NYSE$GTES

Gates Industrial Corporation plc · Q2 2025 earnings

Q2 2025 earnings · · Before market open · Investor relations

Briefing

Gates Industrial Corporation plc reported Q2 2025 net sales of $883.7 million and net income from continuing operations of $63.4 million.

Gates posted net sales of $883.7 million in Q2 2025, essentially flat year-over-year, with core sales declining 0.6%. Operating income reached $115.8 million and Adjusted EBITDA was $199.2 million at a margin of 22.5%. The company continued to execute on cost reduction initiatives while navigating macroeconomic uncertainties including tariffs.

  • Net sales of $883.7 million were flat YoY; core sales declined 0.6% with Power Transmission up 0.6% and Fluid Power down 2.5%.
  • Adjusted EBITDA of $199.2 million (22.5% margin) reflected pricing benefits offset by lower volumes and fixed cost absorption.
  • Net income from continuing operations was $63.4 million; basic EPS from continuing operations was $0.22.
  • Strong liquidity with $719.7 million cash and $470.3 million revolving credit headroom; global cost reduction actions underway.

Headline financials

Total Revenue

$884M

Previous: $886M-0.2%
EPS (adj)

$0.22

Previous: $0.26-15.4%
Total Core Sales Growth

-0.6%

No prior period
Power Transmission Core Sales Growth

0.6%

No prior period
Fluid Power Core Sales Growth

-2.5%

No prior period
Adjusted EBITDA

$199M

Previous: $202M-1.5%
Adjusted EBITDA Margin

22.5%

Previous: 22.8%-1.3%
Capital Expenditures

-$36.9M

Previous: -$37.9M+2.6%
Net Income

$56.5M

Previous: $70.7M-20.1%
Operating Income

$116M

Previous: $136M-15.0%
Gross Profit

$360M

Previous: $357M+0.8%
Cash & Equivalents

$720M

Previous: $580M+24.2%
Total Assets

$7.22B

Previous: $7.03B+2.6%

Revenue & EPS history

Gates Industrial · Revenue · Quarterly

$884M

Q2 2025-0.2%vs Q2 2024
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Gates Industrial · $884M total across 2 segments · Q2 2025

  • Power Transmission
    $550M
  • Fluid Power
    $334M

Forward guidance

Management continues to monitor tariff impacts and is implementing pricing and supply chain actions to offset incremental costs while investing in personal mobility and data center opportunities.

Tailwinds

  • Pricing actions and cost reduction initiatives underway
  • Strong liquidity position and credit headroom

Headwinds

  • Macroeconomic uncertainty and potential demand softness from tariffs
  • Continued exposure to foreign currency volatility

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports

Historical avg

-0.2%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.1%

Avg return

30 days after

46%

16 / 35 earnings

Positive

+15.5%

Q2 2018

Best reaction

-19.3%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2025
Q1 2026-1.2%+2.5%+1.2%
Q4 2025+3.8%+3.1%-14.2%
Q3 2025-12.8%-14.3%-11.9%
Q1 2025+5.2%+11.2%+17.6%
Q4 2024+11.8%+7.8%-4.5%
Q3 2024+6.0%+7.5%+21.4%
Q2 2024+0.1%-8.9%+2.4%
Q1 2024-6.6%-6.5%-1.1%
Q4 2023-4.4%-3.7%+22.4%
Q3 2023+1.3%+1.1%+13.2%
Q2 2023-4.1%-11.9%-7.0%
Q1 2023+3.8%+1.5%-8.3%
Q4 2022+5.6%+6.9%+2.6%
Q3 2022+2.3%+1.6%+5.9%
Q2 2022-3.4%-1.5%-13.1%
Q1 2022-0.9%-7.8%-2.6%
Q4 2021+0.0%-2.3%+2.0%
Q3 2021-6.4%-5.4%-10.1%
Q2 2021-4.1%-10.3%-10.7%
Q1 2021-0.6%+1.6%+3.4%
Q3 2020+0.7%+2.0%+8.4%
Q2 2020+8.6%+8.1%+4.0%
Q1 2020+1.9%+10.5%+34.2%
Q4 2019+7.7%+1.3%-22.6%
Q3 2019+8.0%+8.1%+6.2%
Q2 2019-19.3%-19.1%-2.8%
Q1 2019-16.0%-17.4%-30.0%
Q4 2016-1.5%-0.2%-3.3%
Q4 2018+6.7%+5.0%+1.3%
Q3 2017-7.1%+0.3%-4.7%
Q3 2018-0.4%-4.9%-2.1%
Q2 2018+15.5%+15.6%+17.1%
Q1 2017-2.3%-1.6%-3.6%
Q1 2018-3.4%-3.5%-4.4%
Q4 2017-0.6%+0.6%-10.0%
Q2 2017
Q3 2016
Q2 2016
Q1 2016
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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