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Dec 28, 2024
Gates Industrial Q4 2024 Earnings Report
Gates Industrial's financial performance decreased due to lower volume and unfavorable conditions, but profitability was improved through enterprise initiatives.
Key Takeaways
Gates Industrial reported a decrease in net sales and net income for the fourth quarter of 2024, with net sales down 3.9% to $829.4 million and net income attributable to shareholders at $36.6 million. However, the adjusted EBITDA margin increased by 30 basis points to 21.8%, driven by enterprise initiatives.
Net sales decreased by 3.9% to $829.4 million, with a core sales decline of 2.6%.
Net income attributable to shareholders was $36.6 million, or $0.14 per diluted share.
Adjusted net income per diluted share was $0.36.
Adjusted EBITDA was $180.8 million, with a margin of 21.8%.
Revenue by Segment
Forward Guidance
The company introduced full year financial guidance for 2025, expecting core sales growth between -0.5% and +3.5%, adjusted EBITDA of $735 million to $795 million, adjusted EPS of $1.36 to $1.52, capital expenditures of approximately $120 million, and free cash flow conversion exceeding 90%.
Positive Outlook
- Core sales growth in the range of (0.5%) to +3.5% year-over-year
- Adjusted EBITDA of $735 million to $795 million
- Adjusted Earnings Per Share of $1.36 to $1.52
- Capital Expenditures of approximately $120 million
- Free Cash Flow conversion exceeding 90%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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