Gates Industrial Lifts 2026 Outlook on Record Q2 Sales and EPS
GTES sits 23% above its 52-week low of $20.88.
Summary
Gates Industrial posted Q2 2026 net sales of $941.6M, a 6.6% year-over-year increase, and net income of $170.9M, or $0.67 per share, exceeding expectations. The company raised its full-year 2026 guidance for sales, profitability, and EPS.
Key Events · Earnings and Guidance · GTES
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Record Q2 Sales and EPS
Net sales reached $941.6M, up 6.6% year over year, with core sales growth of 4.9%. Net income attributable to shareholders came in at $170.9M, or $0.67 per diluted share—both quarterly records.
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Raised Full-Year 2026 Guidance
The core sales growth outlook was raised to 2.5%–4.5% (from 1%–4%), Adjusted EBITDA to $800–$830M (from $775–$835M), and Adjusted EPS to $1.62–$1.70 (from $1.52–$1.68).
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Strong Segment Performance
Power Transmission net sales grew 7.0% (core +5.3%), with Adjusted EBITDA margin expanding 60 basis points to 22.9%. Fluid Power net sales rose 5.8% (core +4.2%).
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Improving Order Momentum
CEO Ivo Jurek noted improving order momentum globally, positioning the company to capitalize on strengthening industrial demand in the second half of 2026.
Analysis · GTES · Technology
A strong second quarter, marked by record sales and earnings per share, prompted Gates Industrial to raise its full-year 2026 guidance across all key metrics. Core sales growth is now projected at 2.5%–4.5%, up from the prior 1%–4%, while the midpoints for Adjusted EBITDA and Adjusted EPS also moved higher. The results reflect strengthening industrial demand and improving order momentum, setting the stage for accelerated growth in the second half.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 29.9% of the 1661 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, GTES was trading at $25.78 on NYSE in the Technology sector, with a market capitalization of approximately $6.5B. The 52-week trading range was $20.88 to $29.17. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.