Gates Industrial beats Q2 sales estimates, raises 2026 outlook

Gates Industrial

31/07/2026 12:39

Overview
US power transmission supplier's Q2 sales rose 6.6%, beating analyst expectations
Adjusted EPS for Q2 beat consensus at $0.44
Company raised 2026 guidance for sales, profitability and adjusted EPS

Outlook
Gates Industrial raises 2026 core sales growth guidance to 2.5%–4.5%
Company now expects 2026 adjusted EBITDA of $800–$830 mln
Gates Industrial sees 2026 adjusted EPS of $1.62–$1.70

Result Drivers
ORDER MOMENTUM - Co said it experienced improving order momentum globally in Q2
INDUSTRIAL DEMAND - Co said it is positioned to capitalize on strengthening industrial demand

Company press release: ID:nPn7D9mWwa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$941.60 mln
$926.64 mln (9 Analysts)
Q2 Adjusted EPS
Beat
$0.44
$0.42 (11 Analysts)
Q2 EPS
 
$0.67
 
Q2 Net Income  attributable to shareholders
 
$170.90 mln
 
Q2 Adjusted EBITDA
Beat
$211.40 mln
$204.20 mln (9 Analysts)
Q2 Net Income continuing operations
 
$178.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Gates Industrial Corporation PLC is $31.50, about 22.2% above its July 30 closing price of $25.78
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
July 28 - Illinois Tool Works raises annual profit forecast on strong industrial demand
July 30 - Air compressor maker Ingersoll Rand sees strong 2026 profit on higher pricing
July 30 - SPX Technologies beats Q2 estimates on acquisitions, data center demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)