Gates Industrial Corporation plc (GTES)

In the past six months, GTES stock has trended upwards by 4.21% as of November 29, 2025, and has seen a 31.85% increase over the last year. In 2025, Gates Industrial delivered record adjusted EBITDA and adjusted EPS, with core sales growing nearly 1%. The company achieved a record low net leverage ratio of 1.85x and a free cash flow conversion of 92% for 2025, and repurchased over $100 million of shares in the fourth quarter of 2025. The first half of 2026 is expected to be impacted by ERP transition and footprint optimization costs, resulting in a 100 basis points EBITDA margin drag. Gates is scheduled to release its next earnings report on May 6, 2026.

Gates Industrial's business model mitigates economic cyclicality due to nearly two-thirds of its sales coming from replacement markets. The company experienced softening demand in late 2023 in its agriculture, commercial on-highway, and construction end markets. The personal mobility business grew over 25% in 2025 and is expected to continue high growth, while its data center business revenue increased fourfold year-over-year. Early 2026 order trends are positive, supporting cautious optimism for an industrial recovery. The reliance on diverse end markets and a high replacement mix suggests resilience against pronounced seasonality.

Gates Industrial Corp. Plc is a global manufacturer of power transmission and fluid power solutions, operating in the Industrials sector. The company's core business is divided into Power Transmission, which focuses on products that convey power and control motion, and Fluid Power, which provides solutions for transferring power hydraulically or conveying fluids. Gates serves diverse end markets, emphasizing its role in providing mission-critical components with natural replacement cycles.

Gates Industrial Corp. Plc has a significant global presence, supporting sales in over 130 countries with operations in North and South America, Europe, Asia, Australia, and the Middle East. In 2025, North America accounted for 48% of sales, Europe, Middle East, and Africa for 27%, East Asia and India for 10%, China for 10%, and South America for 5%. The company's headquarters are located in Denver, Colorado, U.S.

Gates Industrial has a strong brand reputation, contributing to its solid pricing power and competitive edge. The company's dedication to innovation and customer-centricity is crucial for its reputation. There haven't been any widely reported specific events that negatively impacted Gates Industrial's brand reputation in the past year. The company's operational performance in 2025 suggests a positive perception in the market.

Gates Industrial Corporation plc is a publicly traded company with ownership distributed among various shareholders. Institutional investors are the primary stakeholders, holding approximately 90.17% of the company's stock, with 2.01% held by insiders and 7.82% by public companies and individual investors. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, Fmr Llc, Allspring Global Investments Holdings, LLC, Dimensional Fund Advisors Lp, Jpmorgan Chase & Co, Invesco Ltd., State Street Corp, Neuberger Berman Group LLC, and Franklin Resources Inc. Blackstone Capital Partners Cayman VI L.P. was historically the largest individual shareholder but has been actively divesting its stake.