| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 941.60 | 10.6% | 6.5% |
| Total Income | 941.60 | 10.6% | 6.5% |
| Expenditure | 810.00 | 9.3% | 5.5% |
| PBT | 100.20 | 28.6% | 24.9% |
| Net Profit | 170.90 | 186.3% | 202.5% |
| OPM | 13.98% | 1.06pp | 0.87pp |
| NPM | 18.15% | 11.14pp | 11.76pp |
| EPS | 0.67 | 179.2% | 204.6% |
Gates Industrial Reports Q2 2026 Results with Increased Sales and Guidance
31 Jul 2026 · 31 Jul, 5:11 pm
Summary
Gates Industrial Corporation Ltd. announced strong second-quarter 2026 results, with net sales reaching $941.6 million, a 6.6% increase year-over-year, driven by a 4.9% rise in core sales. The company reported net income attributable to shareholders of $170.9 million and an Adjusted EBITDA of $211.4 million with a 22.5% margin. Management highlighted exceeding expectations with record sales and EPS, improving order momentum, and a strong balance sheet, leading them to raise the full-year 2026 guidance for sales, profitability, and adjusted earnings per share.
Key Highlights
- 1
Gates Industrial Corporation Ltd. reported second-quarter net sales of $941.6 million, an increase of 6.6% compared to the prior-year period, with core sales up by 4.9%.
- 2
Net income attributable to shareholders for the second quarter was $170.9 million, or $0.67 per diluted share.
- 3
Adjusted EBITDA for the second quarter reached $211.4 million, representing a margin of 22.5%.
- 4
The company is raising its full-year 2026 guidance for core sales growth, Adjusted EBITDA, and Adjusted EPS.
- 5
Power Transmission segment net sales increased by 7.0% to $588.5 million in the second quarter.
- 6
Fluid Power segment net sales grew by 5.8% to $353.1 million in the second quarter.
Management Comments
Ivo Jurek
We delivered a strong second quarter, exceeding expectations. We generated record sales and EPS and experienced improving order momentum globally. We believe we are in solid position to capitalize on strengthening industrial demand. We have raised our 2026 guidance for sales, profitability and adjusted earnings per share. We anticipate higher sales growth in the second half of 2026 relative to our initial guidance. Our balance sheet is strong and our capital allocation optionality is significant. I am grateful to our global Gates teams for their dedication and commitment to delivering on our strategic priorities.
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