Gates Industrial (GTES)
Market Price (5/21/2026): $24.195 | Market Cap: $6.1 BilSector: Industrials | Industry: Industrial Machinery & Supplies & Components
Gates Industrial (GTES)
Market Price (5/21/2026): $24.195Market Cap: $6.1 BilSector: IndustrialsIndustry: Industrial Machinery & Supplies & Components
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 15%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 11% Attractive yieldFCF Yield is 6.4% Low stock price volatilityVol 12M is 37% Megatrend and thematic driversMegatrends include Automation & Robotics, Water Infrastructure, and Sustainable Infrastructure. Themes include Factory Automation, Show more. | Weak multi-year price returns3Y Excs Rtn is -2.6% | Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -1.0% Key risksGTES key risks include [1] its heavy reliance on cyclical industrial and automotive markets, Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 15%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 11% |
| Attractive yieldFCF Yield is 6.4% |
| Low stock price volatilityVol 12M is 37% |
| Megatrend and thematic driversMegatrends include Automation & Robotics, Water Infrastructure, and Sustainable Infrastructure. Themes include Factory Automation, Show more. |
| Weak multi-year price returns3Y Excs Rtn is -2.6% |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -1.0% |
| 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 gained about 5% since 1/31/2026 because of the following key factors:
1. Strong Fourth Quarter 2025 Earnings Beat and Positive Full-Year 2026 Guidance.
Gates Industrial reported adjusted diluted earnings per share of $0.38 for the fourth quarter of 2025, surpassing analyst expectations of $0.37. The company also provided an optimistic outlook for fiscal year 2026, forecasting core sales growth between 1% and 4% and adjusted earnings per share in the range of $1.52 to $1.68.
2. Strategic Acquisition to Expand Market Presence.
On May 1, 2026, Gates Industrial announced a definitive agreement to acquire the belts business from The Timken Company. This strategic move is expected to enhance Gates Industrial's market presence and expand customer access within the industrial OEM, aftermarket channels, and the power sports segment of its mobility business unit.
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1. Strong Fourth Quarter 2025 Earnings Beat and Positive Full-Year 2026 Guidance.
Gates Industrial reported adjusted diluted earnings per share of $0.38 for the fourth quarter of 2025, surpassing analyst expectations of $0.37. The company also provided an optimistic outlook for fiscal year 2026, forecasting core sales growth between 1% and 4% and adjusted earnings per share in the range of $1.52 to $1.68.
2. Strategic Acquisition to Expand Market Presence.
On May 1, 2026, Gates Industrial announced a definitive agreement to acquire the belts business from The Timken Company. This strategic move is expected to enhance Gates Industrial's market presence and expand customer access within the industrial OEM, aftermarket channels, and the power sports segment of its mobility business unit.
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Stock Movement Drivers
Fundamental Drivers
The 5.0% change in GTES stock from 1/31/2026 to 5/20/2026 was primarily driven by a 4.3% change in the company's Net Income Margin (%).| (LTM values as of) | 1312026 | 5202026 | Change |
|---|---|---|---|
| Stock Price ($) | 23.02 | 24.18 | 5.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,416 | 3,447 | 0.9% |
| Net Income Margin (%) | 6.9% | 7.2% | 4.3% |
| P/E Multiple | 25.1 | 24.6 | -1.8% |
| Shares Outstanding (Mil) | 258 | 254 | 1.6% |
| Cumulative Contribution | 5.0% |
Market Drivers
1/31/2026 to 5/20/2026| Return | Correlation | |
|---|---|---|
| GTES | 5.0% | |
| Market (SPY) | 7.4% | 55.6% |
| Sector (XLI) | 3.5% | 73.7% |
Fundamental Drivers
The 9.5% change in GTES stock from 10/31/2025 to 5/20/2026 was primarily driven by a 4.3% change in the company's Net Income Margin (%).| (LTM values as of) | 10312025 | 5202026 | Change |
|---|---|---|---|
| Stock Price ($) | 22.08 | 24.18 | 9.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,416 | 3,447 | 0.9% |
| Net Income Margin (%) | 6.9% | 7.2% | 4.3% |
| P/E Multiple | 24.1 | 24.6 | 2.4% |
| Shares Outstanding (Mil) | 258 | 254 | 1.6% |
| Cumulative Contribution | 9.5% |
Market Drivers
10/31/2025 to 5/20/2026| Return | Correlation | |
|---|---|---|
| GTES | 9.5% | |
| Market (SPY) | 9.3% | 55.3% |
| Sector (XLI) | 10.8% | 72.8% |
Fundamental Drivers
The 27.8% change in GTES stock from 4/30/2025 to 5/20/2026 was primarily driven by a 13.1% change in the company's Net Income Margin (%).| (LTM values as of) | 4302025 | 5202026 | Change |
|---|---|---|---|
| Stock Price ($) | 18.92 | 24.18 | 27.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,393 | 3,447 | 1.6% |
| Net Income Margin (%) | 6.4% | 7.2% | 13.1% |
| P/E Multiple | 22.3 | 24.6 | 10.4% |
| Shares Outstanding (Mil) | 256 | 254 | 0.8% |
| Cumulative Contribution | 27.8% |
Market Drivers
4/30/2025 to 5/20/2026| Return | Correlation | |
|---|---|---|
| GTES | 27.8% | |
| Market (SPY) | 35.2% | 54.4% |
| Sector (XLI) | 31.9% | 66.8% |
Fundamental Drivers
The 79.5% change in GTES stock from 4/30/2023 to 5/20/2026 was primarily driven by a 43.0% change in the company's P/E Multiple.| (LTM values as of) | 4302023 | 5202026 | Change |
|---|---|---|---|
| Stock Price ($) | 13.47 | 24.18 | 79.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,554 | 3,447 | -3.0% |
| Net Income Margin (%) | 6.2% | 7.2% | 16.3% |
| P/E Multiple | 17.2 | 24.6 | 43.0% |
| Shares Outstanding (Mil) | 282 | 254 | 11.3% |
| Cumulative Contribution | 79.5% |
Market Drivers
4/30/2023 to 5/20/2026| Return | Correlation | |
|---|---|---|
| GTES | 79.5% | |
| Market (SPY) | 85.2% | 58.5% |
| Sector (XLI) | 78.5% | 66.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| GTES Return | 25% | -28% | 18% | 53% | 4% | 9% | 84% |
| Peers Return | 19% | -7% | 39% | 23% | 14% | 14% | 148% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 7% | 96% |
Monthly Win Rates [3] | |||||||
| GTES Win Rate | 58% | 42% | 50% | 42% | 67% | 60% | |
| Peers Win Rate | 62% | 35% | 60% | 60% | 58% | 60% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| GTES Max Drawdown | -23% | -42% | -25% | -15% | -34% | -25% | |
| Peers Max Drawdown | -22% | -31% | -24% | -19% | -35% | -19% | |
| 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 5/20/2026 (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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Asset Allocation
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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 plc manufactures and sells engineered power transmission and fluid power solutions worldwide. It operates in two segments, Power Transmission and Fluid Power. The company offers synchronous or asynchronous belts, including V-belts, CVT belts, and Micro-V belts, as well as related components, such as sprockets, pulleys, water pumps, tensioners, or other accessories; solutions for stationary and mobile drives, engine systems, personal mobility, and vertical lifts application platforms; metal drive components; and kits for automotive replacement channels. It also provides fluid power solutions comprising stationary hydraulics, mobile hydraulics, engine systems, and other industrial application platforms; and hydraulics, including hoses, tubing, and fittings, as well as assemblies. The company serves construction, agriculture, energy and resources, automotive, transportation, mobility and recreation, consumer products, and various industrial applications, such as automated manufacturing and logistics systems. It sells its engineered products under the Gates brand. The company offers its products to replacement channel customers, as well as to original equipment manufacturers. Gates Industrial Corporation plc was founded in 1911 and is headquartered in Denver, Colorado.
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.
AI Analysis | Feedback
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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Gates Industrial Corporation plc operates in two primary segments: Power Transmission and Fluid Power. The addressable markets for these segments are substantial on a global scale. For its Power Transmission products, which include belts, sprockets, pulleys, and other related components, the global market for mechanical power transmission equipment was valued at approximately USD 70.31 billion in 2025 and is projected to reach USD 75 billion in 2026. Another estimate indicates the global mechanical power transmission products market size was approximately USD 65.15 billion by the end of 2025. The global power transmission components market, a broader category, was estimated at USD 74.8 billion in 2024 and is projected to grow to approximately USD 105.7 billion by 2030. The global industrial belt drives market alone was over USD 9 billion in 2025 and is anticipated to reach USD 9.36 billion in 2026. The V-belt market, a specific product offering, is expected to be valued at US$ 5.3 billion in 2026. In the Fluid Power segment, which encompasses solutions like hoses, tubing, and fittings, the global fluid power equipment market size was valued at USD 73.84 billion in 2025 and is projected to grow to USD 77.92 billion in 2026. Other estimations for the global fluid power equipment market place it at around USD 69.98 billion in 2025, with a forecast to reach USD 73.07 billion in 2026. The market was also valued at USD 58.23 billion in 2023, with projections to reach USD 108.13 billion by 2032.AI Analysis | Feedback
Here are the expected drivers of future revenue growth for Gates Industrial (GTES) over the next 2-3 years:- 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.
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| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 04302026 | GEO | GEO | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 04302026 | RUN | Sunrun | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | 0.0% | 0.0% | 0.0% |
| 04172026 | RSG | Republic Services | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.8% | 0.8% | -1.1% |
| 04102026 | VRSK | Verisk Analytics | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 12.3% | 12.3% | 0.0% |
| 04102026 | UHAL | U-Haul | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.3% | 0.3% | -1.0% |
| 03312025 | GTES | Gates Industrial | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 34.8% | 22.8% | -15.5% |
| 05312023 | GTES | Gates Industrial | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 5.1% | 47.4% | -8.3% |
| 04302022 | GTES | Gates Industrial | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -11.0% | 5.6% | -23.9% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 156.19 |
| Mkt Cap | 10.8 |
| Rev LTM | 5,334 |
| Op Inc LTM | 631 |
| FCF LTM | 621 |
| FCF 3Y Avg | 489 |
| CFO LTM | 719 |
| CFO 3Y Avg | 627 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 2.4% |
| Rev Chg 3Y Avg | 5.7% |
| Rev Chg Q | 6.1% |
| QoQ Delta Rev Chg LTM | 1.5% |
| Op Inc Chg LTM | 6.4% |
| Op Inc Chg 3Y Avg | 10.5% |
| Op Mgn LTM | 13.2% |
| Op Mgn 3Y Avg | 13.7% |
| QoQ Delta Op Mgn LTM | -0.2% |
| CFO/Rev LTM | 14.8% |
| CFO/Rev 3Y Avg | 12.4% |
| FCF/Rev LTM | 12.3% |
| FCF/Rev 3Y Avg | 10.1% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 10.8 |
| P/S | 2.0 |
| P/Op Inc | 18.1 |
| P/EBIT | 16.8 |
| P/E | 28.8 |
| P/CFO | 16.1 |
| Total Yield | 4.1% |
| Dividend Yield | 0.4% |
| FCF Yield 3Y Avg | 5.1% |
| D/E | 0.2 |
| Net D/E | 0.2 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -6.4% |
| 3M Rtn | -10.7% |
| 6M Rtn | 11.4% |
| 12M Rtn | 31.8% |
| 3Y Rtn | 103.4% |
| 1M Excs Rtn | -12.2% |
| 3M Excs Rtn | -19.0% |
| 6M Excs Rtn | 0.8% |
| 12M Excs Rtn | 6.6% |
| 3Y Excs Rtn | 10.8% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Power Transmission | 2,108 | 2,191 | 2,174 | 2,216 | 1,800 |
| Fluid Power | 1,300 | 1,379 | 1,380 | 1,258 | 993 |
| Total | 3,408 | 3,570 | 3,554 | 3,474 | 2,793 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Power Transmission | 469 | 461 | 404 | 501 | 353 |
| Fluid Power | 292 | 286 | 277 | 235 | 154 |
| Credit (gain) loss related to customer bankruptcy (included in selling, general and administrative | 0 | -11 | 0 | ||
| Asset impairments | 0 | -0 | -1 | -1 | -5 |
| Cybersecurity incident expenses | 0 | -5 | 0 | ||
| Other items not directly related to current operations | 0 | -0 | -0 | 9 | 3 |
| Restructuring related expenses (included in cost of sales) | -2 | -0 | -1 | -1 | |
| Restructuring-related expenses (included in selling, general and administrative (SG&A)) | -3 | -1 | -0 | -1 | -8 |
| Transaction-related expenses | -3 | -2 | -2 | -4 | -5 |
| Restructuring expenses | -6 | -12 | -10 | -7 | -37 |
| Inventory adjustments (included in cost of sales) | -22 | -7 | -21 | -1 | -1 |
| Share-based compensation expense | -29 | -27 | -44 | -25 | -20 |
| Depreciation and amortization | -217 | -218 | -217 | -223 | -219 |
| Sponsor fees (included in other operating (income) expenses) | -2 | ||||
| Total | 479 | 463 | 384 | 484 | 211 |
Price Behavior
Price Behavior
| Market Price | $24.18 | |
| Market Cap ($ Bil) | 6.2 | |
| First Trading Date | 01/25/2018 | |
| Distance from 52W High | -13.8% | |
| 50 Days | 200 Days | |
| DMA Price | $24.26 | $24.17 |
| DMA Trend | indeterminate | down |
| Distance from DMA | -0.3% | 0.0% |
| 3M | 1YR | |
| Volatility | 47.5% | 36.8% |
| Downside Capture | 232.63 | 149.96 |
| Upside Capture | 123.45 | 121.83 |
| Correlation (SPY) | 66.6% | 52.2% |
GTES Betas & Captures as of 4/30/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.52 | 2.32 | 1.69 | 1.62 | 1.54 | 1.34 |
| Up Beta | 3.41 | 3.14 | 2.98 | 2.48 | 2.27 | 1.54 |
| Down Beta | 1.93 | 1.69 | 1.30 | 1.14 | 1.16 | 1.37 |
| Up Capture | 144% | 169% | 150% | 173% | 156% | 171% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 14 | 22 | 35 | 63 | 135 | 386 |
| Down Capture | -21% | 239% | 111% | 129% | 122% | 105% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 8 | 21 | 29 | 62 | 115 | 355 |
[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 | 11.6% | 36.8% | 0.37 | - |
| Sector ETF (XLI) | 20.0% | 15.5% | 0.98 | 66.0% |
| Equity (SPY) | 26.2% | 12.1% | 1.62 | 52.6% |
| Gold (GLD) | 40.2% | 26.8% | 1.24 | 20.2% |
| Commodities (DBC) | 46.2% | 18.7% | 1.89 | -25.3% |
| Real Estate (VNQ) | 11.1% | 13.4% | 0.54 | 46.7% |
| Bitcoin (BTCUSD) | -27.4% | 41.8% | -0.65 | 22.1% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GTES | |
|---|---|---|---|---|
| GTES | 7.0% | 34.4% | 0.27 | - |
| Sector ETF (XLI) | 12.3% | 17.4% | 0.55 | 67.7% |
| Equity (SPY) | 14.1% | 17.0% | 0.65 | 61.4% |
| Gold (GLD) | 19.5% | 18.0% | 0.89 | 12.9% |
| Commodities (DBC) | 11.1% | 19.4% | 0.46 | 11.1% |
| Real Estate (VNQ) | 4.0% | 18.8% | 0.11 | 47.5% |
| Bitcoin (BTCUSD) | 9.1% | 55.6% | 0.37 | 20.9% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GTES | |
|---|---|---|---|---|
| GTES | 2.8% | 40.5% | 0.21 | - |
| Sector ETF (XLI) | 13.8% | 20.0% | 0.61 | 64.2% |
| Equity (SPY) | 15.5% | 17.9% | 0.74 | 57.3% |
| Gold (GLD) | 13.1% | 16.0% | 0.68 | 3.7% |
| Commodities (DBC) | 7.9% | 17.9% | 0.36 | 21.2% |
| Real Estate (VNQ) | 5.4% | 20.7% | 0.23 | 47.4% |
| Bitcoin (BTCUSD) | 67.1% | 66.9% | 1.06 | 14.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/1/2026 | -6.1% | 1.4% | |
| 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% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 12 | 11 |
| # Negative | 9 | 10 | 10 |
| Median Positive | 3.8% | 6.9% | 4.9% |
| Median Negative | -4.5% | -7.4% | -7.9% |
| Max Positive | 11.8% | 11.8% | 34.2% |
| Max Negative | -12.9% | -16.8% | -14.2% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 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 |
Recent Forward Guidance [BETA]
Latest: 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% | 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 | |||
Prior: Q4 2025 Earnings Reported 2/12/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue Growth | 1.0% | 2.5% | 4.0% | 150.0% | 1.5% | Raised | Actual: 1.0% for 2025 |
| 2026 Adjusted EBITDA | 775.00 Mil | 805.00 Mil | 835.00 Mil | 3.2% | Raised | Actual: 780.00 Mil for 2025 | |
| 2026 Adjusted Earnings Per Share | 1.52 | 1.6 | 1.68 | 6.7% | Raised | Actual: 1.5 for 2025 | |
| 2026 Capital Expenditures | 120.00 Mil | 0 | Affirmed | Actual: 120.00 Mil for 2025 | |||
| 2026 Free Cash Flow conversion | 0.9 | 5.9% | 5.0% | Raised | Actual: 0.85 for 2025 | ||
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Montgomery, Gwendolyn Ann | Chief Human Resources Officer | Direct | Sell | 12012025 | 22.60 | 40,996 | 926,510 | 1,239,926 | Form |
| 2 | Montgomery, Gwendolyn Ann | Chief Human Resources Officer | Direct | Sell | 11182025 | 21.64 | 2,338 | 50,594 | 2,074,410 | Form |
| 3 | Mallard, Lawrence B | Chief Financial Officer | Direct | Sell | 11132025 | 22.77 | 22,188 | 505,221 | 4,044,567 | Form |
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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