Impairment and Restructuring Charges

6 Months Ended

Jun. 30, 2026

Note 15 - Impairment and Restructuring Charges

Impairment and restructuring charges by segment are comprised of the following:

For the three months ended June 30, 2026:


	Engineered Bearings		Industrial Motion		Unallocated Corporate		Total
Impairment charges	$	—	$	79.0	$	—	$	79.0
Severance and related benefit costs	5.4		3.0		—		8.4
Exit costs	0.4		0.1		—		0.5
Total	$	5.8	$	82.1	$	—	$	87.9

For the six months ended June 30, 2026:


	Engineered Bearings		Industrial Motion		Unallocated Corporate		Total
Impairment charges	$	—	$	79.0	$	—	$	79.0
Severance and related benefit costs	7.9		3.5		0.5		11.9
Exit costs	0.3		0.3		—		0.6
Total	$	8.2	$	82.8	$	0.5	$	91.5

For the three months ended June 30, 2025:


	Engineered Bearings		Industrial Motion		Unallocated Corporate		Total

Severance and related benefit costs	$	0.9	$	1.8	$	—	$	2.7
Exit costs	—		0.2		—		0.2
Total	$	0.9	$	2.0	$	—	$	2.9

For the six months ended June 30, 2025:


	Engineered Bearings		Industrial Motion		Unallocated Corporate		Total

Severance and related benefit costs	$	1.5	$	2.5	$	9.4	$	13.4
Exit costs	—		0.4		—		0.4
Total	$	1.5	$	2.9	$	9.4	$	13.8

The following discussion explains the more significant impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts included in the tables above.

Corporate:

On March 31, 2025, Timken announced that the Company and Tarak B. Mehta, the former President and CEO, had mutually agreed that Mr. Mehta would depart from the Company, including resigning as a member of the Company’s Board of Directors (the "Board"), effective immediately. During the three months ended March 31, 2025, the Company recorded severance expense of $9.3 million, plus related taxes, for Mr. Mehta's settlement arrangement and release of claims in connection with his termination without cause. $7.3 million of this amount was paid in 2025 and 2026, with the remaining amount to be paid in 2027.

Note 15 - Impairment and Restructuring Charges (continued)

Engineered Bearings:

On April 16, 2026, Andreas Roellgen ceased serving as Executive Vice President and President of Engineered Bearings of the Company effective as of the close of business that day. As an employee who is domiciled in Europe, Mr. Roellgen is subject to local legal requirements and process. During the three months ended June 30, 2026, the Company recorded severance and related benefits of $4.4 million in connection with this action. The Company has incurred cumulative pretax costs related to this action of $5.6 million as of June 30, 2026, including the acceleration of stock compensation expense recorded in SG&A expense.

On May 14, 2025, the Company announced the closure of its bearing manufacturing plant in Heilbronn, Germany. The closure of this facility is expected to be completed by the end of 2026 and affect approximately 50 employees. The Company expects to incur approximately $12 million to $15 million of pretax costs in total related to this closure. During the three months and six months ended June 30, 2026, the Company recorded severance and related benefits of $0.6 million and $3.1 million, respectively, related to this closure. The Company has incurred cumulative pretax costs related to this closure of $11.7 million as of June 30, 2026, including rationalization costs recorded in cost of products sold.

Industrial Motion:

On April 29, 2026, the Company entered into a definitive agreement to sell certain assets of its belts business to Gates. During the three months ended June 30, 2026, the Company classified certain assets of the belts business as assets held for sale and recorded impairment charges of $64.4 million. The Company anticipates the sale of the belts business to be completed during the third quarter of 2026. In addition, on April 30, 2026, the Company announced the closure of its belts manufacturing facility in Springfield, Missouri. The facility in Springfield is not part of the sale of the belts business. During the three months ended June 30, 2026, the Company recorded impairment charges of $14.6 million and severance and related benefits of $2.7 million. The Company expects to incur approximately $100 million to $108 million of pretax costs (including non-cash impairment charges) in total related to these transactions. The Company has incurred cumulative pretax costs related to these transactions of $94.4 million as of June 30, 2026, including rationalization costs recorded in cost of products sold.

Consolidated Restructuring Accrual:

The following is a rollforward of the consolidated restructuring accrual for the six months ended June 30, 2026 and twelve months ended December 31, 2025:


	June 30, 2026		December 31, 2025
Beginning balance, January 1	$	13.1	$	3.7
Expense	12.5		25.2
Payments	(10.3)		(15.8)
Ending balance	$	15.3	$	13.1

The restructuring accrual at June 30, 2026 was included in other current liabilities on the Consolidated Balance Sheet. On the Consolidated Balance Sheet, $11.1 million of the restructuring accrual at December 31, 2025 was included in other current liabilities, with the remaining $2.0 million included in other non-current liabilities.