Timken Q3 Engineering Bearings Sales Reach $771 Million

en.Wedoany.com Reported - On November 4, The Timken Company, a U.S. manufacturer of industrial bearings and power transmission technology, reported its operating results for the third quarter of 2026. Quarterly net sales reached $1,211.4 million, up 4.7% from $1,157.1 million in the same period of 2025. Engineering Bearings segment sales reached $771.4 million, up 0.7% year over year; Industrial Motion segment sales reached $440 million, up 12.4% year over year. Higher Industrial Motion product volumes, the contribution from the Bijur Delimon acquisition, and product price increases were the main factors driving the group's revenue growth.

Engineering Bearings third-quarter sales increased by $5.6 million from $765.8 million in the prior-year period. Favorable pricing and a modest positive impact from currency translation supported the segment's revenue growth. Engineering Bearings adjusted EBITDA was $155.8 million, up from $144.2 million in the prior-year period; the corresponding margin rose from 18.8% to 20.2%. The profit improvement was primarily driven by net tariff refund benefits, changes in product pricing and sales mix, and favorable currency effects, partially offset by higher operating costs.

Industrial Motion third-quarter sales increased from $391.3 million in the same period of 2025 to $440 million, an increase of 12.4%. Improved demand across most end markets and product platforms, combined with the contribution from the Bijur Delimon business and higher selling prices, drove the segment's growth. Adjusted EBITDA reached $87 million, compared with $74.5 million in the prior-year period, with margin rising from 19.0% to 19.8%. Higher volumes, improved pricing and product mix, and the contribution from the acquired business were the main factors behind the segment's profit increase.

The group's third-quarter net income was $93.8 million, up from $69.3 million in the prior-year period, with diluted earnings per share rising from $0.99 to $1.34. Adjusted net income, excluding certain items, reached $115.1 million, with adjusted earnings per share of $1.65, compared with $96.2 million and $1.37, respectively, in the prior-year period. Group adjusted EBITDA was $224.6 million, with an adjusted EBITDA margin of 18.5%, up from 17.4% in the prior-year period. Adjusted EBITDA for the quarter included $12.4 million in net tariff refund benefits.

Net cash provided by operating activities reached $256.1 million, compared with $201.1 million in the prior-year period; free cash flow reached $221.4 million, up from $163.8 million in the prior-year period. In the third quarter, Timken repurchased approximately 505,000 shares and returned a total of $88.7 million to shareholders through dividends and share repurchases. As of September 30, 2026, the company's ratio of net debt to adjusted EBITDA was 1.7x.

Timken completed the sale of its belt business to Gates Industrial Corporation at the end of the third quarter. The divestiture reshaped the Industrial Motion product portfolio and is expected to help improve the adjusted EBITDA margin of the related business. The company continues to advance its industrial motion control and engineering bearings business footprint and has incorporated strategic initiatives and improving industrial market demand into its forward operating plans.

Following the release of its third-quarter results, Timken adjusted its full-year 2026 diluted earnings per share guidance to $4.05 to $4.20 and raised its adjusted earnings per share guidance to $6.35 to $6.50. Full-year sales are expected to grow approximately 5.5% compared with 2025. These metrics represent the company's latest forecasts for the full year 2026 and are not annual results already achieved.

This earnings report reflects the differing growth trajectories of the Engineering Bearings and Industrial Motion businesses. Engineering Bearings sales maintained modest growth with improved adjusted margins; the Industrial Motion business achieved double-digit sales growth and was the primary driver of the group's third-quarter revenue growth.