• 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.

• 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.

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.

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.

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.

• 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.

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.