Gates Industrial Q4 Revenue Rises 3.2% to $856.2M; EPS Beats by 4%
Gates Industrial generated Q4 sales of $856.2M, up 3.2% year-over-year, matching analysts’ $855.1M estimate, while non-GAAP EPS of $0.38 topped forecasts by 4%. The company set FY2026 adjusted EPS guidance at a $1.60 midpoint (1% above consensus) and EBITDA guidance at $805M (below estimates of $811.3M).
1. Q4 CY2025 Results
Gates Industrial posted Q4 revenue of $856.2 million, a 3.2% increase year-on-year, in line with the $855.1 million consensus. Non-GAAP EPS was $0.38, beating estimates by 4%, while adjusted EBITDA of $187.8 million missed the $194.6 million forecast by 3.5%.
2. FY2026 Guidance Outlook
Management set FY2026 adjusted EPS guidance at a $1.60 midpoint, roughly 1% above analysts’ expectations. EBITDA guidance was placed at an $805 million midpoint, modestly below the $811.3 million consensus estimate, reflecting a cautious outlook.
3. Cash Flow & Profitability Highlights
Operating margin remained stable at 12.6%, consistent with the prior year quarter, and free cash flow margin jumped to 29.3% from 19%. Organic revenue was flat year-over-year, indicating underlying sales were unchanged after stripping out acquisitions and currency effects.