Gates Industrial stock posts record sales after guidance hike

Published on 10/04/2026 at 15:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Gates Industrial stock gained 4.34 percent on October 2 after the company expanded its belts business through Timken. Q2 sales reached USD 941.6 million and full-year guidance rose.

GTES, BMG391041073, Illustration mit AI erstellt.

Gates Industrial stock (ISIN BMG391041073) closed at USD 27.65 on the NYSE on October 2, 2026, up 4.34 percent from USD 26.50. The move followed a quarter in which Gates delivered record sales and raised its 2026 profitability outlook, while its completed Timken acquisition added manufacturing capacity in North America.

Record sales lift the outlook

Gates reported second-quarter 2026 revenue of USD 941.6 million, up 6.6 percent from the prior-year quarter, while adjusted earnings per share reached a quarterly record of USD 0.44. Yahoo Finance reported the figures from the July 31, 2026 earnings call.

Management raised full-year 2026 guidance to adjusted earnings per share of USD 1.62-1.70 and adjusted EBITDA of USD 800 million-830 million. The updated outlook implies core sales growth of 2.5-4.5 percent, with second-half core growth expected at 6 percent compared with 1 percent in the first half, according to Yahoo Finance.

Timken belts broaden the platform

On September 28, 2026, Gates completed its acquisition of Timken's belts business, including selected manufacturing assets. The transaction expands Gates' power transmission capacity and customer relationships across industrial OEM, aftermarket and mobility markets, while adding operational control of a belts facility in San Jose Iturbide, Mexico, PR Newswire reported.

The acquisition gives investors a concrete integration milestone alongside the earnings recovery. Gates' second-quarter adjusted EBITDA margin was 22.5 percent, and management is targeting an adjusted EBITDA margin of at least 23.5 percent in the second half of 2026, according to Yahoo Finance.

Analysts see further upside

Investing.com lists a Buy consensus from 12 analysts, with 8 Buy ratings, 4 Holds and 0 Sells. Its average 12-month price target is USD 33.33, with a high of USD 39.00 and a low of USD 29.00; the average target lies 20.58 percent above the October 2 closing price.

The market is therefore weighing two separate signals: stronger operating results and a broader platform against execution demands from the acquisition. Gates also faces uneven end markets, with agricultural demand remaining a drag in South America during the second quarter.

GTES remains below its yearly high

GTES closed at USD 27.65 on October 2, 2026, after trading between USD 26.85 and USD 27.93 during the session. The 52-week range is USD 20.88 to USD 30.34, while market capitalization stood at USD 7.0 billion and volume reached 1,670,856 shares.