Gates Industrial (NYSE:GTES) Sets New 52-Week High Following Earnings Beat

Shares of Gates Industrial Corporation PLC (NYSE:GTES) reached a new 52-week high on Thursday following a better than expected earnings announcement. The stock traded as high as $27.38 and last traded at $26.5810, with a volume of 3947098 shares traded. The stock had previously closed at $26.76.

The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.01. The company had revenue of $856.20 million during the quarter, compared to the consensus estimate of $853.35 million. Gates Industrial had a net margin of 6.93% and a return on equity of 10.38%. The company’s revenue for the quarter was up 3.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.36 earnings per share. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS.

More Gates Industrial News

Here are the key news stories impacting Gates Industrial this week:

• Positive Sentiment: Q4 beat on the headline numbers — adjusted EPS $0.38 vs. consensus $0.37 and revenue $856.2M vs. ~$853M expected, demonstrating small upside to estimates. Gates Industrial (GTES) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Company issued FY‑2026 guidance of $1.520–$1.680 EPS (vs. consensus ~$1.56) and revenue guidance of $3.5–$3.6B, which suggests management expects continued earnings improvement. Gates FY2026 Guidance (Press Slides)
• Positive Sentiment: Cash generation and capital returns: operating cash flow of $478.1M for 2025 and ~ $105M of share repurchases announced, supporting shareholder value and deleveraging. Adjusted EBITDA margins remain healthy (Q4 adj. EBITDA margin ~21.9%, FY ~22.4%). Gates Industrial Reports Fourth-Quarter and Full Year 2025 Results
• Neutral Sentiment: Revenue came in roughly in line with estimates and core sales growth was modest (core +0.6% in Q4, +0.7% for the year), leaving top‑line momentum limited even as profitability improved. Gates Industrial posts Q4 CY2025 sales in line with estimates
• Neutral Sentiment: Company provided detailed materials and a conference call for investors (slides/transcript available), which should help analysts refine models but could also reveal sensitivity to end‑market demand. MarketBeat Earnings/Transcript
• Negative Sentiment: GAAP results show lower net income (GAAP diluted EPS $0.20) versus adjusted EPS $0.38, highlighting adjustments that investors should scrutinize for sustainability. Gates Industrial Reports Fourth-Quarter and Full Year 2025 Results
• Negative Sentiment: Top-line growth is tepid (FY sales +1.0%); if end‑market demand softens further, the company’s margin improvements and buybacks could be harder to sustain. Gates Industrial Reports Fourth-Quarter and Full Year 2025 Results

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Weiss Ratings reiterated a “hold (c+)” rating on shares of Gates Industrial in a research report on Monday, December 29th. Wells Fargo & Company began coverage on Gates Industrial in a research note on Thursday, November 13th. They set an “equal weight” rating and a $23.00 target price on the stock. UBS Group decreased their price target on Gates Industrial from $29.00 to $28.00 and set a “buy” rating for the company in a research note on Monday, January 5th. Citigroup reissued a “buy” rating on shares of Gates Industrial in a report on Monday, January 12th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Gates Industrial from $33.00 to $32.00 and set an “overweight” rating for the company in a report on Tuesday, December 16th. Six analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Gates Industrial has a consensus rating of “Moderate Buy” and a consensus price target of $27.09.

Institutional Investors Weigh In On Gates Industrial

Several hedge funds and other institutional investors have recently bought and sold shares of GTES. Empowered Funds LLC bought a new position in shares of Gates Industrial during the 1st quarter valued at about $381,000. Vanguard Personalized Indexing Management LLC acquired a new stake in Gates Industrial during the second quarter valued at approximately $236,000. CWM LLC boosted its holdings in Gates Industrial by 2.9% during the second quarter. CWM LLC now owns 57,462 shares of the company’s stock worth $1,323,000 after buying an additional 1,642 shares in the last quarter. Yousif Capital Management LLC grew its position in Gates Industrial by 2.8% in the second quarter. Yousif Capital Management LLC now owns 89,352 shares of the company’s stock worth $2,058,000 after buying an additional 2,435 shares during the last quarter. Finally, Sequoia Financial Advisors LLC acquired a new position in Gates Industrial in the second quarter worth approximately $267,000. 98.50% of the stock is currently owned by institutional investors.

Gates Industrial Price Performance

The company has a fifty day simple moving average of $22.97 and a 200-day simple moving average of $23.83. The company has a market cap of $7.12 billion, a P/E ratio of 30.30 and a beta of 1.27. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.52 and a quick ratio of 2.50.

About Gates Industrial

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.