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Gates Industrial Corporation Ltd.
🏹 Trader: 🎯 Near 52W High View all →
$6.6B
Market Cap
22.4
P/E
5.06
PEG
8.3%
ROCE
7.9%
ROE
0.65
D/E
15.3%
OPM
-14.1%
% from 52W High
40
α RS
🔍 GTES is showing a notable setup because it matches 2 of 39 tracked screener presets and Sector RRG has Industrials in the Improving quadrant with the trail still strengthening. Net: Partial signal stack, not a recommendation. ? Conviction RRG
Sources
Conviction 2/39 · Industrials in Improving quadrant
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🌏 Global Investor Returns
Currency-adjusted total returns for GTES including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Gates Industrial Corporation Ltd. manufactures and sells engineered power transmission and fluid power solutions in the United States, rest of North America, South America, the United Kingdom, Luxembourg, rest of Europe, the Middle East, Africa, India, East Asia, and Greater China. It operates through two segments, Power Transmission and Fluid Power. The company offers solutions for stationary and mobile drives, engine systems, and personal mobility application platforms; elastomer drive belts; asynchronous and synchronous belts, including V-belts, transmission belts, and micro-V belts; metal drive components, such as tensioners, idlers, pulleys, sprockets, mechanical water pumps, and other accessories used in belt drive systems; and kits for the automotive replacement channel. It also provides fluid power solutions for stationary and mobile hydraulics, vehicle systems, and other industrial application platforms; hydraulics comprising hoses, tubing, couplings, and fittings, as well as assemblies; thermal and emissions management and related products; and industrial hoses, including data center pumps. The company’s products are used in applications across various markets, including diversified industrial applications comprising automated manufacturing, logistics systems, and data centers; consumer applications consisting of printers, power washers, automatic doors, and vacuum cleaners; industrial off-highway, such as construction and agriculture; industrial on-highway commercial vehicles, including heavy-duty trucks and buses; energy and resources markets, such as oil, gas, and mining; and personal mobility, including scooters, motorcycles, bicycles, all-terrain vehicles, and snowmobiles. It sells its products under the Gates brand. The company offers its products to aftermarket channel customers and original equipment manufacturers. Gates Industrial Corporation Ltd. was founded in 1911 and is headquartered in Denver, Colorado.

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3-Statement Financial Model
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🎙 Management Tone Confident Specific ~ Volatile 4 quarters Full tone analysis in Intelligence →
📊 MIXED Gates Industrial Q1 2026 revenue $851M, core sales down 2.9% due to ERP transition and fewer working days.
Revenue & Profitability
First quarter 2026 revenue was $851 million, representing a core sales decrease of 2.9%. Adjusted EBITDA was $177 million, resulting in an adjusted EBITDA margin of 20.8%. Adjusted EPS was $0.35. Free cash flow conversion over the last 12 months was approximately 101%. Net debt leverage improved to 1.9x. Net income was not explicitly disclosed on the call.
Outlook
Management sees improving demand trends across most end markets, with industrial OEM orders gaining momentum and good demand trends in April. Core sales growth in March was approximately mid-single digits year-over-year. The company does not anticipate material financial impact from the revised Section 232 tariffs. The Middle East conflict is noted as a potential risk but is not currently affecting the outlook.
Growth Drivers
Key growth levers include a positive inflection in industrial OEM orders, strong double-digit growth in APAC, and accelerating data center revenue (up 700% from a low base). Personal Mobility grew 6% in Q1 and is expected to return to normalized levels in Q2. The acquisition of Timken's industrial belt business is expected to supplement growth in North America Power Transmission.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Adjusted EBITDA margin in Q1 was 20.8%, down 130 basis points year-over-year due to the ERP transition and fewer working days. For Q2, adjusted EBITDA margin is guided to decline 30 basis points year-over-year (midpoint 22.2-22.3%). Management expects margins to improve to approximately 23.5% in the second half of 2026 as temporary headwinds abate and efficiency initiatives take effect.
Key Risks
Risks flagged include temporary inefficiencies from the European ERP transition, the impact of two fewer working days in Q1, and potential escalation of the Middle East conflict. Inflation in raw materials (resins, polymers, aluminum, steel) is noted, but management is confident in pricing for inflation. Section 232 tariffs are not expected to have a material impact.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-31
Record Q2 sales and earnings were driven by strong industrial demand, margin expansion, and strategic growth initiatives. Guidance for 2026 was raised across core sales, adjusted EBITDA, and EPS, with robust performance expected in the second half.
Q1 2026 Q1 2026 2026-05-01
Q1 results met expectations despite ERP transition and fewer working days, with core sales down 2.9% but strong order trends and margin recovery underway. Guidance for 2026 is reiterated, supported by robust demand, a major acquisition, and improving operational efficiency.
Q4 2025 Q4 2025 2026-02-12
Delivered record adjusted EBITDA and EPS in 2025, with strong growth in personal mobility and data center businesses. 2026 guidance calls for 1%-4% core sales growth, margin expansion, and continued investment in ERP and footprint optimization, with cautious optimism for industrial recovery.
Q3 2025 Q3 2025 2025-10-29
Q3 delivered record Adjusted EBITDA margin and 1.7% core revenue growth, led by strong personal mobility and auto replacement segments. 2025 guidance was updated with a higher EPS midpoint and lower core sales outlook, while restructuring and ERP initiatives are expected to impact margins in early 2026.
Q2 2025 Q2 2025 2025-07-30
Q2 2025 saw revenues and margins exceed guidance, with strong growth in personal mobility and replacement channels, and improved free cash flow. Guidance for 2025 was raised on FX tailwinds, while data center and personal mobility segments are expected to drive future growth.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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