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Dec 31, 2025
Gates Industrial Q4 2025 Earnings Report
Gates Industrial reported its financial results for the fourth quarter and full year ended December 31, 2025, showing growth in net sales and net income attributable to shareholders.
Key Takeaways
Gates Industrial Corporation plc reported a strong fourth quarter and full year 2025, with fourth-quarter net sales increasing by 3.2% to $856.2 million and net income attributable to shareholders reaching $51.3 million. The company also achieved double-digit growth in earnings per share for the full year and reduced its net leverage ratio.
Fourth-quarter net sales increased by 3.2% to $856.2 million, with core sales growth of 0.6%.
Net income attributable to shareholders for the fourth quarter was $51.3 million, or $0.20 per diluted share.
Adjusted Net Income per diluted share for the fourth quarter was $0.38.
Adjusted EBITDA for the fourth quarter was $187.8 million, representing a margin of 21.9%.
Revenue by Segment
Forward Guidance
For 2026, Gates Industrial anticipates core sales growth between 1% and 4% year-over-year, Adjusted EBITDA in the range of $775 million to $835 million, and Adjusted Earnings Per Share of $1.52 to $1.68.
Positive Outlook
- Anticipated core sales growth in the range of 1% to 4% year-over-year.
- Adjusted EBITDA projected between $775 million and $835 million.
- Adjusted Earnings Per Share expected to be $1.52 to $1.68.
- Capital Expenditures of approximately $120 million.
- Free Cash Flow conversion exceeding 90%.
Challenges Ahead
- Share-based metrics in the guidance do not include the effect of any potential share repurchases.
- GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort.
- Unable to address the probable significance of unavailable information, which could be material to future results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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