avançadas de pesquisa metalúrgica
• Recursos de design de engenharia especializados para aplicações industriais complexas

Engenharia qualificada e força de trabalho técnica

Composição da força de trabalho a partir de 2023:

Categoria de funcionários	Número de funcionários
Total de funcionários	11,500
Engenheiros	1,850
Especialistas técnicos	2,300

Portfólio de propriedade intelectual

• Redução de patentes:
  • Tecnologias de rolamentos: 680 patentes
  • Fabricação de aço: 320 patentes
  • Aplicações automotivas: 200 patentes
• Investimento anual de P&D: US $ 124 milhões em 2023

Infraestrutura de pesquisa e desenvolvimento

Localização da instalação de P&D	Especialização	Foco na pesquisa
Canton, Ohio	Centro de P&D corporativo	Tecnologias avançadas de rolamentos
Pune, Índia	Centro de Inovação Regional	Soluções automotivas e industriais
Xangai, China	Hub de P&D da Ásia-Pacífico	Tecnologias de mercado emergentes

The Timken Company (TKR) - Modelo de Negócios: Proposições de Valor

Rolamentos projetados de alto desempenho e soluções de transmissão de energia

A empresa Timken gera US $ 4,41 bilhões em receita anual (2022 ano fiscal) por meio de tecnologias especializadas em rolamentos e transmissão de energia. A empresa produz mais de 30 milhões de rolamentos anualmente em vários setores industriais.

Categoria de produto	Volume anual de produção	Quota de mercado
Rolamentos industriais	15,2 milhões de unidades	12.7%
Rolamentos automotivos	8,6 milhões de unidades	9.3%
Componentes de transmissão de energia	6,2 milhões de unidades	8.9%

Equipamento industrial personalizado para aplicações críticas

Timken é especializado em soluções projetadas para aplicações industriais de missão crítica, atendendo setores, incluindo:

• Fabricação de máquinas pesadas
• Aeroespacial e Defesa
• Infraestrutura energética
• Equipamento de mineração e construção

Durabilidade e confiabilidade do produto superior

Os rolamentos de Timken demonstram uma vida útil média de 15 a 20 anos em condições industriais padrão, com taxas de falha abaixo de 0,5% nas linhas de produtos.

Métrica de confiabilidade do produto	Especificação de desempenho
Tempo médio entre falhas (MTBF)	17.500 horas operacionais
Cobertura de garantia do produto	5 anos/10 milhões de ciclos operacionais

Componentes mecânicos tecnologicamente avançados

O investimento em P&D de US $ 132 milhões em 2022 suporta inovação tecnológica contínua, com 287 patentes ativas em tecnologias mecânicas de engenharia e rolamento.

Suporte abrangente de engenharia e recursos de solução de problemas

A TIMKEN mantém 24 centros globais de suporte técnico, empregando 1.245 profissionais de engenharia especializados que fornecem consulta direta ao cliente e desenvolvimento de soluções.

• Centros de Suporte Técnico Global: 24
• Profissionais de engenharia: 1.245
• Tempo médio de resposta para consultas técnicas: 6-12 horas

A Timken Company (TKR) - Modelo de Negócios: Relacionamentos do Cliente

Parcerias de equipamentos industriais de longo prazo

A Timken mantém parcerias estratégicas com 87 principais fabricantes de equipamentos industriais nos setores automotivo, aeroespacial e de máquinas pesadas. A duração média da parceria da empresa é de 12,4 anos.

Setor da indústria	Número de parcerias -chave	Duração média da parceria
Automotivo	34	14,2 anos
Aeroespacial	22	11,7 anos
Máquinas pesadas	31	12,9 anos

Suporte de consultoria técnica e engenharia

A Timken fornece suporte especializado em engenharia com 276 consultores técnicos dedicados em todo o mundo. A empresa investe US $ 42,6 milhões anualmente em pesquisa e desenvolvimento técnico focado no cliente.

• Equipe global de consulta técnica: 276 especialistas
• Investimento anual de P&D para suporte ao cliente: US $ 42,6 milhões
• Tempo médio de resposta para consultas técnicas: 4,3 horas

Equipes de gerenciamento de contas dedicadas

A empresa opera 63 equipes de gerenciamento de contas dedicadas que atendem a clientes globais em vários setores.

Região	Número de equipes de gerenciamento de contas	Tamanho médio da equipe
América do Norte	27	8.5 membros
Europa	18	6.2 Membros
Ásia-Pacífico	18	7.3 Membros

Serviços contínuos de manutenção e otimização de desempenho

A Timken oferece serviços de manutenção abrangente com taxa de satisfação de 92% do cliente. A empresa gerencia mais de 14.500 contratos de serviço ativos em todo o mundo.

• Contratos de serviço ativo total: 14.500
• Taxa de satisfação do cliente: 92%
• Valor médio do contrato de serviço: $ 375.000

Plataformas de engajamento de clientes digitais

A Timken investiu US $ 22,3 milhões em tecnologias de engajamento de clientes digitais, com uma plataforma on -line atendendo a 3.742 clientes industriais registrados.

Métrica da plataforma digital	Valor
Investimento de plataforma digital	US $ 22,3 milhões
Clientes industriais registrados	3,742
Interações anuais da plataforma digital	126,500

The Timken Company (TKR) - Modelo de Negócios: Canais

Força de vendas direta direcionando mercados industriais

A Timken Company mantém uma força de vendas direta global de aproximadamente 280 profissionais de vendas em vários segmentos industriais a partir de 2023. A equipe de vendas abrange 6 mercados industriais primários, incluindo fabricação, automotivo, aeroespacial e máquinas pesadas.

Canal de vendas	Cobertura geográfica	Número de representantes de vendas
América do Norte	Estados Unidos e Canadá	125 representantes
Europa	Alemanha, Reino Unido, França	65 representantes
Ásia-Pacífico	China, Japão, Índia	90 representantes

Plataformas online de comércio eletrônico

A Timken opera plataformas de vendas digitais com US $ 127 milhões em receita de transações on -line em 2023. Capas de plataforma digital 3 canais primários de comércio eletrônico:

• Portal de vendas direta timken.com
• Integrações do mercado industrial
• Sistemas de pedidos on -line do distribuidor

Feiras e exposições industriais

Timken participa de 42 feiras internacionais industriais anualmente, representando aproximadamente US $ 18,5 milhões em despesas de marketing e engajamento em 2023.

Redes de distribuidores autorizados

A empresa mantém relacionamentos com 387 distribuidores industriais autorizados em todo o mundo. A rede de distribuidores gera aproximadamente 34% da receita total da empresa.

Região	Número de distribuidores	Contribuição da receita
América do Norte	156 distribuidores	42% da receita do distribuidor
Europa	89 distribuidores	28% da receita do distribuidor
Ásia-Pacífico	142 distribuidores	30% da receita do distribuidor

Canais de marketing digital e comunicação técnica

A Timken investe US $ 7,3 milhões anualmente em estratégias de marketing digital e comunicação técnica em várias plataformas.

• LinkedIn: 87.000 seguidores
• Série de webinar técnicos: 42 eventos por ano
• Plataformas de conteúdo focadas em engenharia: 6 canais ativos

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

Fabricação automotiva

Em 2023, a Timken serviu os principais fabricantes de automóveis com componentes de precisão e rolamentos de engenharia.

Segmento de clientes automotivos	Quota de mercado	Contribuição anual da receita
Fabricantes de equipamentos originais (OEMs)	38%	US $ 752 milhões
A reposição automotiva	22%	US $ 436 milhões

Fabricantes de equipamentos industriais pesados

A Timken fornece soluções críticas de rolamento para máquinas industriais.

• Fabricantes de equipamentos de mineração
• Produtores de equipamentos de construção
• Empresas de equipamentos de manuseio de materiais

Segmento industrial	Porcentagem de receita	2023 Receita
Equipamento industrial pesado	27%	US $ 534 milhões

Indústrias aeroespaciais e de defesa

A Timken fornece rolamentos e componentes aeroespaciais especializados.

Tipo de cliente aeroespacial	Penetração de mercado	Receita anual
Fabricantes de aeronaves comerciais	15%	US $ 297 milhões
Contratados militares/de defesa	8%	US $ 158 milhões

Produtores de máquinas agrícolas

A Timken suporta a fabricação de equipamentos agrícolas com componentes de precisão.

• Fabricantes de tratores
• Produtores de equipamentos de colheita
• Empresas de implementos agrícolas

Segmento agrícola	Quota de mercado	2023 Receita
Maquinaria agrícola	7%	US $ 139 milhões

Empresas do setor de energia renovável

O TIMKEN fornece rolamentos especializados para aplicações de energia eólica e solar.

Subsetor energético renovável	Penetração de mercado	Receita anual
Fabricantes de turbinas eólicas	5%	US $ 99 milhões
Produtores de equipamentos solares	3%	US $ 59 milhões

The Timken Company (TKR) - Modelo de negócios: estrutura de custos

Despesas de fabricação e produção

No ano fiscal de 2022, Timken registrou custos totais de fabricação de US $ 3,47 bilhões. A quebra das despesas de produção da empresa inclui:

Categoria de custo	Valor ($)
Custos de matéria -prima	1,620,000,000
Despesas diretas do trabalho	542,000,000
Manufatura de sobrecarga	1,308,000,000

Investimentos de pesquisa e desenvolvimento

Timken investiu US $ 157 milhões em P&D durante 2022, representando 2,8% da receita total.

• Pessoal de engenharia: 1.200 profissionais dedicados à P&D
• Portfólio de patentes: 1.500+ patentes ativas
• Investimento anual de inovação: US $ 157.000.000

Gerenciamento global da cadeia de suprimentos

Os custos operacionais da cadeia de suprimentos para 2022 totalizaram US $ 612 milhões, com despesas de logística global de US $ 214 milhões.

Categoria de despesa da cadeia de suprimentos	Valor ($)
Logística e transporte	214,000,000
Gerenciamento de inventário	186,000,000
Operações de compras	212,000,000

Treinamento de mão -de -obra e força de trabalho

As despesas totais de treinamento e desenvolvimento da força de trabalho em 2022 foram de US $ 42,5 milhões.

• Total de funcionários: 17.300
• Investimento anual de treinamento por funcionário: US $ 2.455
• Programas de desenvolvimento profissional: 12 iniciativas de treinamento central

Manutenção de tecnologia e infraestrutura

Os custos de manutenção de tecnologia e infraestrutura para 2022 atingiram US $ 186 milhões.

Categoria de despesa de tecnologia	Valor ($)
Infraestrutura de TI	82,000,000
Transformação digital	54,000,000
Manutenção do equipamento	50,000,000

The Timken Company (TKR) - Modelo de negócios: fluxos de receita

Vendas de rolamentos de engenharia

Em 2023, a Timken relatou vendas de engenharia de US $ 4,3 bilhões, representando uma parcela significativa de sua receita total. O segmento de rolamentos de engenharia da empresa atende a vários setores, incluindo mercados automotivo, aeroespacial e industrial.

Segmento da indústria	Contribuição da receita	Taxa de crescimento
Rolamentos automotivos	US $ 1,7 bilhão	5.2%
Rolamentos industriais	US $ 1,6 bilhão	4.8%
Rolamentos aeroespaciais	US $ 1,0 bilhão	3.5%

Receitas de componentes de transmissão de energia

As receitas de componentes de transmissão de energia para Timken em 2023 atingiram US $ 2,1 bilhões, com as principais linhas de produtos, incluindo:

• Sistemas de engrenagem
• Cadeias de transmissão de energia
• Acoplamentos e componentes de acionamento

Linha de produtos	Receita	Quota de mercado
Sistemas de engrenagem	US $ 850 milhões	6.5%
Cadeias de transmissão de energia	US $ 750 milhões	5.9%
Conduzir componentes	US $ 500 milhões	4.2%

Peças de reposição de pós -venda

O segmento de peças de reposição de Timken no mercado de reposição gerou US $ 1,2 bilhão em receita para 2023, com um crescimento consistente ano a ano de 3,7%.

Serviços de consulta técnica

Os serviços de consulta técnica contribuíram com US $ 350 milhões para o fluxo de receita da Timken em 2023, com foco em:

• Suporte ao projeto de engenharia
• Consultoria de manutenção preditiva
• Serviços de otimização de desempenho

Licenciamento de tecnologias proprietárias

O licenciamento de tecnologia gerou US $ 180 milhões em receita para a Timken em 2023, com as principais áreas de licenciamento, incluindo:

• Tecnologias avançadas de design de rolamentos
• Processos de fabricação especializados
• Inovações metalúrgicas

Área de tecnologia	Receita de licenciamento	Número de licenças
Design de rolamentos	US $ 80 milhões	42
Processos de fabricação	US $ 60 milhões	28
Inovações metalúrgicas	US $ 40 milhões	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.