The Timken Company has closed its previously announced deal to sell its belts business assets to Gates Industrial Corporation Ltd., a divestiture aimed at sharpening the company's focus on advanced motion technology. Timken inked the agreement with Gates on April 29, 2026, and expects the sale to lift its Industrial Motion segment's adjusted EBITDA margins, be accretive to earnings in 2027, and help fund its capital allocation priorities. The company targets an Industrial Motion segment adjusted EBITDA margin of 25-27% of sales in 2028, up from the 19% reported in 2025, alongside adjusted earnings per share of $8.50 for 2028, which would mark 55% growth over 2025. In the second quarter of 2026, Industrial Motion sales rose 14.6% year over year to $453.9 million and segment adjusted EBITDA climbed to $105.6 million from $72.6 million, expanding the margin to 23.3% from 18.3%. Timken reported quarterly adjusted earnings of $1.83 per share, up 28.9% year over year and ahead of the Zacks Consensus Estimate of $1.63, while consolidated sales rose 7.5% to $1.26 billion, beating the $1.23 billion consensus estimate.
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Timken CompanyTimken closed the belts divestiture, expected to lift Industrial Motion EBITDA margins and be accretive to 2027 earnings
Gates Industrial Corporation plcGates closed its acquisition of Timken's belts business, expanding its portfolio
