Stephen Volkmann's questions to Timken Co (TKR) leadership • Q2 2025
Question
Stephen Volkmann of Jefferies asked for a comparison of the current automotive contract restructuring to a previous one, specifically the mix of exiting versus repricing business. He also requested confirmation of the key tailwinds for 2026, such as the auto project, plant closures, and price/cost benefits.
Answer
President & CEO Rich Kyle explained that the current auto situation is different from the past as Timken no longer has dedicated automotive plants, making it less complex. He confirmed the list of 2026 tailwinds was good, highlighting self-help from cost actions, carryover pricing, and improved portfolio mix, which should position the company well for a potential market upturn. EVP and CFO Philip Fracassa added that plant ramp-ups would also contribute positively.