Gates Industrial Q4 revenue slightly beats expectations, EPS up on cost control

Overview

• Power transmission firm's Q4 revenue slightly beat analyst expectations, with a 3.2% increase yr/yr

• Adjusted EPS for Q4 beat analyst expectations

• Adjusted EBITDA for Q4 missed analyst estimates

Outlook

• Company expects 2026 core sales growth between 1% and 4%

• Gates Industrial forecasts 2026 adjusted EBITDA of $775 mln to $835 mln

• Company anticipates 2026 adjusted EPS of $1.52 to $1.68

Result Drivers

• STRATEGIC INITIATIVES - Gates Industrial's CEO highlighted strategic growth initiatives as a key driver for the quarter's performance

• COST POSITION IMPROVEMENT - The company improved its cost position, contributing to its financial results

• CASH FLOW GENERATION - Gates generated a substantial increase in cash from operating activities, strengthening its balance sheet

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Gates Industrial Corporation PLC is $27.00, about 1.8% above its February 11 closing price of $26.51

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPnc2Yr8Ta

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