Gates Industrial (GTES)
Market Price (8/24/2026): $25.9 | Market Cap: $6.6 BilSector: Industrials | Industry: Industrial Machinery & Supplies & Components
Gates Industrial (GTES)
Market Price (8/24/2026): $25.9Market Cap: $6.6 BilSector: IndustrialsIndustry: Industrial Machinery & Supplies & Components
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.5%, FCF Yield is 5.8% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 14%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 11% Low stock price volatilityVol 12M is 40% Megatrend and thematic driversMegatrends include Automation & Robotics, Water Infrastructure, and Sustainable Infrastructure. Themes include Factory Automation, Show more. | Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -0.7% Key risksGTES key risks include [1] its heavy reliance on cyclical industrial and automotive markets, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.5%, FCF Yield is 5.8% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 14%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 11% |
| Low stock price volatilityVol 12M is 40% |
| Megatrend and thematic driversMegatrends include Automation & Robotics, Water Infrastructure, and Sustainable Infrastructure. Themes include Factory Automation, Show more. |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -0.7% |
| Key risksGTES key risks include [1] its heavy reliance on cyclical industrial and automotive markets, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Gates Industrial (GTES) stock has remained largely at the same level since 4/30/2026 because of the following key factors:
1. Gates Industrial delivered robust fiscal Q2 2026 financial results and subsequently raised its full-year guidance, providing upward price support.
For the fiscal second quarter ended June 27, 2026, Gates Industrial reported record sales of $942 million, an increase of 6.6%, with core growth of 4.9%. The company's adjusted earnings per share reached $0.44, surpassing the consensus estimate by approximately 4.7% to 6%. Following this strong performance, Gates Industrial increased its full-year 2026 guidance, projecting core sales growth between 2.5% and 4.5% (a 100 basis point increase at the midpoint) and adjusted EPS in the range of $1.62 to $1.70 (a $0.06 increase at the midpoint).
2. Persistent macroeconomic headwinds, including elevated inflation and a projected global economic slowdown, tempered investor enthusiasm.
Despite the company's solid performance, broader macroeconomic concerns weighed on the stock. Global economic growth was anticipated to decelerate to 3.0% in 2026 from 3.5% in 2025, according to the International Monetary Fund (IMF). Moreover, global inflation was expected to average 4.7% in 2026, primarily driven by higher energy and food prices, exacerbated by ongoing geopolitical conflicts in the Middle East which caused energy price volatility throughout fiscal Q2 and Q3 2026. These inflationary pressures, with oil prices above $100 per barrel, acted as significant cost accelerants.
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Gates Industrial (GTES) stock has remained largely at the same level since 4/30/2026 because of the following key factors:
1. Gates Industrial delivered robust fiscal Q2 2026 financial results and subsequently raised its full-year guidance, providing upward price support.
For the fiscal second quarter ended June 27, 2026, Gates Industrial reported record sales of $942 million, an increase of 6.6%, with core growth of 4.9%. The company's adjusted earnings per share reached $0.44, surpassing the consensus estimate by approximately 4.7% to 6%. Following this strong performance, Gates Industrial increased its full-year 2026 guidance, projecting core sales growth between 2.5% and 4.5% (a 100 basis point increase at the midpoint) and adjusted EPS in the range of $1.62 to $1.70 (a $0.06 increase at the midpoint).
2. Persistent macroeconomic headwinds, including elevated inflation and a projected global economic slowdown, tempered investor enthusiasm.
Despite the company's solid performance, broader macroeconomic concerns weighed on the stock. Global economic growth was anticipated to decelerate to 3.0% in 2026 from 3.5% in 2025, according to the International Monetary Fund (IMF). Moreover, global inflation was expected to average 4.7% in 2026, primarily driven by higher energy and food prices, exacerbated by ongoing geopolitical conflicts in the Middle East which caused energy price volatility throughout fiscal Q2 and Q3 2026. These inflationary pressures, with oil prices above $100 per barrel, acted as significant cost accelerants.
3. A bifurcated demand environment presented both tailwinds from industrial strength and headwinds from weakening consumer spending.
Gates Industrial experienced "accelerating industrial demand," particularly in its Power Transmission segment, which posted over 5% core growth driven by high-single-digit growth in industrial end markets. However, the broader U.S. economy showed signs of weakening consumer flexibility due to thinning savings and higher energy costs, creating a selective demand environment rather than uniform growth. This mixed demand picture, combined with persistent inflationary costs for raw materials and logistics, created a balanced scenario for the stock.
4. Positive analyst sentiment and company share repurchases provided a floor, preventing a significant downside.
Analyst ratings largely remained positive for Gates Industrial, with approximately 69% recommending a 'BUY' rating and an average target price of $33.45, indicating a potential upside of 17.01% from the stock's price of $27.76 on August 16, 2026. Additionally, the company actively engaged in share repurchases, amounting to $22 million during fiscal Q2 2026, which likely contributed to supporting the stock price and mitigating further declines.
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Stock Movement Drivers
Fundamental Drivers
The 1.1% change in GTES stock from 4/30/2026 to 8/23/2026 was primarily driven by a 42.1% change in the company's Net Income Margin (%).| (LTM values as of) | 4302026 | 8232026 | Change |
|---|---|---|---|
| Stock Price ($) | 25.61 | 25.90 | 1.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,443 | 3,505 | 1.8% |
| Net Income Margin (%) | 7.3% | 10.4% | 42.1% |
| P/E Multiple | 26.1 | 18.1 | -30.6% |
| Shares Outstanding (Mil) | 256 | 254 | 0.9% |
| Cumulative Contribution | 1.1% |
Market Drivers
4/30/2026 to 8/23/2026| Return | Correlation | |
|---|---|---|
| GTES | 1.1% | |
| Market (SPY) | 6.5% | 55.3% |
| Sector (XLI) | 3.2% | 73.0% |
Fundamental Drivers
The 12.5% change in GTES stock from 1/31/2026 to 8/23/2026 was primarily driven by a 49.7% change in the company's Net Income Margin (%).| (LTM values as of) | 1312026 | 8232026 | Change |
|---|---|---|---|
| Stock Price ($) | 23.02 | 25.90 | 12.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,416 | 3,505 | 2.6% |
| Net Income Margin (%) | 6.9% | 10.4% | 49.7% |
| P/E Multiple | 25.1 | 18.1 | -28.0% |
| Shares Outstanding (Mil) | 258 | 254 | 1.7% |
| Cumulative Contribution | 12.5% |
Market Drivers
1/31/2026 to 8/23/2026| Return | Correlation | |
|---|---|---|
| GTES | 12.5% | |
| Market (SPY) | 11.0% | 55.3% |
| Sector (XLI) | 9.3% | 73.4% |
Fundamental Drivers
The 4.4% change in GTES stock from 7/31/2025 to 8/23/2026 was primarily driven by a 73.5% change in the company's Net Income Margin (%).| (LTM values as of) | 7312025 | 8232026 | Change |
|---|---|---|---|
| Stock Price ($) | 24.80 | 25.90 | 4.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,391 | 3,505 | 3.3% |
| Net Income Margin (%) | 6.0% | 10.4% | 73.5% |
| P/E Multiple | 31.5 | 18.1 | -42.6% |
| Shares Outstanding (Mil) | 257 | 254 | 1.4% |
| Cumulative Contribution | 4.4% |
Market Drivers
7/31/2025 to 8/23/2026| Return | Correlation | |
|---|---|---|
| GTES | 4.4% | |
| Market (SPY) | 22.2% | 52.3% |
| Sector (XLI) | 19.8% | 67.4% |
Fundamental Drivers
The 90.2% change in GTES stock from 7/31/2023 to 8/23/2026 was primarily driven by a 70.6% change in the company's Net Income Margin (%).| (LTM values as of) | 7312023 | 8232026 | Change |
|---|---|---|---|
| Stock Price ($) | 13.62 | 25.90 | 90.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,558 | 3,505 | -1.5% |
| Net Income Margin (%) | 6.1% | 10.4% | 70.6% |
| P/E Multiple | 17.9 | 18.1 | 1.2% |
| Shares Outstanding (Mil) | 284 | 254 | 11.8% |
| Cumulative Contribution | 90.2% |
Market Drivers
7/31/2023 to 8/23/2026| Return | Correlation | |
|---|---|---|
| GTES | 90.2% | |
| Market (SPY) | 73.2% | 59.8% |
| Sector (XLI) | 70.0% | 68.6% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| GTES Return | 25% | -28% | 18% | 53% | 4% | 21% | 103% |
| Peers Return | 19% | -7% | 39% | 23% | 14% | 25% | 171% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 103% |
Monthly Win Rates [3] | |||||||
| GTES Win Rate | 58% | 42% | 50% | 42% | 67% | 75% | |
| Peers Win Rate | 62% | 35% | 60% | 60% | 58% | 62% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| GTES Max Drawdown | -23% | -42% | -25% | -15% | -34% | -25% | |
| Peers Max Drawdown | -22% | -31% | -24% | -19% | -35% | -22% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: PH, ETN, RRX, TKR, FLS. See GTES Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/21/2026 (YTD)
How Low Can It Go
| Event | GTES | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -33.8% | -18.8% |
| % Gain to Breakeven | 51.1% | 23.1% |
| Time to Breakeven | 85 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -19.9% | -9.5% |
| % Gain to Breakeven | 24.8% | 10.5% |
| Time to Breakeven | 60 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -17.6% | -6.7% |
| % Gain to Breakeven | 21.4% | 7.1% |
| Time to Breakeven | 273 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -40.0% | -24.5% |
| % Gain to Breakeven | 66.6% | 32.4% |
| Time to Breakeven | 515 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -52.6% | -33.7% |
| % Gain to Breakeven | 110.9% | 50.9% |
| Time to Breakeven | 238 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -34.4% | -19.2% |
| % Gain to Breakeven | 52.5% | 23.8% |
| Time to Breakeven | 2137 days | 105 days |
In The Past
Gates Industrial's stock fell -33.8% during the 2025 US Tariff Shock. Such a loss loss requires a 51.1% gain to breakeven.
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| Event | GTES | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -33.8% | -18.8% |
| % Gain to Breakeven | 51.1% | 23.1% |
| Time to Breakeven | 85 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -40.0% | -24.5% |
| % Gain to Breakeven | 66.6% | 32.4% |
| Time to Breakeven | 515 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -52.6% | -33.7% |
| % Gain to Breakeven | 110.9% | 50.9% |
| Time to Breakeven | 238 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -34.4% | -19.2% |
| % Gain to Breakeven | 52.5% | 23.8% |
| Time to Breakeven | 2137 days | 105 days |
In The Past
Gates Industrial's stock fell -33.8% during the 2025 US Tariff Shock. Such a loss loss requires a 51.1% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Gates Industrial (GTES)
Gates Industrial Corporation (GTES) is a global manufacturer specializing in engineered power transmission and fluid power solutions. The company designs, produces, and sells essential components that enable the movement and operation of machinery across a wide range of industries worldwide. Essentially, Gates provides the belts, hoses, and related parts that help power engines, move equipment, and manage fluids in various industrial and mobile applications.
Its core offerings are categorized into two main segments. The Power Transmission segment focuses on mechanical power transfer, providing a comprehensive array of belts, such as V-belts, CVT belts, and Micro-V belts, along with associated components like pulleys, sprockets, and tensioners. These are crucial for systems ranging from engine drives to industrial machinery and automotive applications. The Fluid Power segment specializes in hydraulic solutions, manufacturing hoses, tubing, fittings, and complete assemblies essential for managing fluids under pressure in various hydraulic systems.
Gates Industrial serves a diverse global customer base, including both Original Equipment Manufacturers (OEMs) who integrate Gates components into their new machinery, and the aftermarket through replacement channels. Its products are vital across numerous sectors, supporting critical functions in industries like construction, agriculture, automotive, energy, transportation, and automated manufacturing systems. This broad market reach highlights the foundational role Gates plays in ensuring the reliability and efficiency of industrial and mobile equipment.
AI Analysis | Feedback
- The 'Intel Inside' for industrial and automotive power systems.
- A B2B '3M' for industrial belts, hoses, and power transmission components.
- Like 'Parker-Hannifin' for industrial power transmission and fluid transfer components.
AI Analysis | Feedback
- Power Transmission Belts: These include various synchronous, asynchronous, V-belts, CVT belts, and Micro-V belts for diverse applications.
- Power Transmission Components: Related components like sprockets, pulleys, water pumps, tensioners, and other accessories used in power transmission systems.
- Metal Drive Components: Specific components made of metal designed for various drive systems.
- Automotive Replacement Kits: Pre-packaged kits containing power transmission components specifically for automotive replacement channels.
- Fluid Power Hydraulics: Solutions comprising hoses, tubing, fittings, and assemblies essential for hydraulic systems.
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Ivo Jurek, Chief Executive Officer
Ivo Jurek joined Gates Corporation as Chief Executive Officer in May 2015, bringing a career dedicated to the industrials sector, both in the U.S. and internationally. Prior to Gates, he served as President of Eaton's Electrical business in Asia Pacific. He also held positions as Group President at Cooper Industries and President at Cooper Bussmann. Earlier in his career, he spent 10 years with International Rectifier Corporation in general management roles within their automotive and electronic motion systems businesses and over eight years in various leadership positions at TRW Automotive.
L. Brooks Mallard, Executive Vice President, Chief Financial Officer
L. Brooks Mallard has served as Gates' Executive Vice President and Chief Financial Officer since February 2020. In this role, he oversees the company's global corporate finance and accounting, capital structure, resource allocation, financial reporting, and internal control systems. Before joining Gates, Mr. Mallard was the Chief Financial Officer of Henniges Automotive starting in June 2019. Previously, he was the Executive Vice President and Chief Financial Officer of Jeld-Wen from November 2014, where he played a key role in transitioning the company from private equity ownership through its initial public offering on the NYSE. His 25-year career also includes senior financial leadership roles at TRW Automotive, Cooper Industries plc, Thomas & Betts, and Briggs & Stratton.
Cristin C. Bracken, Executive Vice President, Chief Legal Officer and Corporate Secretary
Cristin C. Bracken has served as the Company's Chief Legal Officer and Corporate Secretary since October 2020, and was promoted to Executive Vice President in January 2024. She joined Gates in January 2017, having previously served as Vice President and Assistant General Counsel, Compliance and Litigation, and later as interim General Counsel.
Thomas G. Pitstick, President, Americas
Thomas G. Pitstick was appointed President, Americas in August 2024, where he is responsible for Gates' strategic direction and business performance across the Americas, as well as for the Global Mobility Business Unit. Since joining Gates in January 2016, he has held various leadership roles, including President of APAC, Chief Strategy Officer, Chief Marketing Officer, Senior Vice President of Product Line Management, and Senior Vice President of Innovation. Before his tenure at Gates, Mr. Pitstick served as Senior Vice President of Marketing — Electrical Sector with Eaton Corporation.
Kristian Brok, President, EMEA
Kristian Brok has served as President, EMEA since August 2025, overseeing Gates' strategic direction and business performance across Europe, the Middle East, and Africa. He joined Gates as Vice President and General Manager, EMEA in early 2025. Prior to Gates, Mr. Brok held senior leadership positions at Semperit AG Holding, including Chief Operations Officer and acting CEO, and at Trelleborg Sealing Solutions, where he managed multiple global business units. His previous executive roles focused on commercial growth, operational excellence, and international expansion.
AI Analysis | Feedback
Here are the key risks to Gates Industrial (GTES):
- Macroeconomic Factors and Cyclical End-Market Demand: Gates Industrial's performance is highly correlated with overall industrial activity and is susceptible to global economic fluctuations, including material and logistics availability, inflation, supply chain and labor challenges, and end-market recovery. The company has noted softness in core industrial and automotive demand. Global economic fluctuations, ongoing geopolitical conflicts, and trade wars could disrupt economic activities and adversely affect sales and operating income.
- Competitive Landscape and Technological Disruption: The market for power transmission and fluid power solutions is competitive, requiring Gates Industrial to continuously innovate and maintain its technological edge. Analysts have raised questions about how AI-driven automation in manufacturing could pressure high-margin hardware suppliers, and some see Gates Industrial as having meaningful exposure to potential disruption in in-plant equipment. This also includes the broader risk that rapid technological advancements could render existing power generation methods outdated.
- Raw Material Cost Volatility and Supply Chain Dependency: Gates Industrial's operations require a diverse mix of raw materials, sourced globally. The company faces the challenge of managing commodity and raw material costs, which have historically been volatile. An inability to pass on cost increases to customers or find alternative materials could adversely affect operating margins and profitability.
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The clear emerging threat for Gates Industrial is the **accelerated global shift towards the electrification of vehicles and industrial machinery.**
Gates Industrial's core business relies heavily on supplying power transmission belts, hoses, and fluid power solutions primarily to industries and equipment that have historically utilized internal combustion engines (ICEs) or traditional hydraulic systems. The transition to electric powertrains in automotive, construction, agriculture, and other industrial sectors directly impacts the demand for many of Gates' traditional products:
- **Power Transmission:** Electric vehicles (EVs) significantly reduce or eliminate the need for numerous accessory belts (e.g., for alternators, power steering pumps, air conditioning compressors) and timing belts found in ICEs. While EVs may still require some belts for specific applications (e.g., accessory drives, internal motor cooling), the overall volume, complexity, and type of belts demanded are expected to change dramatically, potentially reducing the addressable market for certain high-volume ICE-dependent belt products.
- **Fluid Power:** Similarly, the shift to electrification can alter the requirements for fluid power solutions. For instance, the elimination of complex ICE cooling systems (which utilize many hoses) and the adoption of electric power steering or braking systems in some vehicles and machinery can reduce the demand for traditional hydraulic hoses and fittings. While hydraulic systems will still be essential for heavy machinery and specific industrial applications, the landscape for traditional fluid power solutions tied to ICEs is evolving.
This trend is not speculative but a fundamental, ongoing transformation within key end markets for Gates Industrial, akin to how digital photography disrupted film or streaming music disrupted physical media. Many of Gates' OEM customers are actively investing in and shifting production towards electric and hybrid solutions, directly impacting future demand for components designed for conventional powertrains.
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- Growth in Personal Mobility Segment: Gates Industrial anticipates significant growth in its personal mobility business, projecting a high twenties to 30% compound annual growth rate from 2025 to 2028, with revenues expected to reach $300 million by 2028. This segment experienced over 25% core growth in 2025.
- Expansion in Data Center Business: The company's data center business is a rapidly accelerating secular growth driver. This segment grew fourfold compared to 2024, with orders seeing substantial increases in late 2025. Gates projects a $2 billion market opportunity by 2028, with a revenue run rate of $100 million to $200 million by the end of 2028.
- Recovery in Industrial End Markets: Gates Industrial expects a recovery in most of its end markets in 2026, particularly improved demand dynamics for industrial off-highway and diversified industrial sectors, which are believed to have reached a trough. This anticipated stabilization and growth in broader industrial demand will provide end market support for the company.
- Strategic Top-Line Initiatives and Innovation: The company is focused on various strategic top-line initiatives, including investments in its commercial front end and innovation, to accelerate core growth. This strategy includes developing next-generation products and technologies that deliver positive social and environmental impacts, such as solutions that reduce emissions, improve energy efficiency, and enhance durability.
- Market Outperformance and Share Gains: Gates Industrial aims to drive core revenue growth that outpaces its addressable markets and intends to increase its market share through the end of the decade, particularly within the high-growth personal mobility and data center markets.
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Share Repurchases
- Gates Industrial authorized a new share repurchase program of up to $300 million in October 2025, valid through December 2026.
- In full-year 2025, the company repurchased approximately $105 million of shares.
- In August 2024, Gates Industrial executed a $125 million share repurchase.
Share Issuance
- Total share issuance by the company was $10.4 million for the full year 2025.
- In the third quarter of 2025, the company's share issuance amounted to $9.8 million.
- In the first quarter of 2021, share issuance was $1.7 million.
Outbound Investments
- In November 2021, Gates Industrial's CEO, Ivo Jurek, indicated an active mergers and acquisitions (M&A) pipeline for bolt-on acquisitions to accelerate growth, particularly in electrification and Diversified Industrial end markets.
Capital Expenditures
- Gates Industrial anticipates capital expenditures of approximately $120 million for 2026.
- For 2025, the company's capital expenditure guidance was also approximately $120 million.
- A primary focus of recent capital expenditures and associated restructuring cash outlays is on footprint optimization and strategic system conversions, including an ERP conversion for its European operations expected to be complete by mid-2026.
Peer Outperformance in Industrial Machinery & Supplies & Components
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| GTES | Gates Industrial | -0.7% | 18.1x | 2.7% | 119.9% | 58.2% | — |
| VMI | Valmont Industries | -0.7% | 19.6x | 30.3% | 104.7% | 108.1% | +50pp |
| SNA | Snap-on | 1.9% | 19.7x | 21.3% | 62.5% | 99.0% | +41pp |
| TKR | Timken | 0.1% | 33.6x | 60.5% | 77.0% | 82.7% | +24pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Construction & Engineering | 31 | 25.2% | 124.7% | 202.2% | CDNL 3246% · STRL 2190% · FIX 2132% |
| Marine Transportation | 4 | 57.9% | 61.9% | 150.7% | MATX 212% · KEX 154% · SFL 148% |
| Construction Machinery & Heavy Transportation Equipment | 13 | 12.3% | 66.8% | 120.6% | CAT 324% · ALSN 285% · WAB 252% |
| Aerospace & Defense | 55 | 11.1% | 70.2% | 79.6% | DFNS 2047% · ATI 1042% · FTAI 968% |
| Passenger Ground Transportation | 3 | -5.7% | 65.1% | 69.3% | UBER 96% · CAR 69% · LYFT -63% |
| Industrial Machinery & Supplies & Components ← | 71 | 11.5% | 56.0% | 56.3% | CRS 1440% · PSIX 846% · GHM 735% |
| Rail Transportation | 7 | 38.3% | 76.2% | 50.1% | FSTR 115% · CSX 65% · UNP 56% |
| Cargo Ground Transportation | 16 | 35.7% | 16.1% | 45.4% | XPO 270% · R 264% · CVLG 222% |
| Diversified Support Services | 34 | 8.9% | 37.5% | 34.9% | LIME 4674% · TH 369% · WLFC 347% |
| Trading Companies & Distributors | 18 | 2.2% | 36.4% | 32.1% | DXPE 523% · AIT 303% · URI 232% |
| Building Products | 33 | -8.8% | 15.9% | 28.8% | LMB 436% · GFF 413% · PPIH 289% |
| Electrical Components & Equipment | 41 | 26.1% | 44.8% | 28.3% | POWL 2374% · VRT 856% · BE 849% |
| Industrial Conglomerates | 17 | 15.8% | 26.3% | 4.9% | RCMT 727% · CSW 153% · TTI 145% |
| Office Services & Supplies | 10 | 14.0% | 25.0% | 3.8% | TILE 188% · PBI 159% · EBF 56% |
| Environmental & Facilities Services | 28 | -8.3% | 20.9% | 0.8% | CECO 863% · ADUR 661% · GEO 324% |
| Research & Consulting Services | 13 | -7.2% | -18.4% | -1.6% | HURN 220% · CRAI 97% · GRNQ 31% |
| Agricultural & Farm Machinery | 17 | -1.2% | -3.9% | -14.4% | BLBD 200% · DE 88% · GENC 65% |
| Data Processing & Outsourced Services | 6 | -30.4% | -9.5% | -24.5% | EXLS 59% · BR 16% · G -23% |
| Passenger Airlines | 11 | 5.9% | -4.6% | -29.3% | LTM 2324% · UAL 140% · SKYW 130% |
| Human Resource & Employment Services | 20 | 4.5% | -19.4% | -36.1% | BBSI 89% · ADP 51% · KFY 36% |
| Air Freight & Logistics | 12 | -16.2% | -24.2% | -39.1% | CHRW 78% · FDX 67% · EXPD 62% |
| Security & Alarm Services | 10 | -36.2% | -14.3% | -43.4% | CIX 107% · MG 93% · BCO 52% |
| Airport Services | 3 | -69.1% | -69.0% | -58.3% | JOBY -31% · ASLE -58% · UP -100% |
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Peer Comparisons
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Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 145.62 |
| Mkt Cap | 10.6 |
| Rev LTM | 5,409 |
| Op Inc LTM | 658 |
| FCF LTM | 439 |
| FCF 3Y Avg | 491 |
| CFO LTM | 544 |
| CFO 3Y Avg | 613 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 4.5% |
| Rev Chg 3Y Avg | 3.7% |
| Rev Chg Q | 7.0% |
| QoQ Delta Rev Chg LTM | 1.8% |
| Op Inc Chg LTM | 8.5% |
| Op Inc Chg 3Y Avg | 12.1% |
| Op Mgn LTM | 13.3% |
| Op Mgn 3Y Avg | 13.6% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 12.4% |
| CFO/Rev 3Y Avg | 12.1% |
| FCF/Rev LTM | 9.8% |
| FCF/Rev 3Y Avg | 9.8% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Power Transmission | 2,147 | 2,108 | 2,191 | 2,216 |
| Fluid Power | 1,296 | 1,300 | 1,379 | 1,258 |
| Total | 3,443 | 3,408 | 3,570 | 3,474 |
| $ Mil | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Power Transmission | 480 | 469 | 461 | 501 |
| Fluid Power | 290 | 292 | 286 | 235 |
| Cybersecurity incident expenses | 5 | 0 | -5 | 0 |
| Credit (gain) loss related to customer bankruptcy (included in selling, general and administrative | 0 | 0 | -11 | 0 |
| Other items not directly related to current operations | 0 | 0 | -0 | 9 |
| Transaction-related expenses | -0 | -3 | -2 | -4 |
| Asset impairments | -4 | 0 | -0 | -1 |
| Other expenses (income), excluding foreign currency transaction gain or loss and insurance | -4 | |||
| Restructuring related expenses (included in cost of sales) | -7 | -2 | -0 | 0 |
| Restructuring-related expenses (included in selling, general and administrative (SG&A)) | -11 | -3 | -1 | -1 |
| Inventory adjustments (included in cost of sales) | -16 | -22 | -7 | -1 |
| Restructuring expenses | -26 | -6 | -12 | -7 |
| Share-based compensation expense | -27 | -29 | -27 | -25 |
| Depreciation and amortization | -214 | -217 | -218 | -223 |
| Total | 466 | 479 | 463 | 484 |
Price Behavior
| Market Price | $25.90 | |
| Market Cap ($ Bil) | 6.6 | |
| First Trading Date | 01/25/2018 | |
| Distance from 52W High | -13.2% | |
| 50 Days | 200 Days | |
| DMA Price | $27.23 | $24.74 |
| DMA Trend | up | up |
| Distance from DMA | -4.9% | 4.7% |
| 3M | 1YR | |
| Volatility | 41.0% | 40.3% |
| Downside Capture | 171.26 | 162.81 |
| Upside Capture | 177.13 | 132.15 |
| Correlation (SPY) | 55.2% | 52.5% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.52 | 1.67 | 1.82 | 1.77 | 1.63 | 1.41 |
| Up Beta | 3.05 | 0.69 | 1.67 | 2.46 | 2.35 | 1.58 |
| Down Beta | 1.95 | 1.59 | 1.81 | 1.45 | 1.30 | 1.39 |
| Up Capture | 266% | 258% | 211% | 201% | 172% | 246% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 9 | 20 | 29 | 63 | 125 | 384 |
| Down Capture | 242% | 159% | 169% | 141% | 134% | 106% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 11 | 20 | 31 | 60 | 123 | 354 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GTES | |
|---|---|---|---|---|
| GTES | 5.9% | 40.3% | 0.24 | - |
| Sector ETF (XLI) | 20.5% | 17.1% | 0.92 | 67.2% |
| Equity (SPY) | 21.1% | 12.9% | 1.22 | 52.3% |
| Gold (GLD) | 37.5% | 28.8% | 1.10 | 24.1% |
| Commodities (DBC) | 43.2% | 20.2% | 1.66 | -23.0% |
| Real Estate (VNQ) | 12.9% | 13.8% | 0.64 | 34.5% |
| Bitcoin (BTCUSD) | -31.6% | 44.1% | -0.73 | 14.7% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GTES | |
|---|---|---|---|---|
| GTES | 9.0% | 35.0% | 0.32 | - |
| Sector ETF (XLI) | 13.1% | 17.6% | 0.57 | 68.2% |
| Equity (SPY) | 12.9% | 17.2% | 0.57 | 61.2% |
| Gold (GLD) | 20.6% | 18.6% | 0.90 | 13.3% |
| Commodities (DBC) | 10.4% | 19.6% | 0.41 | 8.0% |
| Real Estate (VNQ) | 2.3% | 18.9% | 0.02 | 45.4% |
| Bitcoin (BTCUSD) | 10.4% | 52.8% | 0.38 | 21.4% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GTES | |
|---|---|---|---|---|
| GTES | 3.3% | 40.5% | 0.23 | - |
| Sector ETF (XLI) | 13.8% | 20.0% | 0.60 | 64.4% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 57.2% |
| Gold (GLD) | 12.7% | 16.2% | 0.64 | 4.3% |
| Commodities (DBC) | 8.0% | 18.0% | 0.36 | 19.9% |
| Real Estate (VNQ) | 5.0% | 20.7% | 0.20 | 46.1% |
| Bitcoin (BTCUSD) | 63.1% | 66.1% | 1.03 | 14.4% |
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Returns Analyses
Earnings Returns History
Updated 8/11/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/31/2026 | 8.5% | 10.9% | |
| 5/1/2026 | -6.1% | 1.4% | 0.9% |
| 2/12/2026 | 3.8% | 4.8% | -14.2% |
| 10/29/2025 | -12.9% | -16.8% | -13.1% |
| 7/30/2025 | 1.3% | -2.2% | 4.9% |
| 4/30/2025 | 5.2% | 11.8% | 18.9% |
| 2/6/2025 | 11.8% | 6.8% | -4.5% |
| 10/30/2024 | 5.7% | 10.8% | 21.1% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 12 | 11 |
| # Negative | 9 | 10 | 10 |
| Median Positive | 4.9% | 6.9% | 4.0% |
| Median Negative | -4.5% | -7.4% | -7.9% |
| Max Positive | 11.8% | 11.8% | 21.1% |
| Max Negative | -12.9% | -16.8% | -14.2% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/31/2026 | 8.5% | 10.9% | |
| 5/1/2026 | -6.1% | 1.4% | 0.9% |
| 2/12/2026 | 3.8% | 4.8% | -14.2% |
| 10/29/2025 | -12.9% | -16.8% | -13.1% |
| 7/30/2025 | 1.3% | -2.2% | 4.9% |
| 4/30/2025 | 5.2% | 11.8% | 18.9% |
| 2/6/2025 | 11.8% | 6.8% | -4.5% |
| 10/30/2024 | 5.7% | 10.8% | 21.1% |
| 7/31/2024 | 4.9% | -8.3% | 0.3% |
| 5/1/2024 | -6.8% | -6.6% | -1.9% |
| 8/4/2023 | -1.6% | -12.1% | -7.0% |
| 2/9/2023 | 6.2% | 8.5% | 2.6% |
| 11/4/2022 | -4.5% | 6.9% | 2.8% |
| 8/5/2022 | -3.1% | -0.8% | -13.1% |
| 5/4/2022 | 1.5% | -9.0% | 0.5% |
| 2/7/2022 | -1.7% | -2.3% | -2.0% |
| 11/8/2021 | -5.6% | -5.4% | -8.9% |
| 8/9/2021 | -3.8% | -10.3% | -11.3% |
| 5/10/2021 | 0.2% | 1.6% | 4.0% |
| 2/8/2021 | 0.1% | 6.1% | -0.1% |
| 11/3/2020 | 2.3% | 6.6% | 10.9% |
| 8/4/2020 | 5.9% | 9.2% | 7.5% |
| SUMMARY STATS | |||
| # Positive | 13 | 12 | 11 |
| # Negative | 9 | 10 | 10 |
| Median Positive | 4.9% | 6.9% | 4.0% |
| Median Negative | -4.5% | -7.4% | -7.9% |
| Max Positive | 11.8% | 11.8% | 21.1% |
| Max Negative | -12.9% | -16.8% | -14.2% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/31/2026 | 10-Q |
| 03/31/2026 | 05/01/2026 | 10-Q |
| 12/31/2025 | 02/12/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/30/2025 | 10-Q |
| 03/31/2025 | 04/30/2025 | 10-Q |
| 12/31/2024 | 02/06/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/31/2024 | 10-Q |
| 03/31/2024 | 05/01/2024 | 10-Q |
| 12/31/2023 | 02/08/2024 | 10-K |
| 09/30/2023 | 11/03/2023 | 10-Q |
| 06/30/2023 | 08/04/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 02/09/2023 | 10-K |
| 09/30/2022 | 11/04/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/31/2026 | 10-Q |
| 03/31/2026 | 05/01/2026 | 10-Q |
| 12/31/2025 | 02/12/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/30/2025 | 10-Q |
| 03/31/2025 | 04/30/2025 | 10-Q |
| 12/31/2024 | 02/06/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/31/2024 | 10-Q |
| 03/31/2024 | 05/01/2024 | 10-Q |
| 12/31/2023 | 02/08/2024 | 10-K |
| 09/30/2023 | 11/03/2023 | 10-Q |
| 06/30/2023 | 08/04/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 02/09/2023 | 10-K |
| 09/30/2022 | 11/04/2022 | 10-Q |
| 06/30/2022 | 08/05/2022 | 10-Q |
| 03/31/2022 | 05/04/2022 | 10-Q |
| 12/31/2021 | 02/11/2022 | 10-K |
| 09/30/2021 | 11/08/2021 | 10-Q |
| 06/30/2021 | 08/09/2021 | 10-Q |
| 03/31/2021 | 05/11/2021 | 10-Q |
| 12/31/2020 | 02/10/2021 | 10-K |
| 09/30/2020 | 11/04/2020 | 10-Q |
| 06/30/2020 | 08/05/2020 | 10-Q |
| 03/31/2020 | 05/06/2020 | 10-Q |
| 12/31/2019 | 02/21/2020 | 10-K |
| 09/30/2019 | 11/06/2019 | 10-Q |
Recent Forward Guidance
Updated 8/1/2026Latest: Q2 2026 Earnings Reported 7/31/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Core Sales Growth | 2.5% | 3.5% | 4.5% | 1.0% | Raised | Guidance: 2.5% for 2026 | |
| 2026 Adjusted EBITDA | 800.00 Mil | 815.00 Mil | 830.00 Mil | 1.2% | Raised | Guidance: 805.00 Mil for 2026 | |
| 2026 Adjusted EPS | 1.62 | 1.66 | 1.7 | 3.8% | Raised | Guidance: 1.6 for 2026 | |
| 2026 Capital Expenditures | 120.00 Mil | 0 | Affirmed | Guidance: 120.00 Mil for 2026 | |||
Prior: Q1 2026 Earnings Reported 5/1/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Core sales growth | 1.0% | 2.5% | 4.0% | 0.0% | Affirmed | Guidance: 2.5% for 2026 | |
| 2026 Adjusted EBITDA | 775.00 Mil | 805.00 Mil | 835.00 Mil | 0.0% | Affirmed | Guidance: 805.00 Mil for 2026 | |
| 2026 Adjusted Earnings Per Share | 1.52 | 1.6 | 1.68 | 0.0% | Affirmed | Guidance: 1.6 for 2026 | |
| 2026 Capital Expenditures | 120.00 Mil | 0.0% | Affirmed | Guidance: 120.00 Mil for 2026 | |||
| 2026 Free Cash Flow conversion | 0.9 | 0.0% | Affirmed | Guidance: 0.9 for 2026 | |||
Q4 2025 Earnings Reported 2/12/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Core Sales Growth | 1.0% | 2.5% | 4.0% | 1.5% | Higher New | Actual: 1.0% for 2025 | |
| 2026 Adjusted EBITDA | 775.00 Mil | 805.00 Mil | 835.00 Mil | 3.2% | Higher New | Actual: 780.00 Mil for 2025 | |
| 2026 Adjusted Earnings Per Share | 1.52 | 1.6 | 1.68 | 6.7% | Higher New | Actual: 1.5 for 2025 | |
| 2026 Capital Expenditures | 120.00 Mil | 0 | Same New | Actual: 120.00 Mil for 2025 | |||
| 2026 Free Cash Flow conversion | 0.9 | 5.0% | Higher New | Actual: 0.85 for 2025 | |||
Q3 2025 Earnings Reported 10/29/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2025 Core Sales Growth | 0.5% | 1.0% | 1.5% | -0.5% | Lowered | Guidance: 1.5% for 2025 | |
| 2025 Adjusted EBITDA | 770.00 Mil | 780.00 Mil | 790.00 Mil | 0 | Affirmed | Guidance: 780.00 Mil for 2025 | |
| 2025 Adjusted Earnings Per Share | 1.48 | 1.5 | 1.52 | 1.4% | Raised | Guidance: 1.48 for 2025 | |
| 2025 Capital Expenditures | 120.00 Mil | 0 | Affirmed | Guidance: 120.00 Mil for 2025 | |||
| 2025 Free Cash Flow conversion | 0.8 | 0.85 | 0.9 | -5.0% | Lowered | Guidance: 0.9 for 2025 | |
Insider Activity
Updated 8/7/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Zhang, Peifang | Direct | Sell | 8072026 | 28.62 | 6,000 | 171,720 | 1,260,539 | Form | |
| 2 | Zhang, Peifang | Direct | Sell | 8052026 | 29.56 | 6,000 | 177,360 | 1,479,301 | Form | |
| 3 | Zhang, Peifang | Direct | Sell | 8052026 | 29.76 | 5,000 | 148,800 | 1,667,869 | Form | |
| 4 | Montgomery, Gwendolyn Ann | Chief Human Resources Officer | Direct | Sell | 12012025 | 22.60 | 40,996 | 926,510 | 1,239,926 | Form |
| 5 | Montgomery, Gwendolyn Ann | Chief Human Resources Officer | Direct | Sell | 11182025 | 21.64 | 2,338 | 50,594 | 2,074,410 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Zhang, Peifang | Direct | Sell | 8072026 | 28.62 | 6,000 | 171,720 | 1,260,539 | Form | |
| 2 | Zhang, Peifang | Direct | Sell | 8052026 | 29.56 | 6,000 | 177,360 | 1,479,301 | Form | |
| 3 | Zhang, Peifang | Direct | Sell | 8052026 | 29.76 | 5,000 | 148,800 | 1,667,869 | Form | |
| 4 | Montgomery, Gwendolyn Ann | Chief Human Resources Officer | Direct | Sell | 12012025 | 22.60 | 40,996 | 926,510 | 1,239,926 | Form |
| 5 | Montgomery, Gwendolyn Ann | Chief Human Resources Officer | Direct | Sell | 11182025 | 21.64 | 2,338 | 50,594 | 2,074,410 | Form |
| 6 | Mallard, Lawrence B | Chief Financial Officer | Direct | Sell | 11132025 | 22.77 | 22,188 | 505,221 | 4,044,567 | Form |
Investor Activity (13F)
Updated Aug 24, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
Industry Resources
| Industrials Resources |
| IndustryWeek |
| Manufacturing.net |
| Aviation Week |
| Industrial Machinery & Supplies & Components Resources |
| Machine Design |
| Modern Machine Shop |
| Industrial Equipment News (IEN) |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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