Bearings, Gears and Power Transmission Sector Outlook — September 2026

Read the report

SlidesScroll

1 of 21

←→Full screen

INDUSTRIALS › CAPITAL GOODS › BEARINGS, GEARS AND POWER TRANSMISSION

In Bearings, Gears and Power Transmission, Value Splits by Business Model

The report shows how business model, earnings durability and strategic fit shape value across the sector.

September 2026 · Prepared by NeuraCap AI · Confidential

Market data as of 2026-09-28 · primary valuation basis EV / EBITDA (CY2027E)

Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice

Sources & methodology

1

← Previous

1 / 21 · INDUSTRIALS › CAPITAL GOODS › BEARINGS, GEARS AND POWER TRANSMISSION

Next →

What each page shows

The analyst’s walkthrough of the deck, page by page.

1. 01

   INDUSTRIALS › CAPITAL GOODS › BEARINGS, GEARS AND POWER TRANSMISSION

   This is the cover slide introducing the Bearings, Gears and Power Transmission sector outlook as of September 28, 2026.

   We open with the state of pricing across Bearings, Gears and Power Transmission as of September 2026, built on EV/EBITDA (CY2027E) as the primary basis. This sets up the finding we walk through on the following pages: value splits sharply by business model.

   Everything on this page

   INDUSTRIALS › CAPITAL GOODS › BEARINGS, GEARS AND POWER TRANSMISSION In Bearings, Gears and Power Transmission, Value Splits by Business Model The report shows how business model, earnings durability and strategic fit shape value across the sector. September 2026 · Prepared by NeuraCap AI · Confidential Market data as of 2026-09-28 · primary valuation basis EV / EBITDA (CY2027E) Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 1

2. 02
   CONTENTS

   What This Report Covers

   This slide lists the five sections and appendix that structure the report.

   We walk through five sections plus an appendix: the bottom line, the landscape, valuation and situations, precedent transactions, and strategic implications. We put the bottom line first, so a reader who only reads one section still gets the full story. That structure is designed to respect your time while giving you the complete picture.

   Everything on this page

   CONTENTS What This Report Covers 01 The Bottom Line Distinct Business Models Carry Distinct Valuation Profiles 02 The Landscape Where a Company Sits in the Value Chain Shapes How Its Earnings Are Judged 03 Valuation & Situations Forward Pricing Leaves a Wide Gap Between the Two Ends of the Market 04 Precedent Transactions Strategic Fit Shapes What Buyers Agreed to Pay 05 Strategic Implications The Operating Agenda Starts with Revenue Quality, Mix and Resilience 06 Appendix Comparables Detail, Methodology, Sources and Assumptions Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 2

3. 03
   01 · THE BOTTOM LINE

   Bearings, Gears and Power Transmission Carries Distinct Prices for Component Makers, Drive-System Builders and Adjacent Models

   This slide states that component makers, drive-system builders and adjacent models trade at different valuations within the sector.

   We find that the sector does not price as one market: the premium tier trades at 20.9x EV/EBITDA (CY2027E) versus 7.4x at the discount end, across the seven rated names. This gap holds on a forward basis that already credits forecast growth, pointing to differences in earnings durability rather than growth alone. For an owner, the practical takeaway is that where a business sits in the value chain shapes what the market is willing to pay for it.

   Everything on this page

   01 · THE BOTTOM LINE Bearings, Gears and Power Transmission Carries Distinct Prices for Component Makers, Drive-System Builders and Adjacent Models The full story on one page · figures on EV / EBITDA (CY2027E), market data as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Primary valuation basis: EV / EBITDA on CY2027E consensus (7 of 9 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). Qualitative characterisations are NeuraCap views. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 3 1 The Two Ends Carry Different Expectations for Durability The premium end stands at 20.9x, against 7.4x at the discount end, across 7 names with a forward EV / EBITDA estimate. The forward basis already credits forecast growth; the remaining gap is consistent with different expectations for earnings durability. 2 Business Mix Changes the Market’s Frame Drive systems and geared machinery builders represent 44% of the listed set, while belt, chain and drive component manufacturers represent 22%. Their different aftermarket, OEM and capital profiles give owners distinct value-building agendas. 3 Forecast Growth Alone Does Not Secure a Premium Among the 7 names with a forward EV / EBITDA estimate, the 4 above the 5% growth split sit at 9.6x, while the 3 below it sit at 10.6x. In this set, faster forecast growth is not associated with a higher valuation. 4 Strategic Fit Supports a Wide Transaction Range Recorded EV / EBITDA values extend from 6.7x for Drive Systems business of the Oerlikon Group to 16.7x for ABB Ltd.’s DODGE Mechanical Power Transmission Business. The spread is consistent with buyers assessing portfolio fit, channel access and aftermarket exposure differently. 10.3x Sector median EV/EBITDA CY2027E consensus · 7 rated of 9 companies 20.9x Premium end EV/EBITDA vs 7.4x at the discount end top quartile (n=2) against bottom quartile (n=2) on EV/EBITDA — the spread the report explains 15 Transactions with disclosed terms 25 recorded in this tier · 3 told as case studies, the full list in the appendix

4. 04
   SECTION 02

   02

   This divider introduces the section on where a company sits in the value chain.

   Where a company sits in the value chain — component manufacture, drive systems or an adjacent model — shapes how the market judges its earnings. The next pages walk through that landscape in detail.

   Everything on this page

   SECTION 02 02 THE LANDSCAPE Where a Company Sits in the Value Chain Shapes How Its Earnings Are Judged Component manufacture, drive systems and adjacent models bring different economics. 02 of 06 Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 4

5. 05
   02 · MARKET MAP

   Where the Money Sits: Buyers Price the Set's Business Models at Clearly Different Levels

   This slide groups the nine approved companies by business segment and compares median valuation across groups.

   We group the sector's approved companies into segments — component manufacturers, drive-system builders and adjacent models — and compare where each trades on EV/EBITDA (CY2027E). Drive systems and geared machinery account for 44% of the listed set, while belt, chain and drive component manufacturers account for 22%, showing how much of the sector's value sits in each business model. The gap in trading levels between groups shows the market is already pricing business model, not just company size.

   Everything on this page

   02 · MARKET MAP Where the Money Sits: Buyers Price the Set's Business Models at Clearly Different Levels 9 approved companies grouped by business segment · median EV / EBITDA (CY2027E) per group · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Segment grouping follows the platform's classification; group medians on rated names only. "Why it matters" lines are NeuraCap views. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 5 DRIVE SYSTEMS AND GEARED MACHINERY BUILDERS 4 cos median 9.6x Regal Rexnord (RRX) Gates Industrial (GTES) Twin Disc (TWIN) Broadwind (BWEN) OEM exposure, installed-base service and gearbox reman shape the durability of earnings. BELT, CHAIN AND DRIVE COMPONENT MANUFACTURE 2 cos median 16.6x RBC Bearings (RBC) The Timken (TKR) Spec'd-in positions, replacement demand and qualification barriers support a distinct market frame. ADJACENT MODELS 3 cos median 10.6x Genuine Parts (GPC) Applied (AIT) Metallus (MTUS) Distribution, replacement channels and upstream supply bring different margin and working-capital profiles.

6. 06
   02 · LANDSCAPE

   Component Manufacturers Sit Above Drive-System Builders in the Current Set

   This slide shows that component manufacturers trade above drive-system builders across the approved universe.

   Looking at segment medians across the approved universe, component manufacturers hold the higher position while drive-system builders sit lower on EV/EBITDA (CY2027E). This lines up with the group-level pattern we already saw: 44% of the set sits in drive systems and geared machinery, and 22% in belt, chain and drive components, each carrying a different valuation profile. For an owner, that means the segment a business competes in already sets a large part of the valuation conversation.

   Everything on this page

   02 · LANDSCAPE Component Manufacturers Sit Above Drive-System Builders in the Current Set Segment view of the approved universe · EV / EBITDA (CY2027E) medians on rated names · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. "What they do / why it matters" is a NeuraCap view. Full company-level detail in the appendix and companion tables. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 6 Segment n Share of universe Median EV/EBITDA Names to know What they do — and why it matters Drive systems and geared machinery builders 4 44% 9.6x Regal Rexnord Corporation (RRX) · Gates Industrial Corporation plc (GTES) · +2 more Installed base matters. These businesses combine original equipment demand with service, replacement and reman opportunities. The value question is how much aftermarket pull-through can offset build-rate volatility. Belt, chain and drive component manufacture 2 22% 16.6x RBC Bearings Incorporated (RBC) · The Timken Company (TKR) Qualified positions carry weight. The group sits at 16.6x across its 2 rated names. Design-in positions, replacement cycles and failure-critical applications can support durable earnings. Adjacent models 3 33% 10.6x Genuine Parts Company (GPC) · Applied Industrial Technologies, Inc. (AIT) · +1 more Economics vary by route. Distribution, replacement channels and upstream steel supply sit together here, but their margin, inventory and price/cost spread profiles differ materially.

7. 07
   SECTION 03

   03

   This divider introduces the section on forward valuation and the gap between market tiers.

   Forward pricing leaves a wide gap between the premium and discount ends of the market. The next pages unpack what that gap does, and doesn't, reflect.

   Everything on this page

   SECTION 03 03 VALUATION & SITUATIONS Forward Pricing Leaves a Wide Gap Between the Two Ends of the Market The remaining spread points to different expectations for earnings durability. 03 of 06 Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 7

8. 08
   03 · PUBLIC MARKET VALUATION

   The Premium End Retains a Wide Lead on Forward Earnings

   This slide ranks all seven rated companies by EV/EBITDA (CY2027E) against a sector median of 10.3x.

   We rank the seven rated companies by EV/EBITDA (CY2027E) from richest to cheapest, anchored on a sector median of 10.3x. The premium tier holds a wide lead over the rest of the set, echoing the 20.9x versus 7.4x split we highlighted upfront. That persistent gap tells owners and acquirers the market is still paying up for perceived durability, not just current earnings.

   Everything on this page

   03 · PUBLIC MARKET VALUATION The Premium End Retains a Wide Lead on Forward Earnings EV / EBITDA (CY2027E) · all 7 rated companies, sorted descending · sector median 10.3x · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Primary valuation basis: EV / EBITDA on CY2027E consensus (7 of 9 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). Tier zones are NeuraCap groupings cut at the rated set's quartiles; every multiple quoted on this page is a median on the same EV / EBITDA (CY2027E) basis. Panel commentary is a NeuraCap view. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 8 PREMIUM · median 20.9x CORE · median 10.3x DISCOUNT · median 7.4x Sector median 10.3x WHAT SEPARATES THE TWO ENDS Three models carry distinct economics. Manufacture, distribution and upstream supply bring different mixes of margin, working capital and exposure to the industrial cycle. Forward pricing still separates. The premium end stands at 20.9x, while the discount end stands at 7.4x. Forecast growth is already reflected in both figures. Durability earns closer scrutiny. Aftermarket pull-through, installed-base exposure and qualified positions help frame how repeatable earnings may be through the cycle.

9. 09
   03 · VALUATION DRIVERS

   Faster Forecast Growth Does Not Sit with the Higher Multiple

   This slide compares median EV/EBITDA (CY2027E) across revenue-growth and EBITDA-margin cohorts split at the covered median.

   Splitting the rated set by growth, the faster-growing names trade at 9.6x while the slower-growing names trade at 10.6x — faster forecast growth does not carry the higher multiple in this set. We see a similar picture when we cut by margin around the 20% covered median: profitability alone does not explain who commands the premium. That combination signals that growth and margin need to be read alongside durability and strategic fit, not treated as automatic multiple drivers.

   Everything on this page

   03 · VALUATION DRIVERS Faster Forecast Growth Does Not Sit with the Higher Multiple Median EV / EBITDA (CY2027E) by revenue-growth cohort and by EBITDA-margin cohort (each split at its covered median) · rated names with estimates · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Cohort medians on rated names with the required estimates (faster n=4; slower n=3; higher-margin n=4; lower-margin n=3). Driver readings are NeuraCap views on the supplied data — association, not causation. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 9 EV/EBITDA, median per cohort · growth split at 5% · EBITDA-margin split at 20% The Growth Split Runs Against the Expected Pattern Across the 7 names with a forward EV / EBITDA estimate, the 4 above 5% growth stand at 9.6x, versus 10.6x for the 3 below that split. Revenue Quality Remains Central The observed split puts more weight on the durability of demand, aftermarket mix and customer exposure than on forecast growth in isolation. Working Capital Changes the Quality of Earnings Inventory turns, fill rate and slow-moving stock affect how readily reported earnings become cash across manufacturing and distribution models.

10. 10
    03 · SITUATION MAP

    Margin and Multiple Together Show Which Names Are Priced Ahead of Their Profitability, and Which Trail It

    This slide places each rated company on a grid of EV/EBITDA versus the sector median (10.3x) and EBITDA margin versus the covered median (20%).

    We cut the rated set on two axes at once — EV/EBITDA against the 10.3x sector median, and EBITDA margin against the 20% covered median — to see which names are priced ahead of their profitability and which trail it. This view turns two single-variable charts into one map of situations, without prescribing any action. For owners, it is a starting point for asking why the market has placed a business where it has, before deciding what to do about it.

    Everything on this page

    03 · SITUATION MAP Margin and Multiple Together Show Which Names Are Priced Ahead of Their Profitability, and Which Trail It Cut on EV / EBITDA vs the sector median (10.3x) (rows) and EBITDA margin vs the covered median (20%) (columns) · observations, not recommendations Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Situation boundaries are the cohort's own medians (Directional, NeuraCap view). This page characterises situations; it does not recommend buying or selling any security. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 10 Higher Multiple, Higher Margin Above-median multiple · above-median EBITDA margin 2 names RBC Bearings Incorporated (RBC) · The Timken Company (TKR) RBC Bearings Incorporated (RBC) and The Timken Company (TKR) combine above-line valuation with above-line margin. Their position is consistent with the market crediting both profitability and earnings durability. Higher Multiple, Lower Margin Above-median multiple · below-median EBITDA margin 2 names Genuine Parts Company (GPC) · Applied Industrial Technologies, Inc. (AIT) Genuine Parts Company (GPC) and Applied Industrial Technologies, Inc. (AIT) carry above-line valuation despite below-line margin. Their position points to the relevance of distribution reach, replacement demand and revenue repeatability. Lower Multiple, Higher Margin Below-median multiple · above-median EBITDA margin 2 names Regal Rexnord Corporation (RRX) · Gates Industrial Corporation plc (GTES) Regal Rexnord Corporation (RRX) and Gates Industrial Corporation plc (GTES) produce above-line margin but sit below the valuation line. Their position suggests that margin alone does not settle the market’s view of durability. Lower Multiple, Lower Margin Below-median multiple · below-median EBITDA margin 1 names Metallus Inc. (MTUS) Metallus Inc. (MTUS) sits below both lines as the single name in this cell. Its upstream exposure creates a different mix of cyclicality, pricing and capital intensity.

11. 11
    03 · THE AGENDA

    The Valuation Gap Is a Revenue-Mix Story for Some Names and a Margin-and-Pricing Story for Others

    This slide frames the valuation gap as either a revenue-mix question or a margin-and-pricing question, depending on the name.

    For some names in this set, the gap to the premium tier looks like a revenue-mix question — how much of revenue is aftermarket versus OEM. For others, it reads as a margin-and-pricing question — whether price and cost discipline is keeping pace. Framing the gap this way turns a valuation observation into a specific, answerable question for each owner or acquirer to resolve.

    Everything on this page

    03 · THE AGENDA The Valuation Gap Is a Revenue-Mix Story for Some Names and a Margin-and-Pricing Story for Others NeuraCap view · framed as the questions an owner or acquirer should resolve · observations, not recommendations Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All content on this page is Directional — NeuraCap advisory judgment grounded in the cohort data shown earlier. It does not constitute investment advice. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 11 Deepen Aftermarket Pull-Through Where can replacement, reman or field service increase the share of revenue tied to the installed base? What changes the answer: The answer changes when aftermarket demand proves more repeatable than OEM channel demand. Improve Inventory Productivity Which catalogue lines, stocking points or consignment arrangements absorb cash without supporting fill rate? What changes the answer: The answer changes when working-capital release can be achieved without weakening service levels. Concentrate the Plant Footprint Which sites, machining steps or product families carry duplicate overhead or low utilisation? What changes the answer: The answer changes when footprint savings outweigh qualification, transfer and service risks. Choose Build Versus Buy Which product adjacencies, line authorisations or territory gaps are faster to acquire than develop internally? What changes the answer: The answer changes when strategic fit can add channel access or qualified content more efficiently.

12. 12
    SECTION 04

    04

    This divider introduces the section on precedent transactions and strategic fit.

    Strategic fit has shaped what buyers have agreed to pay across a range of past transactions. The next pages walk through that record.

    Everything on this page

    SECTION 04 04 PRECEDENT TRANSACTIONS Strategic Fit Shapes What Buyers Agreed to Pay The transaction record spans portfolio combinations, component adjacencies and channel expansion. 04 of 06 Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 12

13. 13
    04 · DEAL CASE STUDIES

    Precedent Transactions Span a Wide Range, Consistent with Buyers Judging Fit Differently

    This slide walks through three precedent transactions, from fifteen with disclosed terms, as illustrative case studies.

    We walk through three of the fifteen precedent transactions with disclosed terms as case studies, including the Drive Systems business of the Oerlikon Group at 6.7x and ABB Ltd.'s DODGE Mechanical Power Transmission Business at 16.7x, both on LTM financials at announcement. That spread is wide, and it lines up with buyers valuing portfolio fit, channel access and aftermarket exposure differently deal by deal. For a business owner, it means strategic fit with a specific buyer can matter as much as the target's own growth or margin profile.

    Everything on this page

    04 · DEAL CASE STUDIES Precedent Transactions Span a Wide Range, Consistent with Buyers Judging Fit Differently 3 of 15 transactions with disclosed terms, told as case studies · multiples on LTM financials at announcement where disclosed · the complete list is in the appendix · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 46 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate precedent id); figures are shown as recorded in the filing. 10 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. "Why the deal happened" is a NeuraCap read of the recorded evidence. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 13 Oct-2022 $5.0B Regal Rexnord Corporation Regal Rexnord Corporation paired with Altra Industrial Motion Corp. in a scaled motion transaction. EV / LTM revenue 2.5x EV / LTM EBITDA 12.0x WHY THE DEAL HAPPENED The combination suggests a portfolio rationale across motion and power transmission. The buyer-target pairing is consistent with broader product coverage and installed-base exposure. HOW THE TARGET WAS VALUED The disclosed value was $5.0B, with valuation recorded at 12.0x EV / EBITDA and 2.5x EV / Revenue. The profit multiple provides the primary benchmark, while revenue offers a cross-check on business mix. Feb-2021 $5.8B EnPro Industries, Inc. EnPro Industries, Inc. and Regal formed a large industrial transaction. EV / LTM revenue n/a EV / LTM EBITDA n/a WHY THE DEAL HAPPENED The pairing suggests an industrial portfolio rationale. The transaction adds evidence that buyers consider strategic combinations beyond direct product adjacency. HOW THE TARGET WAS VALUED The disclosed value was $5.8B. It provides a scale reference for a completed strategic transaction. Apr-2019 $84M The Timken Company The Timken Company added Diamond Chain Company, Inc. to its component portfolio. EV / LTM revenue n/a EV / LTM EBITDA n/a WHY THE DEAL HAPPENED The transaction suggests a product-adjacency rationale within mechanical power transmission. Diamond Chain Company, Inc. offered The Timken Company an adjacent component category. HOW THE TARGET WAS VALUED The disclosed value was $84M. It benchmarks the scale of an announced component acquisition.

14. 14
    SECTION 05

    05

    This divider introduces the section on the operating agenda for owners.

    The operating agenda for owners starts with revenue quality, mix and resilience. The next pages turn that into a specific set of questions.

    Everything on this page

    SECTION 05 05 STRATEGIC IMPLICATIONS The Operating Agenda Starts with Revenue Quality, Mix and Resilience Owners can test where pricing, aftermarket pull-through and cost structure strengthen their position. 05 of 06 Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 14

15. 15
    05 · STRATEGIC IMPLICATIONS

    Strengthen the Earnings Mix Before Expecting the Valuation Gap to Close

    This slide sets out the operating questions owners, management teams and boards can use to strengthen earnings quality.

    We lay out three sets of questions — for owners, management teams and boards — that follow directly from the valuation gap shown earlier. Owners can prioritise aftermarket pull-through and inventory productivity; management teams can separate the pace of growth from its source and repeatability; boards can decide where to build capability internally versus acquire it. Working through these questions is how a business moves toward the premium end of the range over time.

    Everything on this page

    05 · STRATEGIC IMPLICATIONS Strengthen the Earnings Mix Before Expecting the Valuation Gap to Close NeuraCap view · the questions this data puts on the table for the next twelve months Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. This page is Directional — NeuraCap views drawn from the analysis in this report. Observations, not recommendations. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 15 FOR OWNERS Make Durability Operational Prioritise aftermarket pull-through, installed-base service, price/cost discipline and inventory productivity. These levers address how earnings hold through the cycle. FOR MANAGEMENT TEAMS Separate Growth from Quality Test whether growth comes from qualified content, replacement demand or cyclical build rates. The source and repeatability of growth matter alongside its pace. FOR BOARDS Set the Portfolio Boundary Resolve where product adjacency, branch density or technical capability can be built internally and where acquisition offers a more direct route.

16. 16
    SECTION 06

    06

    This divider introduces the appendix covering the full universe, methodology and sources.

    The appendix carries the full universe, the methodology and every underlying source. The next pages are the reference material behind everything shown so far.

    Everything on this page

    SECTION 06 06 APPENDIX The Full Universe, Methodology and Sources Comparables detail behind every figure in the body, the valuation basis, and where each underlying disclosure lives. 06 of 06 Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 16

17. 17
    06 · PUBLIC COMPARABLES (1 OF 1)

    Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier

    This slide lists all seven rated public comparables on EV/EBITDA (CY2027E), grouped by valuation tier against the 10.3x sector median.

    This page carries the full comparables table behind the charts earlier in the report, with all seven rated names on the same EV/EBITDA (CY2027E) basis against the 10.3x sector median. Two names in the set carry no eligible multiple and are noted rather than plotted, keeping the rated view clean. Owners and acquirers can use this table to see exactly where any single name sits relative to the tiers we described.

    Everything on this page

    06 · PUBLIC COMPARABLES (1 OF 1) Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier Teal shading marks a EV/EBITDA above the sector median (10.3x); amber marks below · 7 rated companies; 2 not rated (no eligible EV/EBITDA) · tickers link to the underlying source · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All 7 rated rows are in this appendix and in the companion workbook, which carries the complete field set. Names without an eligible multiple are listed in the companion workbook. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 17 Company Ticker Segment EV EV/EBITDA (CY2027E) Rev growth EBITDA margin Rule of 40 PREMIUM — ≥14.8x · median 20.9x · 2 companies RBC Bearings Incorporated RBC Belt, chain and drive component manufacture $17.6B 22.9x 11% 33% 44 Applied Industrial Technologies, Inc. AIT Bearings and power transmission MRO distribution $12.8B 18.9x 5% 13% 17 CORE — 9.6x–14.8x · median 10.3x · 3 companies Genuine Parts Company GPC Vehicle driveline and belt replacement channel $23.9B 10.6x 3% 9% 12 The Timken Company TKR Belt, chain and drive component manufacture $10.1B 10.3x 3% 20% 23 Regal Rexnord Corporation RRX Drive systems and geared machinery builders $15.0B 9.6x 14% 22% 36 DISCOUNT — <9.6x · median 7.4x · 2 companies Gates Industrial Corporation plc GTES Drive systems and geared machinery builders $8.6B 9.5x 5% 24% 29 Metallus Inc. MTUS Upstream: bearing-quality and gear steel supply $699M 5.4x 8% 9% 17

18. 18
    06 · PRECEDENT TRANSACTIONS (1 OF 2)

    All Precedent Transactions with Disclosed Terms, Newest First

    This slide lists all fifteen precedent transactions with disclosed terms, ordered from most recent.

    This page lists all fifteen precedent transactions with disclosed terms, newest first, each with the LTM multiple at announcement where one is available. These multiples sit on a different basis from the CY2027E public comparables, so we don't draw a direct spread between the two. The record gives an owner or acquirer a concrete reference point for how similar businesses have been valued at the point of sale.

    Everything on this page

    06 · PRECEDENT TRANSACTIONS (1 OF 2) All Precedent Transactions with Disclosed Terms, Newest First 15 transactions with disclosed terms in this tier (25 recorded) · multiples on LTM financials at announcement where disclosed · deal values link to the underlying filing · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 46 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate precedent id); figures are shown as recorded in the filing. 10 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 18 Date Transaction EV EV/LTM Rev EV/LTM EBITDA Why it matters Oct-2022 Regal Rexnord Corporation → Altra Industrial Motion Corp. $5.0B 2.5x 12.0x Regal Rexnord Corporation agreed to acquire Altra Industrial Motion Corp. at $5.0B and 12.0x EV / EBITDA, with 2.5x EV / Revenue as a cross-check. Jul-2021 RBC Bearings Incorporated → ABB Ltd.’s DODGE Mechanical Power Transmission Business n/a n/a 16.7x RBC Bearings Incorporated announced the acquisition of ABB Ltd.’s DODGE Mechanical Power Transmission Business at 16.7x EV / EBITDA. Feb-2021 Regal Beloit Corporation → Process & Motion Control segment (unit of Process & Motion Control segment) n/a n/a 14.2x Regal Beloit Corporation announced the acquisition of Process & Motion Control segment (unit of Process & Motion Control segment) at 14.2x EV / EBITDA. Feb-2021 EnPro Industries, Inc. → Regal $5.8B n/a n/a EnPro Industries, Inc. completed its transaction involving Regal at a disclosed value of $5.8B. Feb-2021 Regal → Aktiebolaget SKF n/a n/a 7.9x Regal announced a transaction involving Aktiebolaget SKF at 7.9x EV / EBITDA. Feb-2021 Regal → The Timken Company n/a n/a 9.6x Regal announced a transaction involving The Timken Company, adding another strategic reference to the transaction record. Apr-2019 The Timken Company → Diamond Chain Company, Inc. $84M n/a n/a The Timken Company announced the acquisition of Diamond Chain Company, Inc. for $84M. Jul-2018 Dana Incorporated → Drive Systems business of the Oerlikon Group n/a n/a 6.7x Dana Incorporated announced the acquisition of Drive Systems business of the Oerlikon Group at 6.7x EV / EBITDA. Jul-2018 Timken → Cone Drive Operations n/a 14.5x 12.9x Timken announced the acquisition of Cone Drive Operations at 12.9x EV / EBITDA, with 14.5x EV / Revenue also recorded.

19. 19
    06 · PRECEDENT TRANSACTIONS (2 OF 2)

    All Precedent Transactions with Disclosed Terms, Newest First

    This slide continues the list of all fifteen precedent transactions with disclosed terms, ordered from most recent.

    This page continues the full list of fifteen precedent transactions with disclosed terms, still ordered newest first. As on the previous page, deal multiples are LTM at announcement and sit on a different basis from the CY2027E public comparables, so no spread is claimed. Together, the two pages give a complete, traceable record of how buyers have priced businesses across the sector.

    Everything on this page

    06 · PRECEDENT TRANSACTIONS (2 OF 2) All Precedent Transactions with Disclosed Terms, Newest First 15 transactions with disclosed terms in this tier (25 recorded) · multiples on LTM financials at announcement where disclosed · deal values link to the underlying filing · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 46 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate precedent id); figures are shown as recorded in the filing. 10 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 19 Date Transaction EV EV/LTM Rev EV/LTM EBITDA Why it matters Mar-2018 Altra → Fortive Corporation’s Automation & Specialty Business n/a n/a 13.6x Jul-2017 Timken → ABC Bearings Ltd. n/a n/a 13.6x Dec-2014 Regal → Emerson Electric Co.’s Power Transmission Solutions Business n/a n/a 11.8x Apr-2014 Blackstone → Gates n/a n/a 9.6x Sep-2013 SKF → Kaydon Corporation n/a n/a 12.7x n/a n/a → EnPro Industries, Inc. n/a n/a 9.3x

20. 20
    06 · METHODOLOGY

    Sources, Assumptions and Data Quality

    This slide documents the report's sources, valuation basis and data-quality treatment.

    This page sets out how the report was built: the valuation basis, what was excluded and why, and where each disclosure can be traced. We include this so that every figure in the deck can be checked against its underlying source. That transparency is what lets an owner or acquirer rely on the figures we've shown throughout.

    Everything on this page

    06 · METHODOLOGY Sources, Assumptions and Data Quality How this report was built, what was excluded, and where every underlying disclosure lives · as of 2026-09-28 Every figure in this report links to the record it was taken from. Where a figure has no link, the appendix names its source and the basis on which it was read. Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice 20 VALUATION BASIS Primary valuation basis: EV / EBITDA on CY2027E consensus (7 of 9 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). EV / EBITDA on CY2027E is the lead convention: it is the sector-appropriate prior for Bearings, Gears and Power Transmission and it clears the coverage gate with 8 of 9 companies (89%). EV / Revenue, P / E are carried as a cross-check. The set earns: 8 of the 8 companies with a reported forward EBITDA carry a meaningful one, so the profit multiple leads and a revenue multiple would understate what the market is pricing. DATA QUALITY & EXCLUSIONS 3 records were excluded or quarantined by the platform's validation gates (unit errors, implausible ratios, ineligible securities and classification failures); the full ledger ships in the companion tables and never feeds a statistic in this report. DEFINITIVE VS DIRECTIONAL Definitive content is disclosed or consensus data passed through stated arithmetic. Directional content — tier boundaries, situation cuts, "why it matters" commentary, the agenda pages — is NeuraCap analyst judgment and is labeled as such where it appears. WHAT THIS REPORT IS NOT This report characterises a sector. It does not recommend buying, selling or holding any security, and no statement in it should be read as investment advice or a price target. WHERE THE DATA LIVES 433 registered source documents stand behind the figures in this report. Metric hyperlinks throughout the deck open the specific filing or data record; by publisher: sec.gov (432) · home.treasury.gov (1). The companion workbook beside this deck carries the complete source index.

21. 21

    The Premium Sits with Durability, Strategic Fit and Repeatable Earnings.

    This is the closing slide restating that durability, strategic fit and repeatable earnings carry the premium.

    The premium in this sector sits with durability, strategic fit and repeatable earnings, not simply with scale or growth. The companion tables carry the full universe and source index for any figure a client wants to trace.

    Everything on this page

    The Premium Sits with Durability, Strategic Fit and Repeatable Earnings. NeuraCap AI — Bearings, Gears and Power Transmission Coverage September 2026 · Prepared by NeuraCap AI · Confidential Bearings, Gears and Power Transmission Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 21

More coverage in Industrials

• Bi-Weekly Update · Sep 28, 2026Propulsion and Engine Systems Bi-Weekly Industry Events & M&A Update — September 14–28, 2026
• Sector Report · Sep 28, 2026Launch Vehicles and Services Sector Outlook — September 2026
• Sector Report · Sep 28, 2026Maintenance, Repair and Overhaul (MRO) Sector Outlook — September 2026
• Bi-Weekly Update · Sep 28, 2026Launch Vehicles and Services Bi-Weekly Industry Events & M&A Update — September 14–28, 2026