Gates Industrial Corp plc
GTES · General Industrial Machinery & Equipment · 253.9M shares · -1%/yr ↓ buyback · EDGAR filings ↗
Net buyback after stock comp: $224M (gross $252M, SBC $27M)
Grade
B74Premium 110-year industrial franchise with high-margin recurring aftermarket revenue and strong free cash flow, but only flat growth.
Strengths
- Operating margin 13.5% (78th pct) and strong FCF (margin 68th pct, $405M, 82nd pct)
- Durable brand and ~68% aftermarket mix providing recurring, mission-critical demand
Risks
- Revenue essentially flat (~1%) with OEM/automotive softness; modest ROE 7.5% (55th pct)
- Cyclical end-markets, raw-material/tariff cost exposure and FX from heavy international footprint
Notable findings
- Customer concentration~63% of revenue from one customer/distributor — For Fiscal 2025, approximately 63% of our net sales originated from outside of the U
- Strong balance sheetStrong balance sheet — $812M cash & investments
Quarterly revenue
Last 4 quarters · from SEC filings.
Key metrics
Gross margin
39.8%
Operating margin
13.5%
Net margin
7.3%
Return on equity
7.5%
Return on assets
3.5%
ROIC
6.6%
Revenue growth (QoQ)
-0.6%
Net-income growth
29.0%
Debt / equity
0.7×
Net debt / EBITDA
2.0×
Current ratio
3.4×
Free cash flow
$405M
EBITDA
$679M
Tangible book value
$106M
Cash & investments
$812M
Stock comp / revenue
0.8%
Notable events (8-K)
Recent filings
| Form | Filed | Period | Accession |
|---|---|---|---|
| 8-K | 2026-06-25 | 2026-06-25 | 0001628280-26-045597 ↗ |
| 8-K | 2026-06-10 | 2026-06-04 | 0001628280-26-042272 ↗ |
| 8-K | 2026-05-01 | 2026-05-01 | 0001628280-26-029104 ↗ |
| 10-Q | 2026-05-01 | 2026-03-28 | 0001628280-26-029351 ↗ |
| 10-K | 2026-02-12 | 2025-12-31 | 0001628280-26-007719 ↗ |
| 8-K | 2026-02-12 | 2026-02-12 | 0001628280-26-007483 ↗ |
| 10-Q | 2025-10-29 | 2025-09-27 | 0001628280-25-047174 ↗ |
| 8-K | 2025-10-29 | 2025-10-29 | 0001628280-25-046922 ↗ |
| 8-K | 2025-07-30 | 2025-07-30 | 0001718512-25-000048 ↗ |
| 10-Q | 2025-07-30 | 2025-06-28 | 0001718512-25-000051 ↗ |
| 8-K | 2025-06-10 | 2025-06-05 | 0001718512-25-000040 ↗ |
| 10-Q | 2025-04-30 | 2025-03-29 | 0001718512-25-000031 ↗ |