GTES earnings analysis
What we found in GTES's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.23
- Gross margin
- 39.7%
- Operating margin
- 12.9%
- Segment
- Power Transmission: $533.2M
- Segment
- Fluid Power: $317.9M
What they said about what is next.
Management expects continued focus on margin improvement and operational efficiencies.
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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