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DENVER, Aug. 31, 2026 /PRNewswire/ -- Gates Industrial Corporation Ltd. (NYSE: GTES), a global manufacturer of innovative, highly engineered power transmission and fluid power solutions, today announced that management will participate in fireside chats at the following upcoming investor conferences: The Jefferies Global Industrials Conference on Wednesday, September 9, 2026, at 1:30 p.m.

Gates Industrial Corporation is poised for FY26 revenue growth, driven by strong demand in diversified industrial, personal mobility, and commercial on-highway end markets. GTES expects margin expansion in FY26, supported by operating leverage, productivity initiatives, and pricing actions to offset inflationary pressures. According to my DCF model, the stock is trading at a discount of ~14% to its fair value.

Key Takeaways Gates raised its 2026 outlook after Q2 sales, earnings and orders beat expectations.Data-center sales more than doubled, with high-value projects set to boost 2H contributions.Gates targets 2.5-4.5% core sales growth, $800-$830 million EBITDA and 23.5% margins in 2H 2026. Gates Industrial Corporation Ltd. (GTES - Free Report) raised its 2026 outlook after second-quarter 2026 results showed improving demand across a broad range of industrial markets. Higher core sales, improved operating execution and stronger orders boosted management’s confidence in the second half of the year.

The improved outlook raises expectations for Gates to sustain the recovery. Raw-material inflation, weak agricultural demand and cautious distributor inventories remain factors that could complicate the company’s path toward its higher sales and earnings targets.

Gates’ Q2 Beat Reset the 2026 OutlookGates reported second-quarter 2026 adjusted earnings of 44 cents per share, up 12.8% year over year. The figure surpassed the Zacks Consensus Estimate of 40 cents by 10%. Net sales increased 6.6% to $941.6 million and topped the consensus estimate of $922 million by 2.1%. Core sales increased 4.9%.

Its demand indicators also improved. Enterprise book-to-bill remained above 1.0X. Adjusted EBITDA reached $211.4 million and the adjusted EBITDA margin was 22.5%.

The combination of better sales, order trends and operating performance led Gates to increase its full-year expectations rather than simply maintain the prior outlook.

GTES Industrial Demand is Broadening Across SegmentsThe company’s Power Transmission segment generated second-quarter sales of $588.5 million, up 7% year over year. In the quarter, core sales increased 5.3%, supported by low-teens sales growth in industrial OEM and mid-single-digit sales expansion in the industrial aftermarket. Personal mobility and commercial on-highway end markets’ sales rose more than 25% in the second quarter.

The segment also delivered improved profitability. Its adjusted EBITDA rose 9.8% to $134.8 million, while the adjusted EBITDA margin expanded 60 basis points to 22.9%.

Fluid Power segment’s sales increased 5.8% to $353.1 million, with core sales rising 4.2%. Industrial OEM revenues grew at a double-digit rate, commercial on-highway increased at a high-teens pace and construction and diversified industrial markets posted mid-single-digit gains in sales.

Growth across several end markets supports the raised outlook. Gates is seeing contributions from industrial OEM, aftermarket, mobility, construction and on-highway applications end markets.

Gates’ Data Center Business Adds UpsideData centers provide another growth source for the company beyond the broader industrial recovery. Gates’ data center business more than doubled year over year in the second quarter.

The company expects the contribution to increase further in the second half of 2026 as certain high-value projects are expected to launch. This gives Gates a company-specific growth driver that could supplement cyclical improvement in traditional industrial markets.

The data center business is still only one part of the portfolio, so it is unlikely to determine the 2026 outcome by itself. Still, continued expansion might help Gates generate growth above what a normal industrial recovery alone would provide.

Gates Raised Guidance Sets a Higher Execution BarGates increased its 2026 core sales growth forecast to 2.5-4.5%. Adjusted EBITDA is now projected between $800 million and $830 million, while adjusted earnings are expected in the range of $1.62-$1.70 per share.

Capital expenditure expectations remain approximately $120 million and management continues to target free cash flow conversion of more than 90%.

The revised outlook implies that demand momentum will continue. The company expects core sales growth to accelerate materially in the second half of 2026 compared with the first half and has indicated that adjusted EBITDA margin could reach at least 23.5% during the period.

Cost optimization, operational improvements and higher volumes could help support that margin goal. Pricing actions are also being implemented to offset increases in oil and petroleum-based material costs.

Gates Industrial Still Has Risks to the Raised OutlookThe recovery remains uneven. Core sales in South America declined 10.6% year over year in the second quarter as agricultural demand remained weak.

Distributor inventories are another uncertainty. Channel partners continued to operate with lean inventories and meaningful global restocking has yet to occur. The equity research report indicates that inventory replenishment may not begin until late 2026 or early 2027. Until then, Gates remains more dependent on underlying end-customer demand to support sales growth.

Costs also warrant attention. Second-quarter cost of sales increased 6.1% year over year, partly reflecting oil-based material inflation, while selling, general and administrative expenses increased 8.4%.

Geopolitical tensions create an additional risk. Supply-chain disruption, reduced availability of production materials, or higher logistics and raw-material expenses could interfere with the expected improvement in margins and industrial activity.

GTES’ Estimate RevisionsThe Zacks Consensus Estimate for GTES’ 2026 adjusted earnings is pinned at $1.6 per share, indicating a 5.3% increase from the year-ago quarter’s number.

Image Source: Zacks Investment Research

GTES currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

What Gates’ Signals Add to the OutlookGates’ higher 2026 outlook has support from several operating indicators, including increasing core sales and rising industrial OEM demand. Also, the company’s book-to-bill is above 1.0X and several end markets are contributing to the recovery. Data center growth and margin-improvement initiatives provide additional support.

The higher targets leave less room for execution challenges. Weakness in the agriculture market, delayed distributor restocking and higher input costs might affect second-half growth if industrial demand slows.

For investors, execution remains important. Continued industrial growth, margin improvement and solid cash generation would support the revised 2026 outlook, while weaker demand or higher costs could make the targets harder to achieve.

Gates Industrial posted adjusted EPS of 44 cents, beating market estimates of 41 cents. The company’s sales came in at $941.600 million, versus estimates of $926.086 million.

Gates Industrial raised its FY2026 adjusted EPS guidance from $1.52-$1.68 to $1.62-$1.70, and also increased sales guidance from $3.467 billion-$3.570 billion to $3.519 billion-$3.587 billion.

Ivo Jurek, Gates Industrial’s Chief Executive Officer, commented, “We delivered a strong second quarter, exceeding expectations. We generated record sales and EPS and experienced improving order momentum globally. We believe we are in solid position to capitalize on strengthening industrial demand.”

Gates Industrial shares gained 2.4% to trade at $28.67 on Monday.

These analysts made changes to their price targets on Gates Industrial following earnings announcement.

Baird analyst Michael Halloran maintained the stock with an Outperform rating and raised the price target from $37 to $39. Keybanc analyst Jeffrey D. Hammond maintained the stock with an Overweight rating and raised the price target from $31 to $34. Wells Fargo analyst Jerry Revich maintained the stock with an Equal-Weight rating and raised the price target from $26 to $30. Considering buying GTES stock? Here’s what analysts think:

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Gates Industrial Corporation Ltd. (GTES) Q2 2026 Earnings Call Transcript

Gates Industrial (GTES - Free Report) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +10.00%. A quarter ago, it was expected that this manufacturer of power transmission and fluid power systems would post earnings of $0.32 per share when it actually produced earnings of $0.35, delivering a surprise of +9.38%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Gates Industrial, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $941.6 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.08%. This compares to year-ago revenues of $883.7 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Gates Industrial shares have added about 20.1% since the beginning of the year versus the S&P 500's gain of 8.7%.

What's Next for Gates Industrial?While Gates Industrial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Gates Industrial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.43 on $895.75 million in revenues for the coming quarter and $1.60 on $3.57 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Alta Equipment (ALTG - Free Report) , is yet to report results for the quarter ended June 2026.

This company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of -23.8%. The consensus EPS estimate for the quarter has been revised 6.3% higher over the last 30 days to the current level.

Alta Equipment's revenues are expected to be $485.4 million, up 0.9% from the year-ago quarter.

, /PRNewswire/ --

Second-Quarter 2026 Financial Summary

Second-quarter net sales of $941.6 million, up 6.6% compared to the prior-year period, including a core sales increase of 4.9%. Net income attributable to shareholders of $170.9 million, or $0.67 per diluted share. Adjusted Net Income per diluted share of $0.44. Net income from continuing operations of $178.2 million, or a margin of 18.9%.  Adjusted EBITDA of $211.4 million, or a margin of 22.5%. Increasing 2026 guidance. Gates Industrial Corporation Ltd. (NYSE:GTES), a leading global provider of application-specific fluid power and power transmission solutions, today reported results for the second quarter ended June 27, 2026.

Ivo Jurek, Gates Industrial's Chief Executive Officer, commented, "We delivered a strong second quarter, exceeding expectations. We generated record sales and EPS and experienced improving order momentum globally. We believe we are in solid position to capitalize on strengthening industrial demand."

Jurek continued, "We have raised our 2026 guidance for sales, profitability and adjusted earnings per share. We anticipate higher sales growth in the second half of 2026 relative to our initial guidance. Our balance sheet is strong and our capital allocation optionality is significant. I am grateful to our global Gates teams for their dedication and commitment to delivering on our strategic priorities."

Power Transmission Segment Results

Three months ended

(USD in millions)

June 27, 2026

June 28, 2025

% Change

% Core Change

Net sales

$588.5

$550.1

7.0 %

5.3 %

Adjusted EBITDA

$134.8

$122.8

9.8 %

Adjusted EBITDA margin

22.9 %

22.3 %

60 bps

Six months ended

(USD in millions)

June 27, 2026

June 28, 2025

% Change

% Core Change

Net sales

$1,121.7

$1,077.3

4.1 %

1.5 %

Adjusted EBITDA

$246.8

$239.5

3.0 %

Adjusted EBITDA margin

22.0 %

22.2 %

(20 bps)

Fluid Power Segment Results

Three months ended

(USD in millions)

June 27, 2026

June 28, 2025

% Change

% Core Change

Net sales

$353.1

$333.6

5.8 %

4.2 %

Adjusted EBITDA

$76.6

$76.4

0.3 %

Adjusted EBITDA margin

21.7 %

22.9 %

(120 bps)

Six months ended

(USD in millions)

June 27, 2026

June 28, 2025

% Change

% Core Change

Net sales

$671.0

$654.0

2.6 %

0.4 %

Adjusted EBITDA

$142.0

$147.0

(3.4 %)

Adjusted EBITDA margin

21.2 %

22.5 %

(130 bps)

2026 Guidance

The Company is raising its full year 2026 financial guidance. The table below reflects our updated full year 2026 financial guidance.

Prior 2026

Updated 2026

Change (At Midpoint)

Core Sales Growth

1% to 4%

2.5% to 4.5%

+ 100 bps

Adjusted EBITDA

$775 to $835 Million

$800 to $830 Million

+ $10 Million

Adjusted EPS

$1.52 to $1.68

$1.62 to $1.70

+ $0.06

Capital Expenditures

~$120 Million

~$120 Million

No Change

Free Cash Flow Conversion

90%+

90%+

No Change

Share-based metrics in the Company's guidance do not include the effect of any potential share repurchases.

Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures, including expected Core Sales Growth, Adjusted EBITDA, Adjusted Earnings per Share and Free Cash Flow conversion for 2026. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.

Conference Call and Webcast

Gates Industrial Corporation Ltd. will host a conference call today at 10:00 a.m. Eastern Time to discuss the Company's financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through Gates Industrial's website at investors.gates.com. For those unable to access the webcast, the conference call can be accessed by dialing (888) 414-4601 (domestic) or +1 (646) 960-0313 (international) and requesting the Gates Industrial Corporation Second-Quarter 2026 Earnings Conference Call or providing the Conference ID of 5772067. An audio replay of the conference call can be accessed by dialing (800) 770-2030 (domestic) or +1 (647) 362-9199 (international), and providing the passcode 5772067, or by accessing Gates Industrial's website at investors.gates.com.

About Gates Industrial Corporation Ltd.

Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse aftermarket channel customers, and to original equipment manufacturers as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation. Our products are sold in more than 130 countries across our three commercial regions: the Americas; Europe, Middle East & Africa; and Asia Pacific.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to expectations regarding the performance of the Company's business and financial results, our ability to capitalize on demand, anticipated sales growth, our capital allocation optionality and statements regarding our outlook for 2026. Such forward-looking statements are subject to various risks and uncertainties, including, among others, U.S. policies, actions or legislation (including the imposition of tariffs), economic, political and other risks associated with international operations (including as a result of the ongoing conflicts in the Middle East and their impact on supply chains, such as reduced availability of certain of our production materials and increased supply costs, and economic conditions), availability of raw materials or other manufacturing inputs at favorable prices in sufficient quantities, or at a given time,  changes in our relationships with, or the financial condition, performance, purchasing power or inventory levels of, of key channel partners, dependence on the continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems,  our ability to forecast demand or meet significant increases in demand and market acceptance of new product introductions and innovations. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC"), and Quarterly Report on Form 10-Q for the quarter ended June 27, 2026, which is expected to be filed with the SEC on or about the date of this press release, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Gates Industrial Corporation Ltd.

Condensed Consolidated Statements of Operations

(Unaudited)

Three months ended

Six months ended

(USD in millions, except per share amounts)

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Net sales

$          941.6

$          883.7

$        1,792.7

$        1,731.3

Cost of sales

555.5

523.5

1,068.6

1,026.5

Gross profit

386.1

360.2

724.1

704.8

Selling, general and administrative expenses

250.7

231.2

477.6

447.4

Transaction-related expenses

3.1

—

3.6

0.4

Asset impairments

—

0.2

—

0.8

Restructuring expenses

0.7

13.0

1.4

14.6

Operating income from continuing operations

131.6

115.8

241.5

241.6

Interest expense

30.0

28.8

59.9

58.4

Other expense

1.4

6.8

3.5

9.2

Income from continuing operations before taxes

100.2

80.2

178.1

174.0

Income tax expense

(78.0)

16.8

(66.5)

42.0

Net income from continuing operations

178.2

63.4

244.6

132.0

Loss on disposal of discontinued operations

0.2

0.3

0.4

0.6

Net income

178.0

63.1

244.2

131.4

Less: non-controlling interests

7.1

6.6

13.6

12.9

Net income attributable to shareholders

$          170.9

$           56.5

$          230.6

$          118.5

Earnings per share

Basic

Earnings per share from continuing operations

$           0.67

$           0.22

$           0.91

$           0.46

Earnings per share from discontinued operations

—

—

—

—

Earnings per share

$           0.67

$           0.22

$           0.91

$           0.46

Diluted

Earnings per share from continuing operations

$           0.67

$           0.22

$           0.90

$           0.45

Earnings per share from discontinued operations

—

—

—

—

Earnings per share

$           0.67

$           0.22

$           0.90

$           0.45

Gates Industrial Corporation Ltd.

Condensed Consolidated Balance Sheets

(Unaudited)

(USD in millions, except share numbers and per share amounts)

As of
June 27, 2026

As of
December 31, 2025

Assets

Current assets

Cash and cash equivalents

$          823.5

$          812.1

Trade accounts receivable, net

900.3

744.2

Inventories

740.6

700.0

Taxes receivable

40.5

43.4

Prepaid expenses and other assets

204.4

181.8

Total current assets

2,709.3

2,481.5

Non-current assets

Property, plant and equipment, net

599.4

609.0

Goodwill

2,022.4

2,035.2

Pension surplus

6.7

7.6

Intangible assets, net

1,122.9

1,192.4

Right-of-use assets

146.2

137.1

Taxes receivable

2.6

5.4

Deferred income taxes

729.4

640.0

Other non-current assets

53.9

43.2

Total assets

$       7,392.8

$       7,151.4

Liabilities and equity

Current liabilities

Debt, current portion

$            39.2

$           36.2

Trade accounts payable

482.4

433.7

Taxes payable

31.2

27.0

Accrued expenses and other current liabilities

282.3

238.5

Total current liabilities

835.1

735.4

Non-current liabilities

Debt, less current portion

2,194.3

2,196.3

Post-retirement benefit obligations

60.9

68.8

Lease liabilities

129.3

124.5

Taxes payable

56.3

62.1

Deferred income taxes

40.5

49.3

Other non-current liabilities

182.2

225.8

Total liabilities

3,498.6

3,462.2

Shareholders' equity

—Shares, par value of $0.01 each - authorized shares: 3,000,000,000; outstanding shares:
253,151,170 (December 31, 2025: authorized shares: 3,000,000,000; outstanding shares:
253,543,540)

2.5

2.6

—Additional paid-in capital

2,641.3

2,633.3

—Accumulated other comprehensive loss

(929.2)

(917.1)

—Treasury shares

—

(37.5)

—Retained earnings

1,807.3

1,652.7

Total shareholders' equity

3,521.9

3,334.0

Non-controlling interests

372.3

355.2

Total equity

3,894.2

3,689.2

Total liabilities and equity

$       7,392.8

$       7,151.4

Gates Industrial Corporation Ltd.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Six months ended

(dollars in millions)

June 27,
2026

June 28,
2025

Cash flows from operating activities

Net income

$          244.2

$          131.4

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

112.8

105.5

Foreign exchange and other non-cash financing income

(13.0)

(12.6)

Share-based compensation expense

15.7

15.7

Decrease in post-employment benefit obligations, net

(1.7)

(4.4)

Deferred income taxes

(113.8)

(11.0)

Asset impairments

—

0.8

Other operating activities

2.8

5.8

Changes in operating assets and liabilities:

—Accounts receivable

(161.6)

(63.5)

—Inventories

(46.3)

(16.4)

—Accounts payable

50.9

(16.7)

—Prepaid expenses and other assets

(11.4)

(13.0)

—Taxes payable

4.5

(1.6)

—Other liabilities

25.7

(9.7)

Net cash provided by operating activities

108.8

110.3

Cash flows from investing activities

Purchases of property, plant and equipment

(35.0)

(36.9)

Purchases of intangible assets

(5.2)

(18.7)

Cash paid under company-owned life insurance policies

(10.8)

(10.4)

Cash received under company-owned life insurance policies

8.1

2.4

Proceeds from the sale of property, plant and equipment

1.5

2.1

Other investing activities

(0.4)

(0.5)

Net cash used in investing activities

(41.8)

(62.0)

Cash flows from financing activities

Issuance of shares

2.5

4.7

Repurchase of shares

(38.7)

(13.0)

Payments of long-term debt

(4.7)

(9.4)

Employee taxes paid from shares withheld

(8.7)

(16.9)

Dividends paid to non-controlling interests

—

(3.5)

Other financing activities

(1.2)

4.7

Net cash used in financing activities

(50.8)

(33.4)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(4.7)

23.1

Net increase in cash and cash equivalents and restricted cash

11.5

38.0

Cash and cash equivalents and restricted cash at the beginning of the period

815.0

684.8

Cash and cash equivalents and restricted cash at the end of the period

$          826.5

$          722.8

Supplemental schedule of cash flow information

Interest paid

$            52.0

$            56.8

Income taxes paid

$            39.3

$            54.7

Accrued capital expenditures

$              1.8

$              0.9

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. Management uses Adjusted EBITDA as its key profitability measure. This is a non-GAAP measure that represents EBITDA before certain items that impact comparison of the performance of our business either period-over-period or with other businesses. We use Adjusted EBITDA as our measure of segment profitability to assess the performance of our businesses, and it is used for consolidated Gates as well because we believe it is important to consider our total profitability on a basis that is consistent with that of our operating segments. Adjusted EBITDA margin is Adjusted EBITDA for a particular period expressed as a percentage of net sales for that period.

Management uses Adjusted Net Income as an additional measure of profitability. Adjusted Net Income is a non-GAAP measure that represents net income attributable to shareholders before certain items that impact comparison of the performance of our business, either period-over-period or with other businesses. Beginning with the three months ended June 29, 2024, we revised our definition of Adjusted Net Income to adjust for discrete tax items, which are significant, unusual or infrequently occurring tax items. We have revised the prior period amounts to conform to our current period presentation.

Management uses Adjusted Gross Profit as an additional measure of operating performance. Adjusted Gross Profit is a non-GAAP measure that represents gross profit before certain items that impact the comparability of our results, such as restructuring costs and inventory adjustments, specific to the remeasurement of certain inventories on a Last-in-First-out ("LIFO") basis. Adjusted Gross Profit margin is Adjusted Gross Profit expressed as a percentage of sales. We use Adjusted Gross Profit and Adjusted Gross Profit margin because it provides insight into the underlying profitability of our core operations by excluding items that are not indicative of ongoing business performance.

Core sales is a non-GAAP measure that represents net sales for the period excluding the impacts of movements in average currency exchange rates and the first-year impacts of acquisitions and disposals, when applicable. Core sales growth is the change in core sales expressed as a percentage of prior period net sales. We present core sales growth because it allows for a meaningful comparison of year-over-year performance without the volatility caused by foreign currency gains or losses, or the incomparability that would be caused by the impact of an acquisition or disposal.

Management uses Free Cash Flow to measure cash generation. Free Cash Flow is a non-GAAP measure that represents net cash provided by operations less capital expenditures. Free Cash Flow Conversion is a measure of Free Cash Flow expressed as a percentage of Adjusted Net Income. We use this metric as a measure of the success of our business in converting Adjusted Net Income into cash.

These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please see below for a reconciliation of historical non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP.

Gates Industrial Corporation Ltd.

Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA

(Unaudited)

Three months ended

Six months ended

(USD in millions)

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Net income from continuing operations before taxes

$       178.2

$         63.4

$       244.6

$       132.0

Adjusted for:

Income tax (benefit) expense

(78.0)

16.8

(66.5)

42.0

Interest expense

30.0

28.8

59.9

58.4

Depreciation and amortization

57.1

53.3

112.8

105.5

Transaction-related expenses (1)

3.1

—

3.6

0.4

Asset impairments

—

0.2

—

0.8

Restructuring expenses 

0.7

13.0

1.4

14.6

Share-based compensation expense

9.4

9.6

15.7

15.7

Inventory adjustments (2) (included in cost of sales)

3.6

4.0

7.6

3.0

Restructuring related expenses (included in cost of sales)

4.0

1.2

6.5

2.4

Restructuring related expenses (included in SG&A)

5.3

3.1

6.6

4.6

Other (income) expenses, excluding foreign currency 
transaction gain or loss and insurance recoveries(3)

(2.0)

5.8

(3.4)

7.1

Adjusted EBITDA

$       211.4

$       199.2

$       388.8

$       386.5

Net Sales

$       941.6

$       883.7

$    1,792.7

$    1,731.3

Net income from continuing operations margin

18.9 %

7.2 %

13.6 %

7.6 %

Adjusted EBITDA margin

22.5 %

22.5 %

21.7 %

22.3 %

(1)

Transaction-related expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.

(2)

Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis.

(3)

Other(income) expenses excludes foreign currency transaction losses of $1.5 million and $4.3 million and insurance losses of $1.8 million and $2.5 million during the three and six months ended June 27, 2026, respectively, and foreign currency transaction losses of $1.0 million and $2.1 million during the three and six months ended June 28, 2025, respectively.

Gates Industrial Corporation Ltd.

Reconciliation of Net Income Attributable to Shareholders to Adjusted Net Income

(Unaudited)

Three months ended

Six months ended

(USD in millions, except share numbers and per share amounts)

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Net income attributable to shareholders

$          170.9

$           56.5

$         230.6

$         118.5

Adjusted for:

Loss on disposal of discontinued operations

0.2

0.3

0.4

0.6

Amortization of intangible assets arising from the 2014 acquisition of Gates

29.6

29.0

58.9

57.3

Transaction-related expenses (1)

3.1

—

3.6

0.4

Asset impairments

—

0.2

—

0.8

Restructuring expenses

0.7

13.0

1.4

14.6

Restructuring related expenses (included in cost of sales)

4.0

1.2

6.5

2.4

Restructuring related expenses (included in SG&A)

5.3

3.1

6.6

4.6

Share-based compensation expense

9.4

9.6

15.7

15.7

Inventory adjustments (2) (included in cost of sales)

3.6

4.0

7.6

3.0

Adjustments relating to post-retirement benefits

0.1

0.5

5.5

0.9

Financing and other FX related losses

1.3

7.8

(3.3)

11.0

Discrete tax items (3) 

(100.7)

(7.2)

(107.0)

(7.1)

Other adjustments

(1.7)

(1.5)

(3.1)

(2.8)

Estimated tax effect of the above adjustments

(13.3)

(15.4)

(22.2)

(24.9)

Adjusted Net Income

$          112.5

$          101.1

$         201.2

$         195.0

Diluted weighted-average number of shares outstanding

256,135,551

260,469,532

256,417,931

261,005,482

Adjusted Net Income per diluted share

$           0.44

$           0.39

$           0.78

$           0.75

(1)

Transaction-related expenses related primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.

(2)

Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis.

(3)

Discrete tax items include changes in uncertain tax positions relating to prior years, changes in tax laws or rates, changes in valuation allowances, excess tax benefits on stock option exercises, and prior year adjustments in various foreign jurisdictions in which returns were filed.

Gates Industrial Corporation Ltd.

Reconciliation of Gross Profit to Adjusted Gross Profit

(Unaudited)

Three months ended

Six months ended

(USD in millions)

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Net sales

$          941.6

$          883.7

$        1,792.7

$        1,731.3

Cost of sales

555.5

523.5

1,068.6

1,026.5

Gross Profit

386.1

360.2

724.1

704.8

Inventory adjustments (1) (included in cost of sales)

Restructuring related expenses (included in cost of sales)

3.6

4.0

7.6

3.0

Adjusted Gross Profit

4.0

1.2

6.5

2.4

$          393.7

$          365.4

$          738.2

$          710.2

Gross Profit margin

Adjusted Gross Profit margin

41.0 %

40.8 %

40.4 %

40.7 %

41.8 %

41.3 %

41.2 %

41.0 %

(1)

Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis.

Gates Industrial Corporation Ltd.

Reconciliation of Net Sales to Core Sales Growth

(Unaudited)

Three months ended June 27, 2026

(dollars in millions)

Power
Transmission

Fluid Power

Total

Net sales for the three months ended June 27, 2026

$        588.5

$        353.1

$       941.6

Impact on net sales of movements in currency rates

(9.5)

(5.5)

(15.0)

Core sales for the three months ended June 27, 2026

$        579.0

$        347.6

$       926.6

Net sales for the three months ended June 28, 2025

550.1

333.6

883.7

Increase in net sales

$         38.4

$         19.5

$         57.9

Increase in net sales on a core basis (core sales)

$         28.9

$         14.0

$         42.9

Net sales increase

7.0 %

5.8 %

6.6 %

Core sales increase

5.3 %

4.2 %

4.9 %

Six months ended June 27, 2026

(dollars in millions)

Power
Transmission

Fluid Power

Total

Net sales for the six months ended June 27, 2026

$     1,121.7

$        671.0

$     1,792.7

Impact on net sales of movements in currency rates

(28.7)

(14.2)

(42.9)

Core sales for the six months ended June 27, 2026   

$     1,093.0

$        656.8

$     1,749.8

Net sales for the nine months ended

Net sales for the six months ended June 28, 2025

1,077.3

654.0

1,731.3

Increase in net sales

$         44.4

$         17.0

$         61.4

Increase in net sales on a core basis (core sales)

$         15.7

$           2.8

$         18.5

Net sales increase

4.1 %

2.6 %

3.5 %

Core sales increase

1.5 %

0.4 %

1.1 %

SOURCE Gates Industrial Corporation Ltd.

Posted by Defense World Staff on Jul 24th, 2026

Gates Industrial (NYSE:GTES – Get Free Report) will likely be announcing its Q2 2026 results before the market opens on Friday, July 31st. Analysts expect Gates Industrial to post earnings of $0.40 per share and revenue of $925.4410 million for the quarter. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. Individuals are encouraged to explore the company’s upcoming Q2 2026 earning report for the latest details on the call scheduled for Friday, July 31, 2026 at 10:00 AM ET.

Gates Industrial (NYSE:GTES – Get Free Report) last posted its quarterly earnings data on Friday, May 1st. The company reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.03. The firm had revenue of $851.10 million during the quarter, compared to analysts’ expectations of $859.72 million. Gates Industrial had a net margin of 7.23% and a return on equity of 10.00%. The firm’s quarterly revenue was up .4% on a year-over-year basis. During the same quarter last year, the company posted $0.36 EPS. On average, analysts expect Gates Industrial to post $2 EPS for the current fiscal year and $2 EPS for the next fiscal year.

Gates Industrial Stock Down 1.4% Shares of NYSE GTES opened at $27.02 on Friday. The firm has a market cap of $6.86 billion, a price-to-earnings ratio of 28.14 and a beta of 1.25. The company has a quick ratio of 2.66, a current ratio of 3.67 and a debt-to-equity ratio of 0.61. Gates Industrial has a 52-week low of $20.88 and a 52-week high of $29.17. The business’s 50 day moving average is $26.42 and its two-hundred day moving average is $25.24.

Institutional Inflows and Outflows Hedge funds and other institutional investors have recently bought and sold shares of the stock. Invesco Ltd. increased its holdings in Gates Industrial by 5.9% during the 4th quarter. Invesco Ltd. now owns 8,322,654 shares of the company’s stock worth $178,687,000 after purchasing an additional 461,160 shares during the period. Corient Private Wealth LLC raised its position in Gates Industrial by 9.3% in the 4th quarter. Corient Private Wealth LLC now owns 190,929 shares of the company’s stock valued at $3,890,000 after purchasing an additional 16,219 shares in the last quarter. EP Wealth Advisors LLC purchased a new position in shares of Gates Industrial in the 4th quarter valued at about $402,000. Mackenzie Financial Corp boosted its stake in shares of Gates Industrial by 17.7% in the 4th quarter. Mackenzie Financial Corp now owns 844,064 shares of the company’s stock valued at $18,381,000 after buying an additional 126,847 shares during the period. Finally, XTX Topco Ltd grew its position in shares of Gates Industrial by 529.5% during the fourth quarter. XTX Topco Ltd now owns 255,562 shares of the company’s stock worth $5,487,000 after buying an additional 214,965 shares in the last quarter. 98.50% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth A number of equities research analysts have recently weighed in on GTES shares. Robert W. Baird dropped their price objective on Gates Industrial from $39.00 to $37.00 and set an “outperform” rating for the company in a research note on Monday, May 4th. Weiss Ratings reissued a “hold (c+)” rating on shares of Gates Industrial in a research note on Monday, June 29th. Morgan Stanley raised their target price on Gates Industrial from $27.00 to $28.00 and gave the company an “equal weight” rating in a report on Friday, May 29th. Wall Street Zen downgraded Gates Industrial from a “strong-buy” rating to a “buy” rating in a research report on Sunday, May 10th. Finally, Barclays cut their price target on shares of Gates Industrial from $32.00 to $28.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 1st. Eight analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $31.36.

Read Our Latest Stock Analysis on GTES

Gates Industrial Company Profile (Get Free Report)

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.

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Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES) will issue its Second-quarter earnings release before the market opens on Friday, July 31, 2026.  Management will host a webcast and conference call on the same day at 10:00 a.m. Eastern time to discuss Gates Industrial's financial results. The conference call can be accessed as follows:

By dialing (888) 414-4601 (domestic) or +1 (646) 960-0313 (international) and requesting the Gates Industrial Corporation Second-Quarter 2026 Earnings Conference Call or providing the Conference ID of 5772067. Live webcast accessed through Gates Industrial's website at investors.gates.com. An audio replay of the conference call will be available from approximately 1:00 p.m. Eastern time on July 31, 2026, until 11:59 p.m. Eastern time on August 7, 2026, and can be accessed domestically or internationally by dialing (800) 770-2030 or +1 (647) 362-9199, respectively, and providing the passcode 5772067, or by accessing Gates Industrial's website at investors.gates.com.

About Gates Industrial Corporation plc

Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse aftermarket channel customers, and to OEMs as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries to everyday consumer applications, including virtually every form of transportation. Our products are sold in more than 130 countries across our three commercial regions: the Americas; Europe, Middle East & Africa; Asia-Pacific.

SOURCE Gates Industrial Corporation plc

Also from this source

, /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES) (the "Company" or "Gates Industrial Corporation") today announced that its shareholders have overwhelmingly voted in favor of the Company's proposals in connection with the Company's intention to change its place of incorporation from England and Wales to Bermuda (the "Redomiciliation").

Gates Industrial Corporation's shareholders voted in favor of all proposals related to the Redomiciliation at a series of shareholder meetings held earlier today. The percentage of votes in favor of each proposal voted on at the meetings was approximately 99.6% of votes cast.

"We thank our shareholders for their strong support in approving the Redomiciliation of our parent company from England and Wales to Bermuda," said Ivo Jurek, Chief Executive Officer of Gates Industrial Corporation. "The change enhances capital and strategic flexibility while sustaining strong corporate governance and reducing administrative complexity and cost."

The Company will now proceed with the relevant legal and regulatory procedures required to implement the Redomiciliation, including seeking the sanction (i.e. approval) of the UK court, and expects the effective date to be July 20, 2026. The Company will include a more detailed timeline in its Current Report on Form 8-K to be filed with the Securities and Exchange Commission ("SEC") today. However, the effective date remains subject to change and will depend on, among other things, the date on which all the conditions are satisfied or, if capable of waiver, waived.

About Gates Industrial Corporation plc
Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse aftermarket channel customers, and to original equipment manufacturers as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries to everyday consumer applications, including virtually every form of transportation. Our products are sold in more than 130 countries across our three commercial regions: the Americas; Europe, Middle East & Africa; Asia-Pacific. For more information, visit gates.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to the Redomiciliation, including the timing of the effective time of the Redomiciliation and our expectations related to the benefits of the Redomiciliation and other initiatives. Such forward-looking statements are subject to various risks and uncertainties, including, among others, U.S. policies, actions or legislation (including the imposition of tariffs), economic, political and other risks associated with international operations (including as a result of the ongoing conflicts in the Middle East and their impact on supply chains, such as reduced availability of certain of our production materials and increased supply costs, and economic conditions), availability of raw materials or other manufacturing inputs at favorable prices in sufficient quantities, or at a given time, changes in our relationships with, or the financial condition, performance, purchasing power or inventory levels of, of key channel partners, dependence on the continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems, our ability to forecast demand or meet significant increases in demand and market acceptance of new product introductions and innovations. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

SOURCE Gates Industrial Corporation plc

Three new sprocket families expand belt drive specification across a broader range of bicycle OEM applications and price points

, /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES), a global manufacturer of innovative, highly engineered power transmission and fluid power solutions, is expanding its Belt Drive product portfolio with three new sprocket families: CRUISE, CRUISE PLUS and COMMUTE.

For nearly 20 years, Gates belt drives have redefined bicycle applications, delivering durable, low-maintenance performance, powering everything from children's bikes to premium eBikes and high-performance downhill mountain bikes. The new sprocket families enable Gates to extend those same benefits to a significantly broader market and open belt drive technology to segments still served by chain-based drivetrains. Paired with an industry-leading portfolio of belt drive system components, the expanded sprocket offering gives original equipment manufacturer (OEM) partners a scalable path to specify belt drive systems across a wider range of applications, rider expectations and price points.

"Combining our expertise in materials science, product development and high-volume production with a deep understanding of bicycle applications, Gates is advancing the next generation of bicycle drivetrain solutions," said Tom Pitstick, President, Americas and Global Mobility. "The new sprocket families enhance our tiered performance belt portfolio, providing our OEM partners with more options to bring additional belt driven bicycles to their lineups."

From Entry-Level to eBike: A Sprocket for Every Application
The three new overmolded, high-performance thermoplastic sprocket families address distinct OEM specification needs across price targets, rider use cases and performance requirements:

CRUISE provides a cost-efficient entry point into belt drive systems, helping OEMs offer clean, quiet and low-maintenance drivetrains in entry-level and value-oriented bicycles. CRUISE PLUS builds on that foundation with enhanced durability, longer service life and broader compatibility, bridging the gap between entry-level bikes and more demanding everyday applications, including mid-range eBikes. COMMUTE is engineered specifically for urban eBike performance, supporting mid-motor systems up to 75 Nm and prioritizing durability, weather resistance and low maintenance for daily mobility. Supporting OEMs From Concept to Market
Each sprocket family is designed for a defined use case, duty cycle and OEM price target, giving OEMs the flexibility to include belt drives across their broader product line. Gates supports OEMs from initial drivetrain specification through integration and production, providing the engineering resources and technical support needed to bring belt drive solutions to market efficiently and at scale.

Gates Belt Drive's expanded portfolio is now available globally. For more information on Gates OEM belt drive solutions, visit go.gates.com/bike.

About Gates Industrial Corporation plc
Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse replacement channel customers and to OEMs as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries to everyday consumer applications, including virtually every form of transportation. Our products are sold in more than 130 countries across our three commercial regions: the Americas; Europe, Middle East & Africa; Asia-Pacific. For more information, visit gates.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to expectations regarding our new sprocket families. Such forward-looking statements are subject to various risks and uncertainties, including, among others, U.S. policies, actions or legislation (including the imposition of tariffs), economic, political and other risks associated with international operations (including as a result of the ongoing conflicts in the Middle East and their impact on supply chains, such as reduced availability of certain of our production materials and increased supply costs, and economic conditions), availability of raw materials or other manufacturing inputs at favorable prices in sufficient quantities, or at a given time, changes in our relationships with, or the financial condition, performance, purchasing power or inventory levels of, of key channel partners, dependence on the continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems, our ability to forecast demand or meet significant increases in demand and market acceptance of new product introductions and innovations. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

SOURCE Gates Corporation

Posted by Defense World Staff on Mar 31st, 2026

Allspring Global Investments Holdings LLC grew its position in Gates Industrial Corporation PLC (NYSE:GTES – Free Report) by 5.3% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 14,169,457 shares of the company’s stock after acquiring an additional 717,353 shares during the period. Allspring Global Investments Holdings LLC owned about 5.49% of Gates Industrial worth $312,578,000 at the end of the most recent quarter.

Several other institutional investors also recently modified their holdings of the company. VIRGINIA RETIREMENT SYSTEMS ET Al grew its stake in shares of Gates Industrial by 1.0% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 52,700 shares of the company’s stock valued at $1,308,000 after buying an additional 500 shares during the last quarter. Glenmede Investment Management LP boosted its holdings in Gates Industrial by 0.9% during the 3rd quarter. Glenmede Investment Management LP now owns 55,047 shares of the company’s stock valued at $1,366,000 after acquiring an additional 514 shares during the period. Public Employees Retirement System of Ohio grew its position in Gates Industrial by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 85,178 shares of the company’s stock worth $2,114,000 after acquiring an additional 543 shares during the last quarter. CIBC Asset Management Inc increased its stake in Gates Industrial by 4.3% in the 3rd quarter. CIBC Asset Management Inc now owns 13,612 shares of the company’s stock worth $338,000 after purchasing an additional 565 shares during the period. Finally, Tectonic Advisors LLC increased its stake in Gates Industrial by 2.4% in the 3rd quarter. Tectonic Advisors LLC now owns 24,762 shares of the company’s stock worth $615,000 after purchasing an additional 572 shares during the period. 98.50% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In A number of analysts have recently weighed in on the company. UBS Group reissued a “buy” rating and set a $33.00 price objective on shares of Gates Industrial in a research note on Friday, February 13th. JPMorgan Chase & Co. decreased their target price on shares of Gates Industrial from $33.00 to $32.00 and set an “overweight” rating on the stock in a research note on Tuesday, December 16th. Barclays upped their price target on shares of Gates Industrial from $26.00 to $32.00 and gave the company an “overweight” rating in a report on Friday, February 13th. Royal Bank Of Canada reissued an “outperform” rating and set a $31.00 price target on shares of Gates Industrial in a research report on Friday, February 13th. Finally, Robert W. Baird set a $39.00 price objective on shares of Gates Industrial in a research report on Friday, February 13th. Seven analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Gates Industrial has a consensus rating of “Moderate Buy” and an average price target of $30.73.

Get Our Latest Research Report on GTES

Gates Industrial Stock Down 4.7% GTES stock opened at $21.06 on Tuesday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 2.42 and a current ratio of 3.37. The business’s 50 day moving average price is $24.83 and its two-hundred day moving average price is $23.82. The company has a market capitalization of $5.35 billion, a price-to-earnings ratio of 21.72 and a beta of 1.22. Gates Industrial Corporation PLC has a fifty-two week low of $14.70 and a fifty-two week high of $28.47.

Gates Industrial (NYSE:GTES – Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.37 by $0.01. The company had revenue of $856.20 million for the quarter, compared to the consensus estimate of $853.35 million. Gates Industrial had a net margin of 7.30% and a return on equity of 10.36%. Gates Industrial’s revenue for the quarter was up 3.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.36 EPS. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. As a group, analysts forecast that Gates Industrial Corporation PLC will post 1.36 earnings per share for the current fiscal year.

Gates Industrial Company Profile (Free Report)

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.

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Posted by Defense World Staff on Apr 7th, 2026

SG Americas Securities LLC grew its stake in shares of Gates Industrial Corporation PLC (NYSE:GTES – Free Report) by 46.7% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 70,186 shares of the company’s stock after purchasing an additional 22,338 shares during the quarter. SG Americas Securities LLC’s holdings in Gates Industrial were worth $1,507,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Gates Industrial by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 26,753,365 shares of the company’s stock valued at $664,019,000 after buying an additional 1,281,339 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Gates Industrial by 0.3% in the 3rd quarter. Dimensional Fund Advisors LP now owns 10,850,516 shares of the company’s stock worth $269,308,000 after acquiring an additional 28,760 shares during the period. Invesco Ltd. grew its position in Gates Industrial by 3.0% in the third quarter. Invesco Ltd. now owns 7,861,494 shares of the company’s stock valued at $195,122,000 after acquiring an additional 226,075 shares in the last quarter. State Street Corp raised its stake in shares of Gates Industrial by 2.4% during the second quarter. State Street Corp now owns 7,346,884 shares of the company’s stock valued at $169,199,000 after purchasing an additional 170,597 shares during the period. Finally, Franklin Resources Inc. raised its stake in shares of Gates Industrial by 22.3% during the third quarter. Franklin Resources Inc. now owns 6,923,169 shares of the company’s stock valued at $171,833,000 after purchasing an additional 1,261,849 shares during the period. Hedge funds and other institutional investors own 98.50% of the company’s stock.

Gates Industrial Stock Performance Shares of GTES stock opened at $22.50 on Tuesday. The company has a market cap of $5.71 billion, a P/E ratio of 23.19 and a beta of 1.28. The business has a 50 day moving average of $24.76 and a two-hundred day moving average of $23.72. Gates Industrial Corporation PLC has a 52 week low of $14.70 and a 52 week high of $28.47. The company has a quick ratio of 2.42, a current ratio of 3.37 and a debt-to-equity ratio of 0.61.

Gates Industrial (NYSE:GTES – Get Free Report) last announced its quarterly earnings results on Thursday, February 12th. The company reported $0.38 earnings per share for the quarter, topping analysts’ consensus estimates of $0.37 by $0.01. The business had revenue of $856.20 million for the quarter, compared to analysts’ expectations of $853.35 million. Gates Industrial had a return on equity of 10.36% and a net margin of 7.30%.The business’s quarterly revenue was up 3.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.36 EPS. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. As a group, analysts anticipate that Gates Industrial Corporation PLC will post 1.36 EPS for the current year.

Analysts Set New Price Targets Several brokerages have recently weighed in on GTES. Morgan Stanley upped their target price on shares of Gates Industrial from $25.00 to $27.00 and gave the company an “equal weight” rating in a research note on Wednesday, March 11th. Wall Street Zen upgraded shares of Gates Industrial from a “buy” rating to a “strong-buy” rating in a report on Sunday, March 29th. Weiss Ratings cut shares of Gates Industrial from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, April 1st. UBS Group restated a “buy” rating and set a $33.00 target price on shares of Gates Industrial in a research note on Friday, February 13th. Finally, Robert W. Baird set a $39.00 target price on Gates Industrial in a research report on Friday, February 13th. Six equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $30.36.

Check Out Our Latest Research Report on Gates Industrial

Gates Industrial Company Profile (Free Report)

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.

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In the news release, Gates Industrial Announces Fourth-Quarter 2025 Earnings Release Date, issued 09-Apr-2026 by Gates Industrial Corporation plc over PR Newswire, we are advised by the company that changes have been made. The complete, corrected release follows, with additional details at the end:

Gates Industrial Announces First-Quarter 2026 Earnings Release Date , /PRNewswire/ -- Gates Industrial Corporation plc (NYSE:GTES) will issue its first-quarter earnings release before the market opens on Friday, May 1, 2026. Management will host a webcast and conference call on the same day at 10:00 a.m. Eastern time to discuss Gates Industrial's financial results. The conference call can be accessed as follows:

By dialing (888) 414-4601 (domestic) or +1 (646) 960-0313 (international) and requesting the Gates Industrial Corporation First-Quarter 2026 Earnings Conference Call or providing the Conference ID of 5772067. Live webcast accessed through Gates Industrial's website at investors.gates.com. An audio replay of the conference call will be available from approximately 1:00 p.m. Eastern time on May 1, 2026, until 11:59 p.m. Eastern time on May 8, 2026, and can be accessed domestically or internationally by dialing (800) 770-2030 or +1 (647) 362-9199, respectively, and providing the passcode 5772067, or by accessing Gates Industrial's website at investors.gates.com.

About Gates Industrial Corporation plc

Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse replacement channel customers, and to OEMs as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries to everyday consumer applications including virtually every form of transportation. Our products are sold in more than 130 countries across our four commercial regions: the Americas; Europe, Middle East & Africa; Greater China; and East Asia & India.

Correction: An earlier version of this release required an update to the header.  

SOURCE Gates Industrial Corporation plc

Key Takeaways DXPE gains from rising demand, with PMI hitting 52.7% in March, signaling continued manufacturing expansion.GHM projects strong growth, with earnings expected to jump 45.4% for the current fiscal year.FLS benefits from strong bookings and aftermarket momentum, supported by its 3D strategic initiatives. The U.S. manufacturing sector has struggled over the past three years but appears to be making a solid rebound. Although high prices and a shrinking labor market remain major concerns, demand has been on the rise lately, boosting manufacturing activity.

ISM Manufacturing PMI (purchasing managers’ index) expanded in March for the third straight month. The index for March came in at 52.7%, higher than January’s metric of 52.4% and above the Zacks Consensus Estimate of 52.3%. 

In January, the ISM Manufacturing Index showed that the PMI reading jumped to 52.6% from 47.9% in December. This marked the strongest reading since 2022, with the sector growing for the first time in a year. 

The Zacks-defined Manufacturing – General Industrial industry is currently in the top 34% of the Zacks Industry Rank. In the past year, the industry has provided 28% returns, while its year-to-date return is 10.9%. Since it is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.

Given the positive sentiment, it would be ideal to invest in five stocks from the manufacturing industry with a favorable Zacks Rank. These are: DXP Enterprises Inc. (DXPE - Free Report) , Graham Corp. (GHM - Free Report) , Nordson Corp. (NDSN - Free Report) , Gates Industrial Corp. plc (GTES - Free Report) , and Flowserve Corp. (FLS - Free Report) . 

These stocks have provided double-digit returns year to date. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

DXP Enterprises Inc.Zacks Rank #1 DXP Enterprises is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico and Dubai. DXPE operates in three segments: Service Centers, Supply Chain Services, and Innovative Pumping Solutions.

DXPE provides innovative pumping solutions, supply-chain services and maintenance, repair, operating and production (MROP) services that emphasize and utilize its vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. 

DXPE's breadth of MROP products and service solutions allows it to be flexible and customer-driven, creating competitive advantages for our customers. DXPE's business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services.

DXP Enterprises has an expected revenue and earnings growth rate of 10.1% and 14.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 17.2% in the last 60 days.

Graham Corp. Zacks Rank #1 Graham designs and builds vacuum and heat transfer equipment for process industries and energy markets worldwide. GHM’s products include steam jet ejector vacuum systems and liquid ring vacuum pumps, surface condensers, Heliflows, water heaters, and various types of heat exchangers. GHM markets to chemical, petrochemical, petroleum refining, and electric power generating industries, including cogeneration and geothermal plants.

Graham has an expected revenue and earnings growth rate of 17.4% and 45.4%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for current-year earnings has improved 5.9% in the last 90 days.

Nordson Corp.Zacks Rank #2 Nordson is benefiting from steady demand in medical components and engineered fluid solutions. NDSN’s Advanced Technology Solutions segment is being lifted by strength across semiconductor-related electronics dispense and x-ray system product lines. 

NDSN’s Industrial Precision Solutions segment has returned to modest organic growth as demand for polymer processing and automotive applications has stabilized. Management raised its full-year sales and adjusted earnings guidance after a record last quarter, supported by higher backlog and broad order momentum. Shareholder returns also remain supportive.

Nordson has an expected revenue and earnings growth rate of 5.1% and 11.4%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.5% over the last 30 days. 

Gates Industrial Corp. plcZacks Rank #2 Gates Industrial is a manufacturer of engineered power transmission and fluid power solutions. GTES operates through two segments: Power Transmission and Fluid Power.

GTES offers a portfolio of products to diverse replacement channel customers and to original equipment manufacturers as specified components. GTES serves the agriculture, construction, manufacturing, energy and consumer applications industries. GTES operates primarily in the Americas, Europe, the Middle East & Africa, Greater China and East Asia & India.

Gates Industrial has an expected revenue and earnings growth rate of 3% and 5.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% over the last 30 days. 

Flowserve Corp.Zacks Rank #2 Flowserve is gaining from strength across its segments. The Flowserve Pump Division segment is particularly strong, driven by solid momentum in the aftermarket business. The increase in bookings across the energy and general industries’ end markets is aiding the Flow Control Division’s performance. 

Strength across end markets, along with FLS’ Diversify, Decarbonize and Digitize (3D) strategy, is driving its booking levels. Benefits from acquired assets are driving FLS’ performance of late. Its measures to reward its shareholders are encouraging.

Flowserve has an expected revenue and earnings growth rate of 6.3% and 12.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.5% over the last 30 days. 

Gates Industrial (GTES - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 1. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis manufacturer of power transmission and fluid power systems is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of -11.1%.

Revenues are expected to be $861.74 million, up 1.7% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Gates Industrial?For Gates Industrial, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.13%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Gates Industrial will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Gates Industrial would post earnings of $0.37 per share when it actually produced earnings of $0.38, delivering a surprise of +2.70%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Gates Industrial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsIllinois Tool Works (ITW - Free Report) , another stock in the Zacks Manufacturing - General Industrial industry, is expected to report earnings per share of $2.55 for the quarter ended March 2026. This estimate points to a year-over-year change of +7.1%. Revenues for the quarter are expected to be $4 billion, up 4.1% from the year-ago quarter.

The consensus EPS estimate for Illinois Tool Works has been revised 0.1% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.30%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Illinois Tool Works will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

, /PRNewswire/ --

First-Quarter 2026 Financial Summary

First-quarter net sales of $851.1 million, up 0.4% compared to the prior-year period, including a core revenue decrease of 2.9%. Net income attributable to shareholders of $59.7 million, or $0.23 per diluted share. Adjusted Net Income per diluted share of $0.35. Net income from continuing operations of $66.4 million, or a margin of 7.8%. Adjusted EBITDA of $177.4 million, or a margin of 20.8%. Reiterating 2026 full-year guidance. Gates Industrial Corporation plc (NYSE:GTES), a leading global provider of application-specific fluid power and power transmission solutions, today reported results for the first quarter ended March 28, 2026.

Ivo Jurek, Gates Industrial's Chief Executive Officer, commented, "We executed well in the first quarter, successfully implementing a new enterprise resource planning system in Europe and continuing to invest in strategic process and growth initiatives. We exited the quarter with solid order rates and our book to bill was nicely above 1. Our cash from operating activities increased compared to the prior year period and our balance sheet is well positioned to support our strategic objectives."

Jurek continued, "We have reiterated our financial guidance for 2026. I am optimistic about our core growth prospects in 2026 and our strong balance sheet provides us flexibility to strengthen the enterprise and drive shareholder value. I appreciate the effort and diligence of our global Gates team."

Power Transmission Segment Results

Three months ended

(USD in millions)

March 28, 2026

March 29, 2025

% Change

% Core Change

Net sales

$533.2

$527.2

1.1 %

(2.5 %)

Adjusted EBITDA

$112.0

$116.7

(4.0 %)

Adjusted EBITDA margin

21.0 %

22.1 %

(110 bps)

Fluid Power Segment Results

Three months ended

(USD in millions)

March 28, 2026

March 29, 2025

% Change

% Core Change

Net sales

$317.9

$320.4

(0.8 %)

(3.5 %)

Adjusted EBITDA

$65.4

$70.6

(7.4 %)

Adjusted EBITDA margin

20.6 %

22.0 %

(140 bps)

2026 Guidance

The Company is maintaining its full year financial guidance for 2026:

Core sales growth in the range of 1% to 4% year-over-year Adjusted EBITDA of $775 million to $835 million Adjusted Earnings Per Share of $1.52 to $1.68 Capital Expenditures of approximately $120 million Free Cash Flow conversion exceeding 90% Share-based metrics in the Company's guidance do not include the effect of any potential share repurchases.

Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures, including expected Core Sales Growth, Adjusted EBITDA, Adjusted Earnings per Share and Free Cash Flow conversion for 2026. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.

Conference Call and Webcast

Gates Industrial Corporation plc will host a conference call today at 10:00 a.m. Eastern Time to discuss the Company's financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through Gates Industrial's website at investors.gates.com. For those unable to access the webcast, the conference call can be accessed by dialing (888) 414-4601 (domestic) or +1 (646) 960-0313 (international) and requesting the Gates Industrial Corporation First-Quarter 2026 Earnings Conference Call or providing the Conference ID of 5772067. An audio replay of the conference call can be accessed by dialing (800) 770-2030 (domestic) or +1 (647) 362-9199 (international), and providing the passcode 5772067, or by accessing Gates Industrial's website at investors.gates.com.

About Gates Industrial Corporation plc

Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse aftermarket channel customers, and to original equipment manufacturers as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation. Our products are sold in more than 130 countries across our three commercial regions: the Americas; Europe, Middle East & Africa; and Asia Pacific.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to expectations regarding the performance of the Company's business and financial results (including our order rates, our growth prospects and our capital allocation opportunities), our ability to drive shareholder value and statements regarding our outlook for 2026. Such forward-looking statements are subject to various risks and uncertainties, including, among others, U.S. policies, actions or legislation (including the imposition of tariffs), economic, political and other risks associated with international operations (including as a result of the ongoing conflicts in the Middle East and their impact on supply chains, such as reduced availability of certain of our production materials and increased supply costs, and economic conditions), availability of raw materials or other manufacturing inputs at favorable prices in sufficient quantities, or at a given time,  changes in our relationships with, or the financial condition, performance, purchasing power or inventory levels of, of key channel partners, dependence on the continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems,  our ability to forecast demand or meet significant increases in demand and market acceptance of new product introductions and innovations. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Gates Industrial Corporation plc

Condensed Consolidated Statements of Operations

(Unaudited)

Three months ended

(USD in millions, except per share amounts)

March 28, 2026

March 29, 2025

Net sales

$          851.1

$          847.6

Cost of sales

513.1

503.0

Gross profit

338.0

344.6

Selling, general and administrative expenses

226.9

216.2

Transaction-related expenses

0.5

0.4

Asset impairments

—

0.6

Restructuring expenses

0.7

1.6

Operating income from continuing operations

109.9

125.8

Interest expense

29.9

29.6

Other expense

2.1

2.4

Income from continuing operations before taxes

77.9

93.8

Income tax expense

11.5

25.2

Net income from continuing operations

66.4

68.6

Loss on disposal of discontinued operations

0.2

0.3

Net income

66.2

68.3

Less: non-controlling interests

6.5

6.3

Net income attributable to shareholders

$           59.7

$           62.0

Earnings per share

Basic

Earnings per share from continuing operations

$           0.24

$           0.24

Earnings per share from discontinued operations

—

—

Earnings per share

$           0.24

$           0.24

Diluted

Earnings per share from continuing operations

$           0.23

$           0.24

Earnings per share from discontinued operations

—

—

Earnings per share

$           0.23

$           0.24

Gates Industrial Corporation plc

Condensed Consolidated Balance Sheets

(Unaudited)

(USD in millions, except share numbers and per share amounts)

As of
March 28, 2026

As of
December 31, 2025

Assets

Current assets

Cash and cash equivalents

$          785.3

$          812.1

Trade accounts receivable, net

799.6

744.2

Inventories

685.7

700.0

Taxes receivable

37.9

43.4

Prepaid expenses and other assets

180.9

181.8

Total current assets

2,489.4

2,481.5

Non-current assets

Property, plant and equipment, net

599.5

609.0

Goodwill

2,020.6

2,035.2

Pension surplus

7.6

7.6

Intangible assets, net

1,158.7

1,192.4

Right-of-use assets

152.0

137.1

Taxes receivable

1.1

5.4

Deferred income taxes

636.3

640.0

Other non-current assets

49.8

43.2

Total assets

$        7,115.0

$        7,151.4

Liabilities and equity

Current liabilities

Debt, current portion

$           30.9

$           36.2

Trade accounts payable

396.9

433.7

Taxes payable

18.6

27.0

Accrued expenses and other current liabilities

232.1

238.5

Total current liabilities

678.5

735.4

Non-current liabilities

Debt, less current portion

2,197.6

2,196.3

Post-retirement benefit obligations

63.1

68.8

Lease liabilities

135.5

124.5

Taxes payable

63.2

62.1

Deferred income taxes

43.8

49.3

Other non-current liabilities

205.5

225.8

Total liabilities

3,387.2

3,462.2

Shareholders' equity

—Shares, par value of $0.01 each - authorized shares: 3,000,000,000; outstanding shares:
253,862,978 (December 31, 2025: authorized shares: 3,000,000,000; outstanding shares:
253,543,540)

2.5

2.6

—Additional paid-in capital

2,631.4

2,633.3

—Accumulated other comprehensive loss

(925.4)

(917.1)

—Treasury shares

(16.5)

(37.5)

—Retained earnings

1,674.9

1,652.7

Total shareholders' equity

3,366.9

3,334.0

Non-controlling interests

360.9

355.2

Total equity

3,727.8

3,689.2

Total liabilities and equity

$        7,115.0

$        7,151.4

Gates Industrial Corporation plc

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Three months ended

(USD in millions)

March 28,
2026

March 29,
2025

Cash flows from operating activities

Net income

$           66.2

$           68.3

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

55.7

52.2

Foreign exchange and other non-cash financing income

(8.9)

(8.2)

Share-based compensation expense

6.3

6.1

Decrease in post-employment benefit obligations, net

(0.2)

(3.0)

Deferred income taxes

(9.3)

(3.1)

Asset impairments

—

0.6

Other operating activities

0.8

2.6

Changes in operating assets and liabilities:

—Accounts receivable

(59.2)

(47.3)

—Inventories

9.3

(15.4)

—Accounts payable

(34.1)

3.1

—Prepaid expenses and other assets

8.3

(22.3)

—Taxes payable

7.2

8.5

—Other liabilities

(11.9)

(34.8)

Net cash provided by operating activities

30.2

7.3

Cash flows from investing activities

Purchases of property, plant and equipment

(16.7)

(17.5)

Purchases of intangible assets

(4.8)

(8.7)

Cash paid under company-owned life insurance policies

(10.6)

(7.0)

Cash received under company-owned life insurance policies

3.7

0.5

Proceeds from the sale of property, plant and equipment

1.3

2.0

Other investing activities

(0.1)

(0.3)

Net cash used in investing activities

(27.2)

(31.0)

Cash flows from financing activities

Issuance of shares

0.5

1.8

Repurchase of shares

(16.6)

(13.0)

Payments of long-term debt

—

(4.7)

Employee taxes paid from shares withheld

(8.6)

(11.5)

Dividends paid to non-controlling interests

—

(2.3)

Other financing activities

(0.4)

5.1

Net cash used in financing activities

(25.1)

(24.6)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(4.7)

6.6

Net decrease in cash and cash equivalents and restricted cash

(26.8)

(41.7)

Cash and cash equivalents and restricted cash at the beginning of the period

815.0

684.8

Cash and cash equivalents and restricted cash at the end of the period

$          788.2

$          643.1

Supplemental schedule of cash flow information

Interest paid

$           32.0

$           36.5

Income taxes paid

$           13.7

$           19.7

Accrued capital expenditures

$             2.6

$             1.1

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. Management uses Adjusted EBITDA as its key profitability measure. This is a non-GAAP measure that represents EBITDA before certain items that impact comparison of the performance of our business either period-over-period or with other businesses. We use Adjusted EBITDA as our measure of segment profitability to assess the performance of our businesses, and it is used for consolidated Gates as well because we believe it is important to consider our total profitability on a basis that is consistent with that of our operating segments. Adjusted EBITDA Margin is Adjusted EBITDA for a particular period expressed as a percentage of net sales for that period.

Management uses Adjusted Net Income as an additional measure of profitability. Adjusted Net Income is a non-GAAP measure that represents net income attributable to shareholders before certain items that impact comparison of the performance of our business, either period-over-period or with other businesses. Beginning with the three months ended June 29, 2024, we revised our definition of Adjusted Net Income to adjust for discrete tax items, which are significant, unusual or infrequently occurring tax items. We have revised the prior period amounts to conform to our current period presentation.

Management uses Adjusted Gross Profit as an additional measure of operating performance. Adjusted Gross Profit is a non-GAAP measure that represents gross profit before certain items that impact the comparability of our results, such as restructuring costs and inventory adjustments, specific to the remeasurement of certain inventories on a Last-in-First-out ("LIFO") basis. Adjusted Gross Profit margin is Adjusted Gross Profit expressed as a percentage of sales. We use Adjusted Gross Profit and Adjusted Gross Profit margin because it provides insight into the underlying profitability of our core operations by excluding items that are not indicative of ongoing business performance.

Core sales is a non-GAAP measure that represents net sales for the period excluding the impacts of movements in average currency exchange rates and the first-year impacts of acquisitions and disposals, when applicable. Core sales growth is the change in core sales expressed as a percentage of prior period net sales. We present core sales growth because it allows for a meaningful comparison of year-over-year performance without the volatility caused by foreign currency gains or losses, or the incomparability that would be caused by the impact of an acquisition or disposal.

Management uses Free Cash Flow to measure cash generation. Free Cash Flow is a non-GAAP measure that represents net cash provided by operations less capital expenditures. Free Cash Flow Conversion is a measure of Free Cash Flow expressed as a percentage of Adjusted Net Income. We use this metric as a measure of the success of our business in converting Adjusted Net Income into cash.

These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please see below for a reconciliation of historical non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP.

Gates Industrial Corporation plc

Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA

(Unaudited)

Three months ended

(USD in millions)

March 28, 2026

March 29, 2025

Net income from continuing operations before taxes

$         66.4

$         68.6

Adjusted for:

Income tax expense

11.5

25.2

Interest expense

29.9

29.6

Depreciation and amortization

55.7

52.2

Transaction-related expenses (1)

0.5

0.4

Asset impairments

—

0.6

Restructuring expenses 

0.7

1.6

Share-based compensation expense

6.3

6.1

Inventory impairments and adjustments (2) (included in cost of sales)

4.0

(1.0)

Restructuring related expenses (included in cost of sales)

2.5

1.2

Restructuring related expenses (included in SG&A)

1.3

1.5

Other expenses (income), excluding foreign currency transaction gain or loss and
insurance recoveries(3)

(1.4)

1.3

Adjusted EBITDA

$        177.4

$        187.3

Net Sales

$        851.1

$        847.6

Net income from continuing operations margin

7.8 %

8.1 %

Adjusted EBITDA Margin

20.8 %

22.1 %

(1)

Transaction-related expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.

(2)

Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis.

(3)

Other expenses (income) excludes foreign currency transaction losses of $3.5 million for the three months ended March 28, 2026; foreign currency transaction loss of $1.1 million for the three months ended March 29, 2025.

Gates Industrial Corporation plc

Reconciliation of Net Income Attributable to Shareholders to Adjusted Net Income

(Unaudited)

Three months ended

(USD in millions, except share numbers and per share amounts)

March 28, 2026

March 29, 2025

Net income attributable to shareholders

$           59.7

$           62.0

Adjusted for:

Loss on disposal of discontinued operations

0.2

0.3

Amortization of intangible assets arising from the 2014 acquisition of Gates

29.3

28.3

Transaction-related expenses (1)

0.5

0.4

Asset impairments

—

0.6

Restructuring expenses (2)

0.7

1.6

Restructuring related expenses (included in cost of sales)

2.5

1.2

Restructuring related expenses (included in SG&A)

1.3

1.5

Share-based compensation expense

6.3

6.1

Inventory impairments and adjustments (3) (included in cost of sales)

4.0

(1.0)

Adjustments relating to post-retirement benefits

5.4

0.4

Financing and other FX related losses

(4.6)

3.2

Discrete tax items (4)

(6.3)

0.1

Other adjustments

(1.4)

(1.3)

Estimated tax effect of the above adjustments

(8.9)

(9.5)

Adjusted Net Income

$           88.7

$           93.9

Diluted weighted-average number of shares outstanding

256,872,424

261,567,906

Adjusted Net Income per diluted share

$           0.35

$           0.36

(1)

Transaction-related expenses related primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.

(2)

Restructuring expenses represent items qualifying for recognition as such under U.S. GAAP and included costs related to the closure of lines of business, facility closures and consolidations, fundamental organizational rationalizations and non-recurring employee severance related to such actions.

(3)

Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis.

(4)

Discrete tax items include changes in uncertain tax positions relating to prior years, changes in tax laws or rates, changes in valuation allowances, excess tax benefits on stock option exercises, and prior year adjustments in various foreign jurisdictions in which returns were filed.

Gates Industrial Corporation plc

Reconciliation of Gross Profit to Adjusted Gross Profit

(Unaudited)

Three months ended

(USD in millions)

March 28,
2026

March 29,
2025

Net sales

$        851.1

$        847.6

Cost of sales

513.1

503.0

Gross Profit

338.0

344.6

Inventory adjustments (1) (included in cost of sales)

4.0

(1.0)

Restructuring related expenses (included in cost of sales)

2.5

1.2

Adjusted Gross Profit

344.5

344.8

Gross Profit margin

39.7 %

40.7 %

Adjusted Gross Profit margin

40.5 %

40.7 %

(1)

Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis.

Gates Industrial Corporation plc

Reconciliation of Net Sales to Core Sales Growth

(Unaudited)

Three months ended March 28, 2026

(USD in millions)

Power
Transmission

Fluid Power

Total

Net sales for the three months ended March 28, 2026 (1)

$        533.2

$        317.9

$        851.1

Impact on net sales of movements in currency rates

(19.2)

(8.7)

(27.9)

Core sales for the three months ended March 28, 2026

$        514.0

$        309.2

$        823.2

Net sales for the three months ended March 29, 2025

527.2

320.4

847.6

Increase (decrease) in net sales

6.0

(2.5)

3.5

Decrease in net sales on a core basis (core sales)

$        (13.2)

$        (11.2)

$        (24.4)

Net sales increase (decrease)

1.1 %

(0.8 %)

0.4 %

Core sales decrease

(2.5 %)

(3.5 %)

(2.9 %)

(1)

Throughout this document the terms "net sales" and "revenue" are used interchangeably in reference to the GAAP measure "net sales."

SOURCE Gates Industrial Corporation plc

Action consistent with company's portfolio 80/20 approach Expected to improve adjusted EBITDA margins of Industrial Motion segment , /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, today announced that it has entered into a definitive agreement to sell the assets of its belts business to Gates Industrial Corporation plc (NYSE: GTES). Financial terms of the agreement were not disclosed.

"The sale of our belts business is consistent with our near-term strategic priorities and our 80/20 approach to structurally improve margins, grow faster in the most profitable verticals and create value for shareholders," said Lucian Boldea, president and chief executive officer. "We are applying this same rigor across our portfolio to ensure we leverage our core competencies where they drive the greatest impact."

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

"I want to thank our dedicated belts colleagues for their contributions over the years," Boldea said. "Gates is a global leader in power transmission products with a strong reputation for innovation and quality, and we are confident that Gates is the right owner to guide this business forward."

The divestiture of the belts business is expected to improve the adjusted EBITDA margins of the Industrial Motion segment. The company plans to provide the estimated impact to margins at its upcoming Investor Day on May 20. 

Proceeds from the divestiture are intended to be used to fund the company's capital allocation priorities. The transaction is expected to close in the third quarter of 2026 and is subject to customary closing conditions.

About The Timken Company

The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, designs a growing portfolio of next-generation products for diverse industries. For more than 125 years, Timken has used its specialized expertise to innovate and create customer-centric solutions that increase reliability and efficiency. Timken posted $4.6 billion in sales in 2025 and employs approximately 19,000 people globally, operating from 45 countries.

Certain statements in this release (including statements regarding the company's forecasts, estimates, plans and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the company's 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; changes in the financial health of the company's customers, which may have an impact on the company's revenues, earnings and impairment charges; logistical issues associated with port closures, delays or increased costs; the impact of changes to the company's accounting methods; political risks associated with government instability; recent world events that have increased the risks posed by international trade disputes, tariffs, sanctions and hostilities; strained geopolitical relations between countries in which we have significant operations; 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 wages, shipping costs, raw material costs, energy and fuel prices, and other production costs; changes in customer demand or tariff rates and other costs associated with tariffs; the company's ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms; fluctuations in currency valuations or interest rates; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion, synergies, and expected cashflow generation within expected timeframes or at all; the company's ability to effectively adjust prices for its products in response to changing dynamics; the impact on the company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; the introduction of new disruptive technologies, such as artificial intelligence; unplanned plant shutdowns; the effects of government-imposed restrictions, commercial requirements, and company goals associated with climate change and emissions or other sustainability initiatives; unanticipated litigation, claims, investigations remediation, or assessments; the rapidly evolving global regulatory landscape and the corresponding heightened operational complexity and compliance risks; restrictions on the use of, or claims or remediation associated with, per- and polyfluoroalkyl substances or polytetrafluoroethylene; the company's ability to maintain positive relations with unions and works councils; the company's ability to compete for skilled labor and to attract, retain and develop management, other key employees, and skilled personnel; negative impacts to the company's operations or financial position as a result of pandemics, epidemics, or other public health concerns and associated governmental measures; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, 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, 2024, 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
[email protected]

Investor Relations:
Neil Frohnapple
234.262.2310
[email protected]

SOURCE The Timken Company

For the quarter ended March 2026, Gates Industrial (GTES - Free Report) reported revenue of $851.1 million, up 0.4% over the same period last year. EPS came in at $0.35, compared to $0.36 in the year-ago quarter.

The reported revenue represents a surprise of -1.24% over the Zacks Consensus Estimate of $861.74 million. With the consensus EPS estimate being $0.32, the EPS surprise was +9.38%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Gates Industrial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Fluid Power: $317.9 million versus the two-analyst average estimate of $324.16 million. The reported number represents a year-over-year change of -0.8%.Net Sales- Power Transmission: $533.2 million versus the two-analyst average estimate of $537.59 million. The reported number represents a year-over-year change of +1.1%.Adjusted EBITDA- Fluid Power: $65.4 million compared to the $66.45 million average estimate based on two analysts.Adjusted EBITDA- Power Transmission: $112 million versus the two-analyst average estimate of $111.2 million.View all Key Company Metrics for Gates Industrial here>>>

Shares of Gates Industrial have returned +16.2% over the past month versus the Zacks S&P 500 composite's +10.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES), a global manufacturer of innovative, highly engineered power transmission and fluid power solutions, today announced that the Company will attend the 19th Annual Wolfe Research Global Transportation & Industrials Conference in New York City on Tuesday, May 19, 2026. Ivo Jurek, Chief Executive Officer, will present at 9:45 AM Eastern Time.  

To listen to a live webcast of the announced presentations, please visit the Events & Presentations section of the Gates Investor Relations website at investors.gates.com and click on the event webcast link.

About Gates Industrial Corporation plc:

Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse replacement channel customers, and to OEMs as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries to everyday consumer applications including virtually every form of transportation. Our products are sold in more than 130 countries across our four commercial regions: the Americas; Europe, Middle East & Africa; Greater China; and East Asia & India.

SOURCE Gates Industrial Corporation plc

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