Timken shares tumbled 5.77% in intraday trading following the release of its second-quarter 2026 results, which revealed a steep decline in GAAP earnings and a significant impairment charge, overshadowing beats on adjusted metrics and revenue.

GAAP diluted EPS dropped 63.4% year-on-year to $0.41, while net income fell 63.2% to $28.9 million. The results included an impairment charge tied to the anticipated divestiture of the belts business. Although adjusted EPS of $1.83 surpassed the consensus estimate of $1.62 and net sales rose 7.5% to $1.26 billion, the sharp contraction in GAAP profitability soured investor sentiment.

The company raised its full-year 2026 GAAP EPS outlook to $3.75–$4.05 and adjusted EPS guidance to $6.05–$6.35, slightly above estimates. However, the market focused on the one-time charges and the year-over-year profit decline, driving the stock lower.