Gates Industrial Corporation PLC (NYSE:GTES) is one of the best breakout stocks to invest in. On November 14, Wells Fargo initiated coverage on Gates Industrial Corporation PLC (NYSE:GTES) with a Hold rating and a price target of $23.00. Meanwhile, on November 13, JPMorgan touted Gates Industrial as one of the companies poised to benefit from the growing demand for AI and data center infrastructure. Gates Industrial Corporation plc (GTES) Pursues Growth in Data Centers with New Liquid-Cooling Solution Co ...

Financial Performance - Gates Industrial Corporation reported third-quarter 2025 net sales of $855.7 million, representing a 3.0% increase year-over-year, with core sales growth of 1.7% [8] - The company achieved net income attributable to shareholders of $81.6 million, or $0.31 per diluted share, compared to $47.6 million, or $0.18 per diluted share in the prior year [15] - Adjusted EBITDA for the quarter was $195.8 million, with a margin of 22.9%, an increase of 90 basis points from the previous year [8][15] Segment Performance - In the Power Transmission segment, net sales reached $533.3 million, up 3.9% year-over-year, with an adjusted EBITDA of $122.1 million and a margin of 22.9% [3] - The Fluid Power segment reported net sales of $322.4 million, a 1.6% increase, with adjusted EBITDA of $73.7 million and a margin of 22.9% [4] Debt and Share Repurchase - The company paid down $100 million of gross debt during the quarter, improving its balance sheet [2] - A new share repurchase program was authorized for up to $300 million, valid through December 2026, replacing the previous authorization [5][6] Guidance and Outlook - Gates Industrial raised its adjusted EPS guidance towards the high end of the prior range, anticipating solid revenue generation opportunities [2] - The company expects core sales growth in the range of +0.5% to +1.5% year-over-year for 2025, with adjusted EBITDA projected between $770 million to $790 million [9]