Timken, Q3 2026 Earnings Call Transcript

Timken reported Q3 sales growth of 4.7%, with organic revenue up 2.8%, EBITDA margin expanding to 18.5% and adjusted EPS rising 20% to $1.65. Industrial Motion led organic growth at 7.3%, while Engineered Bearings was nearly flat as a steep decline in China wind sales offset gains in other markets. The company raised its 2026 adjusted EPS outlook to $6.35–$6.50 and maintained its 3.5% organic sales growth forecast. Management expects organic sales to grow at a mid-single-digit rate in 2027, supported by strategic initiatives and industrial-market momentum, especially in automation and robotics and aerospace and defense. Backlog was up mid-single digits year over year. The belts divestiture is expected to lift Industrial Motion EBITDA margins by more than 200 basis points in 2027; 80/20 initiatives are also expected to support growth and margins. China wind remains a near-term headwind, with another sequential decline expected in Q4.