First-Quarter 2026 Financial Summary
First-quarter net sales of $851.1 million, up 0.4% compared to the prior-year period, including a core revenue decrease of 2.9%.
Net income attributable to shareholders of $59.7 million, or $0.23 per diluted share.
Adjusted Net Income per diluted share of $0.35.
Net income from continuing operations of $66.4 million, or a margin of 7.8%.
Adjusted EBITDA of $177.4 million, or a margin of 20.8%.
Reiterating 2026 full-year guidance.
Gates Industrial Corporation plc (NYSE:GTES), a leading global provider of application-specific fluid power and power transmission solutions, today reported results for the first quarter ended March 28, 2026.
Ivo Jurek, Gates Industrial's Chief Executive Officer, commented, "We executed well in the first quarter, successfully implementing a new enterprise resource planning system in Europe and continuing to invest in strategic process and growth initiatives. We exited the quarter with solid order rates and our book to bill was nicely above 1. Our cash from operating activities increased compared to the prior year period and our balance sheet is well positioned to support our strategic objectives."
Jurek continued, "We have reiterated our financial guidance for 2026. I am optimistic about our core growth prospects in 2026 and our strong balance sheet provides us flexibility to strengthen the enterprise and drive shareholder value. I appreciate the effort and diligence of our global Gates team."
Power Transmission Segment Results
Three months ended
(USD in millions)
March 28, 2026
March 29, 2025
% Change
% Core Change
Net sales
$533.2
$527.2
1.1 %
(2.5 %)
Adjusted EBITDA
$112.0
$116.7
(4.0 %)
Adjusted EBITDA margin
21.0 %
22.1 %
(110 bps)
Fluid Power Segment Results
Three months ended
(USD in millions)
March 28, 2026
March 29, 2025
% Change
% Core Change
Net sales
$317.9
$320.4
(0.8 %)
(3.5 %)
Adjusted EBITDA
$65.4
$70.6
(7.4 %)
Adjusted EBITDA margin
20.6 %
22.0 %
(140 bps)
2026 Guidance
The Company is maintaining its full year financial guidance for 2026:
Core sales growth in the range of 1% to 4% year-over-year
Adjusted EBITDA of $775 million to $835 million
Adjusted Earnings Per Share of $1.52 to $1.68
Capital Expenditures of approximately $120 million
Free Cash Flow conversion exceeding 90%
Share-based metrics in the Company's guidance do not include the effect of any potential share repurchases.
Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures, including expected Core Sales Growth, Adjusted EBITDA, Adjusted Earnings per Share and Free Cash Flow conversion for 2026. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.
Conference Call and Webcast
Gates Industrial Corporation plc will host a conference call today at 10:00 a.m. Eastern Time to discuss the Company's financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through Gates Industrial's website at investors.gates.com. For those unable to access the webcast, the conference call can be accessed by dialing (888) 414-4601 (domestic) or +1 (646) 960-0313 (international) and requesting the Gates Industrial Corporation First-Quarter 2026 Earnings Conference Call or providing the Conference ID of 5772067. An audio replay of the conference call can be accessed by dialing (800) 770-2030 (domestic) or +1 (647) 362-9199 (international), and providing the passcode 5772067, or by accessing Gates Industrial's website at investors.gates.com.
About Gates Industrial Corporation plc
Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse aftermarket channel customers, and to original equipment manufacturers as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation. Our products are sold in more than 130 countries across our three commercial regions: the Americas; Europe, Middle East & Africa; and Asia Pacific.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to expectations regarding the performance of the Company's business and financial results (including our order rates, our growth prospects and our capital allocation opportunities), our ability to drive shareholder value and statements regarding our outlook for 2026. Such forward-looking statements are subject to various risks and uncertainties, including, among others, U.S. policies, actions or legislation (including the imposition of tariffs), economic, political and other risks associated with international operations (including as a result of the ongoing conflicts in the Middle East and their impact on supply chains, such as reduced availability of certain of our production materials and increased supply costs, and economic conditions), availability of raw materials or other manufacturing inputs at favorable prices in sufficient quantities, or at a given time, changes in our relationships with, or the financial condition, performance, purchasing power or inventory levels of, of key channel partners, dependence on the continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems, our ability to forecast demand or meet significant increases in demand and market acceptance of new product introductions and innovations. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Gates Industrial Corporation plc
Condensed Consolidated Statements of Operations
(Unaudited)
Three months ended
(USD in millions, except per share amounts)
March 28, 2026
March 29, 2025
Net sales
$ 851.1
$ 847.6
Cost of sales
513.1
503.0
Gross profit
338.0
344.6
Selling, general and administrative expenses
226.9
216.2
Transaction-related expenses
0.5
0.4
Asset impairments
—
0.6
Restructuring expenses
0.7
1.6
Operating income from continuing operations
109.9
125.8
Interest expense
29.9
29.6
Other expense
2.1
2.4
Income from continuing operations before taxes
77.9
93.8
Income tax expense
11.5
25.2
Net income from continuing operations
66.4
68.6
Loss on disposal of discontinued operations
0.2
0.3
Net income
66.2
68.3
Less: non-controlling interests
6.5
6.3
Net income attributable to shareholders
$ 59.7
$ 62.0
Earnings per share
Basic
Earnings per share from continuing operations
$ 0.24
$ 0.24
Earnings per share from discontinued operations
—
—
Earnings per share
$ 0.24
$ 0.24
Diluted
Earnings per share from continuing operations
$ 0.23
$ 0.24
Earnings per share from discontinued operations
—
—
Earnings per share
$ 0.23
$ 0.24
Gates Industrial Corporation plc
Condensed Consolidated Balance Sheets
(Unaudited)
(USD in millions, except share numbers and per share amounts)
As ofMarch 28, 2026
