The **Intel** of industrial power transmission, supplying critical internal components like belts and hoses.

The **Goodyear** for industrial and automotive belts and hoses.

• Power Transmission Belt Products: A range of industrial belts (V-belts, synchronous belts, micro-V belts) and related components used for mechanical power transfer in various industrial and automotive applications.
• Fluid Power Products: Hydraulic hoses, couplings, and assemblies designed to transmit power through fluids in diverse industrial, construction, and automotive systems.

Gates Industrial (GTES) primarily sells its highly engineered power transmission and fluid power products to other companies (B2B) across a diverse range of industrial and automotive applications. According to its public filings, no single customer accounts for more than 10% of its net sales, indicating a broad and diversified customer base.

However, Gates' customers generally fall into the following categories, with illustrative examples of public companies that operate in these sectors and would typically purchase such products. Please note that these are examples of the types of companies in Gates' customer base and not necessarily named, disclosed major customers due to the diversified nature of their sales:

• Original Equipment Manufacturers (OEMs): These are companies that integrate Gates' components (like belts, hoses, and fluid power products) into their finished machinery and vehicles. Gates supplies critical parts for various heavy industries.
  • Caterpillar Inc. (CAT) - A leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
  • Deere & Company (DE) - A global manufacturer of agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment.
  • PACCAR Inc (PCAR) - A technology company that manufactures light, medium, and heavy-duty trucks under the Kenworth, Peterbilt, and DAF nameplates.
  • Cummins Inc. (CMI) - A global power leader that designs, manufactures, distributes, and services engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions, and electrical power generation systems.
• Industrial Distributors: These companies purchase Gates' industrial power transmission and fluid power products for resale to a wide array of industrial end-users for maintenance, repair, and overhaul (MRO) applications.
  • W.W. Grainger, Inc. (GWW) - A broad-line distributor of maintenance, repair, and operating (MRO) products and services.
  • Applied Industrial Technologies, Inc. (AIT) - A distributor of industrial motion, fluid power, flow control, and automation technologies, as well as MRO supplies.
• Automotive Aftermarket Distributors: These distributors sell Gates' automotive belts, hoses, and tensioners as replacement parts for vehicles to repair shops and consumers.
  • Genuine Parts Company (GPC) - A distributor of automotive replacement parts (primarily through its NAPA Auto Parts business) and industrial replacement parts.
  • O'Reilly Automotive, Inc. (ORLY) - A retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories.
  • AutoZone, Inc. (AZO) - A retailer and distributor of automotive replacement parts and accessories.

Ivo Jurek, Chief Executive Officer and Director

Mr. Jurek has served as Chief Executive Officer and Director of Gates Industrial Corporation plc since May 2015, joining the company when it was a portfolio company of Blackstone. Prior to his role at Gates, he was President of Eaton's Electrical business in Asia Pacific from November 2012. His career in the industrials sector also includes significant general management positions at Cooper Industries (where he served as Group President for Cooper Power Systems—Cooper Bussmann), International Rectifier Corporation, and TRW Inc.

L. Brooks Mallard, Executive Vice President and Chief Financial Officer

Mr. Mallard has served as Executive Vice President and Chief Financial Officer of Gates Industrial since February 2020. Before joining Gates, he was the Chief Financial Officer of Henniges Automotive. Previously, he served as Executive Vice President and Chief Financial Officer of Jeld-Wen, where he guided the company from private equity ownership through an initial public offering on the NYSE, indicating a pattern of managing companies backed by private equity firms. He has also held senior financial leadership roles with TRW Automotive, Cooper Industries plc, Thomas & Betts, and Briggs & Stratton during his career.

Thomas G. Pitstick, President, Americas

Mr. Pitstick has served as President, Americas since August 2024. He joined Gates in January 2016 and has held various leadership roles, including President of APAC, Chief Strategy Officer, Chief Marketing Officer, and Senior Vice President of Innovation. Prior to Gates, he was Senior Vice President of Marketing — Electrical Sector with Eaton Corporation. He also held positions at Cooper Industries, including Vice President and General Manager of the Cooper Power Systems Energy Automation Solutions business unit.

Cristin C. Bracken, Executive Vice President, Chief Legal Officer and Corporate Secretary

Ms. Bracken serves as Executive Vice President, Chief Legal Officer, and Corporate Secretary for Gates Industrial Corporation plc.

Gwendolyn Ann Montgomery, Executive Vice President and Chief Human Resources Officer

Ms. Montgomery serves as Executive Vice President and Chief Human Resources Officer for Gates Industrial Corporation plc.

Key Risks to Gates Industrial (GTES)

Gates Industrial Corporation (GTES) faces several key risks that could impact its business operations and financial performance. These risks primarily stem from its exposure to cyclical markets, potential disruptions within its supply chain, and the competitive landscape driven by technological advancements.

1. Market Dependence and Economic Cyclicality: Gates Industrial's revenue is heavily reliant on the performance of the industrial and automotive markets, which are inherently subject to economic cycles and fluctuations in demand. Weakness in key industrial markets and broader economic slowdowns can significantly impede the company's growth trajectory and earnings resilience. For instance, the company's industrial segment experienced a 12.7% revenue decline in 2023 due to market volatility.
2. Supply Chain Disruptions and Raw Material Cost Volatility: The company is vulnerable to global supply chain challenges, including shortages of raw materials, transportation delays, and significant volatility in raw material costs. These disruptions can affect Gates' ability to meet customer demand, lead to production delays, and impact profit margins. Raw material costs, for example, saw a 15.6% increase in 2023.
3. Competition and Pace of Technological Transformation: Gates Industrial operates in a competitive environment where numerous global and regional players vie for market share in the power transmission and fluid power sectors. The rapid pace of technological advancements, such as automation, IoT, and AI, necessitates continuous adaptation and innovation. Furthermore, the company is undergoing a strategic shift towards higher-value applications in areas like data centers and e-mobility, and there is a risk that these new markets may not scale linearly, impacting the anticipated benefits of this transformation.

The accelerating global trend towards electrification of vehicles (automotive and off-highway) and industrial equipment. This shift reduces the demand for many traditional belts, hoses, and hydraulic components that are integral to internal combustion engines and conventional hydraulic systems, which currently constitute a significant portion of Gates Industrial's product portfolio. While Gates is adapting its offerings to support electric powertrains (e.g., thermal management systems, auxiliary belts), the fundamental architecture of electric systems typically requires fewer of their legacy mechanical and fluid power products, posing a long-term threat to core revenue streams.

• Power Transmission Belts: The global power transmission belting market size is estimated at approximately USD 12.69 billion in 2025 and is projected to grow to around USD 24.02 billion by 2034. Another estimate for the global power transmission belts market valued it at USD 11.55 billion in 2023, with a projection to reach USD 16.34 billion by 2030. The global industrial power transmission belts market is valued at USD 6.2 billion in 2025 and is expected to reach USD 11.3 billion by 2033.
• Fluid Power Products (including industrial and hydraulic hoses): The global fluid power equipment market, which includes hydraulic components, was valued at USD 51.9 billion in 2024 and is expected to reach USD 90.2 billion by 2033. Other sources estimate the global fluid power equipment market size to be around USD 48.7 billion for 2025, growing to USD 73.5 billion by 2032, or USD 47.69 billion in 2024, projected to reach USD 75.55 billion by 2032. For industrial hoses specifically, the global market size was estimated at USD 15.48 billion in 2025 and is expected to reach approximately USD 27.82 billion by 2034.
• Automotive Belts and Hoses: The global automotive engine belt and hoses market size is expected to grow from USD 25.2 billion in 2023 to USD 44.21 billion by 2033. Another report indicates the global automotive belts and hoses market size at USD 23.17 billion in 2025, with an expectation to reach USD 31.55 billion by 2030.

Gates Industrial (symbol: GTES) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Growth in Personal Mobility: The company anticipates continued strong growth in its Personal Mobility segment, projecting a compound annual growth rate of approximately 30% over the next three years. This growth is driven by new design wins and electrification trends, with investments being made to enter new applications and expand commercial competencies.
2. Expansion in Data Center Liquid Cooling Solutions: Gates Industrial sees the data center liquid cooling market as an expanding opportunity. Although currently a small base, this segment has a pipeline exceeding $150 million and is positioned for meaningful growth as broader adoption accelerates.
3. Geographical Expansion into Emerging Markets: Gates Industrial's expansion strategy includes geographical diversification, with a focus on emerging markets, particularly in Asia and Latin America. This aims to capture a larger market share in regions experiencing rapid industrialization and infrastructure development.
4. New Product Development for Electric Vehicles and Automation: The company is investing in enhancing its product portfolio through new product development, especially for the electric vehicle (EV) and automation industries. These innovations are expected to translate into relevance across new applications.
5. Continued Growth in the Automotive Replacement Channel: The automotive replacement channel has been a consistent contributor to revenue, showing low to mid-single-digit growth. This channel is expected to continue supporting overall revenue expansion.

Share Repurchases

• Gates Industrial authorized a new share repurchase program of up to $300 million in October 2025, valid through December 2026. This replaced a prior authorization.
• The company repurchased $175 million of its stock in 2024.
• In August 2024, Gates entered into a contract to repurchase $125 million of ordinary shares in conjunction with a secondary offering by affiliates of Blackstone Inc.

Share Issuance

• In August 2024, certain selling stockholders affiliated with Blackstone Inc. conducted a secondary offering of 20,000,000 ordinary shares, with Gates Industrial not receiving any proceeds from this sale.
• Another secondary offering of 11,635,224 ordinary shares by Blackstone affiliates took place in October 2024, from which Gates did not receive proceeds.
• The number of ordinary shares outstanding has been declining, from 0.288 billion in 2022 to 0.260 billion as of June 30, 2025, largely due to repurchases.

Capital Expenditures

• Capital expenditures are anticipated to be approximately $120 million for both 2025 and 2024.
• In 2022, capital expenditures amounted to $179 million.
• The primary focus of capital expenditures includes investments aimed at driving growth, improving profitability, adding new capacity, and executing footprint optimization initiatives to reduce structural costs.