Gates Industrial Corporation PLC

Latest Results (29.09.2025):

Gates Industrial Corporation PLC reported its financial results for the second quarter of 2025, demonstrating resilience despite slight declines in net sales. The company achieved a net income attributable to shareholders of $56.5 million and raised its full-year 2025 guidance, reflecting optimism in its growth strategies and operational improvements.

Net Sales and Income

In Q2 2025, Gates Industrial reported net sales of $883.7 million, a marginal decrease of 0.2% compared to the same period last year. The net income attributable to shareholders stood at $56.5 million, or $0.22 per diluted share, with an adjusted net income of $0.39 per diluted share.

Segment Performance

The Power Transmission segment saw a 1.5% increase in net sales year-over-year, reaching $550.1 million, while the Fluid Power segment experienced a 2.9% decline, totaling $333.6 million in net sales. Adjusted EBITDA margins were 22.3% and 22.9% for Power Transmission and Fluid Power segments, respectively.

Operational Highlights

CEO Ivo Jurek highlighted growth in Replacement channels and double-digit increases in the Mobility business. Additionally, the Agriculture sector saw growth for the first time since Q4 2022. Gross margins improved, and the company's balance sheet strengthened, underpinning the raised full-year guidance.

Full-Year Guidance

Gates Industrial has elevated its 2025 full-year outlook, anticipating core sales growth between 0.5% and 2.5%, adjusted EBITDA of $765 million to $795 million, and adjusted EPS ranging from $1.44 to $1.52. The company also projects capital expenditures of approximately $120 million and expects free cash flow conversion to exceed 90%.