Gates Industrial Posts $856M Q4 Sales (+3.2%) and Outlines 2026 Guidance
Gates Industrial posted fourth-quarter net sales of $856.2 million, up 3.2% year-over-year, with adjusted EBITDA of $187.8 million at a 21.9% margin and $105 million in share repurchases. It also set 2026 targets of 1-4% core sales growth, $775-835 million of adjusted EBITDA, $1.52-1.68 adjusted EPS and over 90% free cash flow conversion.
1. Fourth-Quarter 2025 Results
Gates Industrial delivered fourth-quarter net sales of $856.2 million, a 3.2% year-over-year increase driven by 0.6% core sales growth. Net income attributable to shareholders was $51.3 million, or $0.20 per diluted share, with adjusted net income of $0.38 per share, while adjusted EBITDA reached $187.8 million for a 21.9% margin. The company also repurchased approximately $105 million of shares, enhancing return of capital.
2. 2026 Financial Guidance
The company introduced full-year 2026 guidance targeting 1-4% core sales growth, $775-835 million of adjusted EBITDA and adjusted EPS of $1.52 to $1.68. Capital expenditures are projected at roughly $120 million while free cash flow conversion is expected to exceed 90%, underscoring strong cash generation and disciplined capital deployment.