Gates Industrial misses Q3 sales estimates, announces $300 mln buyback

Gates Industrial

29/10/2025 12:08

Overview

Gates Industrial Q3 net sales up 3% yr/yr, missing analyst expectations

Adjusted EPS beats analyst estimates for Q3 2025

Company announces $300 mln share repurchase authorization

Outlook

Gates Industrial raises 2025 adjusted EPS guidance towards high end of prior range

Company expects 2025 core sales growth of 0.5% to 1.5%

Gates Industrial anticipates 2025 adjusted EBITDA of $770 mln to $790 mln

Result Drivers

AUTOMOTIVE REPLACEMENT - Co cites solid growth in Automotive Replacement as a key driver for sales improvement

PERSONAL MOBILITY - Strong growth in Personal Mobility contributed to sales increase

COST OPTIMIZATION - Improved adjusted EBITDA margin attributed to structural cost reduction initiatives

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$855.70 mln
$861.10 mln (8 Analysts)
Q3 Adjusted EPS
Beat
$0.39
$0.37 (11 Analysts)
Q3 EPS
$0.31
Q3 Net Income
$81.60 mln
Q3 Adjusted EBITDA
Beat
$195.80 mln
$195.30 mln (8 Analysts)
Q3 Net Income continuing operations
$88.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "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 $30.00, about 13.9% above its October 28 closing price of $25.82

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPncd02sxa

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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.)