Gates Industrial Q3 sales beats; raises 2026 profit forecast

Gates Industrial

30/10/2026 11:42

Overview
Power transmission solutions provider's Q3 net sales rose 5.6% yr/yr, slightly missing analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company raised 2026 guidance for adjusted EPS and EBITDA

Outlook
Gates Industrial raises 2026 adjusted EPS guidance to $1.66-$1.72 from $1.62-$1.70
Company lifts 2026 adjusted EBITDA forecast to $809-$823 mln from $800-$830 mln
Company maintains 2026 core sales growth outlook at 3.2%-3.8%

Result Drivers
INDUSTRIAL CHANNELS - Co said high-teens growth in Industrial OEM sales and faster growth in Industrial Aftermarket sales drove Q3 performance
GROSS MARGIN IMPROVEMENT - Co reported a significant increase in gross profit margin compared to prior year period

Company press release: ID:nPn2SjlT9a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Slight Miss*
$903.6 mln
$904.93 mln (10 Analysts)
Q3 Adjusted EPS
Beat
$0.47
$0.44 (11 Analysts)
Q3 EPS
 
$0.34
 
Q3 Net Income
 
$86.50 mln
 
Q3 Adjusted EBITDA
Slight Beat*
$215.40 mln
$213.60 mln (9 Analysts)
Q3 Net Income continuing operations
 
$91.60 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 8 "strong buy" or "buy", 5 "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 Ltd is $33.00, about 25.7% above its October 29 closing price of $26.25
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
Oct 27 - Illinois Tool Works Inc beats Q3 EPS estimates, raises 2026 outlook
Oct 28 - Fortive Corporation beats Q3 revenue on innovation investments, raises FY outlook
Oct 29 - Ingersoll Rand Q3 revenue slightly beats estimates; raises buyback plan

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.)