DENVER – October 30, 2026 -- Gates Industrial Corporation (NYSE: GTES) raised its full-year 2026 guidance after third-quarter net sales climbed 5.6% to $903.6 million, with core sales up 5.5%.
Adjusted EBITDA margin reaches 23.8% on $215.4 million
Adjusted EBITDA for the quarter ended September 26 came to $215.4 million. Net income from continuing operations was $91.6 million, a 10.1% margin. Net income attributable to shareholders was $86.5 million, or $0.34 per diluted share, while Adjusted Net Income per diluted share was $0.47.
Industrial OEM sales grow high-teens as aftermarket accelerates
CEO Ivo Jurek said the team "executed well" in the quarter, producing mid-single-digit sales growth and a significant gross profit margin increase over the prior-year period. Sales in the Industrial OEM channel rose high-teens year over year. Growth in the Industrial Aftermarket channel accelerated from the previous quarter.
Gates raises profitability and adjusted EPS outlook for 2026
The company lifted its 2026 guidance for profitability and adjusted earnings per share. Jurek said Gates is on pace to meet its previously communicated adjusted EBITDA margin target for the second half of 2026. He added that the balance sheet gives the company significant capital deployment optionality. The updated guidance excludes the effect of any potential share repurchases.
Gates did not provide reconciliations for forward-looking non-GAAP measures, including core sales growth, Adjusted EBITDA, Adjusted EPS and free cash flow conversion, citing the unreasonable effort required.
Tariffs and Middle East conflicts remain flagged supply risks
The company's risk disclosures cite U.S. tariffs and ongoing Middle East conflicts. The conflicts have reduced availability of certain production materials and raised supply costs.
Gates held its earnings call at 10:00 a.m. Eastern Time on the day of the release.