Earnings release
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Timken Reports Third-Quarter 2025 Results • Sales of $1.16 billion, up 2.7 percent from last year • Third-quarter diluted EPS of $0.99; adjusted EPS of $1.37 • Net income margin of 6.0 percent; adjusted EBITDA margin of 17.4 percent • Strong cash from operations of $201 million; free cash flow of $164 million • Updates full-year 2025 outlook; now expects EPS of $3.90-$4.00, with adjusted EPS of $5.20-$5.30 NORTH CANTON, Ohio: October 29, 2025 — The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, today reported third-quarter 2025 results. 3Q-25 3Q-24 % Change Net Sales (mils.) $1,157.1 $1,126.8 2.7% Net Income Margin 6.0% 7.3% (130 bps) Adjusted EBITDA Margin 17.4% 16.9% 50 bps Diluted EPS $0.99 $1.16 (14.7)% Adjusted EPS $1.37 $1.23 11.4% Net Cash from Operations (mils.) $201.1 $123.2 63.2% Free Cash Flow $163.8 $88.2 85.7% “We achieved higher sales, operating earnings and cash flow in the quarter compared to last year,” said Lucian Boldea, president and chief executive officer. “Our team is operating with rigor, focused on finishing the year strong, and moving with urgency to position the company for earnings growth in 2026. “I am excited to lead Timken forward and see many opportunities to create value and support the evolving needs of our customers by leveraging our portfolio of differentiated, mission-critical solutions. We intend to approach our portfolio with an 80/20 mindset to structurally improve margins, grow faster in the most profitable verticals, and create significant value for shareholders.” Third-Quarter 2025 Highlights Timken delivered sales in the third quarter of $1.16 billion, up 2.7 percent from the same period a year ago. The increase was driven by higher pricing, favorable foreign currency translation and revenue from the CGI acquisition, partially offset by lower end-market demand in the Industrial Motion segment. Organically, sales were up 0.6 percent as compared to the third quarter of 2024. The company posted net income in the third quarter of $69.3 million or $0.99 per diluted share. This compares to net income of $81.8 million or $1.16 per diluted share for the same period a year ago. The company’s net income margin in the quarter was 6.0 percent, compared to 7.3 percent in the third quarter of last year. Net income in the year-ago period benefited from a gain on sale of real estate. 1
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Excluding special items (detailed in the attached tables), adjusted net income in the third quarter was $96.2 million or $1.37 per diluted share. This compares to adjusted net income of $87.0 million or $1.23 per diluted share for the same period in 2024. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $201.7 million or 17.4 percent of sales, compared with $190.0 million or 16.9 percent of sales in the third quarter of last year. Net cash provided by operations in the quarter was $201.1 million, up from $123.2 million in the same period a year ago. Free cash flow for the quarter was $163.8 million, up from $88.2 million in the year-ago period. Third-Quarter 2025 Segment Results Engineered Bearings sales of $765.8 million increased 3.4 percent from the same period a year ago driven primarily by higher renewable energy demand, higher pricing and favorable foreign currency translation. Adjusted EBITDA in the quarter was $144.2 million or 18.8 percent of sales, compared with $138.4 million or 18.7 percent of sales in the third quarter of last year. The increase in adjusted EBITDA was driven primarily by favorable price/mix, lower material & logistics costs and the impact of higher volume, partially offset by incremental tariff costs and an unfavorable impact from foreign currency. Industrial Motion sales of $391.3 million increased 1.3 percent compared with the same period a year ago, as revenue from the CGI acquisition, higher pricing and favorable foreign currency translation more than offset lower services revenue and renewable energy demand. Adjusted EBITDA in the quarter was $74.5 million or 19.0 percent of sales, compared with $74.2 million or 19.2 percent of sales in the third quarter of last year. Adjusted EBITDA in the current quarter benefited from favorable price/mix, lower SG&A expenses and the benefit of the CGI acquisition, offset by the impact of lower volume, incremental tariff costs and higher material & logistics costs. Outlook Timken is updating its 2025 outlook, with full-year earnings per diluted share now forecasted to be in the range of $3.90 to $4.00 and adjusted earnings per diluted share in the range of $5.20 to $5.30. The company is now planning for 2025 revenue to be down approximately 0.75 percent in total at the midpoint, a slight improvement versus the midpoint of its prior outlook. 2
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Conference Call Information Timken will host a conference call today at 11 a.m. Eastern Time to review its financial results. Presentation materials will be available online in advance of the call for interested investors and securities analysts. Conference Call: Wednesday, Oct. 29, 2025 11:00 a.m. Eastern Time Live Dial-In: 833-470-1428 Or 646-844-6383 Access Code: 806928 (Call in 10 minutes prior to be included.) Conference Call Replay: Replay Dial-In available through Nov. 12, 2025: 866-813-9403 or 929-458-6194 Replay Passcode: 259173 Live Webcast: http://investors.timken.com Register in advance: http://tmkn.biz/48aODz8 About The Timken Company The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, designs a growing portfolio of next-generation products for diverse industries. For more than 125 years, Timken has used its specialized expertise to innovate and create customer-centric solutions that increase reliability and efficiency. Timken posted $4.6 billion in sales in 2024 and employs approximately 19,000 people globally, operating from 45 countries. Certain statements in this release (including statements regarding the company's forecasts, estimates, plans and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the company's future financial performance, including information under the heading “Outlook," are forward-looking. The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the finalization of the company's financial statements for the third quarter of 2025; fluctuations in customer demand for the company's products or services; unanticipated changes in business relationships with customers or their purchases from the company; changes in the financial health of the company's customers, which may have an impact on the company's revenues, earnings and impairment charges; logistical issues associated with port closures, delays or increased costs; the impact of changes to the company’s accounting methods; political risks associated with government instability; recent world events that have increased the risks posed by international trade disputes, tariffs, sanctions and hostilities; strained geopolitical relations between countries in which we have significant operations; weakness in global or regional general economic conditions and capital markets (as a result of financial stress affecting the banking system or otherwise); changes in wages, shipping costs, raw material costs, energy and fuel prices, and other production costs; changes in customer demand or tariff rates and other costs associated with tariffs; the company’s ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms; fluctuations in currency valuations or interest rates; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion, synergies, and expected cashflow generation within expected timeframes or at all; the company’s ability to effectively adjust prices for its products in response to changing dynamics; the impact on the company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; the introduction of new disruptive technologies, such as artificial intelligence; unplanned plant shutdowns; the effects of government- imposed restrictions, commercial requirements, and company goals associated with climate change and emissions or other sustainability initiatives; unanticipated litigation, claims, investigations remediation, or 3
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assessments; the rapidly evolving global regulatory landscape and the corresponding heightened operational complexity and compliance risks; restrictions on the use of, or claims or remediation associated with, per- and polyfluoroalkyl substances or polytetrafluoroethylene; the company’s ability to maintain positive relations with unions and works councils; the company’s ability to compete for skilled labor and to attract, retain and develop management, other key employees, and skilled personnel; negative impacts to the company’s operations or financial position as a result of pandemics, epidemics, or other public health concerns and associated governmental measures; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, acquisitions, capital investments, and cost reduction actions. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, quarterly reports on Form 10-Q and current reports on Form 8- K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. ### Media Relations: Scott Schroeder 234.262.6420 scott.schroeder@timken.com Investor Relations: Neil Frohnapple 234.262.2310 neil.frohnapple@timken.com 4
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The Timken Company CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in millions, except share data) (Unaudited) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2025 2024 2025 2024 Net sales $ 1,157.1 $ 1,126.8 $ 3,470.8 $ 3,499.4 Cost of products sold 808.1 782.4 2,402.8 2,383.8 Selling, general & administrative expenses 186.4 189.7 560.9 564.5 Amortization of intangible assets 20.2 19.7 59.1 58.7 Impairment and restructuring charges 3.0 2.5 16.8 8.1 Gain on sale of real estate — (13.8) — (13.8) Operating Income 139.4 146.3 431.2 498.1 Non-service pension and other postretirement expense (1.3) (0.9) (3.7) (2.9) Other expense, net (5.7) (6.3) (9.4) (6.0) Interest expense, net (24.9) (26.9) (75.9) (85.8) Income Before Income Taxes 107.5 112.2 342.2 403.4 Provision for income taxes 33.2 24.6 90.8 103.2 Net Income 74.3 87.6 251.4 300.2 Less: Net income attributable to noncontrolling interest 5.0 5.8 25.3 18.7 Net Income Attributable to The Timken Company $ 69.3 $ 81.8 $ 226.1 $ 281.5 Net Income per Common Share Attributable to The Timken Company CommonShareholders Basic Earnings per share $ 0.99 $ 1.17 $ 3.24 $ 4.01 Diluted Earnings per share $ 0.99 $ 1.16 $ 3.22 $ 3.98 Average Shares Outstanding 69,650,093 70,120,860 69,810,153 70,246,103 Average Shares Outstanding - assuming dilution 70,107,191 70,663,741 70,233,259 70,793,086 5
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BUSINESS SEGMENTS (Unaudited) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, (Dollars in millions) 2025 2024 2025 2024 Engineered Bearings Net sales $ 765.8 $ 740.7 $ 2,303.9 $ 2,326.6 Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) $ 144.2 $ 138.4 $ 456.8 $ 486.0 Adjusted EBITDA Margin 18.8 % 18.7 % 19.8 % 20.9 % Industrial Motion Net sales $ 391.3 $ 386.1 $ 1,166.9 $ 1,172.8 Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) $ 74.5 $ 74.2 $ 214.2 $ 236.0 Adjusted EBITDA Margin 19.0 % 19.2 % 18.4 % 20.1 % Unallocated corporate expense $ (17.0) $ (22.6) $ (53.0) $ (55.4) Consolidated Net sales $ 1,157.1 $ 1,126.8 $ 3,470.8 $ 3,499.4 Adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA) $ 201.7 $ 190.0 $ 618.0 $ 666.6 Adjusted EBITDA Margin 17.4 % 16.9 % 17.8 % 19.0 % EBITDA is a non-GAAP measure defined as operating income plus other income (expense) and excluding depreciation and amortization. EBITDA Margin isa non-GAAP measure defined as EBITDA as a percentage of net sales. EBITDA and EBITDA Margin are important financial measures used in themanagement of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes thatreporting EBITDA and EBITDA Margin is useful to investors as these measures are representative of the core operations of the Company. See below forreconciliation of Consolidated EBITDA and Consolidated EBITDA Margin. Consolidated adjusted EBITDA is a non-GAAP measure defined as EBITDA less impairment, restructuring and reorganization charges, acquisition costs,including transaction costs and the amortization of the inventory step-up, actuarial gains and losses associated with the remeasurement of the Company'sdefined benefit pension and other postretirement benefit plans, property losses and recoveries, gains and losses on the sale of real estate and divestitures,and other items from time to time that are not part of the Company's core operations. Consolidated adjusted EBITDA Margin is a non-GAAP measure definedas Consolidated adjusted EBITDA as a percentage of net sales. Management believes Consolidated adjusted EBITDA and Consolidated adjusted EBITDAMargin are important financial measures used in the management of the business, including decisions concerning the allocation of resources andassessment of performance. Management believes that reporting adjusted EBITDA and adjusted EBITDA Margin is useful to investors as these measuresare representative of the core operations of the Company. See below for reconciliation of Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDAMargin. Segment Adjusted EBITDA is the measurement of segment profit and loss. The Company's Chief Operating Decision Maker ("CODM") utilizesSegment Adjusted EBITDA and Segment Adjusted EBITDA Margin to evaluate segment performance and allocates resources. See the Company's Form 10-Q for a reconciliation of Segment Adjusted EBITDA to income before income taxes. (1) (1) (1) (1) (1) (1) (1) (1) 6
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CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) (Unaudited) September 30,2025 December 31,2024 ASSETS Cash and cash equivalents $ 449.1 $ 373.2 Restricted cash 2.4 0.4 Accounts receivable, net 755.9 664.6 Unbilled receivables 160.7 140.8 Inventories, net 1,225.9 1,195.6 Other current assets 138.0 142.3 Total Current Assets 2,732.0 2,516.9 Property, plant and equipment, net 1,341.2 1,306.9 Operating lease assets 140.8 130.6 Goodwill and other intangible assets 2,505.2 2,389.8 Other assets 82.7 66.8 Total Assets $ 6,801.9 $ 6,411.0 LIABILITIES Accounts payable $ 345.3 $ 321.7 Short-term debt, including current portion of long-term debt 21.4 13.0 Income taxes 20.3 24.4 Accrued expenses 492.2 461.4 Total Current Liabilities 879.2 820.5 Long-term debt 2,091.4 2,049.7 Accrued pension benefits 142.6 157.7 Accrued postretirement benefits 29.8 29.8 Long-term operating lease liabilities 94.4 84.0 Other non-current liabilities 267.7 285.2 Total Liabilities 3,505.1 3,426.9 EQUITY The Timken Company shareholders' equity 3,134.7 2,826.5 Noncontrolling interest 162.1 157.6 Total Equity 3,296.8 2,984.1 Total Liabilities and Equity $ 6,801.9 $ 6,411.0 7
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, (Dollars in millions) 2025 2024 2025 2024 Cash Provided by (Used in) OPERATING ACTIVITIES Net Income $ 74.3 $ 87.6 $ 251.4 $ 300.2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 58.6 56.1 170.9 165.6 Impairment charges — 0.1 — 2.0 Stock-based compensation expense 6.3 5.2 20.7 16.7 Pension and other postretirement expense 2.0 1.6 5.7 4.9 Pension and other postretirement benefit contributions and payments (6.7) (6.8) (35.1) (22.9) Changes in operating assets and liabilities: Accounts receivable 27.8 42.7 (64.0) (88.5) Unbilled receivables (7.5) (14.5) (19.8) (18.3) Inventories (7.3) 8.1 13.2 (12.5) Accounts payable (1.5) (30.5) 21.5 (16.7) Accrued expenses 50.7 31.6 23.3 11.1 Income taxes 3.9 (55.5) (18.1) (29.0) Other, net 0.5 (2.5) 1.3 (15.5) Net Cash Provided by Operating Activities $ 201.1 $ 123.2 $ 371.0 $ 297.1 INVESTING ACTIVITIES Capital expenditures $ (37.3) $ (35.0) $ (105.6) $ (116.4) Acquisitions, net of cash received — (167.3) — (167.7) Investments in short-term marketable securities, net (8.9) (4.3) (4.2) 16.5 Other, net 0.7 16.0 2.7 17.6 Net Cash Used in Investing Activities $ (45.5) $ (190.6) $ (107.1) $ (250.0) FINANCING ACTIVITIES Cash dividends paid to shareholders $ (24.4) $ (23.8) $ (73.9) $ (72.2) Purchase of treasury shares — (1.7) (45.7) (31.4) Proceeds from exercise of stock options 0.6 0.1 1.1 5.5 Payments related to tax withholding for stock-based compensation (0.1) — (9.9) (10.0) Net (payments) proceeds from credit facilities (27.2) 25.4 (0.3) (456.1) Net (payments) proceeds on long-term debt (55.8) (1.1) (63.1) 285.5 Proceeds on sale of shares in Timken India Limited — — — 232.3 Other, net (15.0) (1.1) (15.0) (7.8) Net Cash Used in Financing Activities $ (121.9) $ (2.2) $ (206.8) $ (54.2) Effect of exchange rate changes on cash (3.0) 12.0 20.8 1.2 Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash $ 30.7 $ (57.6) $ 77.9 $ (5.9) Cash, Cash Equivalents and Restricted Cash at Beginning of Period 420.8 471.0 373.6 419.3 Cash, Cash Equivalents and Restricted Cash at End of Period $ 451.5 $ 413.4 $ 451.5 $ 413.4 8
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` Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Earnings Per Share to GAAP Earnings Per Share: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Managementbelieves that the non-GAAP measures of adjusted net income and adjusted diluted earnings per share are important financial measures used in themanagement of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes thatreporting adjusted net income and adjusted diluted earnings per share is useful to investors as these measures are representative of the Company's coreoperations. (Dollars in millions, except share data) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2025 EPS 2024 EPS 2025 EPS 2024 EPS Net Income Attributable to The Timken Company $69.3 $0.99 $81.8 $1.16 $226.1 $3.22 $281.5 $3.98 Adjustments: Acquisition intangible amortization $20.2 $19.7 $ 59.1 $ 58.7 Impairment, restructuring and reorganization charges 4.8 3.4 13.0 12.8 Acquisition-related charges — 3.1 — 10.8 Gain on sale of certain assets (0.5) (13.8) (1.8) (14.7) CEO transition expenses 6.7 1.5 18.5 2.7 Property losses and related expenses — 0.9 — 1.1 Noncontrolling interest of above adjustments — (0.1) 4.8 (0.2) Provision for income taxes (4.3) (9.5) (25.6) (24.8) Total Adjustments: 26.9 0.38 5.2 0.07 68.0 0.97 46.4 0.65 Adjusted Net Income Attributable to The Timken Company $96.2 $1.37 $87.0 $1.23 $294.1 $4.19 $327.9 $4.63 Adjustments are pre-tax, with the net tax provision listed separately. Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii)severance related to cost reduction initiatives; (iv) impairment of assets; and (v) related depreciation and amortization. The Company re-assesses its operating footprint and coststructure periodically, and makes adjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company’s core operations. Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact. Represents the net gain resulting from the sale of certain assets. Gain on sale of certain assets for the third quarter of 2024 included a $13.8 million gain related to the sale ofthe Gaffney, South Carolina plant. On August 22, 2025, the Company announced the appointment of Lucian Boldea as President and Chief Executive Officer ("CEO"), effective September 1, 2025, and thatRichard G. Kyle would retire from the role of interim President and CEO. On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Mr. Kyle would be serving as interim President and CEO. CEO Transition expenses primarily relate to the cost ofthe settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, the acceleration of certain stock compensation awardsissued to Mr. Kyle, and other one-time costs associated with the transition in 2025. During 2024, the Company announced that Mr. Kyle, President and CEO of the Company would be retiring from his position as CEO as of February 15, 2025, and that Mr. Mehta would be appointed President and CEO on September 5, 2024. CEO Transition expenses for2024 relate to the acceleration of certain stock compensation awards for Mr. Kyle and other one-time costs associated with the transition in 2024. Represents property loss and related expenses incurred during the periods presented resulting from a fire that occurred during the second quarter of 2024 at one of theCompany's plants in Slovakia. Represents the noncontrolling interest impact of the adjustments listed above, as well as the reversal of uncertain tax positions related to Timken India Limited. Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of discrete tax items recorded during the respective periods as well asother adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods. (1) (2) (3) (4) (5) (6) (7) (8) (1) (2) (3) (4) (5) (6) (7) (8) 9
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Reconciliation of EBITDA to GAAP Net Income, EBITDA Margin to Net Income as a Percentage of Sales, and EBITDA Margin, AfterAdjustments, to Net Income as a Percentage of Sales, and EBITDA, After Adjustments, to Net Income: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Managementbelieves consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure that is useful to investors as it isrepresentative of the Company's performance and that it is appropriate to compare GAAP net income to consolidated EBITDA. Management also believesthat adjusted EBITDA, adjusted EBITDA margin and EBITDA margin are useful to investors as they are representative of the Company's core operations andare used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. (Dollars in millions) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2025 PercentagetoNet Sales 2024 PercentagetoNet Sales 2025 PercentagetoNet Sales 2024 PercentagetoNet Sales Net Income $ 74.3 6.4 %$ 87.6 7.8 %$ 251.4 7.2 %$ 300.2 8.6 % Provision for income taxes 33.2 24.6 90.8 103.2 Interest expense 27.3 30.3 83.6 97.1 Interest income (2.4) (3.4) (7.7) (11.3) Depreciation and amortization 58.6 56.1 170.9 165.6 Consolidated EBITDA $ 191.0 16.5 %$ 195.2 17.3 %$ 589.0 17.0 %$ 654.8 18.7 % Adjustments: Impairment, restructuring andreorganization charges $ 4.5 $ 3.1 $ 12.3 $ 11.9 Acquisition-related charges — 3.1 — 10.8 Gain on sale of certain assets (0.5) (13.8) (1.8) (14.7) CEO transition expenses 6.7 1.5 18.5 2.7 Property losses and related expenses— 0.9 — 1.1 Total Adjustments 10.7 0.9 % (5.2) (0.4)% 29.0 0.8 % 11.8 0.3 % Adjusted EBITDA $ 201.7 17.4 %$ 190.0 16.9 %$ 618.0 17.8 %$ 666.6 19.0 % Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii)severance related to cost reduction initiatives; and (iv) impairment of assets. The Company re-assesses its operating footprint and cost structure periodically, and makesadjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company’s core operations. Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact. Represents the net gain resulting from the sale of certain assets. Gain on sale of certain assets for the third quarter of 2024 included a $13.8 million gain related to the sale ofthe Gaffney, South Carolina plant. On August 22, 2025, the Company announced the appointment of Lucian Boldea as President and CEO, effective September 1, 2025, and that Richard G. Kyle would retirefrom the role of interim President and CEO. On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Mr. Kyle would be serving as interim President and CEO. CEO Transition expenses primarily relate to the cost of the settlement agreementwith Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, the acceleration of certain stock compensation awards issued to Mr. Kyle, and otherone-time costs associated with the transition in 2025. During 2024, the Company announced that Mr. Kyle, President and CEO of the Company would be retiring from his position as CEO as of February 15, 2025, and that Mr. Mehta would be appointed President and CEO on September 5, 2024. CEO Transition expenses for 2024 relate to the accelerationof certain stock compensation awards for Mr. Kyle and other one-time costs associated with the transition in 2024. Represents property loss and related expenses incurred during the periods presented resulting from a fire that occurred during the second quarter of 2024 at one of the Company's plants in Slovakia. (1) (2) (3) (4) (5) (1) (2) (3) (4) (5) 10
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Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt to Capital, and the Ratio of Net Debt to Adjusted EBITDA: (Unaudited) These reconciliations are provided as additional relevant information about the Company's financial position deemed useful to investors. Capital, used for theratio of net debt to capital, is a non-GAAP measure defined as total debt less cash and cash equivalents plus total shareholders' equity. Managementbelieves Net Debt, the Ratio of Net Debt to Capital, Adjusted EBITDA (see next page), and the Ratio of Net Debt to Adjusted EBITDA are importantmeasures of the Company's financial position, due to the amount of cash and cash equivalents on hand. The Company presents net debt to adjustedEBITDA because it believes it is more representative of the Company's financial position as it is reflective of the ability to cover its net debt obligations withresults from its core operations. (Dollars in millions) September30,2025 December 31,2024 Short-term debt, including current portion of long-term debt $ 21.4 $ 13.0 Long-term debt 2,091.4 2,049.7 Total Debt $ 2,112.8 $ 2,062.7 Less: Cash and cash equivalents (449.1) (373.2) Net Debt $ 1,663.7 $ 1,689.5 Total Equity $ 3,296.8 $ 2,984.1 Ratio of Net Debt to Capital 33.5 % 36.1 % Adjusted EBITDA for the Twelve Months Ended $ 796.2 $ 844.8 Ratio of Net Debt to Adjusted EBITDA 2.1 2.0 Reconciliation of Free Cash Flow to GAAP Net Cash Provided by Operating Activities: (Unaudited) Management believes that free cash flow is a non-GAAP measure that is useful to investors because it is a meaningful indicator of cash generated fromoperating activities available for the execution of its business strategy. (Dollars in millions) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2025 2024 2025 2024 Net cash provided by operating activities $ 201.1 $ 123.2 $ 371.0 $ 297.1 Less: capital expenditures (37.3) (35.0) (105.6) (116.4) Free cash flow $ 163.8 $ 88.2 $ 265.4 $ 180.7 11
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Reconciliation of EBITDA, After Adjustments, to GAAP Net Income: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors. Managementbelieves consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure that is useful to investors as it isrepresentative of the Company's performance and that it is appropriate to compare GAAP net income to consolidated EBITDA. Management also believesthat the non-GAAP measure of adjusted EBITDA is useful to investors as it is representative of the Company's core operations and is used in themanagement of the business, including decisions concerning the allocation of resources and assessment of performance. (Dollars in millions) Twelve MonthsEndedSeptember 30,2025 Twelve MonthsEndedDecember 31, 2024 Net Income $ 326.5 $ 375.3 Provision for income taxes 106.5 118.9 Interest expense 111.6 125.1 Interest income (11.3) (14.9) Depreciation and amortization 227.1 221.8 Consolidated EBITDA $ 760.4 $ 826.2 Adjustments: Impairment, restructuring and reorganization charges $ 18.2 $ 17.8 Corporate pension and other postretirement benefit related income (1.3) (1.3) Acquisition-related charges 2.2 13.0 Gain on sale of certain assets (1.8) (14.7) Property losses and related expenses 0.1 1.2 CEO transition expenses 19.5 3.7 Tax indemnification and related items (1.1) (1.1) Total Adjustments 35.8 18.6 Adjusted EBITDA $ 796.2 $ 844.8 Impairment, restructuring and reorganization charges (including items recorded in cost of products sold) relate to: (i) plant closures; (ii) the rationalization of certain plants; (iii)severance related to cost reduction initiatives; and (iv) impairment of assets. The Company re-assesses its operating footprint and cost structure periodically, and makesadjustments as needed that result in restructuring charges. However, management believes these actions are not representative of the Company’s core operations. Corporate pension and other postretirement benefit related income represents actuarial gains that resulted from the remeasurement of plan assets and obligations as a result ofchanges in assumptions or experience. The Company recognizes actuarial gains and losses in connection with the annual remeasurement in the fourth quarter, or if specificevents trigger a remeasurement. Acquisition-related charges represent deal-related expenses associated with completed transactions and any resulting inventory step-up impact. Represents the net gain resulting from the sale of certain assets. Gain on sale of certain assets for the third quarter of 2024 included a $13.8 million gain related to the sale of the Gaffney, South Carolina plant. Represents property loss and related expenses incurred during the periods presented resulting from property loss that occurred during the second quarter of 2024 at one of the Company's plants in Slovakia. On August 22, 2025, the Company announced the appointment of Lucian Boldea as President and CEO, effective September 1, 2025, and that Richard G. Kyle would retirefrom the role of interim President and CEO. On March 31, 2025, the Company announced that Tarak B. Mehta, President and CEO of the Company would be departing from the Company, effective immediately, and Mr. Kyle would be serving as interim President and CEO. CEO Transition expenses for the twelve months ended September 30, 2025,primarily relate to the cost of the settlement agreement with Mr. Mehta in connection with his departure, net of the impact for stock awards forfeited, the acceleration of certainstock compensation awards issued to Mr. Kyle, and other one-time costs associated with the transition in 2025. During 2024, the Company announced that Mr. Kyle, President and CEO of the Company would be retiring from his position as CEO as of February 15, 2025, and that Mr. Mehta would be appointed President and CEO on September 5, 2024. CEOTransition expenses for 2024 relate to the acceleration of certain stock compensation awards for Mr. Kyle and other one-time costs associated with the transition in 2024. (1) (2) (3) (4) (5) (6) (1) (2) (3) (4) (5) (6) 12
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Reconciliation of Net Sales to Organic Sales (Unaudited) The following reconciliation is provided as additional relevant information about the Company's performance deemed useful to investors.Management believes that net sales, excluding the impact of acquisitions, divestitures and foreign currency exchange rate changes, allowinvestors and the Company to meaningfully evaluate the percentage change in net sales on a comparable basis from period to period. Three MonthsEnded September30, 2025 Three MonthsEnded September30, 2024 $ Change % Change Net sales $ 1,157.1 $ 1,126.8 $ 30.3 2.7 % Less: Acquisitions 11.3 — 11.3 NM Currency 12.2 — 12.2 NM Net sales, excluding the impact of acquisitions andcurrency $ 1,133.6 $ 1,126.8 $ 6.8 0.6 % Reconciliation of Adjusted Earnings per Share to GAAP Earnings per Share for Full Year 2025 Outlook: (Unaudited) The following reconciliation is provided as additional relevant information about the Company's outlook deemed useful to investors. Forecasted full yearadjusted diluted earnings per share is an important financial measure that management believes is useful to investors as it is representative of theCompany's expectation for the performance of its core business operations. Low EndEarningsPer Share High EndEarningsPer Share Forecasted full year GAAP diluted earnings per share $ 3.90 $ 4.00 Forecasted Adjustments: Impairment, restructuring and other special items, net 0.50 0.50 Acquisition-related intangible amortization expense, net 0.80 0.80 Forecasted full year adjusted diluted earnings per share $ 5.20 $ 5.30 Impairment, restructuring and other special items, net do not include the impact of any potential future mark-to-market pension and other postretirementremeasurement adjustments, because the amounts will not be known until incurred. (1) (1) 13