--- title: "Gates Industrial | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 941.6 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/294507216.md" datetime: "2026-07-31T11:39:12.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294507216.md) - [en](https://longbridge.com/en/news/294507216.md) - [zh-HK](https://longbridge.com/zh-HK/news/294507216.md) --- # Gates Industrial | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 941.6 M Revenue: As of FY2026 Q2, the actual value is USD 941.6 M, beating the estimate of USD 925.41 M. EPS: As of FY2026 Q2, the actual value is USD 0.67. EBIT: As of FY2026 Q2, the actual value is USD 130.2 M. Gates Industrial Corporation Ltd. announced its financial results for the second quarter and six months ended June 27, 2026. ### Second Quarter 2026 Consolidated Financial Summary For the three months ended June 27, 2026, Gates Industrial Corporation Ltd. reported net sales of $941.6 million, an increase of 6.6% compared to the prior-year period, with core sales increasing by 4.9%. Net income attributable to shareholders was $170.9 million, while net income from continuing operations reached $178.2 million, representing a margin of 18.9%. Adjusted EBITDA was $211.4 million, with a margin of 22.5%. #### Consolidated Statements of Operations (Three months ended June 27, 2026 vs June 28, 2025) - **Net sales:** $941.6 million (2026) vs $883.7 million (2025) - **Cost of sales:** $555.5 million (2026) vs $523.5 million (2025) - **Gross profit:** $386.1 million (2026) vs $360.2 million (2025) - **Selling, general and administrative expenses:** $250.7 million (2026) vs $231.2 million (2025) - **Transaction-related expenses:** $3.1 million (2026) vs $0 million (2025) - **Restructuring expenses:** $0.7 million (2026) vs $13.0 million (2025) - **Operating income from continuing operations:** $131.6 million (2026) vs $115.8 million (2025) - **Income tax expense:** - $78.0 million (2026) vs $16.8 million (2025) - **Net income from continuing operations:** $178.2 million (2026) vs $63.4 million (2025) - **Net income attributable to shareholders:** $170.9 million (2026) vs $56.5 million (2025) #### Consolidated Statements of Operations (Six months ended June 27, 2026 vs June 28, 2025) - **Net sales:** $1,792.7 million (2026) vs $1,731.3 million (2025) - **Cost of sales:** $1,068.6 million (2026) vs $1,026.5 million (2025) - **Gross profit:** $724.1 million (2026) vs $704.8 million (2025) - **Selling, general and administrative expenses:** $477.6 million (2026) vs $447.4 million (2025) - **Transaction-related expenses:** $3.6 million (2026) vs $0.4 million (2025) - **Restructuring expenses:** $1.4 million (2026) vs $14.6 million (2025) - **Operating income from continuing operations:** $241.5 million (2026) vs $241.6 million (2025) - **Income tax expense:** - $66.5 million (2026) vs $42.0 million (2025) - **Net income from continuing operations:** $244.6 million (2026) vs $132.0 million (2025) - **Net income attributable to shareholders:** $230.6 million (2026) vs $118.5 million (2025) ### Segment Results #### Power Transmission Segment - **Three months ended June 27, 2026:** Net sales were $588.5 million, a 7.0% increase year-over-year, with core sales up 5.3%. Adjusted EBITDA was $134.8 million, a 9.8% increase, resulting in an Adjusted EBITDA margin of 22.9% (up 60 basis points). - **Six months ended June 27, 2026:** Net sales were $1,121.7 million, a 4.1% increase year-over-year, with core sales up 1.5%. Adjusted EBITDA was $246.8 million, a 3.0% increase, resulting in an Adjusted EBITDA margin of 22.0% (down 20 basis points). #### Fluid Power Segment - **Three months ended June 27, 2026:** Net sales were $353.1 million, a 5.8% increase year-over-year, with core sales up 4.2%. Adjusted EBITDA was $76.6 million, a 0.3% increase, resulting in an Adjusted EBITDA margin of 21.7% (down 120 basis points). - **Six months ended June 27, 2026:** Net sales were $671.0 million, a 2.6% increase year-over-year, with core sales up 0.4%. Adjusted EBITDA was $142.0 million, a -3.4% decrease, resulting in an Adjusted EBITDA margin of 21.2% (down 130 basis points). ### Cash Flows (Six months ended June 27, 2026 vs June 28, 2025) - **Net cash provided by operating activities:** $108.8 million (2026) vs $110.3 million (2025) - **Net cash used in investing activities:** - $41.8 million (2026) vs - $62.0 million (2025) - **Net cash used in financing activities:** - $50.8 million (2026) vs - $33.4 million (2025) - **Cash and cash equivalents and restricted cash at the end of the period:** $826.5 million (2026) vs $722.8 million (2025) - **Interest paid:** $52.0 million (2026) vs $56.8 million (2025) - **Income taxes paid:** $39.3 million (2026) vs $54.7 million (2025) ### Balance Sheet (As of June 27, 2026 vs December 31, 2025) - **Cash and cash equivalents:** $823.5 million (2026) vs $812.1 million (2025) - **Total assets:** $7,392.8 million (2026) vs $7,151.4 million (2025) - **Total liabilities:** $3,498.6 million (2026) vs $3,462.2 million (2025) - **Total shareholders’ equity:** $3,521.9 million (2026) vs $3,334.0 million (2025) ### 2026 Guidance Gates Industrial Corporation Ltd. is raising its full-year 2026 financial guidance, projecting core sales growth of 2.5% to 4.5% and Adjusted EBITDA of $800 million to $830 million. 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