v3.26.3
Financing Arrangements
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Financing Arrangements
Note 11 - Financing Arrangements
Short-term debt at September 30, 2026 and December 31, 2025 was as follows:
September 30,
2026		December 31,
2025
Borrowings under lines of credit for certain of the Company’s foreign
   subsidiaries with various banks with interest rates ranging from 3.15%
   to 5.88% at September 30, 2026 and 2.59% to 2.68% at December 31, 2025
$10.8 $24.5 
Short-term debt$10.8 $24.5 
Lines of credit for certain of the Company's foreign subsidiaries provide for short-term borrowings. Most of these lines of credit are uncommitted. At September 30, 2026, the Company’s foreign subsidiaries had borrowings outstanding of $10.8 million and bank guarantees of $5.4 million.
Long-term debt at September 30, 2026 and December 31, 2025 was as follows:
September 30,
2026		December 31,
2025
Variable-rate Senior Credit Facility, with an average interest rate of 5.10% for
   U.S. dollars and 3.23% for Euros at September 30, 2026, and 2.91% for Euros
   at December 31, 2025
$169.0 $21.2 
Fixed-rate Euro Senior Unsecured Notes(1), maturing on September 7, 2027,
   with an interest rate of 2.02%
169.9 176.2 
Variable-rate Term Loan(1), originally due to mature on December 5, 2027,
   with an interest rate 4.94% at December 31, 2025
— 84.8 
Fixed-rate Medium-Term Notes, Series A(1), maturing at various dates through
   May 2028, with interest rates ranging from 6.74% to 7.61%
149.9 154.9 
Fixed-rate Senior Unsecured Notes(1), maturing on December 15, 2028, with
   an interest rate of 4.50%
398.9 398.5 
Fixed-rate Senior Unsecured Notes(1), maturing on April 1, 2032, with an
   interest rate of 4.13%
347.2 346.4 
Fixed-rate Euro Senior Unsecured Notes(1), maturing on May 23, 2034, with an
   interest rate of 4.13%
672.1 695.5 
Fixed-rate Euro Bank Loan, maturing on June 30, 2033, with an
   interest rate of 2.15%
9.2 10.6 
Other7.7 9.4 
   Total debt$1,923.9 $1,897.5 
   Less: current maturities178.7 14.4 
Long-term debt$1,745.2 $1,883.1 
(1) Net of discounts and fees
Note 11 - Financing Arrangements (continued)
On December 5, 2025, the Company renewed the Amended and Restated Asset Securitization Agreement (the "Accounts Receivable Facility"). The $100 million Accounts Receivable Facility matures on November 30, 2028. On September 17, 2026, the Company exercised the accordion feature within the Accounts Receivable Facility, increasing the availability under the facility from $100 million to $125 million. Under the terms of the Accounts Receivable Facility, the Company sells, on an ongoing basis, certain domestic trade receivables to Timken Receivables Corporation, a wholly-owned consolidated subsidiary that, in turn, uses the trade receivables to secure borrowings that are funded through a vehicle that issues commercial paper in the short-term market. Borrowings under the Accounts Receivable Facility may be limited by certain borrowing base limitations; however, availability under the Accounts Receivable Facility was not reduced by any such borrowing base limitations at September 30, 2026. As of September 30, 2026, there were no outstanding borrowings under the Accounts Receivable Facility; however, the Company issued standby letters of credit of $22.9 million under the Accounts Receivable Facility, reducing the availability to $102.1 million. The cost of this facility, which is the prevailing commercial paper rate plus facility fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income.
On July 2, 2026, the Company entered into the Sixth Amended and Restated Credit Agreement (the “Amended Credit Agreement”), which provides for a $1.2 billion unsecured revolving credit facility ("Senior Credit Facility") that will mature on July 2, 2031, with two potential one-year extension options subject to customary terms and conditions. Upon entering into the Amended Credit Agreement, the Company paid the remaining balance of $85 million on the $400 million unsecured term loan facility ("2027 Term Loan"), which was set to mature on December 5, 2027, utilizing the Senior Credit Facility. The interest rates under the Amended Credit Agreement are based on Secured Overnight Financing Rate ("SOFR") for U.S. dollar borrowings and Euro Interbank Offered Rate (“EURIBOR”) for Euro borrowings. At September 30, 2026, the Senior Credit Facility had $169.0 million in outstanding borrowings, which reduced the availability to $1.03 billion. The Amended Credit Agreement has two financial covenants: a consolidated net leverage ratio and a consolidated interest coverage ratio.
At September 30, 2026, the Company was in full compliance with all applicable covenants on its outstanding debt.
In the ordinary course of business, the Company utilizes standby letters of credit issued by financial institutions to guarantee certain obligations, most of which relate to certain insurance contracts and indirect taxes. At September 30, 2026, outstanding letters of credit totaled $65.5 million, most with expiration dates within 12 months. These outstanding letters of credit include $22.9 million issued under the Accounts Receivable Facility, as mentioned above.
The maturities of long-term debt (including $6.1 million of finance leases) subsequent to September 30, 2026 are as follows:
Year
2026$6.1 
2027198.7 
2028523.0 
20292.7 
20302.1 
2031170.8 
Thereafter1,032.6 
The table above excludes $11.7 million of unamortized discounts and fees that are netted against long-term debt and $0.4 million of imputed interest netted against finance leases at September 30, 2026.