Gates Industrial (GTES) FY Conference Summary Company Overview - **Company**: Gates Industrial Corporation (GTES) - **Conference Date**: May 21, 2025 Key Industry Insights - **Automotive Replacement**: Strong performance noted, particularly in North America and China, driven by new customer acquisitions and high used car sales prices [2][9] - **Mobility Sector**: Experienced double-digit growth, especially in e-bikes, with a positive outlook for continued strength [3][4] - **Industrial Recovery**: Gradual recovery observed, particularly in Asia, but tempered expectations for growth due to global trade uncertainties [6][12] - **Geographical Performance**: - **North America**: Positive trends in automotive replacement; industrial side expected to be challenging [11] - **EMEA**: Slight decline of 1% in Q1, but mobility business expected to provide tailwinds [3][11] - **Asia**: Positive core growth in China and India, with signs of industrial recovery [12][14] Financial Performance and Guidance - **Q1 Performance**: Exceeded expectations with a 1.5% organic growth; Q2 guidance remains flattish [1][5] - **Full Year Guidance**: Targeting approximately 1.5% organic growth for the year, with expectations for acceleration in the second half [17][21] - **Pricing Strategy**: Implemented $40 million in price increases to offset tariffs, anticipating some demand headwinds [20][27] Operational Challenges and Strategies - **Inventory Levels**: Destocking in agriculture and construction sectors is nearing completion, with confidence in distribution inventory levels [22][23] - **Tariff Impact**: Ongoing adjustments to pricing strategies in response to tariffs, with a focus on maintaining margin neutrality [29][34] - **Debt Management**: Aiming to reduce gross debt below $2 billion while balancing stock buybacks and potential M&A opportunities [46][48] M&A and Growth Opportunities - **M&A Strategy**: Open to strategic acquisitions that align with growth objectives, particularly in underrepresented segments or geographies [49][52] - **Data Center Market**: Targeting $100 to $200 million in incremental revenue by 2027, focusing on organic growth through existing product lines [41][42] Conclusion - **Outlook**: Gates Industrial remains optimistic about its growth trajectory, particularly in automotive replacement and mobility sectors, while navigating challenges in industrial recovery and global trade dynamics. The company is committed to strategic pricing, operational efficiencies, and exploring M&A opportunities to enhance its market position [35][54]

Gates Industrial (GTES) reported $847.6 million in revenue for the quarter ended March 2025, representing a year-over-year decline of 1.7%. EPS of $0.36 for the same period compares to $0.31 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $826.29 million, representing a surprise of +2.58%. The company delivered an EPS surprise of +9.09%, with the consensus EPS estimate being $0.33.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wal ...

Gates Industrial (GTES) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Company Participants Rich Kwas - VP of Investor RelationsIvo Jurek - CEOBrooks Mallard - Executive Vice President & Chief Financial OfficerMichael Halloran - Associate Director of ResearchJeffrey Hammond - Managing DirectorDeane Dray - Managing DirectorChristopher Snyder - Executive Director Conference Call Participants Julian Mitchell - AnalystNigel Coe - AnalystNone - Analyst Operator Thank you for standing by. My name is Greg, and I ...

Gates Industrial (GTES) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this manufacturer of power transmission and fluid power systems would post earnings of $0.34 per share when it actually produced earnings of $0.36, delivering a surprise ...

Gates Industrial (GTES) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Speaker0 Thank you for standing by. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to today's Gates Industrial Corporation Q1 twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the call over to Rich Kwas, Vice Presi ...

Gates Industrial (GTES) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Company Participants Rich Kwas - VP of Investor RelationsIvo Jurek - CEOBrooks Mallard - Executive Vice President & Chief Financial OfficerMichael Halloran - Associate Director of ResearchJeffrey Hammond - Managing DirectorDeane Dray - Managing DirectorChristopher Snyder - Executive Director Conference Call Participants Julian Mitchell - AnalystNigel Coe - AnalystNone - Analyst Operator Thank you for standing by. My name is Greg, and I ...

Q1 2025 EARNINGS PRESENTATION APRIL 30, 2025 1 LEGAL DISCLAIMERS 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains, and management may make on our call today, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continue ...

Ivo Jurek, Gates Industrial's Chief Executive Officer, commented, "In the first quarter, we grew our volume company-wide supported by strong growth in our Auto Replacement and Personal Mobility end markets. Also, our gross margin increased nicely year-over-year." Jurek continued, "We are reiterating our full year guidance. While the business environment has become more uncertain since the start of the year, I am confident in our competitive position. Our manufacturing footprint is largely 'in-region, for-re ...

DENVER, April 14, 2025 /PRNewswire/ -- Gates Industrial Corporation plc (NYSE:GTES) today announced that it has changed the time of its first-quarter 2025 webcast and conference call from 10 a.m. Eastern time to 9 a.m. Eastern time on Wednesday, April 30, 2025. The access information has not changed and is as follows: By dialing (888) 414-4601 (domestic) or +1 (646) 960-0313 (international) and requesting the Gates Industrial Corporation First-Quarter 2025 Earnings Conference Call or providing the Conferen ...

Gates Industrial Corporation plc (GTES) shares ended the last trading session 15.3% higher at $17.94. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 20.2% loss over the past four weeks.Gates Industrial's rally is driven by President Trump’s announcement of a 90-day pause on tariffs for most countries. This move is aimed to stabilize markets and address global trade concerns. This manufacturer of power transmission ...