Gates Industrial Corporation PLC

Latest Results (14.05.2026):

Gates Industrial Corporation plc reported first-quarter 2026 results. Net sales were $851.1 million (up 0.4% year‑over‑year; core sales down 2.9%), with net income attributable to shareholders of $59.7 million (diluted EPS $0.23) and Adjusted Net Income per diluted share of $0.35. Net income from continuing operations was $66.4 million (7.8% margin) and Adjusted EBITDA was $177.4 million (20.8% margin). The company reiterated its full‑year 2026 guidance.

Top-line and core growth

Q1 2026 net sales: $851.1M (+0.4% vs. Q1 2025). On a core basis (ex‑currency and M&A/disposals) total core sales declined 2.9%.

Profitability

Net income attributable to shareholders: $59.7M (diluted EPS $0.23). Adjusted Net Income per diluted share: $0.35. Adjusted EBITDA: $177.4M (20.8% margin); net income from continuing operations: $66.4M (7.8% margin).

Segment performance

Power Transmission: sales $533.2M (+1.1%; core -2.5%), Adjusted EBITDA $112.0M (21.0% margin, down ~110 bps). Fluid Power: sales $317.9M (-0.8%; core -3.5%), Adjusted EBITDA $65.4M (20.6% margin, down ~140 bps).

Cash flow and balance sheet

Net cash provided by operating activities: $30.2M (vs. $7.3M prior year). Cash and cash equivalents around $788M at quarter end. Non‑current debt: $2,197.6M; total assets: $7,115.0M; total equity (including non‑controlling interests): $3,727.8M.

Guidance reiterated

The company reaffirmed 2026 targets: core sales growth 1–4%; Adjusted EBITDA $775M–$835M; Adjusted EPS $1.52–$1.68; CapEx ≈ $120M; Free Cash Flow conversion >90%. Management noted share‑based guidance excludes potential repurchases.

Operational commentary

Management highlighted successful execution including a new ERP implementation in Europe, solid order rates with book‑to‑bill above 1, and improved operating cash generation versus prior year.

Non‑GAAP / forward‑looking note

The company uses several non‑GAAP measures (Adjusted EBITDA, Adjusted Net Income, core sales, etc.). Gates disclosed it has not provided reconciliations for forward‑looking non‑GAAP measures where reconciling GAAP measures are not reasonably accessible.