Gates Industrial Q4 revenue slightly beats expectations, EPS up on cost control

Gates Industrial

12/02/2026 12:37

Overview

Power transmission firm's Q4 revenue slightly beat analyst expectations, with a 3.2% increase yr/yr

Adjusted EPS for Q4 beat analyst expectations

Adjusted EBITDA for Q4 missed analyst estimates

Outlook

Company expects 2026 core sales growth between 1% and 4%

Gates Industrial forecasts 2026 adjusted EBITDA of $775 mln to $835 mln

Company anticipates 2026 adjusted EPS of $1.52 to $1.68

Result Drivers

STRATEGIC INITIATIVES - Gates Industrial's CEO highlighted strategic growth initiatives as a key driver for the quarter's performance

COST POSITION IMPROVEMENT - The company improved its cost position, contributing to its financial results

CASH FLOW GENERATION - Gates generated a substantial increase in cash from operating activities, strengthening its balance sheet

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Slight Beat*
$856.20 mln
$853.002 mln (9 Analysts)
Q4 Adjusted EPS
Beat
$0.38
$0.37 (12 Analysts)
Q4 EPS
$0.20
Q4 Net Income
$51.30 mln
Q4 Adjusted EBITDA
Miss
$187.80 mln
$193.71 mln (9 Analysts)
Q4 Net Income continuing operations
$56.40 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 $27.00, about 1.8% above its February 11 closing price of $26.51

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPnc2Yr8Ta

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.)