US Market News
2週前
Gates Industrial Shareholders Approve RedomiciliationJune 25, 2026 5:06 PM
PR Newswire (US) DENVER, June 25, 2026 /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES) (the "Company" or "Gates Industrial Corporation") today announced that its shareholders have overwhelmingly voted in favor of the Company's proposals in connection with the Company's intention to change its place of incorporation from England and Wales to Bermuda (the "Redomiciliation"). Gates Industrial Corporation's shareholders voted in favor of all proposals related to the Redomiciliation at a series of shareholder meetings held earlier today. The percentage of votes in favor of each proposal voted on at the meetings was approximately 99.6% of votes cast."We thank our shareholders for their strong support in approving the Redomiciliation of our parent company from England and Wales to Bermuda," said Ivo Jurek, Chief Executive Officer of Gates Industrial Corporation. "The change enhances capital and strategic flexibility while sustaining strong corporate governance and reducing administrative complexity and cost."The Company will now proceed with the relevant legal and regulatory procedures required to implement the Redomiciliation, including seeking the sanction (i.e. approval) of the UK court, and expects the effective date to be July 20, 2026. The Company will include a more detailed timeline in its Current Report on Form 8-K to be filed with the Securities and Exchange Commission ("SEC") today. However, the effective date remains subject to change and will depend on, among other things, the date on which all the conditions are satisfied or, if capable of waiver, waived.About Gates Industrial Corporation plc
Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse aftermarket channel customers, and to original equipment manufacturers as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries to everyday consumer applications, including virtually every form of transportation. Our products are sold in more than 130 countries across our three commercial regions: the Americas; Europe, Middle East & Africa; Asia-Pacific. For more information, visit gates.com.Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to the Redomiciliation, including the timing of the effective time of the Redomiciliation and our expectations related to the benefits of the Redomiciliation and other initiatives. Such forward-looking statements are subject to various risks and uncertainties, including, among others, U.S. policies, actions or legislation (including the imposition of tariffs), economic, political and other risks associated with international operations (including as a result of the ongoing conflicts in the Middle East and their impact on supply chains, such as reduced availability of certain of our production materials and increased supply costs, and economic conditions), availability of raw materials or other manufacturing inputs at favorable prices in sufficient quantities, or at a given time, changes in our relationships with, or the financial condition, performance, purchasing power or inventory levels of, of key channel partners, dependence on the continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems, our ability to forecast demand or meet significant increases in demand and market acceptance of new product introductions and innovations. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. View original content to download multimedia:https://www.prnewswire.com/news-releases/gates-industrial-shareholders-approve-redomiciliation-302811284.htmlSOURCE Gates Industrial Corporation plc Original: Gates Industrial Shareholders Approve Redomiciliation
US Market News
3週前
Gates Opens Belt Drive Technology for the Mass MarketJune 23, 2026 5:15 PM
PR Newswire (US) Three new sprocket families expand belt drive specification across a broader range of bicycle OEM applications and price pointsDENVER, June 23, 2026 /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES), a global manufacturer of innovative, highly engineered power transmission and fluid power solutions, is expanding its Belt Drive product portfolio with three new sprocket families: CRUISE, CRUISE PLUS and COMMUTE. For nearly 20 years, Gates belt drives have redefined bicycle applications, delivering durable, low-maintenance performance, powering everything from children's bikes to premium eBikes and high-performance downhill mountain bikes. The new sprocket families enable Gates to extend those same benefits to a significantly broader market and open belt drive technology to segments still served by chain-based drivetrains. Paired with an industry-leading portfolio of belt drive system components, the expanded sprocket offering gives original equipment manufacturer (OEM) partners a scalable path to specify belt drive systems across a wider range of applications, rider expectations and price points."Combining our expertise in materials science, product development and high-volume production with a deep understanding of bicycle applications, Gates is advancing the next generation of bicycle drivetrain solutions," said Tom Pitstick, President, Americas and Global Mobility. "The new sprocket families enhance our tiered performance belt portfolio, providing our OEM partners with more options to bring additional belt driven bicycles to their lineups."From Entry-Level to eBike: A Sprocket for Every Application
The three new overmolded, high-performance thermoplastic sprocket families address distinct OEM specification needs across price targets, rider use cases and performance requirements:CRUISE provides a cost-efficient entry point into belt drive systems, helping OEMs offer clean, quiet and low-maintenance drivetrains in entry-level and value-oriented bicycles.CRUISE PLUS builds on that foundation with enhanced durability, longer service life and broader compatibility, bridging the gap between entry-level bikes and more demanding everyday applications, including mid-range eBikes.COMMUTE is engineered specifically for urban eBike performance, supporting mid-motor systems up to 75 Nm and prioritizing durability, weather resistance and low maintenance for daily mobility.Supporting OEMs From Concept to Market
Each sprocket family is designed for a defined use case, duty cycle and OEM price target, giving OEMs the flexibility to include belt drives across their broader product line. Gates supports OEMs from initial drivetrain specification through integration and production, providing the engineering resources and technical support needed to bring belt drive solutions to market efficiently and at scale.Gates Belt Drive's expanded portfolio is now available globally. For more information on Gates OEM belt drive solutions, visit go.gates.com/bike.About Gates Industrial Corporation plc
Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse replacement channel customers and to OEMs as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries to everyday consumer applications, including virtually every form of transportation. Our products are sold in more than 130 countries across our three commercial regions: the Americas; Europe, Middle East & Africa; Asia-Pacific. For more information, visit gates.com.Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to expectations regarding our new sprocket families. Such forward-looking statements are subject to various risks and uncertainties, including, among others, U.S. policies, actions or legislation (including the imposition of tariffs), economic, political and other risks associated with international operations (including as a result of the ongoing conflicts in the Middle East and their impact on supply chains, such as reduced availability of certain of our production materials and increased supply costs, and economic conditions), availability of raw materials or other manufacturing inputs at favorable prices in sufficient quantities, or at a given time, changes in our relationships with, or the financial condition, performance, purchasing power or inventory levels of, of key channel partners, dependence on the continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems, our ability to forecast demand or meet significant increases in demand and market acceptance of new product introductions and innovations. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. View original content to download multimedia:https://www.prnewswire.com/news-releases/gates-opens-belt-drive-technology-for-the-mass-market-302808334.htmlSOURCE Gates Corporation Original: Gates Opens Belt Drive Technology for the Mass Market
US Market News
2月前
Gates Corporation to Expand North American Power Transmission Business with AcquisitionMay 1, 2026 7:47 AM
PR Newswire (US)
Gates to acquire the belts business from The Timken CompanyDENVER, May 1, 2026 /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES), a global manufacturer of innovative, highly engineered power transmission and fluid power solutions, today announced that it has entered into a definitive agreement to acquire the belts business from The Timken Company (NYSE: TKR) including select manufacturing assets. Terms were not disclosed.
Gates is an industry leader in power transmission belt solutions across a wide range of industrial, automotive, and mobility markets and applications. Timken's belts business is a North American-based belts manufacturer serving industrial and mobility markets and applications. Both companies serve the OEM and aftermarket channels, and this acquisition will bring Gates additional market presence.Tom Pitstick, President, Americas at Gates said, "Gates is expanding customer access and opportunities in priority markets, such as the industrial OEM and aftermarket channels, as well as the power sports segment of our mobility business unit. The acquisition of the belts business from Timken broadens our channel and application coverage."This transaction is expected to close in the third quarter of 2026, subject to customary closing conditions. Gates and the belts business of Timken will continue to operate as separate entities until the transaction closes.About Gates Industrial Corporation
Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse aftermarket channel customers and to OEMs as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries to everyday consumer applications, including virtually every form of transportation. Our products are sold in more than 130 countries across three major geographies: the Americas; Europe, Middle East & Africa; and Asia Pacific. For more information visit gates.com.Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to the proposed acquisition of Timken's belts business, the expected benefits of the acquisition, and expectations regarding the performance of the Company's business and financial results. Such forward-looking statements are subject to various risks and uncertainties, including, among others, the possibility that the conditions to completion of the acquisition are delayed or not satisfied; the possibility that the acquisition will not result in the benefits expected by Gates; risks related to the integration of Timken's belts business, including retention of customers and employees; economic, political and other risks associated with international operations (including the imposition of tariffs), risks inherent to the manufacturing industry, macroeconomic factors beyond the Company's control (including material and logistics availability, inflation, supply chain and labor challenges and end-market recovery), risks related to catastrophic events, continued operation of our manufacturing facilities, including as a result of cybersecurity attacks, and our ability to forecast and meet demand and market acceptance of new products. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.Contacts
Media
Name: Raquel Fuentes
Email: Raquel.Fuentes@Gates.comInvestors
Name: Rich Kwas
Email: Richard.Kwas@Gates.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/gates-corporation-to-expand-north-american-power-transmission-business-with-acquisition-302760099.htmlSOURCE Gates Corporation
Original: Gates Corporation to Expand North American Power Transmission Business with Acquisition
US Market News
2月前
Timken to Sell Belts Business to GatesMay 1, 2026 7:52 AM
PR Newswire (US)
Action consistent with company's portfolio 80/20 approachExpected to improve adjusted EBITDA margins of Industrial Motion segment NORTH CANTON, Ohio, May 1, 2026 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, today announced that it has entered into a definitive agreement to sell the assets of its belts business to Gates Industrial Corporation plc (NYSE: GTES). Financial terms of the agreement were not disclosed.
"The sale of our belts business is consistent with our near-term strategic priorities and our 80/20 approach to structurally improve margins, grow faster in the most profitable verticals and create value for shareholders," said Lucian Boldea, president and chief executive officer. "We are applying this same rigor across our portfolio to ensure we leverage our core competencies where they drive the greatest impact."The belts business manufactures a comprehensive line of belts used in industrial, commercial and consumer applications."I want to thank our dedicated belts colleagues for their contributions over the years," Boldea said. "Gates is a global leader in power transmission products with a strong reputation for innovation and quality, and we are confident that Gates is the right owner to guide this business forward."The divestiture of the belts business is expected to improve the adjusted EBITDA margins of the Industrial Motion segment. The company plans to provide the estimated impact to margins at its upcoming Investor Day on May 20. Proceeds from the divestiture are intended to be used to fund the company's capital allocation priorities. The transaction is expected to close in the third quarter of 2026 and is subject to customary closing conditions.About The Timken CompanyThe Timken Company (NYSE: TKR; www.timken.com), a global technology leader in engineered bearings and industrial motion, designs a growing portfolio of next-generation products for diverse industries. For more than 125 years, Timken has used its specialized expertise to innovate and create customer-centric solutions that increase reliability and efficiency. Timken posted $4.6 billion in sales in 2025 and employs approximately 19,000 people globally, operating from 45 countries.Certain statements in this release (including statements regarding the company's forecasts, estimates, plans and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to expectations regarding the company's future financial performance are forward-looking. The company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: fluctuations in customer demand for the company's products or services; unanticipated changes in business relationships with customers or their purchases from the company; changes in the financial health of the company's customers, which may have an impact on the company's revenues, earnings and impairment charges; logistical issues associated with port closures, delays or increased costs; the impact of changes to the company's accounting methods; political risks associated with government instability; recent world events that have increased the risks posed by international trade disputes, tariffs, sanctions and hostilities; strained geopolitical relations between countries in which we have significant operations; weakness in global or regional general economic conditions and capital markets (as a result of financial stress affecting the banking system or otherwise); changes in wages, shipping costs, raw material costs, energy and fuel prices, and other production costs; changes in customer demand or tariff rates and other costs associated with tariffs; the company's ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms; fluctuations in currency valuations or interest rates; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion, synergies, and expected cashflow generation within expected timeframes or at all; the company's ability to effectively adjust prices for its products in response to changing dynamics; the impact on the company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; the introduction of new disruptive technologies, such as artificial intelligence; unplanned plant shutdowns; the effects of government-imposed restrictions, commercial requirements, and company goals associated with climate change and emissions or other sustainability initiatives; unanticipated litigation, claims, investigations remediation, or assessments; the rapidly evolving global regulatory landscape and the corresponding heightened operational complexity and compliance risks; restrictions on the use of, or claims or remediation associated with, per- and polyfluoroalkyl substances or polytetrafluoroethylene; the company's ability to maintain positive relations with unions and works councils; the company's ability to compete for skilled labor and to attract, retain and develop management, other key employees, and skilled personnel; negative impacts to the company's operations or financial position as a result of pandemics, epidemics, or other public health concerns and associated governmental measures; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, acquisitions, capital investments, and cost reduction actions. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.Media Relations:
Sarah Factor
234.262.4878
sarah.factor@timken.comInvestor Relations:
Neil Frohnapple
234.262.2310
investors@timken.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/timken-to-sell-belts-business-to-gates-302760101.htmlSOURCE The Timken Company
Original: Timken to Sell Belts Business to Gates
US Market News
2月前
Gates Industrial Reports First-Quarter 2026 ResultsMay 1, 2026 7:30 AM
PR Newswire (US)
DENVER, May 1, 2026 /PRNewswire/ --
First-Quarter 2026 Financial SummaryFirst-quarter net sales of $851.1 million, up 0.4% compared to the prior-year period, including a core revenue decrease of 2.9%.Net income attributable to shareholders of $59.7 million, or $0.23 per diluted share.Adjusted Net Income per diluted share of $0.35.Net income from continuing operations of $66.4 million, or a margin of 7.8%.Adjusted EBITDA of $177.4 million, or a margin of 20.8%.Reiterating 2026 full-year guidance.Gates Industrial Corporation plc (NYSE:GTES), a leading global provider of application-specific fluid power and power transmission solutions, today reported results for the first quarter ended March 28, 2026.Ivo Jurek, Gates Industrial's Chief Executive Officer, commented, "We executed well in the first quarter, successfully implementing a new enterprise resource planning system in Europe and continuing to invest in strategic process and growth initiatives. We exited the quarter with solid order rates and our book to bill was nicely above 1. Our cash from operating activities increased compared to the prior year period and our balance sheet is well positioned to support our strategic objectives."Jurek continued, "We have reiterated our financial guidance for 2026. I am optimistic about our core growth prospects in 2026 and our strong balance sheet provides us flexibility to strengthen the enterprise and drive shareholder value. I appreciate the effort and diligence of our global Gates team."Power Transmission Segment Results
Three months ended
(USD in millions)March 28, 2026
March 29, 2025
% Change
% Core ChangeNet sales$533.2
$527.2
1.1 %
(2.5 %)Adjusted EBITDA$112.0
$116.7
(4.0 %)
Adjusted EBITDA margin21.0 %
22.1 %
(110 bps)
Fluid Power Segment Results
Three months ended
(USD in millions)March 28, 2026
March 29, 2025
% Change
% Core ChangeNet sales$317.9
$320.4
(0.8 %)
(3.5 %)Adjusted EBITDA$65.4
$70.6
(7.4 %)
Adjusted EBITDA margin20.6 %
22.0 %
(140 bps)
2026 GuidanceThe Company is maintaining its full year financial guidance for 2026:Core sales growth in the range of 1% to 4% year-over-yearAdjusted EBITDA of $775 million to $835 millionAdjusted Earnings Per Share of $1.52 to $1.68Capital Expenditures of approximately $120 millionFree Cash Flow conversion exceeding 90%Share-based metrics in the Company's guidance do not include the effect of any potential share repurchases.Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures, including expected Core Sales Growth, Adjusted EBITDA, Adjusted Earnings per Share and Free Cash Flow conversion for 2026. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.Conference Call and WebcastGates Industrial Corporation plc will host a conference call today at 10:00 a.m. Eastern Time to discuss the Company's financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through Gates Industrial's website at investors.gates.com. For those unable to access the webcast, the conference call can be accessed by dialing (888) 414-4601 (domestic) or +1 (646) 960-0313 (international) and requesting the Gates Industrial Corporation First-Quarter 2026 Earnings Conference Call or providing the Conference ID of 5772067. An audio replay of the conference call can be accessed by dialing (800) 770-2030 (domestic) or +1 (647) 362-9199 (international), and providing the passcode 5772067, or by accessing Gates Industrial's website at investors.gates.com.About Gates Industrial Corporation plcGates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse aftermarket channel customers, and to original equipment manufacturers as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation. Our products are sold in more than 130 countries across our three commercial regions: the Americas; Europe, Middle East & Africa; and Asia Pacific.Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to expectations regarding the performance of the Company's business and financial results (including our order rates, our growth prospects and our capital allocation opportunities), our ability to drive shareholder value and statements regarding our outlook for 2026. Such forward-looking statements are subject to various risks and uncertainties, including, among others, U.S. policies, actions or legislation (including the imposition of tariffs), economic, political and other risks associated with international operations (including as a result of the ongoing conflicts in the Middle East and their impact on supply chains, such as reduced availability of certain of our production materials and increased supply costs, and economic conditions), availability of raw materials or other manufacturing inputs at favorable prices in sufficient quantities, or at a given time, changes in our relationships with, or the financial condition, performance, purchasing power or inventory levels of, of key channel partners, dependence on the continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems, our ability to forecast demand or meet significant increases in demand and market acceptance of new product introductions and innovations. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.Gates Industrial Corporation plcCondensed Consolidated Statements of Operations(Unaudited)
Three months ended(USD in millions, except per share amounts)March 28, 2026
March 29, 2025Net sales$ 851.1
$ 847.6Cost of sales513.1
503.0Gross profit338.0
344.6Selling, general and administrative expenses226.9
216.2Transaction-related expenses0.5
0.4Asset impairments—
0.6Restructuring expenses0.7
1.6Operating income from continuing operations109.9
125.8Interest expense29.9
29.6Other expense2.1
2.4Income from continuing operations before taxes77.9
93.8Income tax expense11.5
25.2Net income from continuing operations66.4
68.6Loss on disposal of discontinued operations0.2
0.3Net income66.2
68.3Less: non-controlling interests6.5
6.3Net income attributable to shareholders$ 59.7
$ 62.0
Earnings per share
Basic
Earnings per share from continuing operations$ 0.24
$ 0.24Earnings per share from discontinued operations—
—Earnings per share$ 0.24
$ 0.24
Diluted
Earnings per share from continuing operations$ 0.23
$ 0.24Earnings per share from discontinued operations—
—Earnings per share$ 0.23
$ 0.24 Gates Industrial Corporation plcCondensed Consolidated Balance Sheets(Unaudited) (USD in millions, except share numbers and per share amounts)As of
March 28, 2026
As of
December 31, 2025Assets
Current assets
Cash and cash equivalents$ 785.3
$ 812.1Trade accounts receivable, net 799.6
744.2Inventories685.7
700.0Taxes receivable37.9
43.4Prepaid expenses and other assets180.9
181.8Total current assets2,489.4
2,481.5Non-current assets
Property, plant and equipment, net599.5
609.0Goodwill2,020.6
2,035.2Pension surplus7.6
7.6Intangible assets, net1,158.7
1,192.4Right-of-use assets152.0
137.1Taxes receivable1.1
5.4Deferred income taxes636.3
640.0Other non-current assets49.8
43.2Total assets$ 7,115.0
$ 7,151.4Liabilities and equity
Current liabilities
Debt, current portion$ 30.9
$ 36.2Trade accounts payable396.9
433.7Taxes payable18.6
27.0Accrued expenses and other current liabilities232.1
238.5Total current liabilities678.5
735.4Non-current liabilities
Debt, less current portion2,197.6
2,196.3Post-retirement benefit obligations63.1
68.8Lease liabilities135.5
124.5Taxes payable63.2
62.1Deferred income taxes43.8
49.3Other non-current liabilities205.5
225.8Total liabilities3,387.2
3,462.2Shareholders' equity
—Shares, par value of $0.01 each - authorized shares: 3,000,000,000; outstanding shares:
253,862,978 (December 31, 2025: authorized shares: 3,000,000,000; outstanding shares:
253,543,540)2.5
2.6—Additional paid-in capital2,631.4
2,633.3—Accumulated other comprehensive loss(925.4)
(917.1)—Treasury shares(16.5)
(37.5)—Retained earnings1,674.9
1,652.7Total shareholders' equity3,366.9
3,334.0Non-controlling interests360.9
355.2Total equity3,727.8
3,689.2Total liabilities and equity$ 7,115.0
$ 7,151.4 Gates Industrial Corporation plcCondensed Consolidated Statements of Cash Flows(Unaudited)
Three months ended(USD in millions)March 28,
2026
March 29,
2025Cash flows from operating activities
Net income$ 66.2
$ 68.3Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization55.7
52.2Foreign exchange and other non-cash financing income(8.9)
(8.2)Share-based compensation expense6.3
6.1Decrease in post-employment benefit obligations, net(0.2)
(3.0)Deferred income taxes(9.3)
(3.1)Asset impairments—
0.6Other operating activities0.8
2.6Changes in operating assets and liabilities:
—Accounts receivable(59.2)
(47.3)—Inventories9.3
(15.4)—Accounts payable(34.1)
3.1—Prepaid expenses and other assets8.3
(22.3)—Taxes payable7.2
8.5—Other liabilities(11.9)
(34.8)Net cash provided by operating activities30.2
7.3Cash flows from investing activities
Purchases of property, plant and equipment(16.7)
(17.5)Purchases of intangible assets(4.8)
(8.7)Cash paid under company-owned life insurance policies(10.6)
(7.0)Cash received under company-owned life insurance policies3.7
0.5Proceeds from the sale of property, plant and equipment1.3
2.0Other investing activities(0.1)
(0.3)Net cash used in investing activities(27.2)
(31.0)Cash flows from financing activities
Issuance of shares 0.5
1.8Repurchase of shares(16.6)
(13.0)Payments of long-term debt—
(4.7)Employee taxes paid from shares withheld(8.6)
(11.5)Dividends paid to non-controlling interests—
(2.3)Other financing activities(0.4)
5.1Net cash used in financing activities(25.1)
(24.6)Effect of exchange rate changes on cash and cash equivalents and restricted cash(4.7)
6.6Net decrease in cash and cash equivalents and restricted cash(26.8)
(41.7)Cash and cash equivalents and restricted cash at the beginning of the period815.0
684.8Cash and cash equivalents and restricted cash at the end of the period$ 788.2
$ 643.1Supplemental schedule of cash flow information
Interest paid$ 32.0
$ 36.5Income taxes paid$ 13.7
$ 19.7Accrued capital expenditures$ 2.6
$ 1.1Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. Management uses Adjusted EBITDA as its key profitability measure. This is a non-GAAP measure that represents EBITDA before certain items that impact comparison of the performance of our business either period-over-period or with other businesses. We use Adjusted EBITDA as our measure of segment profitability to assess the performance of our businesses, and it is used for consolidated Gates as well because we believe it is important to consider our total profitability on a basis that is consistent with that of our operating segments. Adjusted EBITDA Margin is Adjusted EBITDA for a particular period expressed as a percentage of net sales for that period.Management uses Adjusted Net Income as an additional measure of profitability. Adjusted Net Income is a non-GAAP measure that represents net income attributable to shareholders before certain items that impact comparison of the performance of our business, either period-over-period or with other businesses. Beginning with the three months ended June 29, 2024, we revised our definition of Adjusted Net Income to adjust for discrete tax items, which are significant, unusual or infrequently occurring tax items. We have revised the prior period amounts to conform to our current period presentation.Management uses Adjusted Gross Profit as an additional measure of operating performance. Adjusted Gross Profit is a non-GAAP measure that represents gross profit before certain items that impact the comparability of our results, such as restructuring costs and inventory adjustments, specific to the remeasurement of certain inventories on a Last-in-First-out ("LIFO") basis. Adjusted Gross Profit margin is Adjusted Gross Profit expressed as a percentage of sales. We use Adjusted Gross Profit and Adjusted Gross Profit margin because it provides insight into the underlying profitability of our core operations by excluding items that are not indicative of ongoing business performance.Core sales is a non-GAAP measure that represents net sales for the period excluding the impacts of movements in average currency exchange rates and the first-year impacts of acquisitions and disposals, when applicable. Core sales growth is the change in core sales expressed as a percentage of prior period net sales. We present core sales growth because it allows for a meaningful comparison of year-over-year performance without the volatility caused by foreign currency gains or losses, or the incomparability that would be caused by the impact of an acquisition or disposal.Management uses Free Cash Flow to measure cash generation. Free Cash Flow is a non-GAAP measure that represents net cash provided by operations less capital expenditures. Free Cash Flow Conversion is a measure of Free Cash Flow expressed as a percentage of Adjusted Net Income. We use this metric as a measure of the success of our business in converting Adjusted Net Income into cash.These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please see below for a reconciliation of historical non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP.Gates Industrial Corporation plcReconciliation of Net Income from Continuing Operations to Adjusted EBITDA(Unaudited)
Three months ended(USD in millions)March 28, 2026
March 29, 2025Net income from continuing operations before taxes$ 66.4
$ 68.6Adjusted for:
Income tax expense11.5
25.2Interest expense29.9
29.6Depreciation and amortization55.7
52.2Transaction-related expenses (1)0.5
0.4Asset impairments—
0.6Restructuring expenses 0.7
1.6Share-based compensation expense6.3
6.1Inventory impairments and adjustments (2) (included in cost of sales)4.0
(1.0)Restructuring related expenses (included in cost of sales)2.5
1.2Restructuring related expenses (included in SG&A)1.3
1.5Other expenses (income), excluding foreign currency transaction gain or loss and
insurance recoveries(3)(1.4)
1.3Adjusted EBITDA$ 177.4
$ 187.3
Net Sales$ 851.1
$ 847.6Net income from continuing operations margin7.8 %
8.1 %Adjusted EBITDA Margin20.8 %
22.1 %(1)Transaction-related expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.(2)Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis.(3)Other expenses (income) excludes foreign currency transaction losses of $3.5 million for the three months ended March 28, 2026; foreign currency transaction loss of $1.1 million for the three months ended March 29, 2025. Gates Industrial Corporation plcReconciliation of Net Income Attributable to Shareholders to Adjusted Net Income(Unaudited)
Three months ended(USD in millions, except share numbers and per share amounts)March 28, 2026
March 29, 2025Net income attributable to shareholders$ 59.7
$ 62.0Adjusted for:
Loss on disposal of discontinued operations0.2
0.3Amortization of intangible assets arising from the 2014 acquisition of Gates29.3
28.3Transaction-related expenses (1)0.5
0.4Asset impairments—
0.6Restructuring expenses (2)0.7
1.6Restructuring related expenses (included in cost of sales)2.5
1.2Restructuring related expenses (included in SG&A)1.3
1.5Share-based compensation expense6.3
6.1Inventory impairments and adjustments (3) (included in cost of sales)4.0
(1.0)Adjustments relating to post-retirement benefits5.4
0.4Financing and other FX related losses(4.6)
3.2Discrete tax items (4) (6.3)
0.1Other adjustments(1.4)
(1.3)Estimated tax effect of the above adjustments(8.9)
(9.5)Adjusted Net Income$ 88.7
$ 93.9
Diluted weighted-average number of shares outstanding256,872,424
261,567,906Adjusted Net Income per diluted share$ 0.35
$ 0.36(1)Transaction-related expenses related primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.(2)Restructuring expenses represent items qualifying for recognition as such under U.S. GAAP and included costs related to the closure of lines of business, facility closures and consolidations, fundamental organizational rationalizations and non-recurring employee severance related to such actions.(3)Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis. (4)Discrete tax items include changes in uncertain tax positions relating to prior years, changes in tax laws or rates, changes in valuation allowances, excess tax benefits on stock option exercises, and prior year adjustments in various foreign jurisdictions in which returns were filed. Gates Industrial Corporation plcReconciliation of Gross Profit to Adjusted Gross Profit(Unaudited)
Three months ended(USD in millions)
March 28,
2026
March 29,
2025Net sales
$ 851.1
$ 847.6Cost of sales
513.1
503.0Gross Profit
338.0
344.6Inventory adjustments (1) (included in cost of sales)
4.0
(1.0)Restructuring related expenses (included in cost of sales)
2.5
1.2Adjusted Gross Profit
344.5
344.8
Gross Profit margin
39.7 %
40.7 %Adjusted Gross Profit margin
40.5 %
40.7 %(1)Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis. Gates Industrial Corporation plcReconciliation of Net Sales to Core Sales Growth(Unaudited)
Three months ended March 28, 2026(USD in millions)Power
Transmission
Fluid Power
TotalNet sales for the three months ended March 28, 2026 (1)$ 533.2
$ 317.9
$ 851.1Impact on net sales of movements in currency rates(19.2)
(8.7)
(27.9)Core sales for the three months ended March 28, 2026$ 514.0
$ 309.2
$ 823.2
Net sales for the three months ended March 29, 2025527.2
320.4
847.6Increase (decrease) in net sales6.0
(2.5)
3.5Decrease in net sales on a core basis (core sales)$ (13.2)
$ (11.2)
$ (24.4)
Net sales increase (decrease)1.1 %
(0.8 %)
0.4 %Core sales decrease(2.5 %)
(3.5 %)
(2.9 %)(1)Throughout this document the terms "net sales" and "revenue" are used interchangeably in reference to the GAAP measure "net sales."
View original content to download multimedia:https://www.prnewswire.com/news-releases/gates-industrial-reports-first-quarter-2026-results-302759769.htmlSOURCE Gates Industrial Corporation plc
Original: Gates Industrial Reports First-Quarter 2026 Results
US Market News
5月前
Gates Industrial Reports Fourth-Quarter and Full Year 2025 ResultsFebruary 12, 2026 7:30 AM
PR Newswire (US)
DENVER, Feb. 12, 2026 /PRNewswire/ --
Fourth-Quarter 2025 Financial SummaryFourth-quarter net sales of $856.2 million, up 3.2% compared to the prior-year period, including a core sales growth of 0.6%Net income attributable to shareholders of $51.3 million, or $0.20 per diluted shareAdjusted Net Income per diluted share of $0.38Net income from continuing operations of $56.4 million, or a margin of 6.6%Adjusted EBITDA of $187.8 million, or a margin of 21.9%Repurchased approximately $105 million of sharesFull-Year 2025 Financial SummaryNet sales of $3,443.2 million, representing 1.0% growth, including a core sales growth of 0.7%Net income attributable to shareholders of $251.4 million, or $0.96 per diluted shareAdjusted Net Income per diluted share of $1.52Net income from continuing operations of $277.1 million, or a margin of 8.0%Adjusted EBITDA of $770.1 million, or a margin of 22.4%Generated $478.1 million of operating cash flowIntroducing 2026 financial guidanceGates Industrial Corporation plc (NYSE:GTES), a leading global provider of application-specific power transmission and fluid power solutions, today reported results for the fourth-quarter and full year ended December 31, 2025.Ivo Jurek, Gates Industrial's Chief Executive Officer, commented, "In 2025, we delivered double-digit growth in earnings per share and reduced our net leverage ratio while managing through an uncertain demand environment. Our strategic growth initiatives continued to gain momentum and we improved the cost position of our business. We generated a substantial increase in cash from operating activities and our balance sheet is strong."Jurek continued, "We are optimistic about our growth prospects in 2026 and our ability to deploy capital prudently to increase long-term value creation for our shareholders. I thank the global Gates team for their effort and diligence."2026 GuidanceThe Company is introducing full year financial guidance for 2026. Specifically, the company anticipates the following:Core sales growth in the range of 1% to 4% year-over-yearAdjusted EBITDA of $775 million to $835 millionAdjusted Earnings Per Share of $1.52 to $1.68Capital Expenditures of approximately $120 millionFree Cash Flow conversion exceeding 90%Share-based metrics in the Company's guidance do not include the effect of any potential share repurchases.Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures, including expected Core Sales Growth, Adjusted EBITDA, Adjusted Earnings per Share and Free Cash Flow conversion for 2026. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.Conference Call and WebcastGates Industrial Corporation plc will host a conference call today at 10:00 a.m. Eastern Time to discuss the Company's financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through Gates Industrial's website at investors.gates.com. For those unable to access the webcast, the conference call can be accessed by dialing (888) 414-4601 (domestic) or +1 (646) 960-0313 (international) and requesting the Gates Industrial Corporation Fourth-Quarter 2025 Earnings Conference Call or providing the Conference ID of 5772067. An audio replay of the conference call can be accessed by dialing (800) 770-2030 (domestic) or +1 (647) 362-9199 (international), and providing the passcode 5772067, or by accessing Gates Industrial's website at investors.gates.com.About Gates Industrial Corporation plcGates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse aftermarket channel customers, and to original equipment manufacturers as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation. In 2025, our products were sold in more than 130 countries across our four commercial regions: the Americas; Europe, Middle East & Africa; Greater China; and East Asia & India.Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements related to expectations regarding the performance of the Company's business and financial results (including our strategic initiatives, our cost position, the strength of our balance sheet, our growth prospects and our ability to deploy capital), and statements regarding our outlook for 2026. Such forward-looking statements are subject to various risks and uncertainties, including, among others, U.S. policies, actions, or legislation, economic, political and other risks associated with international operations, risks inherent to the manufacturing industry, macroeconomic factors beyond the Company's control (including material and logistics availability, inflation, supply chain and labor challenges and end-market recovery), risks related to relationships with, or the financial condition of key, channel partners, continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems, including as a result of cybersecurity attacks or catastrophic events, our ability to forecast and meet demand and market acceptance of new products. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which is expected to be filed with the Securities and Exchange Commission on or about the date of this presentation, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.Gates Industrial Corporation plcConsolidated Statements of Operations(Unaudited)
Three months ended
Year ended(USD in millions, except per share amounts)December 31,
2025
December 28,
2024
December 31,
2025
December 28,
2024Net sales$ 856.2
$ 829.4
$ 3,443.2
$ 3,408.2Cost of sales530.9
494.1
2,071.5
2,049.7Gross profit325.3
335.3
1,371.7
1,358.5Selling, general and administrative expenses209.5
226.6
876.1
876.5Transaction-related expenses—
1.2
0.5
3.3Asset impairments2.3
—
3.5
—Restructuring expenses5.2
1.5
26.3
6.5Other operating (income) expenses —
(0.1)
—
—Operating income from continuing operations108.3
106.1
465.3
472.2Interest expense32.6
34.1
125.9
155.8Loss on deconsolidation of Russian subsidiary—
(0.1)
—
12.7Other (income) expense4.3
(15.8)
(0.8)
(24.3)Income from continuing operations before taxes71.4
87.8
340.2
328.0Income tax expense15.0
46.7
63.1
107.5Net income from continuing operations56.4
41.1
277.1
220.5Loss on disposal of discontinued operations0.1
0.1
0.8
0.6Net income56.3
41.0
276.3
219.9Less: non-controlling interests5.0
4.5
24.9
25.0Net income attributable to shareholders$ 51.3
$ 36.5
$ 251.4
$ 194.9
Earnings per share
Basic
Earnings per share from continuing operations$ 0.20
$ 0.14
$ 0.98
$ 0.75Earnings per share from discontinued operations—
—
—
—Earnings per share$ 0.20
$ 0.14
$ 0.98
$ 0.75
Diluted
Earnings per share from continuing operations$ 0.20
$ 0.14
$ 0.96
$ 0.74Earnings per share from discontinued operations—
—
—
—Earnings per share$ 0.20
$ 0.14
$ 0.96
$ 0.74 Gates Industrial Corporation plcConsolidated Balance Sheets(Unaudited)
(USD in millions, except share numbers and per share amounts)As ofDecember 31, 2025
As ofDecember 28, 2024Assets
Current assets
Cash and cash equivalents$ 812.1
$ 682.0Trade accounts receivable, net 744.2
722.7Inventories700.0
676.0Taxes receivable43.4
28.6Prepaid expenses and other assets181.8
196.7Total current assets2,481.5
2,306.0Non-current assets
Property, plant and equipment, net609.0
579.5Goodwill2,035.2
1,908.9Pension surplus7.6
5.7Intangible assets, net1,192.4
1,248.6Right-of-use assets137.1
139.4Taxes receivable5.4
20.7Deferred income taxes640.0
553.5Other non-current assets43.2
24.0Total assets$ 7,151.4
$ 6,786.3Liabilities and equity
Current liabilities
Debt, current portion$ 36.2
$ 39.1Trade accounts payable433.7
408.2Taxes payable27.0
22.9Accrued expenses and other current liabilities238.5
251.3Total current liabilities735.4
721.5Non-current liabilities
Debt, less current portion2,196.3
2,311.5Post-retirement benefit obligations68.8
78.0Lease liabilities124.5
127.3Taxes payable62.1
82.2Deferred income taxes49.3
56.8Other non-current liabilities225.8
68.7Total liabilities3,462.2
3,446.0Shareholders' equity
—Shares, par value of $0.01 each - authorized shares: 3,000,000,000; outstanding shares:
253,543,540 (December 28, 2024: authorized shares: 3,000,000,000; outstanding shares:
255,203,987)2.6
2.6—Additional paid-in capital2,633.3
2,618.6—Accumulated other comprehensive loss(917.1)
(1,077.2)—Treasury shares(37.5)
——Retained earnings1,652.7
1,479.6Total shareholders' equity3,334.0
3,023.6Non-controlling interests355.2
316.7Total equity3,689.2
3,340.3Total liabilities and equity$ 7,151.4
$ 6,786.3 Gates Industrial Corporation plcConsolidated Statements of Cash Flows(Unaudited)
Year Ended(USD in millions)December 31,
2025
December 28,
2024Cash flows from operating activities
Net income$ 276.3
$ 219.9Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization213.8
216.9Foreign exchange and other non-cash financing income(25.2)
(44.2)Share-based compensation expense27.2
28.8Decrease in post-employment benefit obligations, net(17.4)
(9.0)Deferred income taxes(26.0)
(12.1)Asset impairments3.5
—Loss on deconsolidation of Russian Subsidiary—
12.7Disposal of property, plant and equipment0.3
(7.3)Other operating activities4.3
(0.1)Changes in operating assets and liabilities:
—Accounts receivable18.4
8.4—Inventories14.3
(64.0)—Accounts payable4.3
(27.6)—Prepaid expenses and other assets29.7
37.3—Taxes payable(18.6)
(0.9)—Other liabilities(26.8)
20.8Net cash provided by operating activities478.1
379.6Cash flows from investing activities
Purchases of property, plant and equipment(73.2)
(83.1)Purchases of intangible assets(40.7)
(23.6)Purchases of investments—
(11.3)Proceeds from sale of investments—
5.0Cash paid under corporate-owned life insurance policies(11.5)
(5.4)Cash received under corporate-owned life insurance policies4.9
14.5Proceeds from the sale of property, plant and equipment2.3
12.0Cash deconsolidated from previously controlled subsidiary—
(12.5)Other investing activities(0.8)
—Net cash used in investing activities(119.0)
(104.4)Cash flows from financing activities
Issuance of shares 10.4
14.9Repurchase of shares(119.3)
(176.1)Proceeds from long-term debt—
1,840.0Payments of long-term debt(123.4)
(1,948.4)Debt issuance costs paid—
(21.6)Employee taxes paid from shares withheld(21.0)
(4.7)Dividends paid to non-controlling interests(6.5)
(13.0)Other financing activities8.7
22.2Net cash used in financing activities(251.1)
(286.7)Effect of exchange rate changes on cash and cash equivalents and restricted cash22.2
(27.7)Net increase (decrease) in cash and cash equivalents and restricted cash130.2
(39.2)Cash and cash equivalents and restricted cash at the beginning of the period684.8
724.0Cash and cash equivalents and restricted cash at the end of the period$ 815.0
$ 684.8Supplemental schedule of cash flow information
Interest paid$ 120.7
$ 132.6Income taxes paid$ 111.5
$ 122.3Accrued capital expenditures$ 3.0
$ 1.2Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. Management uses Adjusted EBITDA as its key profitability measure. This is a non-GAAP measure that represents EBITDA before certain items that impact comparison of the performance of our business either period-over-period or with other businesses. We use Adjusted EBITDA as our measure of segment profitability to assess the performance of our businesses, and it is used for consolidated Gates as well because we believe it is important to consider our total profitability on a basis that is consistent with that of our operating segments. Adjusted EBITDA Margin is Adjusted EBITDA for a particular period expressed as a percentage of net sales for that period.Management uses Adjusted Net Income as an additional measure of profitability. Adjusted Net Income is a non-GAAP measure that represents net income attributable to shareholders before certain items that impact comparison of the performance of our business, either period-over-period or with other businesses. Beginning with the three months ended June 29, 2024, we revised our definition of Adjusted Net Income to adjust for discrete tax items, which are significant, unusual or infrequently occurring tax items. We have revised the prior period amounts to conform to our current period presentation.Management uses Adjusted Gross Profit as an additional measure of operating performance. Adjusted Gross Profit is a non-GAAP measure that represents gross profit before certain items that impact the comparability of our results, such as restructuring costs and inventory adjustments, specific to the remeasurement of certain inventories on a Last-in-First-out ("LIFO") basis. Adjusted Gross Profit margin is Adjusted Gross Profit expressed as a percentage of sales. We use adjusted Gross Profit and adjusted Gross Profit margin because it provides insight into the underlying profitability of our core operations by excluding items that are not indicative of ongoing business performance.Core sales is a non-GAAP measure that represents net sales for the period excluding the impacts of movements in average currency exchange rates and the first-year impacts of acquisitions and disposals, when applicable. Core sales growth is the change in core sales expressed as a percentage of prior period net sales. We present core sales growth because it allows for a meaningful comparison of year-over-year performance without the volatility caused by foreign currency gains or losses, or the incomparability that would be caused by the impact of an acquisition or disposal.Management uses Free Cash Flow to measure cash generation. Free Cash Flow is a non-GAAP measure that represents net cash provided by operations less capital expenditures. Free Cash Flow Conversion is a measure of Free Cash Flow expressed as a percentage of Adjusted Net Income. We use this metric as a measure of the success of our business in converting Adjusted Net Income into cash.These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please see below for a reconciliation of historical non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP.Gates Industrial Corporation plcReconciliation of Net Income from Continuing Operations to Adjusted EBITDA(Unaudited)
Three months ended
Year Ended(USD in millions)December 31,
2025
December 28,
2024
December 31,
2025
December 28,
2024Net income from continuing operations before taxes$ 56.4
$ 41.1
$ 277.1
$ 220.5Adjusted for:
Income tax expense15.0
46.7
63.1
107.5Interest expense32.6
34.1
125.9
155.8Loss on deconsolidation of Russian subsidiary (1)—
(0.1)
—
12.7Depreciation and amortization54.7
54.1
213.8
216.9Transaction-related expenses (2)—
1.2
0.5
3.3Asset impairments2.3
—
3.5
—Restructuring expenses (3)5.2
1.5
26.3
6.5Share-based compensation expense4.8
8.6
27.2
28.8Inventory adjustments (4) (included in cost of
sales)10.0
0.6
15.6
22.3Restructuring related expenses (included in cost
of sales)2.4
0.9
6.9
1.8Restructuring related expenses (included in
SG&A)3.1
1.4
11.4
2.9Other expenses (income), excluding foreign
currency transaction gain or loss and insurance
recoveries (4)1.3
(9.3)
4.0
(17.8)Credit gain related to customer bankruptcy
(included in SG&A) (5)—
—
—
(0.1)Cybersecurity incident expenses (6)—
—
(5.2)
—Other items not directly related to current
operations (7)—
(0.1)
—
—Adjusted EBITDA$ 187.8
$ 180.7
$ 770.1
$ 761.1
Net Sales$ 856.2
$ 829.4
$ 3,443.2
$ 3,408.2Net income from continuing operations margin6.6 %
5.0 %
8.0 %
6.5 %Adjusted EBITDA Margin21.9 %
21.8 %
22.4 %
22.3 %
Total principal amount of debt
$ 2,240.1
$ 2,363.5Less: Cash and cash equivalents
(812.1)
(682.0)Net Debt
$ 1,428.0
$ 1,681.5
Net Leverage
1.9 x
2.2 x (1)In July 2022, Gates suspended our operations in Russia. As of September 28, 2024, we deconsolidated the Russian subsidiary upon loss of control and recognized a deconsolidation loss.(2)Transaction-related expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.(3)Restructuring expenses represent items qualifying for recognition as such under U.S. GAAP and include costs related to the closure of lines of business, facility closures and consolidations, fundamental organizational rationalizations and non-recurring employee severance related to such actions.(4)Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis. (5)On January 31, 2023, one of our customers filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In connection with the bankruptcy proceedings, we preliminarily evaluated our potential risk and exposure relating to our outstanding pre-petition accounts receivable balance from the customer and recorded the pre-tax charge to reflect our estimated recovery. We continue to monitor the circumstances surrounding the bankruptcy and adjust our estimate if necessary.(6)In July 2025, we received insurance recoveries related to a previously disclosed cybersecurity incident that occurred in February 2023 for which we previously excluded $5.2 million of expenses from Adjusted Net Income.(7)Other items not directly related to current operations include other charges. Gates Industrial Corporation plcReconciliation of Net Income Attributable to Shareholders to Adjusted Net Income(Unaudited)
Three months ended
Year Ended(USD in millions, except share numbers and per share amounts)December 31,
2025
December 28,
2024
December 31,
2025
December 28,
2024Net income attributable to shareholders$ 51.3
$ 36.5
$ 251.4
$ 194.9Adjusted for:
Loss on disposal of discontinued operations0.1
0.1
0.8
0.6Loss on deconsolidation of Russian subsidiary (1)—
(0.1)
—
12.7Amortization of intangible assets arising from
the 2014 acquisition of Gates29.3
28.7
115.8
115.5Transaction-related expenses (2)—
1.2
0.5
3.3Asset impairments2.3
—
3.5
—Restructuring expenses (3)5.2
1.5
26.3
6.5Restructuring related expenses (included in cost
of sales)2.4
0.9
6.9
1.8Restructuring related expenses (included in
SG&A)3.1
1.4
11.4
2.9Share-based compensation expense4.8
8.6
27.2
28.8Inventory adjustments (4) (included in cost of
sales)10.0
0.6
15.6
22.3Adjustments relating to post-retirement benefits—
(0.7)
1.3
(2.6)Financing and other FX related losses4.1
(6.1)
12.4
(7.0)Credit (gain) loss related to customer bankruptcy
(included in SG&A) —
—
—
(0.1)Cybersecurity incident expenses (5) —
—
(5.2)
—Loss on extinguishment of debt (6) —
—
—
14.8Discrete tax items (7) 1.7
31.7
(18.9)
23.4Other adjustments(0.6)
(2.3)
(5.2)
(7.0)Estimated tax effect of the above adjustments(14.5)
(8.6)
(48.9)
(43.1)Adjusted Net Income$ 99.2
$ 93.4
$ 394.9
$ 367.7
Diluted weighted-average number of shares
outstanding259,007,742
261,090,036
260,534,865
264,675,566GAAP Net Income per diluted share$ 0.20
$ 0.14
$ 0.96
$ 0.74Adjusted Net Income per diluted share$ 0.38
$ 0.36
$ 1.52
$ 1.39(1)In July 2022, Gates suspended our operations in Russia. As of September 28, 2024, we deconsolidated the Russian subsidiary upon loss of control and recognized a deconsolidation loss.(2)Transaction-related expenses related primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.(3)Restructuring expenses represent items qualifying for recognition as such under U.S. GAAP and included costs related to the closure of lines of business, facility closures and consolidations, fundamental organizational rationalizations and non-recurring employee severance related to such actions.(4)Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis. (5)In July 2025, we received insurance recoveries related to a previously disclosed cybersecurity incident that occurred in February 2023 for which we previously excluded $5.2 million of expenses from Adjusted Net Income.(6)On June 4, 2024, Gates extinguished the 2021 Dollar Term Loans and the asset-backed credit facility in connection with our debt refinancing. As a result, we accelerated $14.8 million in deferred issuance costs during the year ended December 28, 2024.(7)Discrete tax items include changes in uncertain tax positions relating to prior years, changes in tax laws or rates, changes in valuation allowances, excess tax benefits on stock option exercises, and prior year adjustments in various foreign jurisdictions in which returns were filed. Gates Industrial Corporation plcReconciliation of Gross Profit to Adjusted Gross Profit(Unaudited)
Year Ended(USD in millions)
December 31,
2025
December 28,
2024
December 30,
2023Net sales
$ 3,443.2
$ 3,408.2
$ 3,570.2Cost of sales
2,071.5
2,049.7
2,211.3Gross Profit
1,371.7
1,358.5
1,358.9Inventory adjustments (1) (included in cost of sales)
15.6
22.3
7.4Restructuring related expenses (included in cost of sales)
6.9
1.8
0.4Adjusted Gross Profit
1,394.2
1,382.6
1,366.7
Gross Profit margin
39.8 %
39.9 %
38.1 %Adjusted Gross Profit margin
40.5 %
40.6 %
38.3 %(1)Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis. Gates Industrial Corporation plcReconciliation of Net Sales to Core Sales Growth(Unaudited)
Three months ended December 31, 2025(USD in millions)Power
Transmission
Fluid Power
TotalNet sales for the three months ended December 31, 2025$ 536.5
$ 319.7
$ 856.2Impact on net sales of movements in currency rates(15.5)
(6.4)
(21.9)Core sales for the three months ended December 31, 2025$ 521.0
$ 313.3
$ 834.3
Net sales for the three months ended December 28, 2024520.0
309.4
829.4Increase in net sales16.5
10.3
26.8Increase in net sales on a core basis (core sales)$ 1.0
$ 3.9
$ 4.9
Net sales increase3.2 %
3.3 %
3.2 %Core sales increase0.2 %
1.3 %
0.6 %
Year ended December 31, 2025(USD in millions)Power
Transmission
Fluid Power
TotalNet sales for the year ended December 31, 2025$ 2,147.1
$ 1,296.1
$ 3,443.2Impact on net sales of movements in currency rates(12.1)
1.9
(10.2)Core sales for the year ended December 31, 2025$ 2,135.0
$ 1,298.0
$ 3,433.0
Net sales for the year ended December 28, 20242,108.1
1,300.1
3,408.2Increase (decrease) in net sales$ 39.0
$ (4.0)
$ 35.0Increase (decrease) in net sales on a core basis (core sales)$ 26.9
$ (2.1)
$ 24.8
Net sales increase (decrease)1.9 %
(0.3 %)
1.0 %Core sales increase (decrease)1.3 %
(0.2 %)
0.7 %
View original content to download multimedia:https://www.prnewswire.com/news-releases/gates-industrial-reports-fourth-quarter-and-full-year-2025-results-302685907.htmlSOURCE Gates Industrial Corporation plc
Original: Gates Industrial Reports Fourth-Quarter and Full Year 2025 Results
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