Gates raises full-year outlook after record second-quarter sales

Denver, Colorado – Gates Industrial Corp. has raised its full-year guidance after reporting “record sales” and earnings per share (EPS) for the second quarter of 2026.

For the quarter ended 27 June, net sales increased 6.6% year-on-year to $942 million (€815 million), including a 4.9% “core sales growth”, the US group reported 31 July.

Adjusted earnings (EBITDA) rose by more than 6% year-on-year to $211 million with a margin of 22.5%.

"We delivered a strong second quarter, exceeding expectations," said CEO Ivo Jurek. "We generated record sales and EPS and experienced improving order momentum globally.”

The group, said Jurek, is now “in solid position to capitalise on strengthening industrial demand."

Reflecting the stronger performance, Gates raised its full-year guidance for core sales growth to 2.5-4.5%, from 1.0-4.0% previously.

The company also increased the midpoint of its adjusted earnings guidance by $10 million to $800-830 million, while capital expenditure guidance remained at around $120 million.

On segments’ performance, Gates said its power transmission business, saw second quarter sales increased 7.0% year-on-year to $588 million, with a 5.3% core growth.

Adjusted earnings rose 9.8% to $135 million compared to the same quarter the year before.

The fluid power segment reported 5.8% higher second quarter sales of $353 million, including 4.2% core growth.

Adjusted earnings were broadly unchanged at $76.6 million.

"We have raised our 2026 guidance for sales, profitability and adjusted earnings per share," Jurek said. "We anticipate higher sales growth in the second half of 2026 relative to our initial guidance."