Gates Industrial Corporation plc (GTES) Sees Boost in Q2 Amidst Trump Tariffs and Onshoring Trend

Tuesday, Aug 12, 2025 8:53 am ET1min read

Diamond Hill Capital's Small-Mid Cap Fund highlighted Gates Industrial Corporation plc (GTES) as a top contributor in Q2, benefiting from its production in and for North America, which mitigated tariff impacts. GTES reported $884 million in total sales, a 0.6% decline on a core basis. The fund's portfolio returned 5.60% (gross) and 5.37% (net) compared to an 8.59% return for the Russell 2500 Index.

Diamond Hill Capital's Small-Mid Cap Fund highlighted Gates Industrial Corporation plc (GTES) as a top contributor in Q2, benefiting from its production in and for North America, which mitigated tariff impacts. GTES reported $884 million in total sales, a 0.6% decline on a core basis. The fund's portfolio returned 5.60% (gross) and 5.37% (net) compared to an 8.59% return for the Russell 2500 Index [1].

Gates Industrial Corporation plc (GTES) manufactures and distributes engineered power transmission and fluid power solutions. The company's stock has shown resilience, with a one-month return of -3.07% and a 43.25% gain over the last 52 weeks. On August 11, 2025, GTES stock closed at $23.68 per share, with a market capitalization of $6.1 billion [1].

While the company reported a slight decline in sales, the fund's investment in GTES demonstrates its potential as a long-term investment. The fund's portfolio returned 5.60% (gross) and 5.37% (net) compared to an 8.59% return for the Russell 2500 Index, indicating that GTES contributed significantly to the fund's performance [1].

Investors interested in Industrial Products stocks should continue to track Gates Industrial and Donaldson (DCI), which have both shown strong performance year-to-date. Donaldson, a member of the Industrial Products sector, has returned 7.5% so far this year, outperforming the sector's average gain of 6.5%. Gates Industrial (GTES) has returned 17.7% year-to-date, further demonstrating its strength within the sector [2].

Reference List:
[1] https://finance.yahoo.com/news/boosted-gates-industrial-corporation-plc-124823521.html
[2] https://finance.yahoo.com/news/donaldson-dci-stock-outpacing-industrial-134002533.html

Gates Industrial Corporation plc (GTES) Sees Boost in Q2 Amidst Trump Tariffs and Onshoring Trend

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