Gates Industrial Corp Plc (GTES)
NYSE:GTES
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Earnings Data
Report Date
Jul 31, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.42Last Year’s EPS
0.39Same Quarter Last Year
Strong Buy
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
Cautiously positive. The company experienced notable short-term headwinds from a European ERP implementation and calendar timing that pressured Q1 sales and margins, but these were characterized as temporary. Management highlighted improving order trends, book-to-bill above 1, strong free cash flow (101% conversion), improved leverage (1.9x), a credit upgrade, a small strategic tuck-in acquisition, and reiterated full-year guidance while projecting meaningful margin recovery in the back half. Given the balance of transitory operational issues against solid cash generation, improving orders and reaffirmed guidance, the tone of the call and outlook skew positive.Company Guidance
Revenue and Core Sales
Q1 sales of $851 million. Core sales decreased 2.9% year-over-year but management reported improving demand trends (core sales approximated mid-single digits growth in March) and a book-to-bill solidly above 1. Company reiterated full-year guidance.
Adjusted EBITDA and Margin Trajectory
Adjusted EBITDA of $177 million with an adjusted EBITDA margin of 20.8% (down 130 basis points YoY) but in line with expectations. Management expects margin improvement through the year (Q2 midpoint ~22.2%) and an adjusted EBITDA margin approaching ~23.5% in the second half of 2026.
Strong Cash Generation and Improved Leverage
Delivered free cash flow conversion of approximately 101% over the last 12 months. Net leverage improved to 1.9x (about 0.4 turns better vs Q1 2025). Moody's upgraded credit rating to Ba2 (from Ba3). Continued share repurchases and balanced capital allocation posture.
Regional and Segment Momentum
APAC region grew almost 4% (industrial OEM and auto aftermarket contributing). Personal Mobility expanded 6% in Q1 and expected to return to normalized higher growth in Q2. Power Transmission revenues of $533 million (core -2.5%) and Fluid Power $318 million (core -3.5%). Data center revenue grew ~700% from a low prior-year base, with management indicating on-track progress toward larger targets.
Operational Recovery Post-ERP
Europe successfully implemented a new ERP system; business stabilized and delivered revenues in March on par with pre-ERP levels. Management expects distribution and operational efficiencies to further stabilize in Q2 and anticipates recovering past-due backlog in Q2.
Strategic M&A and Growth Optionality
Announced acquisition of Timken's Industrial Belt business (expected to close in Q3). Management estimated the asset could add roughly $5 million per month of revenue (approx. $60 million annualized) and viewed it as a highly complementary tuck-in with opportunities to improve margins. Management also signaled an active, accretive M&A pipeline.
Guidance Reaffirmation and Order Strength
Reiterated 2026 financial guidance. Q2 revenue guide $905M–$945M (midpoint core growth ~3.5% YoY). Management reported accelerating order trends (industrial OEM orders improving), positive early-April demand, and order intake outpacing sales exiting Q1.
GTES Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
GTES Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 01, 2026 | $25.61 | $24.06 | -6.05% |
Feb 12, 2026 | $26.51 | $27.53 | +3.85% |
Oct 29, 2025 | $25.82 | $22.50 | -12.86% |
Jul 30, 2025 | $24.76 | $25.07 | +1.25% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Gates Industrial Corp Plc (GTES) report earnings?
Gates Industrial Corp Plc (GTES) is schdueled to report earning on Jul 31, 2026, After Close (Confirmed).
What is Gates Industrial Corp Plc (GTES) earnings time?
Gates Industrial Corp Plc (GTES) earnings time is at Jul 31, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
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What is GTES EPS forecast?
GTES EPS forecast for the fiscal quarter 2026 (Q2) is 0.42.