Timken Investor Day: Timken 2028: Engineering Growth, Transforming Value

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Timken Investor Day: Timken 2028: Engineering Growth, Transforming Value

J P M O R G A N North America Equity Research

21 May 2026

Timken Neutral

TKR, TKR US

Investor Day: Timken 2028: Engineering Growth, Price (20 May 26):$117.20

Transforming Value

North America Small and Mid Cap

We attended Timken’s Investor Day and were impressed by CEO Lucian Boldea Industrials

and CFO Mike Discenza’s bold 2028 financial targets and clear strategic roadmap. Tomohiko Sano AC

Their strong execution, especially the disciplined 80/20 approach, is already (1-212) 622-1099

delivering early results. Portfolio optimization, targeted investments, and global tomohiko.sano@jpmorgan.com

expansion are driving margin and productivity improvements. Timken’s unified Ethan Coyle

team and proactive transformation office show impressive control over (1-212) 270-0613

ethan.coyle@jpmchase.com

controllable factors, sending a positive message of collective commitment and

Brendan Shea, CFA

operational excellence that stands apart from market cycles.

(1-212) 622-0770

• Timken’s Bold Vision: 2028 Financial Milestones: Timken committed to a brendan.shea@jpmorgan.comJ.P. Morgan Securities LLC

set of 2028 financial targets including total sales of $5.0-$5.2bn (+MSD

organic CAGR), adjusted EBITDA margins of 21-23% (~500 basis points

above 2025's 17.4%), adjusted EPS of ~$8.50 (representing >55% growth

versus $5.33 in 2025), and cumulative free cash flow of ~$1.3bn over the 2026-

2028 period. On a pro forma basis, removing auto OE and Timken Belts and

including Bijur Delimon, organic revenue CAGR is ~5% with adj. EBITDA

margin expansion of ~100bps per year at the midpoint.

• Accelerate Success: Three Pillars, One Winning Strategy: The Elevate to