Track market-moving stories before they get noisy

Harmony Biosciences Holdings, Inc. (HRMY - Free Report) closed the last trading session at $31.83, gaining 14.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $42.91 indicates a 34.8% upside potential.

The average comprises 11 short-term price targets ranging from a low of $25.00 to a high of $72.00, with a standard deviation of $13.82. While the lowest estimate indicates a decline of 21.5% from the current price level, the most optimistic estimate points to a 126.2% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for HRMY, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in HRMYAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.3%.

Moreover, HRMY currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much HRMY could gain, the direction of price movement it implies does appear to be a good guide.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Harmony Biosciences Holdings, Inc. (HRMY - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this company is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Harmony Biosciences is 12.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 23.4% this year, crushing the industry average, which calls for EPS growth of 14%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Harmony Biosciences is 9%, which is higher than many of its peers. In fact, the rate compares to the industry average of 2.6%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 32.4% over the past 3-5 years versus the industry average of 4.4%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Harmony Biosciences have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.3% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Harmony Biosciences a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Harmony Biosciences well for outperformance, so growth investors may want to bet on it.

Harmony Biosciences Holdings, Inc. (HRMY - Free Report) came out with quarterly earnings of $0.55 per share, missing the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -27.94%. A quarter ago, it was expected that this company would post earnings of $0.84 per share when it actually produced earnings of $0.38, delivering a surprise of -54.76%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

Harmony Biosciences, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $215.39 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 3.18%. This compares to year-ago revenues of $184.73 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.

Harmony Biosciences shares have lost about 12.4% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Harmony Biosciences?While Harmony Biosciences has underperformed 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 Harmony Biosciences 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 $0.93 on $249.23 million in revenues for the coming quarter and $3.34 on $1.03 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, Medical - Biomedical and Genetics is currently in the bottom 40% 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.

Prime Medicine, Inc. (PRME - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026.

This company is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +40%. The consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level.

Prime Medicine, Inc.'s revenues are expected to be $1.56 million, up 7.6% from the year-ago quarter.

PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)--Harmony Biosciences Holdings, Inc. (Nasdaq: HRMY), today announced that Harmony's management team will participate in the following upcoming investor conferences. Goldman Sachs 47th Annual Global Healthcare Conference Fireside Chat: June 9, 2026, at 8:40 a.m. ET Location: Miami, FL Oppenheimer CNS & Neuro-Muscular Summit Fireside Chat: June 10, 2026, at 3:25 p.m. ET Location: Miami, FL A webcast of the fireside chats will be available on the investor.

Harmony Biosciences Holdings, Inc. (HRMY) Presents at Goldman Sachs 47th Annual Global Healthcare Conference 2026 Transcript

Harmony Biosciences Holdings, Inc. (Nasdaq: HRMY), today announced that six abstracts in narcolepsy and idiopathic hypersomnia have been accepted for poster presentation at SLEEP 2026, the 40th annual meeting of the Associated Professional Sleep Societies (APSS), which will be held June 14 – 17 in Baltimore, MD.

The poster presentation details are as follows:

Abstract Title

Poster Presentation Session

Treatment with Pitolisant in Subgroups of Adults with Narcolepsy: Pooled Analysis of Two Randomized Clinical Trials

P-16 (Poster #387), 6/15/2026, 10:00-10:45 a.m.

Effect of Pitolisant on Sleep Patterns in Idiopathic Hypersomnia: Analysis of Phase 3 Trial Sleep Diary Data

P-16 (Poster #378), 6/15/2026, 11:00-11:45 a.m.

Phase 3, Randomized, Double-Blind, Placebo-Controlled Studies of HBS-301 for Narcolepsy and Idiopathic Hypersomnia

P-1 (Poster #384), 6/15/2026, 11:00-11:45 a.m.

Pitolisant Gastro-Resistant Formulation (HBS-201) Dosing Optimization Study in Adults with Narcolepsy: Results from a Phase 1b Clinical Trial

P-41 (Poster #525), 6/16/2026, 10:00-10:45 a.m.

Patient Experience of Fatigue and Assessment in Narcolepsy: A Cross-Sectional Study

P-35 (Poster #330), 6/16/2026, 11:00-11:45 a.m.

Long-Term Safety and Effectiveness of Pitolisant in Adult Patients with Idiopathic Hypersomnia: Final Results From an Open-Label Phase 3 Trial

P-41 (Poster #524), 6/16/2026, 11:00-11:45 a.m.

About Harmony Biosciences

Harmony Biosciences is a pharmaceutical company dedicated to developing and commercializing innovative therapies for patients with rare neurological diseases who have unmet medical needs. Driven by novel science, visionary thinking, and a commitment to those who feel overlooked, Harmony Biosciences is nurturing a future full of therapeutic possibilities that may enable patients with rare neurological diseases to truly thrive. Established by Paragon Biosciences, LLC, in 2017 and headquartered in Plymouth Meeting, Pa., we believe that when empathy and innovation meet, a better future can begin; a vision evident in the therapeutic innovations we advance, the culture we cultivate, and the community programs we foster. For more information, please visit www.harmonybiosciences.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260611781016/en/

NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP is investigating potential claims against AECOM (“AECOM” or the “Company”) (NYSE:ACM). The investigation concerns whether the Company and/or members of its senior management may have violated federal securities laws or engaged in other unlawful business practices.[LEARN MORE ABOUT THE INVESTIGATION]What Happened?On May 11, 2026, AECOM reported its second quarter fiscal 2026 results. The Company reported operating cash flow of approxi.

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of AECOM (“AECOM” or the “Company”) (NYSE: ACM) on behalf of investors concerning the Company's possible violations of federal securities laws.IF YOU ARE AN INVESTOR WHO LOST MONEY ON AECOM (ACM), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.What Is The Investigation About?On May 11, 2026, AECOM announced its second quarter fiscal 2026 results, including, in relevant part, t.

BENSALEM, Penn.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of AECOM (“AECOM” or the “Company”) (NYSE: ACM) investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN AECOM (ACM), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS. Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithl.

Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of AECOM (“AECOM” or the “Company”) (NYSE: ACM) investors concerning the Company’s possible violations of the federal securities laws.

IF YOU ARE AN INVESTOR WHO LOST MONEY ON AECOM (ACM), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.

What Happened?

On May 11, 2026, AECOM announced its second quarter fiscal 2026 results, including, in relevant part, that quarterly operating cash flow was $4 million, down 98% year over year, and adjusted free cash flow which swung to negative $27 million.

In the accompanying earnings call, the Company’s Chief Financial Officer, Gaurav Kapoor, revealed “longer-than-anticipated claim resolution on certain projects” among other things, impacted the quarter. Kapoor further stated these were “projects we bid in fiscal year 2019 and 2020, two projects” for two clients, and that “individual claims for these two clients have gone through the resolution process. And we've been successful on each one of them. But it's just been very slow and dragged out on the resolution process. That is what has surprised us as to how long the process has taken.”

On this news, AECOM’s stock price fell $9.55, or 12%, to close at $69.95 per share on May 12, 2026, thereby injuring investors.

On May 12, 2026, AECOM filed its quarterly report on Form 10-Q, which showed that significant claims recorded in contract assets and other non-current assets were approximately $680 million as of March 31, 2026, compared with approximately $400 million as of September 30, 2025.

Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

Whistleblower Notice

Persons with non-public information regarding AECOM should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].

About Glancy Prongay Wolke & Rotter LLP

GPWR is a premier law firm with decades of experience representing investors and consumers in securities litigation and other complex class action litigation. Recognizing the firm’s recent successes, GPWR was named one of Law360’s Securities Groups of the Year and ranked second-highest in total investor recoveries by Institutional Shareholder Services Securities Class Action Services in 2025. GPWR’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPWR’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money. Prior results do not guarantee a similar outcome.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260527509210/en/

Heavy electrochemical plating growth drives shares of semiconductor supplier ACM Research, Inc. (ACMR) higher.

ACMR develops, manufactures, and sells semiconductor processing equipment for cleaning, electrochemical plating, stress-free polishing, vertical furnace processes, tracking, PECVD, along with wafer- and panel-level packaging tools. Its first-quarter fiscal 2026 earnings report showed revenue of $231.3 million (up 34.2% year-over-year), non-GAAP diluted per-share earnings of $0.34, and guidance showing 25% annual growth (between $1.08 billion and $1.175 billion).

It’s no wonder ACMR shares are up 135% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

ACM Research Sees Huge Institutional Buying Institutional volumes reveal plenty. In the last year, ACMR has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in ACMR shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with ACM Research.

ACM Research Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, ACMR has had strong sales and earnings growth:

3-year sales growth rate (+33%) 3-year EPS growth rate (+37.2%) Source: FactSet

Also, EPS is estimated to ramp higher this year by +39.9%.

Now it makes sense why the stock has been generating Big Money interest. ACMR has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

ACM Research has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s drawn 25 outlier inflow signals since 2020 and is up 217.5% since the first one. The blue bars below show when ACMR was a top pick on the Outlier 20 report…Big Money keeps buying:

Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

ACM Research Price Prediction The ACMR action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in ACMR at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.

On June 01, 2026, AECOM ACM shares rose 4.2% to a current price of $72.25, reflecting a slight recovery after a challenging month where the stock declined 14.1%. Over the past year, AECOM's performance has been notably poor, down 33.5%, and the stock has traded within a 52-week range of $67.64 to $135.52.

GF Value™ verdict: Currently trading at $72.25, AECOM's shares are estimated to be 17.9% undervalued compared to a GF Value™ of $87.95.GF Score™: AECOM has a GF Score™ of 70/100, indicating an above average ranking for long-term investment potential.Most notable signal: Insider activity reflects confidence, with insiders buying $0.4M in stock over the last three months and no selling recorded. Is ACM Overvalued or Undervalued? Currently, AECOM's shares are trading at $72.25, which presents a significant opportunity as the GF Value™ estimates the fair value at $87.95, indicating that the stock is 17.9% undervalued. The margin of safety provided by this undervaluation suggests that there is potential for price appreciation if the company's fundamentals remain stable or improve. The GF Valuation label categorizes AECOM as "Modestly Undervalued," reinforcing the notion that the current share price does not fully reflect the company's intrinsic value.

Investors should consider that while the stock appears undervalued according to the GF Value™, other factors such as market conditions, operational performance, and external economic influences can affect future price movements. AECOM's valuation reflects a blend of historical trading multiples, business growth, and future performance estimates, which are part of the GF Value™ methodology.

How Does ACM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 18.9x 36.3x Forward P/E 10.8x N/A AECOM's current P/E (TTM) of 18.9x is significantly below its 5-year median P/E of 36.3x, indicating that the stock is trading at a substantial discount compared to its historical valuation levels. The forward P/E of 10.8x further supports the notion that AECOM is undervalued relative to its historical performance. This P/E analysis aligns with the GF Value™ verdict, reinforcing the view that AECOM is currently undervalued.

What Does ACM's GF Score™ Tell Us? Metric Rating GF Score™ 70 Financial Strength 5/10 Profitability 7/10 Growth 3/10 Valuation 8/10 Momentum 4/10 AECOM's GF Score™ of 70/100 indicates a solid overall performance, particularly in profitability (7/10) and valuation (8/10), which are its strongest aspects. However, the growth rank of 3/10 suggests that the company may face challenges in expanding its revenue and profits, presenting a potential risk for long-term growth. The financial strength rating of 5/10 suggests that while the company's balance sheet is stable, there is room for improvement.

What Are Insiders Doing with ACM Stock? Recent insider activity indicates a positive outlook among AECOM's executives, with insiders purchasing $0.4 million worth of shares in the last three months and no selling activity reported. This pattern of buying can be a strong signal of confidence in the company's future prospects. Such insider purchases may suggest that insiders believe the stock is undervalued at its current price, aligning with the GF Value™ assessment.

What This Means for Investors Based on the current analysis, AECOM ACM appears to be undervalued considering its GF Value™ of $87.95 compared to the current price of $72.25. This suggests an investment opportunity, although potential investors should remain cautious of the company's growth prospects and overall market conditions.

For the complete analysis, visit the AECOM ACM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ACM's GF Score™?

ACM's GF Score™ is 70/100, indicating an above average ranking for long-term investment potential.

Is ACM overvalued or undervalued?

ACM is currently undervalued with a GF Value™ of $87.95 compared to its current price of $72.25, suggesting potential for price appreciation.

What is ACM's P/E ratio?

ACM's P/E (TTM) is 18.9x, which is significantly lower than its 5-year median P/E of 36.3x, further supporting the notion that the stock is undervalued.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

DALLAS--(BUSINESS WIRE)--AECOM (NYSE: ACM), the trusted global infrastructure leader, today announced that its Board of Directors has declared a quarterly cash dividend of $0.31 per share as part of its ongoing quarterly dividend program. The dividend is payable on July 17, 2026 to stockholders of record as of the close of business on July 1, 2026. About AECOM AECOM (NYSE: ACM) is the global infrastructure leader, committed to delivering a better world. As a trusted professional services firm p.

DALLAS--(BUSINESS WIRE)--AECOM (NYSE: ACM), the trusted global infrastructure leader, today announced it has been selected to continue providing architecture and engineering (A/E) services to the U.S. Department of Homeland Security (DHS) for its critical infrastructure modernization initiatives. Under this contract, AECOM will support mission-critical renovations and upgrades for government facilities across all 50 U.S. states, as well as Puerto Rico, Guam and the U.S. Virgin Islands.“We are pr.

A month has gone by since the last earnings report for Aecom Technology (ACM - Free Report) . Shares have added about 1.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Aecom due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

AECOM Q2 Earnings Beat Estimates, Backlog Increases Y/YAECOM reported better-than-expected results for the second quarter of fiscal 2026, where both earnings and net service revenues (“NSR”) surpassed the Zacks Consensus Estimate and increased on a year-over-year basis. Revenues also improved from the prior-year quarter. AECOM delivered a record second-quarter performance, supported by strong execution, expanding margins and continued backlog growth. The company’s design pipeline reached another all-time high.

Management noted that investments in AI capabilities and the higher-margin Advisory business continue to strengthen the company’s competitive positioning and support long-term growth opportunities.

Delving Deeper Into ACM’s Q2 ResultsThe company reported adjusted earnings per share (EPS) of $1.59, which topped the consensus mark of $1.58 by 0.6% and increased 27% from the prior-year quarter.

Revenues of $3.80 billion grew 1% year over year. NSR of $1.95 billion surpassed the consensus mark of $1.93 billion by 1.2% and increased 4% year over year.

Total backlog at the fiscal second-quarter end was $26.20 billion, up 8% from the year-ago period. AECOM’s design business delivered a solid 1.2x book-to-burn ratio. This marks the 22nd consecutive quarter with a book-to-burn ratio above 1.0, reflecting sustained demand. Additionally, the company’s design pipeline increased by double digits and reached a record level. This growth is being driven by strong funding across the company’s major markets and an expanding addressable market opportunity.

ACM’s Segment DetailsAmericas’ revenues were $2.91 billion during the reported quarter, up 1% from the prior-year quarter’s levels. NSR of $1.19 billion moved up 5% year over year, driven by 8% growth in the Americas design business. Adjusted operating income of $239 million was up 10% year over year. Adjusted operating margin (on an NSR basis) expanded 60 basis points (bps) year over year to a new high of 20%. This growth was driven by continued focus on operational efficiencies and strong returns on investments supporting organic growth initiatives. The total backlog at the end of the fiscal second quarter increased 2% year over year to a record high, supported by a 1.1x book-to-burn ratio in the Americas design business.

International revenues rose 2% year over year to $890 million. However, NSR declined 3% year over year to $754 million due to lower activity in the Asia and Middle East markets. Adjusted operating income in the segment increased 2% year over year to $84 million. Adjusted operating margin (on an NSR basis) remained broadly unchanged year over year at 11.1%. The performance reflected lower revenues in certain regions related to the Middle East conflict, partly offset by continued investments in strategic growth initiatives. The total backlog at the end of the fiscal second quarter surged 25% year over year to a new record high, supported by strong wins in the United Kingdom and Middle East markets.

AECOM Capital reported an operating loss of $1.5 million during the period.

Operating Highlights of ACMAdjusted segment operating profit amounted to $322 million, up 7% from the year-ago quarter. The segment’s adjusted operating margin improved 50 bps to 16.5%. Adjusted EBITDA rose 8% year over year to $312 million. Adjusted EBITDA margin of 16.5% also rose 20 bps year over year.

Liquidity & Cash Flow of ACMAt the end of the fiscal second quarter, AECOM’s cash and cash equivalents totaled $1.03 billion, down from $1.59 billion at fiscal 2025-end. The total debt (excluding unamortized debt issuance costs) as of March 31, 2026, was $2.75 billion compared with $2.74 billion at Sept. 30, 2025. At the fiscal second-quarter end, operating cash flow decreased 98% year over year to $3.8 million. Free cash flow was negative $27.4 million against the positive free cash flow of $178.4 million a year ago. Management attributed the decline primarily to delayed payment timing in the Middle East business and slower claims resolution on certain projects.

ACM Raises FY 2026 GuidanceAECOM raised its fiscal 2026 adjusted EBITDA and EPS guidance, supported by strong year-to-date execution, record backlog and sustained pipeline growth. It is now expecting adjusted EPS in the range of $5.90-$6.10 compared with the prior expectation of $5.85-$6.05. This indicates 14% year-over-year growth at the midpoint of the guidance. AECOM expects adjusted EBITDA in the range of $1.275-$1.305 billion compared with the previous expectation of $1.270-$1.305 billion. This indicates 7% year-over-year growth at the midpoint.

Free cash flow is still expected to be approximately $400 million. ACM also reaffirmed its expectation for organic NSR growth in the range of 6-8%, along with a segment-adjusted operating margin of 16.8% and adjusted EBITDA margin of 17%.

ACM Reaffirms Long-Term TargetsAECOM reaffirmed its long-term financial targets, including achieving more than 20% margin exit rate by fiscal 2028 and delivering adjusted EPS growth over 15% CAGR from fiscal 2026 through fiscal 2029. Management noted that continued investments in AI capabilities, Advisory services and operational efficiencies are expected to support these long-term objectives.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM ScoresAt this time, Aecom has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Aecom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerAecom is part of the Zacks Engineering - R and D Services industry. Over the past month, KBR Inc. (KBR - Free Report) , a stock from the same industry, has gained 10.1%. The company reported its results for the quarter ended March 2026 more than a month ago.

KBR reported revenues of $1.92 billion in the last reported quarter, representing a year-over-year change of -6.4%. EPS of $0.96 for the same period compares with $0.98 a year ago.

KBR is expected to post earnings of $0.89 per share for the current quarter, representing a year-over-year change of -2.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.6%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for KBR. Also, the stock has a VGM Score of B.

The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of AECOM (“AECOM” or “the Company”) (NYSE: ACM) for violations of the securities laws.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. AECOM reported its Q2 2026 financial results on May 11, 2026. The Company reported operating cash flow down 98% year over year, along with negative free cash flow of $27 million. The Company also suffered delayed payment timing in the Middle East. The Company claimed during its earnings call that the claim-resolution process in several projects had dragged on longer than expected. Based on this news, shares of AECOM fell by about 12% on May 12, 2026.

If you are a shareholder who suffered a loss, click here to participate.

We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260611644505/en/

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.

Featured Stories Five stocks we like better than Gates Industrial

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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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