Latest news with #TKR
Yahoo
14-05-2025
- Business
- Yahoo
TKR Q1 Earnings Call: Tariff Headwinds and Cost Actions Shape 2025 Outlook
Industrial component provider Timken (NYSE:TKR) reported Q1 CY2025 results exceeding the market's revenue expectations , but sales fell by 4.2% year on year to $1.14 billion. Its non-GAAP profit of $1.40 per share was 1.7% below analysts' consensus estimates. Is now the time to buy TKR? Find out in our full research report (it's free). Revenue: $1.14 billion vs analyst estimates of $1.13 billion (4.2% year-on-year decline, 1.1% beat) Adjusted EPS: $1.40 vs analyst expectations of $1.42 (1.7% miss) Adjusted EBITDA: $208.1 million vs analyst estimates of $211.7 million (18.2% margin, 1.7% miss) Management lowered its full-year Adjusted EPS guidance to $5.35 at the midpoint, a 3.6% decrease Operating Margin: 12.6%, down from 15.5% in the same quarter last year Free Cash Flow Margin: 2.1%, up from 0.4% in the same quarter last year Organic Revenue fell 3.1% year on year (-9.2% in the same quarter last year) Market Capitalization: $5.13 billion Timken's first quarter results reflected ongoing demand softness in several core markets, with leadership noting particular pressure in Europe and the Americas. CEO Richard Kyle cited successful execution on targeted cost controls and highlighted continued growth in Asia, especially in wind energy, as partial offsets to lower volumes and unfavorable product mix. He acknowledged that 'adjusted EBITDA margins came in below prior year, driven primarily by lower volumes, higher manufacturing costs and unfavorable mix.' Looking ahead, management lowered full-year adjusted earnings guidance, primarily due to the impact of newly implemented tariffs and persistent industrial market headwinds. Kyle and CFO Phil Fracassa emphasized active pricing actions to pass through tariff costs, but acknowledged that the full benefit will not be realized until late in the year. Kyle described the company's approach as 'quickly responding and actively passing the cost into the market,' while also reaffirming the goal of $75 million in cost savings for 2025. The team characterized the external environment as fluid and uncertain, particularly around evolving trade policy. First quarter performance was shaped by lagging demand in key geographies, cost inflation, and early-stage tariff impacts, with management focusing on offsetting these challenges through pricing and operational discipline. Geographic Demand Shifts: Timken experienced lower demand in Europe and the Americas, while Asia—especially China—benefited from improved renewable energy activity, with wind sector demand rebounding off a low base. Tariff Mitigation Efforts: Leadership detailed rapid repricing initiatives to offset new tariffs, aiming to fully neutralize the cost impact by year-end. Rich Kyle noted the company's large U.S. manufacturing footprint offers some relative advantage, though there will be a net headwind of approximately $25 million in 2025 due to lagged pricing adjustments. Automotive OEM Portfolio Review: Management began a strategic review targeting more than half of its automotive original equipment (OE) business, concentrating on light vehicles. The goal is to improve margins by reducing exposure to lower-return segments, with anticipated benefits materializing in 2026 and 2027. Cost Containment and Acquisition Benefits: The CGI acquisition continued to contribute positively to segment margins. Ongoing cost reduction initiatives, including SG&A savings, helped partially offset higher manufacturing and logistics costs. Manufacturing Footprint Adjustments: The closure of the Fort Scott facility is progressing, with full shutdown expected in the third quarter. This move is intended to streamline operations and improve Industrial Motion segment margins as duplicative costs are eliminated. Management's outlook for the remainder of the year centers on tariff pass-through, cautious demand assumptions, and operational improvements to support margins in a challenging environment. Tariff Pricing Pass-Through: The company is actively implementing pricing increases and surcharges to offset tariff costs, with management expecting to achieve full mitigation on a run-rate basis by year-end. Most of this impact will be felt in the second and third quarters. Portfolio Restructuring: The ongoing reduction in automotive OE exposure is expected to enhance corporate margins beginning in 2026, with limited financial effect in 2025. Management believes these changes will support a more profitable and resilient business model in the medium term. Raw Material and Cost Pressures: Timken anticipates continued upward pressure on steel and specialty bar quality (SBQ) pricing, which could drive further price actions and margin volatility. However, management views the company's pricing power and portfolio diversity as partial offsets to these risks. Bryan Blair (Oppenheimer): Asked about the underlying volume and price assumptions in the revised guidance. CFO Phil Fracassa explained that improved pricing, largely from tariff pass-through, was offset by a more cautious volume outlook, especially within the Industrial Motion segment. Stefan Diaz (Morgan Stanley): Inquired whether customers accelerated orders ahead of tariffs. Fracassa responded that there was no significant evidence of demand pull-forward, noting most products for U.S. customers are domestically produced. Stefan Diaz (Morgan Stanley): Sought details on the strategic review of the auto OE business. CEO Richard Kyle clarified the focus is on reducing exposure to lower-margin light vehicle OEMs, with actions expected to improve margins from 2026 onward. Kyle Menges (Citi Group): Questioned Timken's ability to pass through tariff-related pricing compared to competitors. Management said industrywide bearing prices are rising, and Timken's U.S. manufacturing footprint could offer a relative advantage. Chris Dankert (Loop Capital Markets): Asked about the status of the Fort Scott facility closure and implications for segment margins. Kyle confirmed the facility is on track to close in the third quarter, which should benefit Industrial Motion margins. Looking ahead, the StockStory team will be closely monitoring (1) the pace and effectiveness of tariff-related price increases across Timken's customer base, (2) progress in executing the auto OEM portfolio restructuring and any early signs of margin improvement, and (3) stabilization or recovery in key end markets, particularly industrial sectors in Europe and the Americas. The evolution of raw material costs and further updates on facility rationalizations will also be important signposts for operational performance. Timken currently trades at a forward P/E ratio of 12.9×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
09-05-2025
- Business
- Yahoo
1 Value Stock to Research Further and 2 to Think Twice About
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues. Identifying genuine bargains from value traps is something many investors struggle with, which is why we started StockStory - to help you find the best companies. Keeping that in mind, here is one value stock with strong fundamentals and two with little support. Forward P/E Ratio: 10.4x Founded in California in 1982, Malibu Boats (NASDAQ:MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts. Why Should You Sell MBUU? Number of boats sold has disappointed over the past two years, indicating weak demand for its offerings Sales over the last five years were less profitable as its earnings per share fell by 28.1% annually while its revenue was flat Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Malibu Boats is trading at $30.77 per share, or 10.4x forward P/E. Check out our free in-depth research report to learn more about why MBUU doesn't pass our bar. Forward P/E Ratio: 12.1x Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken (NYSE:TKR) is a provider of industrial parts used across various sectors. Why Do We Pass on TKR? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Sales are projected to be flat over the next 12 months and imply weak demand Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 9.5% annually, worse than its revenue At $68.43 per share, Timken trades at 12.1x forward P/E. To fully understand why you should be careful with TKR, check out our full research report (it's free). Forward P/E Ratio: 13.7x With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE:HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England. Why Could HCA Be a Winner? Dominant market position is represented by its $71.59 billion in revenue, which creates significant barriers to entry in this highly regulated industry Share repurchases have amplified shareholder returns as its annual earnings per share growth of 20.7% exceeded its revenue gains over the last five years Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures HCA Healthcare's stock price of $371.61 implies a valuation ratio of 13.7x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Malaysiakini
02-05-2025
- Health
- Malaysiakini
KPJ Ipoh Marks 100 Robotic-Assisted Knee Surgeries in Seven Months
KPJ Ipoh Specialist Hospital ("KPJ Ipoh') has reached a key milestone with over 100 robotic-assisted total knee replacement surgeries successfully completed since the introduction of the technology in August 2024. The achievement underscores the hospital's growing focus on integrating technology to support surgical precision and planning in orthopaedic care. Chin Keat Chyuan, President and Managing Director of KPJ Healthcare said, 'Crossing the 100-surgery mark in just seven months reflects the strong capabilities of our team at KPJ Ipoh and the growing confidence in robotic-assisted procedures. I extend my congratulations to the entire team for their dedication in reaching this important milestone. This achievement reflects their determination to push the boundaries of innovation in patient care and it also supports our ongoing efforts to develop the KPJ Health System — a more connected, future-ready model that brings together care, research and education to deliver better value for patients.' Chin Keat Chyuan, KPJ Healthcare Berhad President & Managing Director The robotic system, known as CUVIS, is used globally in total knee replacement ("TKR') procedures. It supports surgeons by generating a 3D simulation for pre-surgical planning and assists in achieving improved alignment during surgery. At KPJ Ipoh, the system is operated by consultant orthopaedic surgeons with specialised training in robotic-assisted techniques. 'We still rely on surgical expertise, but digital tools allow us to plan and execute procedures with greater consistency. This milestone reflects the role of robotic-assisted systems in supporting precision and improving the surgical experience for both surgeons and patients,' added Dr Luis Chen Shian Liang, Medical Director of KPJ Ipoh. Dr Luis Chen Shian Liang, Medical Director of KPJ Ipoh Specialist Hospital Osteoarthritis remains one of the most common causes of joint-related pain in Malaysia, especially among older adults. For patients with advanced cases where conservative treatment is no longer effective, TKR is often recommended. Robotic-assisted tools are increasingly used to complement existing surgical methods. KPJ Ipoh Specialist Hospital celebrates its 100th robotic-assisted total knee replacement surgery, reflecting its multidisciplinary team's dedication and the hospital's commitment to clinical excellence and patient-centred care. This content is provided by KPJ Healthcare. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini. Interested in having your press releases, exclusive interviews, or branded content articles on Malaysiakini? For more information, contact [email protected] or [email protected]
Yahoo
01-05-2025
- Business
- Yahoo
Kadant Inc (KAI) Q1 2025 Earnings Call Highlights: Navigating Tariff Challenges and Aftermarket ...
Revenue: Declined 4% compared to the same period last year. Aftermarket Parts Revenue: Made up 75% of Q1 revenue, up 5% to a record $179 million. Gross Margin: 46.1%, up 150 basis points from 44.6% in Q1 '24. Adjusted EBITDA: $47.9 million, down 8% from $52.2 million in Q1 '24. Free Cash Flow: Increased 15% to $19 million compared to $16.6 million in Q1 '24. SG&A Expenses: Increased to 29.8% of revenue from 28.2% in Q1 '24. GAAP EPS: Decreased 3% to $2.04. Adjusted EPS: Decreased 12% to $2.10. Flow Control Segment Revenue: Increased 7% to $92 million. Industrial Processing Segment Revenue: Declined 15% compared to Q1 '24. Material Handling Segment Revenue: $57 million, up slightly compared to the prior year period. Net Debt: Decreased $10 million to $183 million at the end of Q1 '25. Leverage Ratio: Decreased to 0.95 from 0.99 at the end of '24. Tariff Impact Estimate: Incremental material costs of approximately $5 million to $6 million or $0.32 to $0.39 per share. Revised Full Year 2025 Revenue Guidance: $1.02 billion to $1.04 billion. Revised Full Year 2025 Adjusted EPS Guidance: $9.05 to $9.25. Warning! GuruFocus has detected 5 Warning Sign with TKR. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kadant Inc (NYSE:KAI) reported strong demand for aftermarket parts, which represented 75% of Q1 revenue and was up 5% to a record $179 million. The flow control segment experienced solid demand, with bookings up 6% and revenue increasing by 7% compared to Q1 of last year. Gross margin improved to 46.1%, the highest since 2017, driven by a higher percentage of aftermarket parts. Free cash flow increased by 15% to $19 million in Q1 2025 compared to the same period last year. Kadant Inc (NYSE:KAI) maintains a healthy balance sheet with a leverage ratio of 0.95 and significant borrowing capacity available under its credit facility. Revenue in Q1 2025 declined by 4% compared to the same period last year due to weaker capital shipments in the industrial processing segment. Adjusted EBITDA decreased by 8% to $47.9 million, with a decline in the adjusted EBITDA margin by 100 basis points compared to the previous year. The industrial processing segment saw a 15% decline in revenue due to a significant drop in capital shipments. The company revised its full-year 2025 guidance downward, expecting lower revenue and adjusted EPS due to tariff impacts and delays in capital orders. Tariffs have introduced significant uncertainty, impacting customer decision-making and delaying capital equipment orders. Q: Can you provide insights into the current state of your order book and any potential risks of further deferrals into 2026? A: Jeffrey Powell, President and CEO, explained that while there is a pause due to tariff uncertainties, the discussion and activity levels remain strong. Projects are being delayed rather than canceled, and there is an expectation that investments will resume as equipment ages and requires replacement. The company is in discussions for several projects, indicating potential future growth. Q: How are tariffs impacting your capital projects, and do you expect these projects to move forward once there's clarity on tariffs? A: Jeffrey Powell noted that while tariffs have created uncertainty, leading to project delays, cancellations are rare. The company is well-positioned globally to adapt to changes in trade dynamics. Most projects are expected to proceed once there is more clarity on tariffs. Q: What is the expected impact of tariffs on your financials, and how are you mitigating these costs? A: Michael McKenney, CFO, stated that the estimated incremental material costs due to tariffs are $5 million to $6 million, impacting EPS by $0.32 to $0.39. The company is implementing mitigation strategies, including surcharges and alternative sourcing, to offset these costs over time. Q: How do you anticipate the mix of parts versus capital sales to evolve throughout the year? A: Michael McKenney indicated that parts and consumables are expected to make up 69% of revenue for the year, with a slight decrease in the second half as capital sales are anticipated to increase. The company expects continued strength in parts and consumables due to the aging installed base. Q: What are the implications of the current tariff environment on your operations in China and the US? A: Jeffrey Powell highlighted that tariffs have impacted both imports from China and exports to China. The company is working to realign its supply chain and mitigate these impacts. Despite the challenges, Kadant's global presence allows it to adapt to shifting trade dynamics. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Timken: Q1 Earnings Snapshot
NORTH CANTON, Ohio (AP) — NORTH CANTON, Ohio (AP) — Timken Co. (TKR) on Wednesday reported first-quarter net income of $78.3 million. The North Canton, Ohio-based company said it had profit of $1.11 per share. Earnings, adjusted for one-time gains and costs, came to $1.40 per share. The results fell short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.43 per share. The maker of bearings and power transmissions posted revenue of $1.14 billion in the period, which topped Street forecasts. Five analysts surveyed by Zacks expected $1.12 billion. Timken expects full-year earnings in the range of $5.10 to $5.60 per share. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on TKR at
