Gates reports marginal growth, expects stronger 2026

Denver, Colorado – Gates Industrial Corp. has reported higher fourth-quarter and annual sales and stable margins for 2025, helped by initiatives to reduce costs.

Fourth-quarter sales rose 3.2% year-on-year to $856 million (€730 million), including “core sales” growth of 0.6%, said Gates 12 Feb.

Adjusted earnings (EBITDA) were up nearly 4% year-on-year at $187.8 million, with margin edging up at 21.9%, compared to 21.8% in the fourth quarter of 2024.

For the full year, net sales increased 1.0% to $3,443 million, including core sales growth of 0.7%.

Adjusted earnings grew 1.1% year-on-year to $770.1 million, corresponding to a margin of 22.4%, slightly up from 22.3% in 2024.

Commenting on the results, CEO Ivo Jurek said the group 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,” Jurek added.

Looking ahead, Gates introduced full-year 2026 guidance, forecasting “core sales” growth of 1% to 4% year-on-year, with adjusted earnings in the range of $775 million to $835 million for the year.

The group also projects capital expenditure to come at around $120 million for the year.