Gates Industrial Corporation PLC

Latest Results (02.04.2026):

Gates Industrial Corporation PLC — fourth-quarter 2025: Gates reported Q4 2025 net sales of $856.2 million (up 3.2% year-over-year; core sales +0.6%), net income attributable to shareholders of $51.3 million ($0.20 per diluted share), and Adjusted Net Income per diluted share of $0.38. Adjusted EBITDA for the quarter was $187.8 million (21.9% margin). For the full year 2025, sales were $3,443.2 million, Adjusted EBITDA $770.1 million, Adjusted Net Income per diluted share $1.52, and operating cash flow totaled $478.1 million. The company repurchased about $105 million of shares in the quarter and reported net leverage of 1.9x. Gates also introduced 2026 financial guidance.

Sales and volume

Q4 2025 net sales were $856.2M (3.2% growth vs. Q4 2024). Core sales growth for the quarter was modest at 0.6% and full-year core sales rose 0.7% to $3,433.0M (FY net sales $3,443.2M).

Profitability and margins

Q4 net income from continuing operations was $56.4M (margin 6.6%). Adjusted EBITDA was $187.8M (21.9% margin) in Q4 and $770.1M (22.4% margin) for FY2025. Adjusted Net Income for FY2025 was $394.9M (Adjusted EPS $1.52).

Cash flow and balance sheet

Gates generated $478.1M of operating cash flow in FY2025. Cash and equivalents rose to $812.1M (Dec 31, 2025) and reported Net Debt of $1,428.0M, yielding a Net Leverage ratio of 1.9x (down from 2.2x a year earlier).

Shareholder returns and capital allocation

The company repurchased approximately $105M of shares in Q4 (total share repurchases of $119.3M for FY2025) and noted disciplined capital deployment as a priority while improving the balance sheet.

2026 guidance

Gates introduced 2026 guidance: core sales growth 1–4%, Adjusted EBITDA $775M–$835M, Adjusted EPS $1.52–$1.68, capital expenditures ~ $120M, and Free Cash Flow conversion >90% (non‑GAAP reconciliations not provided for forward-looking items).

Non-GAAP adjustments and drivers

The company continues to emphasize non-GAAP measures: Adjusted EBITDA, Adjusted Net Income, Adjusted Gross Profit and Core Sales. Key FY2025 adjustments included amortization of acquisition-related intangibles, inventory reversals (LIFO adjustments), restructuring and share-based compensation.

Management commentary

CEO Ivo Jurek said Gates delivered double-digit EPS growth, reduced net leverage, improved cost position, and strengthened cash generation in 2025, and expressed optimism about 2026 growth prospects and prudent capital deployment.