Overview

* Gates Industrial ( GTES ) Q3 net sales up 3% yr/yr, missing analyst expectations

* Adjusted EPS beats analyst estimates for Q3 2025

* Company announces $300 mln share repurchase authorization

Outlook

* Gates Industrial ( GTES ) raises 2025 adjusted EPS guidance towards high end of prior range

* Company expects 2025 core sales growth of 0.5% to 1.5%

* Gates Industrial ( GTES ) anticipates 2025 adjusted EBITDA of $770 mln to $790 mln

Result Drivers

* AUTOMOTIVE REPLACEMENT - Co cites solid growth in Automotive Replacement as a key driver for sales improvement

* PERSONAL MOBILITY - Strong growth in Personal Mobility contributed to sales increase

* COST OPTIMIZATION - Improved adjusted EBITDA margin attributed to structural cost reduction initiatives

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $855.70 $861.10

mln mln (8

Analysts

)

Q3 Beat $0.39 $0.37

Adjusted (11

EPS Analysts

)

Q3 EPS $0.31

Q3 Net $81.60

Income mln

Q3 Beat $195.80 $195.30

Adjusted mln mln (8

EBITDA Analysts

)

Q3 Net $88.70

Income mln

continui

ng

operatio

ns

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

* Wall Street's median 12-month price target for Gates Industrial Corporation PLC ( GTES ) is $30.00, about 13.9% above its October 28 closing price of $25.82

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)