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Gates Industrial (GTES) investor relations material
Gates Industrial Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record adjusted EBITDA and adjusted EPS in 2025, outperforming end markets and offsetting macro and trade policy volatility.
Net leverage ratio improved to 1.85x, with $100M debt repaid and over $100M in share repurchases in Q4.
Entered 2026 with cautious optimism for industrial demand recovery, supported by a book-to-bill above 1x and positive order trends.
Personal mobility business grew over 25% and data center business expanded 4x year-over-year.
Full-year 2025 net sales totaled $3,443.2 million, up 1.0% year-over-year, with core sales growth of 0.7%.
Financial highlights
Adjusted EPS for 2025 was $1.52, up from $1.39 in 2024, at the top end of guidance.
Q4 2025 net sales were $856M, with core growth of nearly 1% and total revenue up over 3% due to favorable FX.
Q4 adjusted EBITDA was $188M, with a margin of 21.9%, up 10 bps year-over-year.
Free cash flow conversion was 238% in Q4 and 92% for full year 2025.
Ended 2025 with over $800 million in cash and a record low net leverage ratio.
Outlook and guidance
2026 core sales expected to grow 1%-4% year-over-year.
Adjusted EBITDA guidance: $775M-$835M, with margin rate up slightly at midpoint.
Adjusted EPS guidance: $1.52-$1.68, 5% growth at midpoint, assuming no further share repurchases.
Q1 2026 revenue guidance: $845M-$875M, with a 2%-2.5% core sales decline due to fewer business days and ERP transition.
2026 capital expenditures projected at ~$120M; free cash flow conversion target above 90%.
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