Gates Industrial Corporation plc (GTES) Earnings Call Transcripts

Gates Industrial Corporation plc's Latest Earnings Call - Q1 FY2026

In the first quarter of fiscal 2026, Gates Industrial Corporation (GTES:US) reported revenues of $851 million, reflecting a core sales decrease of 2.9% year-over-year, primarily impacted by ERP transition challenges and two fewer working days. Adjusted EBITDA was $177 million, resulting in an adjusted EBITDA margin of 20.8%. Management reiterated its full-year guidance, projecting revenue for Q2 in the range of $905 million to $945 million, with core growth expected to improve to approximately 3.5% year-over-year. The company remains optimistic about demand trends and operational efficiency improvements moving forward.

Reported metrics

Guidance from management

Management reiterated their full-year guidance, projecting Q2 revenue between $905 million and $945 million, with core growth expected to improve to approximately 3.5% year-over-year.

What management said

We have an extra day in Q4. So that's -- as we kind of move through the year, whenever we actually talk about Q4, you'll see it a little bit higher and because of that extra day. From a pricing perspective, you might see a little leak in to the end of Q2, but that's mostly going to be a second half event. So that will evolve over Q2, and we'll give more guidance as we see how things evolve and we start to roll out ou...

Yes, a little bit higher. I mean we have a little bit more tariff pricing in the first half of this year because we kicked that off in the third quarter of last year. And it's a little bit more -- in the original numbers, a little bit more probably see in the first half related to tariffs.

What analysts pressed on

Analysts raised concerns about the impact of the ERP transition on sales recovery and the potential for ongoing margin pressures. There was also inquiry into the sustainability of demand trends amid geopolitical uncertainties.

Main topics on the call

• ERP Transition Impact — The ERP transition negatively affected core sales, contributing to a 600 basis point headwind. Management stated, "We expect to recover these sales in the second quarter," indicating confidence in operational recovery.
• Demand Trends — Management noted improving demand trends, particularly in industrial OEM orders, stating, "We feel good about our core sales growth prospects for the year." Core sales growth approximated mid-single digits year-over-year...
• Adjusted EBITDA and Margin — Adjusted EBITDA was $177 million with a margin of 20.8%, down 130 basis points year-over-year. Management indicated that the margin was impacted by ERP transition inefficiencies, but they expect a rebound in the second h...
• Acquisition of Timken's Industrial Belt Business — Gates announced the acquisition of Timken's Industrial Belt business, which is expected to enhance their power transmission position in North America. Management described the deal as "highly complementary" and anticipat...

Read the full Gates Industrial Corporation plc transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 67 Gates Industrial Corporation plc earnings call transcripts on record, spanning February 4, 2020 to May 19, 2026. Based on this history, Gates Industrial Corporation plc reports quarterly. The most recent call on file is dated May 19, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

GTES

Exchange

NYSE

Country

US

Sector

Industrials

Industry

Machinery

Calls on record

67

First call

February 4, 2020

Most recent

May 19, 2026

Reporting cadence

quarterly