Loading...
•
Dec 30, 2023
Gates Industrial Q4 2023 Earnings Report
Gates Industrial's financial performance declined slightly, but margins improved and cash flow was strong.
Key Takeaways
Gates Industrial reported a decrease in net sales for the fourth quarter of 2023, with a core revenue decline. However, the company achieved solid margin expansion and robust operating cash flow. Full-year results showed slight revenue growth and significant improvement in free cash flow.
Fourth-quarter net sales decreased by 3.4%, with a 4.6% decline in core revenue.
Net income attributable to shareholders was $62.9 million, or $0.24 per diluted share.
Adjusted EBITDA margin increased by 290 basis points to 21.5%.
The company introduced 2024 financial guidance and approved a $100 million share repurchase authorization.
Gates Industrial
Gates Industrial
Gates Industrial Revenue by Segment
Revenue by Segment
Power Transmission Revenue
CapyFin.comFluid Power Revenue
CapyFin.com Forward Guidance
The Company is introducing full year financial guidance for 2024:
Positive Outlook
- Core revenue growth in the range of (3%) to +1% year-over-year
- Adjusted EBITDA of $725 million to $785 million
- Adjusted Earnings Per Share of $1.28 to $1.43
- Capital Expenditures of approximately $100 million
- Free Cash Flow conversion exceeding 90%
Revenue & Expenses
Visualization of income flow from segment revenue to net income