Gates Industrial Posts Record $942 Million Q2 Sales, Raises 2026 EPS Outlook to $1.62-$1.70
Updated
Updated · Yahoo Finance · Jul 31
Gates Industrial Posts Record $942 Million Q2 Sales, Raises 2026 EPS Outlook to $1.62-$1.70
3 articles · Updated · Yahoo Finance · Jul 31
Summary
Gates Industrial reported record second-quarter sales of $942 million, up 6.6%, and adjusted EPS of $0.44, up 13%, as adjusted EBITDA reached about $211 million with a 22.5% margin.
Industrial demand drove the beat: core sales rose 4.9%, industrial OEM revenue grew at a double-digit rate, book-to-bill stayed above one, and data-center revenue more than doubled from a year earlier.
The stronger quarter prompted Gates to lift its 2026 outlook to 2.5%-4.5% core sales growth, $800 million-$830 million in adjusted EBITDA, and $1.62-$1.70 in adjusted EPS.
Second-half expectations also improved, with management targeting about 6% core sales growth and EBITDA margins of at least 23.5%, helped by footprint optimization, restructuring and other cost actions.
Balance-sheet and pricing moves added support: net leverage fell to 1.8 times, the company repurchased about $22 million of stock, and it raised prices to offset higher oil-related input costs.