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Earnings analysis · 10-Q

GTES earnings analysis

Filed May 1, 2026 · Our reading of the company's report

The latest report

Gates Industrial's Q1 2026 results show revenues of $851.1 million, reflecting a slight increase of 0.4% from the previous year, although EPS matched estimates at $0.23. Management remains optimistic about full-year…

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Gates Industrial's Q1 2026 results show revenues of $851.1 million, reflecting a slight increase of 0.4% from the previous year, although EPS matched estimates at $0.23. Management remains optimistic about full-year growth despite challenges in core sales, particularly in the automotive aftermarket segment.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $60 Operating expenses $27 Left as operating profit $13

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Power Transmission 62.6% Fluid Power 37.4%

Shares of the segments disclosed in this filing, largest first.

Reported figures

Earnings per share
$0.23

What stood out

  • Revenue Growth of 0.4% YoY

    Q1 2026 revenue was $851.1 million, up from $847.6 million in Q1 2025.

  • EPS Exceeds Estimates

    Diluted EPS was reported at $0.23, surpassing consensus estimates of $0.32.

  • Strong Operating Cash Flow

    Cash provided by operating activities was $30.2 million, up from $7.3 million year-over-year.

  • Segment Performance: Power Transmission

    Power Transmission segment reported net sales of $533.2 million, a 1.1% increase year-over-year.

  • Fluid Power Sales Decline

    Fluid Power segment sales decreased by 0.8% to $317.9 million.

  • Strength in Cash Reserves

    Cash and cash equivalents amounted to $785.3 million, down from $812.1 million.

What to watch

  • Decline in Core Revenue

    Power Transmission experienced a core sales decline of 2.5%, impacting overall business performance.

  • Higher SG&A Expenses

    Selling, general and administrative expenses increased by $10.7 million year-over-year to $226.9 million.

  • Increased Interest Expenses

    Interest expense rose slightly to $29.9 million compared to $29.6 million, impacting net income.

Management's outlook

Management expects continued focus on margin improvement and operational efficiencies.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.