Timken Completes Sale of Belts Business to Gates

Divestiture improves profitability and increases company focus on core areas of expertise

NORTH CANTON, Ohio, Sept. 28, 2026 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a leader in advanced motion technology, today announced the completion of the sale of its belts business assets to Gates Industrial Corporation Ltd. (NYSE: GTES). Financial terms of the transaction were not disclosed.

"This divestiture is an important milestone in achieving our stated 2028 margin targets," said Lucian Boldea, president and chief executive officer. "Exiting the belts business also allows us to increase focus on our core competencies in advanced motion technology."

The divested business manufactures a comprehensive line of belts used in industrial, commercial and consumer applications.

"We believe Gates is the right owner of the business," Boldea said. "Thanks to our belts colleagues for their commitment to Timken and our customers through the years."

The completed divestiture is expected to improve the adjusted EBITDA margins of Timken's Industrial Motion segment and be accretive to EPS in 2027.

Proceeds from the divestiture will help fund Timken's capital allocation priorities.

About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com), a leader in advanced motion technology, designs and manufactures highly engineered systems and components for customers in strategic end markets, including aerospace and defense, power and electrification, and automation and industrial solutions. With more than 125 years of specialized expertise and a multinational presence, Timken is a trusted partner worldwide, innovating and powering performance across the application lifecycle. The company posted $4.6 billion in sales in 2025 and employs approximately 19,000 people, operating from 45 countries. Learn more at www.timken.com or @TheTimkenCompany.

Safe Harbor
Certain statements in this release that are not historical in nature (including the company's forecasts, beliefs, expectations, and targets) are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements related to expectations regarding future financial performance are forward-looking.

The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: fluctuations in customer demand for the company's products or services; unanticipated changes in business relationships with customers or their purchases from the company; weakness in global or regional general economic conditions and capital markets (as a result of financial stress affecting the banking system or otherwise); changes in customer demand or tariff rates and other costs associated with tariffs; the company's ability to effectively adjust prices for its products in response to changing dynamics; unplanned plant shutdowns; the rapidly evolving global regulatory landscape and the corresponding heightened operational complexity and compliance risks; the company's ability to maintain positive relations with unions and works councils; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, divestitures, acquisitions, capital investments, and cost reduction actions. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2025, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Media Relations:
Sarah Factor
234.262.4878
sarah.factor@timken.com

Investor Relations:
Neil Frohnapple
234.262.2310
investors@timken.com

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SOURCE The Timken Company