Gates

GTES · NYSE · Industrials · Financials, fiscal 2016 to 2025

GTES · Last close · November 6, 2026

$24.10

Gates' revenue rose 1.0% to $3.4 billion in fiscal 2025. Its operating margin was 13.5%, down from 13.8% a year earlier. Free cash flow was $405 million, up 36.6%. It paid out $119 million in dividends and buybacks, 29% of free cash flow. The diluted share count fell 1.6%.

Gates Industrial Corporation Ltd. Latest fiscal year ended December 31, 2025 10-K filed February 12, 2026 · 0001628280-26-007719 Updated November 5, 2026

Revenue

$3.4B

1.0%

Operating margin

13.5%

0.3 pts

Net income

$251M

29.0%

Free cash flow

$405M

36.6%

Return on capital

7.5%

1.3 pts

Market cap

$6.2B

Nov 6 close

P/E

16.9x

On $1.43 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Gates does

Gates makes belts, hoses, tubing and fittings that transmit power and move fluid in machines and vehicles. Its customers are mainly aftermarket channel customers, such as distributors that sell replacement parts, and also original equipment manufacturers (the companies that build the machines). It says the majority of its revenue comes from aftermarket channels. Its products serve markets such as automotive replacement, industrial equipment, energy and resources, and personal mobility.

Gates reports two segments. Power Transmission makes belts and related parts that transfer power; it was about 62% of fiscal 2025 net sales. Fluid Power makes hoses, tubing and fittings that carry fluid at high pressure; it was about 38%. Total net sales were $3,443.2 million.

Gates says its parts wear out and are often replaced as routine maintenance, which creates repeat sales. It sells under the Gates brand worldwide and has been in business since 1911. It listed on the New York Stock Exchange in 2018.

Its biggest risks, as it describes them

Changes in U.S. policies or laws that could hurt its operations and results.
Risks of operating in many countries, including political and economic problems.
Trouble getting raw materials and manufacturing inputs at good prices or in time.
Changes in the finances or buying habits of the distributors and other partners that sell its products.
Competition that could limit its growth or squeeze its margins.

From Gates's annual report on Form 10-K, filed February 12, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2025, earnings per share grew 17.2% a year and net income 17.8% a year, as new shares raised the share count by 5% and diluted each share's earnings.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	658	578	721	682	812
Debt incl. finance leases	2,568	2,465	2,453	2,353	2,236
Net debt (negative means net cash)	1,910	1,887	1,733	1,671	1,424
Net debt to EBITDA	2.7x	3.1x	2.6x	2.4x	2.1x
Debt to equity	0.8x	0.8x	0.8x	0.8x	0.7x
Interest coverage	3.6x	2.8x	2.8x	3.0x	3.7x
Current ratio	2.7x	3.0x	3.1x	3.2x	3.4x
Quick ratio	1.9x	2.1x	2.2x	2.3x	2.4x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Gates' revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Gates' projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought Gates shares on the open market, and 3 insiders sold $2.0 million.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 6, 2026	Peifang ZhangDirector	Sold	6,000	$28.62	$171,720	Form 4
Aug 5, 2026	Peifang ZhangDirector	Sold	6,000	$29.56	$177,360	Form 4
Aug 4, 2026	Peifang ZhangDirector	Sold	5,000	$29.76	$148,800	Form 4
Nov 26, 2025	Gwendolyn Ann MontgomeryChief Human Resources Officer	Sold	40,996	$22.60	$926,510	Form 4
Nov 17, 2025	Gwendolyn Ann MontgomeryChief Human Resources Officer	Sold	2,338	$21.64	$50,594	Form 4
Nov 12, 2025	Lawrence B MallardChief Financial Officer	Sold	22,188	$22.77	$505,221	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	8 of 9	7 of 9	8 of 9
Rule of 40	12.2%	4.2%	12.8%
Altman Z''	3.55	3.73	3.91
Accruals ratio	−3.4%	−2.6%	−3.2%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Pass	Pass
Current ratio rose	Pass	Pass	Pass
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Pass	Fail	Pass
F-score	8 of 9	7 of 9	8 of 9

Companies that report no gross profit are scored on the other eight.

Compare

Put Gates side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Gates	FY25	1.0%	13.5%	11.8%	7.5%	2.1x	8
IDEX	FY25	5.8%	20.2%	17.8%	10.2%	1.4x	7	Compare
Middleby	FY25	1.6%	18.0%	17.5%	8.7%	2.9x	4	Compare
Carpenter Technology	FY26	8.6%	22.5%	11.6%	23.7%	0.3x	9	Compare
JBT Marel	FY25	121.3%	5.0%	6.3%	3.9%	3.8x	4	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	2,747	3,042	3,348	3,087	2,793	3,474	3,554	3,570	3,408	3,443
Revenue growth	—	10.7%	10.1%	−7.8%	−9.5%	24.4%	2.3%	0.5%	−4.5%	1.0%
Gross profit	1,061	1,218	1,331	1,142	1,035	1,339	1,251	1,359	1,358	1,372
Research and development	68	69	71	68	67	71	69	66	66	72
Operating income	305	403	497	347	211	484	384	460	472	465
Net income	58	151	245	690	79	297	221	233	195	251
Diluted EPS (US$)	0.23	0.60	0.84	2.37	0.27	1.00	0.77	0.84	0.74	0.96
Diluted shares (millions)	248	250	292	292	292	297	288	276	265	260
Cash flow
Cash from operations	377	320	314	349	309	382	266	481	380	478
Capital expenditure	59	101	166	72	58	78	78	61	83	73
Free cash flow	318	219	147	277	251	305	188	420	296	405
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	2	2	0	0	0	11	176	252	176	119
Acquisitions	0	111	51	0	0	0	0	0	0	0
Stock-based compensation	4	5	6	15	20	25	44	27	29	27
Balance sheet at fiscal year end
Cash and short-term investments	529	564	423	635	521	658	578	721	682	812
Debt incl. finance leases	—	3,956	3,005	2,960	2,712	2,568	2,465	2,453	2,353	2,236
Total assets	—	6,854	6,723	7,411	7,426	7,533	7,192	7,254	6,786	7,151
Total liabilities	—	5,425	4,389	4,401	4,241	4,052	3,748	3,711	3,446	3,462
Shareholders' equity	1,068	1,015	1,947	2,651	2,806	3,100	3,110	3,220	3,024	3,334
Margins and ratios
Gross margin	38.6%	40.0%	39.8%	37.0%	37.0%	38.5%	35.2%	38.1%	39.9%	39.8%
Operating margin	11.1%	13.2%	14.8%	11.2%	7.6%	13.9%	10.8%	12.9%	13.8%	13.5%
Net margin	2.1%	5.0%	7.3%	22.4%	2.8%	8.6%	6.2%	6.5%	5.7%	7.3%
Free cash flow margin	11.6%	7.2%	4.4%	9.0%	9.0%	8.8%	5.3%	11.8%	8.7%	11.8%
Rule of 40 (growth + FCF margin)	—	17.9%	14.5%	1.2%	−0.6%	33.2%	7.6%	12.2%	4.2%	12.8%
Return on capital	—	—	9.1%	6.8%	3.9%	8.5%	6.8%	7.8%	6.2%	7.5%
Return on equity	—	—	16.6%	30.0%	2.9%	10.1%	7.1%	7.4%	6.2%	7.9%
Return on assets	—	—	3.6%	9.8%	1.1%	4.0%	3.0%	3.2%	2.8%	3.6%
Net debt to EBITDA	—	5.5x	3.6x	4.1x	5.1x	2.7x	3.1x	2.6x	2.4x	2.1x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Gates' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Gates.