Gates Industrial (NYSE:GTES) Posts Earnings Results

Gates Industrial (NYSE:GTES) posted its earnings results on Friday. The company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.42 by $0.02, FiscalAI reports. The firm had revenue of $941.60 million for the quarter, compared to the consensus estimate of $927.28 million. Gates Industrial had a net margin of 7.23% and a return on equity of 10.00%. The business’s quarterly revenue was up 6.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.39 EPS. 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 Trading Up 8.7%

NYSE GTES opened at $28.01 on Friday. The stock has a market cap of $7.12 billion, a PE ratio of 19.87 and a beta of 1.25. Gates Industrial has a 12 month low of $20.88 and a 12 month high of $29.17. The company’s 50-day moving average price is $26.70 and its 200-day moving average price is $25.38. The company has a current ratio of 3.67, a quick ratio of 2.66 and a debt-to-equity ratio of 0.61.

Institutional Investors Weigh In On Gates Industrial

Several large investors have recently added to or reduced their stakes in the stock. Centaurus Financial Inc. raised its stake in shares of Gates Industrial by 30.4% during the third quarter. Centaurus Financial Inc. now owns 10,431 shares of the company’s stock valued at $259,000 after acquiring an additional 2,431 shares in the last quarter. Algert Global LLC purchased a new stake in shares of Gates Industrial in the third quarter valued at approximately $240,000. Oxford Asset Management LLP bought a new position in Gates Industrial in the fourth quarter worth approximately $237,000. Bayesian Capital Management LP bought a new position in Gates Industrial in the second quarter worth approximately $233,000. Finally, Brooklyn Investment Group purchased a new position in Gates Industrial during the 4th quarter worth $222,000. 98.50% of the stock is owned by hedge funds and other institutional investors.

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

Several analysts recently weighed in on the company. Weiss Ratings restated a “hold (c+)” rating on shares of Gates Industrial in a report on Monday, June 29th. Royal Bank Of Canada raised their target price on shares of Gates Industrial from $30.00 to $33.00 and gave the stock an “outperform” rating in a report on Thursday, July 16th. Robert W. Baird dropped their price target 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. Wall Street Zen downgraded shares of Gates Industrial from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Finally, Morgan Stanley increased their price objective on shares of Gates Industrial from $27.00 to $28.00 and gave the stock an “equal weight” rating in a research report on Friday, May 29th. Seven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, Gates Industrial has an average rating of “Moderate Buy” and a consensus price target of $31.50.

About Gates Industrial

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.