| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 903.60 | 4.0% | 5.6% |
| Total Income | 903.60 | 4.0% | 5.6% |
| Expenditure | 772.30 | 4.7% | 4.3% |
| PBT | 108.30 | 8.1% | 14.2% |
| Net Profit | 86.50 | 49.4% | 6.0% |
| OPM | 14.53% | 0.55pp | 1.05pp |
| NPM | 9.57% | 8.58pp | 0.04pp |
| EPS | 0.34 | 49.3% | 6.3% |
Gates Industrial Reports Q3 2026 Results with Mid-Single Digit Sales Growth
30 Oct 2026 · 1d ago, 5:06 pm
Summary
Gates Industrial Corporation Ltd. reported third-quarter 2026 results with net sales of $903.6 million, up 5.6% year-over-year, including a core sales increase of 5.5%. The company achieved a net income attributable to shareholders of $86.5 million and an Adjusted EBITDA of $215.4 million, with a margin of 23.8%. Management highlighted strong execution leading to mid-single digit sales growth and a significant gross profit margin increase, prompting an upward revision of the full-year 2026 guidance for profitability and adjusted earnings per share.
Key Highlights
- 1
Third-quarter net sales reached $903.6 million, an increase of 5.6% compared to the prior-year period, driven by a core sales increase of 5.5%.
- 2
Net income attributable to shareholders was $86.5 million, or $0.34 per diluted share for the third quarter.
- 3
Adjusted EBITDA for the third quarter was $215.4 million, representing a margin of 23.8%.
- 4
Net income from continuing operations was $91.6 million, yielding a margin of 10.1% for the third quarter.
- 5
The company is raising its full-year 2026 guidance for profitability and adjusted earnings per share.
- 6
Sales in the Industrial OEM channel increased by high-teens, and year-over-year growth in the Industrial Aftermarket channel accelerated relative to the previous quarter.
Management Comments
Ivo Jurek
Our team executed well during the third quarter, resulting in mid-single digit sales growth and a significant gross profit margin increase compared to the prior year period. Sales in our Industrial OEM channel increased high-teens and year-over-year growth in our Industrial Aftermarket channel accelerated relative to last quarter. We have raised our 2026 guidance for profitability and adjusted earnings per share. We are on pace to achieve our previously communicated adjusted EBITDA margin target for the second half of 2026 and our balance sheet provides us with significant capital deployment optionality. I appreciate the effort and commitment of the global Gates teams to achieving new records for the company.
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