Gates Industrial Q1 adjusted EPS beats expectations

Gates Industrial

01/05/2026 12:39

Overview

US fluid power and power transmission supplier's Q1 sales rose 0.4% but missed analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company reiterated 2026 full-year guidance despite a 2.9% core revenue decline

Outlook

Gates Industrial maintains 2026 core sales growth guidance of 1% to 4% year-over-year

Company expects 2026 adjusted EBITDA of $775 mln to $835 mln

Gates Industrial sees 2026 adjusted EPS of $1.52 to $1.68

Result Drivers

ERP SYSTEM IMPLEMENTATION - Co said it successfully implemented a new enterprise resource planning system in Europe during the qtr

ONGOING INVESTMENTS - Co continued to invest in strategic process and growth initiatives, per CEO Ivo Jurek

ORDER RATES - Co exited the qtr with solid order rates and a book to bill nicely above 1, according to CEO Ivo Jurek

Company press release: ID:nPn32DHY7a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$851.10 mln
$860.95 mln (9 Analysts)
Q1 Adjusted EPS
Beat
$0.35
$0.33 (12 Analysts)
Q1 EPS
$0.23
Q1 Net Income attributable to shareholders
$59.70 mln
Q1 Adjusted EBITDA
Slight Miss*
$177.40 mln
$177.65 mln (8 Analysts)
Q1 Net Income continuing operations
$66.40 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "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 $31.00, about 21% above its April 30 closing price of $25.61

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)