GTES
Gates Industrial Corporation plc21.59
-0.21-0.96%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Orders strongest in years; growth details
Q&A confirmed the strongest order trends in years, led by industrial OEM recovery and off-highway outperformance, easing prior green-shoot skepticism. Data center orders jumped 350% sequentially and 700% year-over-year, on track for multiples growth toward $100-200M by 2028; personal mobility eyes 30% CAGR through 2028. Management upped M&A appetite for bolt-ons or larger non-transformational deals, deeming stock cheap. ERP launch beat plans with minimal disruption; footprint optimization savings likely ahead of $10M H2 target. Orders lead recovery. Cautious optimism holds; watch PMI for industrial aftermarket pickup.
Key Stats
Market Cap
5.58BP/E (TTM)
23.73Basic EPS (TTM)
0.91Dividend Yield
0%Recent Filings
10-K
FY2025 results
Gates Industrial posted FY2025 net sales of $3,443.2 million, up 1.0% y/y, with Power Transmission growing 1.9% on pricing and currency tailwinds while Fluid Power dipped 0.3% on volume weakness. Adjusted EBITDA rose to $770.1 million from $761.1 million, margins steady at ~22% thanks to cost controls amid restructuring. Aftermarket channels held 68% mix, driving core stability despite OEM softness in automotive. Debt sits at $2,240.1 million principal with $812.1 million cash and $471.0 million revolver headroom; no dividends or buybacks noted. Q4 momentum showed pricing gains offsetting volumes in choppy industrial demand. Tariffs threaten raw material costs.
8-K
Q4 sales up 3.2%, guidance issued
Gates Industrial reported Q4 2025 net sales of $856.2M, up 3.2% with 0.6% core growth, and full-year sales of $3.4B, up 1.0% on 0.7% core. Adjusted EBITDA hit $770.1M at 22.4% margin, fueled by $478.1M operating cash flow and $105M Q4 buybacks; net leverage fell to 1.9x. Guidance calls for 1-4% core sales growth and $775-835M Adjusted EBITDA. Cash flow conversion tops 90%.
10-Q
Q3 FY2025 results
Gates posted Q3 sales of $855.7M, up 3.0% y/y from $830.7M on pricing and currency tailwinds, while operating income held steady at $115.4M. Diluted EPS climbed to $0.31 from $0.18, reconciling to 261.6M shares. Power Transmission led with 3.9% y/y growth; Fluid Power edged up 1.6%. Operating cash flow through 9M hit $208.3M; free cash flow not disclosed in the 10-Q. Cash swelled to $689.4M against $2.2B debt (6.25% rate, due 2029-2031) and $470M revolver availability. Restructuring hit $21.1M YTD on footprint shifts to Mexico. Pricing pressures from customers loom large.
8-K
Q3 sales up, EPS raised
Gates Industrial posted Q3 net sales of $855.7M, up 3.0% with 1.7% core growth, while Adjusted EBITDA hit $195.8M at 22.9% margin—90 bps better. Power Transmission surged 3.9%; Fluid Power edged 1.6%. Raised 2025 adjusted EPS to $1.48-$1.52; Board greenlit $300M buyback through 2026. Debt dropped $100M.
8-K
Q2 sales dip, guidance raised
Gates Industrial reported Q2 2025 net sales of $883.7 million, down 0.2% year-over-year with a core decline of 0.6%, yet Replacement channels grew positively while Mobility surged double-digits. Adjusted EBITDA held at $199.2 million with a 22.5% margin, bolstered by gross margin expansion and a stronger balance sheet. The company raised full-year guidance to $765–$795 million Adjusted EBITDA and $1.44–$1.52 Adjusted EPS. Restructuring costs hit $13 million.
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