Gates Industrial Corporation Beats Q2 Estimates, Raises Full-Year Guidance

Gates Industrial Corporation's Q2 CY2025 sales reached $883.7 million, beating analyst estimates of $875.3 million and remaining flat year on year. Non-GAAP profit was $0.39 per share, 3% above consensus estimates. The company raised its full-year adjusted EPS guidance to $1.48 at the midpoint, a 2.8% increase.

Gates Industrial Corporation plc (NYSE: GTES) reported its second-quarter (Q2) 2025 financial results, revealing a 0.2% decline in net sales compared to the same period last year, amounting to $883.7 million. This figure slightly exceeded analyst estimates of $875.3 million. The company's non-GAAP profit per share stood at $0.39, representing a 3% increase over consensus estimates.

The company's Chief Executive Officer, Ivo Jurek, highlighted the performance, noting that the Replacement channels and Mobility business generated positive core sales growth, while the Agriculture segment saw growth for the first time since the fourth quarter of 2022. The gross margin expanded, and the balance sheet continued to improve.

Gates Industrial raised its full-year 2025 adjusted EPS guidance to $1.48 at the midpoint, a 2.8% increase from the previous estimate. The company anticipates core sales growth in the range of +0.5% to +2.5% year-over-year, with adjusted EBITDA forecasted between $765 million and $795 million.

Key financial highlights include:

- Power Transmission Segment: Net sales of $550.1 million, with a 1.5% increase year-over-year.
- Fluid Power Segment: Net sales of $333.6 million, showing a 2.9% decrease year-over-year.

The company's adjusted EBITDA margin for the quarter was 22.5%, up from 22.2% in the same period last year. The adjusted EBITDA margin for the six months ended June 28, 2025, was 22.2%.

Gates Industrial will host a conference call today at 11:30 a.m. Eastern Time to discuss the Q2 2025 earnings. The live webcast can be accessed through the company's website at investors.gates.com.

References:
[1] https://www.prnewswire.com/news-releases/gates-industrial-reports-second-quarter-2025-results-302516905.html