Gates Industrial (NYSE:GTES) Posts Earnings Results

Gates Industrial (NYSE:GTES) issued its earnings results on Friday. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.42 by $0.02, FiscalAI reports. Gates Industrial had a net margin of 7.23% and a return on equity of 10.00%. The company had revenue of $941.60 million for the quarter, compared to the consensus estimate of $925.44 million. During the same quarter in the previous year, the company earned $0.39 EPS. The firm’s revenue for the quarter was up 6.6% compared to the same quarter last year. Gates Industrial updated its FY 2026 guidance to 1.620-1.700 EPS.

Here are the key takeaways from Gates Industrial’s conference call:

• Positive Sentiment: Gates reported record quarterly sales of $942 million, up 6.6% year over year, with core revenue growth of 4.9%, adjusted EBITDA margin of 22.5%, and adjusted EPS up 13% to a record $0.44.
• Positive Sentiment: Broad-based demand improved, led by double-digit industrial OEM growth, approximately 25% growth in personal mobility, 20%+ growth in commercial on-highway, and accelerating APAC and EMEA sales; book-to-bill remained above one.
• Positive Sentiment: Management raised full-year 2026 guidance, including core sales growth of 2.5%-4.5%, adjusted EBITDA of $800 million-$830 million, and adjusted EPS of $1.62-$1.70. The company expects roughly 6% core sales growth and adjusted EBITDA margins of at least 23.5% in the second half.
• Positive Sentiment: Strategic growth initiatives are gaining traction, including personal-mobility belt conversions and data-center applications, where sales more than doubled year over year and are expected to reach $100 million-$200 million by 2028.
• Negative Sentiment: Fluid Power’s adjusted EBITDA margin declined 120 basis points due to footprint realignment and enterprise investments, while oil-related input-cost inflation is persisting; pricing actions are expected to keep the company at least price-cost neutral in the second half.

Gates Industrial Price Performance

Shares of NYSE:GTES traded up $2.23 during midday trading on Friday, reaching $28.01. The company’s stock had a trading volume of 4,235,054 shares, compared to its average volume of 2,274,585. Gates Industrial has a fifty-two week low of $20.88 and a fifty-two week high of $29.17. The company has a market capitalization of $7.12 billion, a P/E ratio of 29.18 and a beta of 1.25. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.67 and a quick ratio of 2.66. The business’s fifty day simple moving average is $26.63 and its 200-day simple moving average is $25.36.

Institutional Investors Weigh In On Gates Industrial

Hedge funds have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. increased its position in Gates Industrial by 98.7% in the 4th quarter. JPMorgan Chase & Co. now owns 8,373,294 shares of the company’s stock valued at $179,775,000 after acquiring an additional 4,158,341 shares in the last quarter. Adage Capital Partners GP L.L.C. acquired a new position in shares of Gates Industrial during the second quarter worth approximately $32,255,000. Nuveen LLC grew its stake in shares of Gates Industrial by 280.0% during the fourth quarter. Nuveen LLC now owns 1,725,274 shares of the company’s stock valued at $37,042,000 after purchasing an additional 1,271,248 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Gates Industrial by 45.9% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,939,492 shares of the company’s stock valued at $84,581,000 after purchasing an additional 1,238,766 shares during the last quarter. Finally, Morgan Stanley increased its holdings in shares of Gates Industrial by 31.6% in the fourth quarter. Morgan Stanley now owns 3,042,742 shares of the company’s stock valued at $65,328,000 after purchasing an additional 730,374 shares in the last quarter. Institutional investors own 98.50% of the company’s stock.

Gates Industrial News Roundup

Here are the key news stories impacting Gates Industrial this week:

• Positive Sentiment: Gates reported second-quarter sales of $941.6 million, up 6.6% year over year, with core sales increasing 4.9%. Revenue exceeded analyst expectations of approximately $925.4 million, indicating solid demand across the business. Gates Industrial Reports Second-Quarter 2026 Results
• Positive Sentiment: Adjusted earnings were $0.44 per share, above the $0.42 analyst consensus and up from $0.39 a year earlier. The company also reported $170.9 million of net income, or $0.67 per diluted share, under its reported accounting measure. Gates Industrial Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Gates raised or reaffirmed a favorable FY 2026 adjusted EPS outlook of $1.62 to $1.70, with the midpoint above the current consensus estimate of $1.62. This suggests management expects earnings momentum to continue. Gates Industrial Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Full-year revenue guidance of $3.5 billion to $3.6 billion reaches the consensus estimate only at the upper end; the midpoint is modestly below expectations. Investors may therefore focus on whether stronger core sales can drive results toward the high end of the range. Gates Industrial Earnings Report

Analysts Set New Price Targets

GTES has been the subject of several analyst reports. Wolfe Research reissued an “outperform” rating and set a $33.00 price target on shares of Gates Industrial in a report on Thursday, July 9th. Wall Street Zen cut shares of Gates Industrial from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Royal Bank Of Canada upped their price objective on shares of Gates Industrial from $30.00 to $33.00 and gave the stock an “outperform” rating in a research note on Thursday, July 16th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Gates Industrial in a report on Monday, June 29th. Finally, Robert W. Baird cut their target price on shares of Gates Industrial from $39.00 to $37.00 and set an “outperform” rating for the company in a research note on Monday, May 4th. Seven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $31.50.

Gates Industrial Company Profile

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.