A global maker of engineered bearings and industrial motion products, Timken supplies tapered, spherical, cylindrical and ball bearings along with drives, belts, couplings and seals to industries from aerospace to renewable energy. It operates manufacturing facilities and technology centers across 44 countries and is one of the world's largest bearing makers, competing alongside names like SKF and Schaeffler.
Timken books $94M in impairment charges for its belts divestiture, driving a 63% drop in Q2 net income despite 7.5% revenue growth.
A planned divestiture reshaped Timken's quarter. rose 7.5% to $1.26 billion and expanded 1.0 point to 31.7%, but $94.4 million in charges tied to the sale of the belts business pushed down 63.2% to $28.9 million. The underlying operations strengthened, but the exit from belts will define the year.
Key takeaways
fell 63.2% to $28.9 million, driven by $94.4 million in and restructuring charges tied to the planned sale of the belts business within the Industrial Motion .
rose 7.5% to $1,260.9 million, with organic volume contributing $52 million, acquisitions adding $21 million, and favorable currency translation providing a $15 million .
Industrial Motion rose 45.5% to $105.6 million, reflecting 8.1% organic sales growth on higher demand and favorable price/mix, even as the segment absorbed the belts .
Section summaries
Management's Discussion and Analysis
Q2 2026 sales rose 7.5% to $1.26B on higher volume and acquisitions, but net income fell 63% to $29M due to $94M in belts divestiture impairment charges.
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Consolidated grew 7.5% to $1,260.9M, driven by higher organic volume ($52M), acquisitions ($21M), and favorable currency ($15M).
Engineered Bearings rose 5.1% to $161.3 million, with organic sales up 2.5% on higher volume and pricing, partially offset by higher manufacturing and SG&A costs.
expanded 1.0 point to 31.7%, as pricing gains and higher volume more than offset the impact of tariffs and manufacturing costs.
fell 13.8% to $107.1 million for the quarter, as a $92.1 million more than offset higher before charges.
What changed
The $20 million quarterly tariff cost flagged in Q1 2026 and earlier periods persisted, but its impact was fully absorbed: expanded 1.0 point to 31.7%, and before charges rose, indicating pricing and volume gains are now outweighing the tariff .
Industrial Motion's accelerated to 8.1% from 7.0% in Q1 2026, confirming the Q1 recovery was not a one-time event and that demand strength is broadening beyond the sectors that initially drove the rebound.
Engineered Bearings sustained its return to with a 2.5% gain, following 3.0% in Q1 2026, and converted that growth into a 5.1% increase in , resolving the concern from Q1 that tariffs and higher costs were keeping profitability flat.
weakened further to $107.1 million from $39.3 million in Q1, as the deepened to $92.1 million, pushing first-half to $80.5 million and raising the bar for the second-half ramp management expects.
What to watch
Whether the belts divestiture closes on schedule and at the expected price, and whether additional charges beyond the $94.4 million appear in Q3.
Whether Industrial Motion's 8.1% rate is sustainable after the belts business is removed, or whether the divestiture materially alters the 's growth profile.
Whether sees a significant second-half ramp, as the $80.5 million in first-half leaves a wide gap to close if full-year cash generation is to approach 2025's $406.1 million.
Whether can hold above 31% through the second half, after improving sequentially from 29.3% in Q4 2025 to 32.0% in Q1 2026 and 31.7% in Q2, as tariffs persist and the belts divestiture removes a portion of the base.
attributable to Timken dropped 63.2% to $28.9M, primarily due to $94.4M in and restructuring charges tied to the planned sale of the belts business.
Industrial Motion surged 45.5% to $105.6M on 8.1% organic sales growth, reflecting higher demand and favorable price/mix.
Engineered Bearings rose 5.1% to $161.3M, with organic sales up 2.5% on higher volume and pricing, partially offset by higher manufacturing and SG&A costs.
fell to $146.4M from $169.9M due to a $92.1M , while to remained at 2.0x.
Full-year 2026 is expected to grow 5-6%, but earnings are seen down slightly as higher charges mostly offset benefits from organic volume and price/mix.
Quantitative and Qualitative Disclosures About Market Risk
Refer to information appearing under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q. Furthermore, a discussion of market risk exposures is included in Part II, Item 7A. Quantitative and Qualitative Disclosure…
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Refer to information appearing under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q. Furthermore, a discussion of market risk exposures is included in Part II, Item 7A. Quantitative and Qualitative Disclosure about Market Risk, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes in reported market risk since the inclusion of this discussion in the Company’s Annual Report on Form 10-K referenced above.
The Company is involved in various claims and legal actions arising in the ordinary course of business. SEC regulations require us to disclose certain information about legal proceedings when a governmental authority is a party to the proceedings if we reasonably believe that su…
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The Company is involved in various claims and legal actions arising in the ordinary course of business. SEC regulations require us to disclose certain information about legal proceedings when a governmental authority is a party to the proceedings if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to such regulations, the Company uses a threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required. We believe matters under this threshold are not material to the Company. In the opinion of management, the ultimate disposition of open proceedings as of June 30, 2026 will not have a material adverse effect on the Company’s consolidated financial position or annual results of operations.
The Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, included a detailed discussion of our risk factors. There have been no material changes to the risk factors included in the Company's Annual Report on Form 10-K for the year ended December 31,…
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The Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, included a detailed discussion of our risk factors. There have been no material changes to the risk factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Investors should not interpret the disclosure of any risk factor to imply that the risk has not already materialized.