Gates Industrial Raises 2026 Adjusted EPS Outlook to $1.66-$1.72

Gates Industrial Corporation Ltd. raised its 2026 adjusted earnings-per-share outlook to $1.66 to $1.72 after third-quarter sales climbed 5.6% to $903.6 million, increasing the annual forecast’s midpoint by $0.03 per share.

For the quarter ended Sept. 26, sales growth included a 5.5% increase in core sales. Adjusted net income per diluted share was $0.47, compared with $0.39 in the same quarter a year earlier. Adjusted EBITDA was $215.4 million, equal to a 23.8% margin.

Gates revised its full-year adjusted EBITDA outlook to $809 million to $823 million from $800 million to $830 million. The midpoint moved up from $815 million to $816 million, even as the upper end of the range declined by $7 million. The company’s full-year core sales growth forecast is 3.2% to 3.8%, with its midpoint unchanged at 3.5%.

On an Oct. 30 earnings call at 10 a.m. ET (14:00 UTC), Chief Financial Officer L. Brooks Mallard forecast fourth-quarter sales of $905 million to $925 million. He projected core sales growth of about 6.5% at the midpoint. Chief Executive Officer Ivo Jurek said, “We have raised our 2026 guidance for profitability and adjusted earnings per share.”

Gates supplies power-transmission and fluid-power products to industrial and consumer customers. Its products serve fields including agriculture, construction, manufacturing, energy and transportation. Gates calculates core sales growth after removing average currency-rate changes and, when relevant, the first-year impact of acquired or divested businesses.

Adjusted EPS, adjusted EBITDA and core sales growth are non-GAAP measures, meaning they use calculations outside standard accounting measures. Gates did not provide reconciliations of its forward-looking adjusted EPS, adjusted EBITDA or core sales growth figures to generally accepted accounting principles, saying the necessary information was unavailable without unreasonable effort.