Gates Industrial Q3 sales slightly miss; raises 2026 profit forecast
GTES•Gates Industrial reported Q3 sales of $903.6 million, slightly below analyst expectations, while adjusted EPS of $0.47 beat estimates. The company raised its 2026 adjusted EPS and adjusted EBITDA forecasts and maintained its core sales growth outlook.
1. Quarterly results
Q3 net sales rose 5.6% year over year to $903.6 million, slightly below the $904.93 million analyst estimate. Adjusted EPS was $0.47, above the $0.44 estimate, and adjusted EBITDA was $215.4 million, compared with a $213.6 million estimate.
2. 2026 forecast
Gates Industrial raised its 2026 adjusted EPS guidance to $1.66-$1.72 from $1.62-$1.70. It lifted its adjusted EBITDA forecast to $809-$823 million from $800-$830 million and maintained its core sales growth outlook of 3.2%-3.8%.
3. Drivers
The company said high-teens growth in Industrial OEM sales and faster growth in Industrial Aftermarket sales drove Q3 performance. It also reported a significant increase in gross profit margin compared with the prior-year period.
