Gates Industrial posts solid quarter with net sales of $941.6M

• Gates Industrial reported second-quarter 2026 net sales of $941.6 million, representing a 6.6% year-over-year increase, with core sales growing by 4.9%.
• The company posted a net income attributable to shareholders of $170.9 million, or $0.67 per diluted share, alongside an adjusted EBITDA of $211.4 million.
• Management raised its full-year 2026 guidance, projecting core sales growth of 2.5% to 4.5% and adjusted EBITDA between $800 million and $830 million.

Gates Industrial (NYSE:GTES) announced its second-quarter 2026 financial results, posting a 6.6% increase in net sales to $941.6 million.

The company's core sales grew by 4.9% during the quarter, supported by positive performances across both its business segments.

Net income attributable to shareholders reached $170.9 million, translating to $0.67 per diluted share for the period.

The Power Transmission segment generated $588.5 million in net sales, reflecting 7.0% growth, with an adjusted EBITDA margin of 22.9%.

Meanwhile, the Fluid Power segment recorded net sales of $353.1 million, a 5.8% increase, while maintaining a 21.7% margin.

Following the announcement, Gates Industrial's share price was down at $25.78.

Management updated its full-year 2026 outlook, raising its expectations for core sales growth to a range of 2.5% to 4.5%.

The organization also increased its full-year guidance for adjusted EBITDA to between $800 million and $830 million, and its adjusted earnings per share to a range of $1.62 to $1.70.