Gates Industrial Corporation Ltd. reported financial results for the third quarter of 2026, which ended on September 26, 2026. The company announced an increase to its full-year 2026 financial guidance for profitability and adjusted earnings per share.
For the third quarter, Gates reported net sales of $903.6 million, representing a 5.6% increase compared to the prior-year period. Net income attributable to shareholders was $86.5 million, or $0.34 per diluted share. The company also reported an Adjusted Net Income per diluted share of $0.47 and Adjusted EBITDA of $215.4 million, with a margin of 23.8%.
Segment performance showed growth in both the Power Transmission and Fluid Power segments. In the Power Transmission segment, net sales for the quarter were $560.1 million, up 5.0% year-over-year, with Adjusted EBITDA increasing to $137.1 million and a margin of 24.5%. The Fluid Power segment reported net sales of $343.5 million, a 6.5% increase, with Adjusted EBITDA of $78.3 million and a margin of 22.8%.
Gates has updated its full-year 2026 guidance. The company now expects Adjusted EBITDA to be between $809 million and $823 million, an increase of $1 million from the previous range of $800 million to $830 million. Adjusted earnings per share is expected to be between $1.66 and $1.72, up from the prior range of $1.62 to $1.70. Core sales growth for the year is expected to be between 3.2% and 3.8%. The company also noted that it remains on pace to achieve its previously communicated adjusted EBITDA margin target for the second half of 2026.
