Core Insights - The company is focused on long-term value creation for shareholders through various opportunities [2] - The CEO provided an update on the progress made by the global team and expressed excitement about future prospects [2] Financial Overview - For the full year 2024, the company generated approximately $3.4 billion in global revenues [3]

Gates Industrial (NYSE:GTES) FY Conference November 12, 2025 04:30 PM ET Speaker0Product, so it was pretty interesting. Hi, everybody. Mike Alverne here. We got Ivo and Rich, who are going to help tell the Gates story today. Ivo Jurek, the CEO, is going to give some quick intro comments, talk about a few things that he's very excited about for the organization. Ivo and Rich and I are going to have a fireside chat, run through whatever questions you all might have. If you have questions, let me know. Either ...

Ivo Jurek Chief Executive Officer LEGAL DISCLAIMERS 2 The views expressed in this presentation speak as of November 12, 2025, unless otherwise noted and are based on the Company's views of the current market environment, which are subject to change. 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 ...

Accessibility StatementSkip Navigation New addition of liquid cooling hose delivers an industry-setting sustainable and halogen-free cooling solution DENVER, Nov. 11, 2025 /PRNewswire/ --Â Gates Corporation (NYSE: GTES), a global manufacturer of innovative, highly engineered power transmission and fluid power solutions, has launched Data Masterâ"¢ Eco. This next-generation liquid cooling solution is designed to support hyperscale data centers and high- performance computing (HPC) conditions to maximize upti ...

Accessibility StatementSkip Navigation DENVER, Nov. 4, 2025 /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES), a global manufacturer of innovative, highly engineered power transmission and fluid power solutions, today announced that the Company will participate in the Baird 2025 Global Industrial Conference in Chicago, Illinois on Wednesday, November 12, 2025. Ivo Jurek, Chief Executive Officer, will present at 3:30pm Central time. To access a webcast of the presentation, please visit the Even ...

Core Insights - Gates Industrial Corp. (NYSE:GTES) has experienced a significant decline in stock price, dropping 12.86% to close at $22.50 due to a lowered sales growth outlook for 2025 [1][3] - The company revised its core sales growth expectations to a range of 0.5% to 1.5% year-on-year, down from a previous upper estimate of 2.5% [2] - Adjusted EBITDA guidance was also adjusted to a range of $770 million to $790 million, compared to the previous range of $765 million to $795 million [3] Financial Performance - In Q3, Gates Industrial reported a revenue increase of 3% to $855.7 million, up from $830.7 million in the same period last year [4] - Net income attributable to shareholders surged by 71.4% to $81.6 million, compared to $47.6 million year-on-year [4] Management Commentary - CEO Ivo Jurek highlighted improved sales and core growth in Q3, driven by strong performance in Automotive Replacement and Personal Mobility sectors [5] - The company is focused on footprint optimization initiatives and anticipates reducing structural costs in the first half of next year, expressing optimism about mid-term business prospects [6]

Core Insights - Agriculture stocks are currently highlighted as significant investment opportunities, with Deere & Company, Corteva, Bunge Global, Cal-Maine Foods, and Gates Industrial being the top five to watch according to MarketBeat's stock screener tool [2] - These stocks provide exposure to various factors such as commodity prices, weather variability, input costs, and government policies, making them cyclical but valuable for diversification and inflation protection [2] Company Summaries - **Deere & Company (DE)**: Engages in manufacturing and distributing equipment for agriculture, construction, forestry, and turf care, operating through segments including Agriculture and Turf, Construction and Forestry, and Financial Services [3] - **Corteva (CTVA)**: Operates in agriculture with two segments, Seed and Crop Protection, focusing on developing advanced germplasm and traits for optimal farm yields, enhancing resistance to various agricultural challenges [3] - **Bunge Global (BG)**: Functions as an agribusiness and food company with four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy, involved in purchasing, storing, and processing agricultural commodities [4] - **Cal-Maine Foods (CALM)**: Produces, grades, packages, markets, and distributes shell eggs, offering a variety of specialty eggs under several brand names [5] - **Gates Industrial (GTES)**: Engages in manufacturing and distributing industrial products, with further details available in the latest research report [5]

Financial Data and Key Metrics Changes - Gates reported third-quarter total sales of $856 million, translating to core growth of 1.7% year-over-year, with total revenues growing by 3% due to favorable foreign currency effects [9][10] - Adjusted EBITDA was $196 million, with an Adjusted EBITDA margin of 22.9%, representing a record margin for the third quarter and an increase of 90 basis points year-over-year [10][11] - Adjusted earnings per share increased by approximately 18% year-over-year to $0.39, driven by operating performance and a lower tax rate [11][12] - The net leverage ratio improved to 2.0 turns, a reduction of 0.4 turns compared to the previous year [7][16] Business Line Data and Key Metrics Changes - In the power transmission segment, revenues were $533 million with core growth of 2.3%, driven by personal mobility growth exceeding 20% [11][12] - The fluid power segment generated $322 million in sales, with core growth just under 1%, impacted by mid-teens decline in commercial on-highway sales [12][13] - Automotive replacement sales grew in the low single digits, while OEM sales were flat, reflecting mixed performance across different channels [10][11] Market Data and Key Metrics Changes - North American core sales were flat, with a low double-digit decline in industrial OEM sales due to demand weakness in agriculture and commercial on-highway [14][15] - EMEA saw core sales growth of 2.6%, with personal mobility growing almost 75% [15][16] - East Asia and India posted approximately 5% core growth, while South America experienced low to mid-single-digit declines [15][16] Company Strategy and Development Direction - The company is focused on restructuring plans, including closing multiple factories and implementing an ERP system conversion expected to be completed by mid-2026 [18][19] - The board approved a new $300 million share repurchase authorization, indicating a commitment to returning value to shareholders while maintaining flexibility for potential acquisitions [7][24] - The company anticipates achieving an Adjusted EBITDA margin of approximately 24% by the end of 2026, driven by ongoing cost optimization and strategic initiatives [22][24] Management's Comments on Operating Environment and Future Outlook - Management noted that while macro-industrial demand remains subdued, they are optimistic about stability and potential improvement in demand across most end markets by 2026 [9][23] - The company is experiencing uneven end market performance, with expectations for a gradual recovery in industrial demand [8][9] - Management expressed confidence in the growth potential of personal mobility and data center opportunities, projecting a compound annual growth rate of around 30% for personal mobility from 2025 to 2028 [36][38] Other Important Information - The company has updated its 2025 guidance, raising the adjusted EPS midpoint to $1.50 per share while slightly lowering the core sales growth outlook [7][17] - Free cash flow was reported at $73 million, representing a 73% conversion to adjusted net income, impacted by increased restructuring cash outflows [16][17] Q&A Session Summary Question: Clarification on margin targets and restructuring costs - Management confirmed that the 24% margin target for 2027 serves as a foundational floor, with expectations for growth in 2026 [29][30] - Additional costs related to restructuring and ERP implementation were discussed, with expectations for improved efficiencies post-implementation [32][33] Question: Growth visibility in personal mobility and data center markets - Management expressed optimism about personal mobility growth, projecting a 30% compound annual growth rate over the next three years [36][38] - The company is seeing increased design activity in liquid cooling for data centers, indicating strong future demand [38] Question: Impact of tariffs and volume expectations - Management noted a 30-40 basis point dilution in gross margins due to tariffs, but emphasized that the overall impact on EBITDA remains manageable [51][52] - There is cautious optimism regarding stabilization in agricultural markets and potential recovery in 2026 [53][54] Question: Insights on regional growth and market conditions - North America faces challenges in agriculture, while EMEA and Asia are showing positive growth trends, particularly in automotive replacement [85][88] - Management highlighted the potential for growth in South America and India as economic conditions improve [86][88]

Financial Data and Key Metrics Changes - Gates reported third-quarter total sales of $856 million, translating to core growth of 1.7% year-over-year, with total revenues growing by 3% due to favorable foreign currency effects [9][10] - Adjusted EBITDA was $196 million, with an adjusted EBITDA margin of 22.9%, representing a record third-quarter margin rate for the company, an increase of 90 basis points year-over-year [10][11] - Adjusted earnings per share increased to $0.39, an approximate 18% year-over-year growth [11][12] - The net leverage ratio improved to 2.0 turns, a 0.4-turn reduction compared to the previous year's third quarter [7][16] Business Line Data and Key Metrics Changes - In the power transmission segment, revenues were $533 million with core growth of 2.3%, driven by personal mobility growth exceeding 20% [11][12] - The fluid power segment generated $322 million in sales, with core growth just under 1%, impacted by mid-teens decline in commercial on-highway sales [12][13] - Automotive replacement sales grew in the low single digits, while OEM sales were relatively flat [5][11] Market Data and Key Metrics Changes - North American core sales were flat, with industrial OEM sales declining due to demand weakness in agriculture and commercial on-highway [14][15] - EMEA saw core sales growth of 2.6%, with personal mobility growing almost 75% [14][15] - East Asia and India posted approximately 5% core growth, while South America experienced low to mid-single-digit declines [15][16] Company Strategy and Development Direction - The company is focused on restructuring plans, including closing multiple factories and implementing an ERP system conversion expected to be completed by mid-2026 [18][20] - The board approved a new $300 million share repurchase authorization, indicating a commitment to returning value to shareholders while maintaining flexibility for potential acquisitions [7][24] - The company anticipates achieving an adjusted EBITDA margin of approximately 24% by the end of 2026, driven by ongoing cost-saving initiatives and operational improvements [22][24] Management's Comments on Operating Environment and Future Outlook - Management noted that while macro-industrial demand remains subdued, they are optimistic about demand stabilization and improvement in 2026 [9][23] - The company believes many end markets are nearing a trough, particularly in agriculture, and expects gradual recovery [9][40] - Management expressed confidence in growth vectors such as personal mobility and data centers, projecting a compound annual growth rate of around 30% for personal mobility from 2025 to 2028 [36][38] Other Important Information - The company has updated its 2025 guidance, raising the adjusted EPS midpoint to $1.50 per share while maintaining the adjusted EBITDA midpoint at $780 million [7][17] - Free cash flow was reported at $73 million, representing a 73% conversion to adjusted net income, impacted by increased restructuring cash outflows [16][17] Q&A Session Summary Question: Clarification on margin targets and restructuring costs - Management confirmed that the 24% margin target for 2027 is viewed as a foundational floor, with expectations for growth in 2026 [29][30] - They discussed the anticipated costs associated with restructuring, including freight and productivity costs, and the expected benefits from the new ERP system [32][33] Question: Growth visibility in structural growth vectors - Management expressed optimism about personal mobility and liquid cooling in data centers, with expectations for significant growth in the coming years [36][38] - They noted that automotive replacement markets are expected to continue providing stability [39][40] Question: Dimensions of the restructuring plan - Management provided details on the restructuring, indicating multiple factory closures and hundreds of affected employees, with a payback period of one to two years [47][49] Question: Tariff impact and pricing - Management indicated a 30 to 40 basis points dilution in gross margins due to tariffs, with no significant bottom-line impact [51][53] Question: Exit rate from 2025 and Q4 expectations - Management stated that Q4 revenue guidance reflects normalized seasonality without expecting significant changes in demand [58][60] Question: Capital allocation strategy - Management confirmed a balanced approach to capital allocation, including stock buybacks and potential bolt-on acquisitions as leverage improves [72][73]

Financial Data and Key Metrics Changes - Gates reported third-quarter total sales of $856 million, translating to core growth of 1.7% year-over-year, with total revenues growing by 3% due to favorable foreign currency effects [8][9] - Adjusted EBITDA was $196 million, with an adjusted EBITDA margin of 22.9%, representing a record third-quarter margin rate for the company, an increase of 90 basis points year-over-year [9][10] - The net leverage ratio improved to 2.0 turns, a reduction of 0.4 turns compared to the previous year's third quarter [6] Business Line Data and Key Metrics Changes - In the power transmission segment, revenues were $533 million with core growth of 2.3%, driven by personal mobility growth exceeding 20% [10][11] - The fluid power segment generated $322 million in sales, with core growth just under 1%, impacted by mid-teens decline in commercial on-highway sales [11] - Automotive replacement sales increased by high single digits, while automotive OEM sales grew low single digits [14] Market Data and Key Metrics Changes - North America experienced flat core sales, with a low double-digit decline in industrial OEM sales due to demand weakness in agriculture and commercial on-highway [13][14] - EMEA saw core sales grow by 2.6%, with personal mobility growing almost 75% [14] - East Asia and India posted approximately 5% core growth, while South America experienced low to mid-single-digit declines [14] Company Strategy and Development Direction - The company is focused on restructuring plans, including closing multiple factories and implementing an ERP system conversion expected to be completed by mid-2026 [18][19] - The board approved a new $300 million share repurchase authorization, indicating a commitment to returning value to shareholders while maintaining flexibility for potential M&A opportunities [6][24] - The company anticipates achieving an adjusted EBITDA margin of approximately 24% by the end of 2026, driven by ongoing cost-saving initiatives and operational improvements [22][24] Management's Comments on Operating Environment and Future Outlook - Management noted that many end markets are at or near trough levels, with expectations for stabilization and improvement in 2026 [8][39] - The company remains optimistic about growth in personal mobility and data center opportunities, projecting a compound annual growth rate of around 30% for personal mobility from 2025 to 2028 [33][34] - Management acknowledged challenges in the agricultural sector but expressed confidence in a gradual recovery starting in 2026 [39] Other Important Information - The company updated its 2025 guidance, raising the adjusted EPS midpoint to $1.50 per share while slightly lowering the core sales growth outlook [6][17] - Free cash flow was reported at $73 million, representing a 73% conversion to adjusted net income, impacted by increased restructuring cash outflows [16] Q&A Session Summary Question: Clarification on margin targets and restructuring costs - Management confirmed that the 24% margin target for 2027 serves as a foundational floor, with expectations for growth in 2026 and beyond [27][29] - Additional costs related to restructuring and ERP implementation were discussed, with expectations for improved efficiencies post-implementation [30][31] Question: Growth visibility in structural growth vectors - Management expressed optimism about growth in personal mobility and liquid cooling in data centers, with expectations for significant design activity and adoption [33][34] Question: Details on restructuring dimensions - Management provided insights into the restructuring plan, indicating multiple factory closures and hundreds of affected employees, with a payback period of one to two years [44][46] Question: Tariff impact and volume outlook - Management noted a 30 to 40 basis points EBITDA dilution due to tariffs, with expectations for stabilization in agricultural markets and improved production output in automotive [49][50] Question: Exit rate from 2025 and Q4 expectations - Management indicated that Q4 revenue guidance reflects a cautious outlook, with no significant changes anticipated in demand conditions [54][56]