Gates Industrial Reports Second-Quarter 2025 Results

Core Viewpoint - Gates Industrial Corporation reported solid second-quarter results with positive core sales growth in Replacement channels and double-digit growth in Mobility business, alongside a return to growth in Agriculture for the first time since Q4 2022 [2][9] Financial Summary - Second-quarter net sales were $883.7 million, a decrease of 0.2% year-over-year, with core sales declining by 0.6% [9] - Net income attributable to shareholders was $56.5 million, or $0.22 per diluted share, while adjusted net income per diluted share was $0.39 [9][13] - Adjusted EBITDA for the quarter was $199.2 million, representing a margin of 22.5% [9][13] Segment Performance Power Transmission Segment - Net sales for the three months ended June 28, 2025, were $550.1 million, up 1.5% from $541.9 million in the prior year, with a core sales increase of 0.6% [3] - Adjusted EBITDA was $122.8 million, with an adjusted EBITDA margin of 22.3% [3] Fluid Power Segment - Net sales for the three months ended June 28, 2025, were $333.6 million, down 2.9% from $343.6 million in the prior year, with a core sales decline of 2.5% [4] - Adjusted EBITDA was $76.4 million, with an adjusted EBITDA margin of 22.9% [4] Guidance for 2025 - The company raised its full-year guidance for 2025, expecting core sales growth between 0.5% to 2.5% year-over-year, adjusted EBITDA of $765 million to $795 million, and adjusted earnings per share of $1.44 to $1.52 [5][10]