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Get filing alertsGates Industrial reports record Q2 sales, raises full-year guidance on strengthening demand
Filed July 31, 2026 · Period ending July 31, 2026 · ~1 min read
Key Changes
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high
Q2 net sales rose 6.6% to $941.6M (4.9% core growth); adjusted EPS $0.44, reported EPS $0.67 boosted by $100.7M discrete tax benefit; adjusted EBITDA $211.4M at 22.5% margin.
Exhibit 99.1 view on EDGAR → -
high
Raised 2026 guidance: core sales growth to 2.5%–4.5% (up 100 bps at midpoint), adjusted EBITDA to $800M–$830M (up $10M), adjusted EPS to $1.62–$1.70 (up $0.06), citing improving global order momentum.
Exhibit 99.1 view on EDGAR → -
medium
Power Transmission segment sales up 7.0% to $588.5M with 5.3% core growth; adjusted EBITDA margin expanded 60 bps to 22.9%, showing strong operational leverage.
Exhibit 99.1 view on EDGAR → -
medium
Fluid Power segment sales up 5.8% to $353.1M with 4.2% core growth; adjusted EBITDA flat at $76.6M as margin contracted 120 bps to 21.7%, indicating margin pressure.
Exhibit 99.1 view on EDGAR →
Summary
Gates Industrial delivered a strong second quarter with record sales of $941.6 million, up 6.6% year-over-year, driven by 4.9% core growth. Adjusted earnings per share of $0.44 met expectations, while reported EPS of $0.67 benefited from a $100.7 million discrete tax item. The company generated adjusted EBITDA of $211.4 million at a 22.5% margin.
Power Transmission showed particularly strong performance with margin expansion, while Fluid Power experienced margin compression despite solid sales growth. Management raised full-year 2026 guidance across all key metrics, citing improving global order momentum and strengthening industrial demand.
Core sales growth guidance increased 100 basis points at the midpoint to 2.5%–4.5%, adjusted EBITDA guidance rose $10 million to $800M–$830M, and adjusted EPS guidance increased $0.06 to $1.62–$1.70. The guidance raise signals management's confidence in sustained demand trends and the company's ability to drive profitable growth through the remainder of the year.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Gates Industrial announced Q2 2026 financial results for the quarter ended June 27, 2026.
Added in current filing · verify on EDGAR →
On July 31, 2026, Gates Industrial Corporation Ltd. announced its financial results for the second quarter of 2026 ended June 27, 2026.
Gates Industrial disclosed its second quarter 2026 financial results. The 8-K itself does not contain specific financial metrics; those details are in the attached press release (Exhibit 99.1).
Event · Exhibit 99.1
Gates Industrial reported Q2 2026 results with record sales and EPS, raising full-year guidance for sales, profitability, and adjusted EPS.
Added in current filing · view on EDGAR →
Second-quarter net sales of $941.6 million, up 6.6% compared to the prior-year period, including a core sales increase of 4.9%.
◦Net income attributable to shareholders of $170.9 million, or $0.67 per diluted share.
◦Adjusted Net Income per diluted share of $0.44.
◦Net income from continuing operations of $178.2 million, or a margin of 18.9%.
◦Adjusted EBITDA of $211.4 million, or a margin of 22.5%.
Gates Industrial delivered strong second-quarter results, exceeding expectations with record sales and earnings per share. Net sales reached $941.6 million, up 6.6% year-over-year, driven by a 4.9% core sales increase. Net income attributable to shareholders was $170.9 million, or $0.67 per diluted share, while adjusted net income per diluted share was $0.44. The company generated adjusted EBITDA of $211.4 million with a 22.5% margin.
Added in current filing · view on EDGAR →
Net sales $588.5 $550.1 7.0% 5.3%
Adjusted EBITDA $134.8 $122.8 9.8%
Adjusted EBITDA margin 22.9% 22.3% 60 bps
The Power Transmission segment reported second-quarter net sales of $588.5 million, up 7.0% year-over-year with 5.3% core growth. Adjusted EBITDA increased 9.8% to $134.8 million, with margin expanding 60 basis points to 22.9%. This segment showed strong operational leverage with profitability growth outpacing sales growth.
Added in current filing · view on EDGAR →
Core Sales Growth 1% to 4% 2.5% to 4.5% + 100 bps
Adjusted EBITDA $775 to $835 Million $800 to $830 Million + $10 Million
Adjusted EPS $1.52 to $1.68 $1.62 to $1.70 + $0.06
Gates Industrial raised its full-year 2026 guidance across key metrics. Core sales growth guidance increased by 100 basis points at the midpoint to 2.5% to 4.5%. Adjusted EBITDA guidance was raised by $10 million at the midpoint to a range of $800 to $830 million. Adjusted earnings per share guidance increased by $0.06 at the midpoint to a range of $1.62 to $1.70. The company cited improving order momentum globally and strengthening industrial demand.
Added in current filing · view on EDGAR →
Income tax expense (78.0) 16.8 (66.5) 42.0
Gates Industrial recorded a significant income tax benefit of $78.0 million in the second quarter, compared to tax expense of $16.8 million in the prior-year period. The reconciliation of adjusted net income shows discrete tax items of $100.7 million for the quarter. This substantial tax benefit drove the reported net income significantly above adjusted net income.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 3, 2026 · How we verify