Gates Industrial Corporation Plc · NYSE:GTES
Gates Industrial — Q4 2025 Earnings Presentation
24 slides from Gates Industrial's earnings presentation, Feb 12, 2026
Slide 1: Q4 2025 Earnings Presentation
Q4 2025 FEBRUARY 12, 2026 EARNINGS PRESENTATION
Slide 2: Legal Disclaimers
LEGAL DISCLAIMERS 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains, and management may make on our call today, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 19
Slide 3: 2025 Highlights and Achievements
2025 HIGHLIGHTS AND ACHIEVEMENTS 3 ▪ Outperformed our end markets in 2025; secular growth drivers accelerating • Industrial markets are stabilizing; Personal Mobility core revenue +26% YoY and Data Center revenues increased ~4x YoY ▪ Delivered record adjusted earnings metrics while offsetting macro
Slide 4: Key Financial Metrics at Annual Record Levels
KEY FINANCIAL METRICS AT ANNUAL RECORD LEVELS 4 ADJUSTED EBITDA ADJUSTED EPS NET LEVERAGE RATIO $770M 2.21x $1.52 $761M 1.85x $1.39 Prior High (FY ’24) 2025 Prior Low (FY ’24) 2025 Prior High (FY ’24) 2025 RECORD PERFORMANCE WHILE MANAGING THROUGH TROUGHING END MARKET DEMAND AND UNCERTAIN TRADE POLI
Slide 5: 2025 Adjusted EPS Walk
2025 ADJUSTED EPS WALK 5 $0.02 ($0.02) $1.52 $0.06 ($0.03) $0.10 $1.39 2024 Adjusted EPS Operating Performance F/X Interest and Tax Share Count Other 2025 Adjusted EPS EXPANDED ADJUSTED EPS HIGH SINGLE DIGITS YOY WHILE EXPERIENCING END MARKET HEADWINDS © 2026 Gates Corporation. All rights reserved.
Slide 6: Q4 2025 – Financial Performance
Q4 2025 – FINANCIAL PERFORMANCE 6 $856M Core Sales Performance In Line with Expectations ▪ ▪ Positive Industrial market growth, partially offset by Auto OEM OEM grew low-mid single digits; Aftermarket channel down slightly Net Sales $188M 21.9% Adjusted EBITDA margin ▪ ▪ Adjusted EBITDA margin incre
Slide 7: Segment Highlights
SEGMENT HIGHLIGHTS 7 ADJ. EBITDA NET SALES Q4 CORE GROWTH HIGHLIGHTS MARGIN Q4 2025 POWER TRANSMISSION $536.5M 22.0% 30 bps ▪ 28% growth in Personal Mobility 0.2% Core Growth ∆ EBITDA Margin ▪ Off-Highway grew low single digits ▪ Automotive OEM declined 2025 ▪ Double-digit growth in Industrial OEM s
Slide 8: Regional Core Revenue Performance
REGIONAL CORE REVENUE PERFORMANCE 8 Total Gates Greater China Q4 +0.6% 10% 2025 +0.7% North 11% EA&I America 46% Q4 North America Greater China REVENUE Q4 (2.5%) Q4 +3.6% 28% 2025 (0.5%) 2025 +3.5% 5% EMEA EMEA South America Q4 +5.8% 2025 +1.4% ▪ NA: Difficult Aftermarket South America East Asia & I
Slide 9: Q4 2025 Adjusted EPS Walk
Q4 2025 ADJUSTED EPS WALK 9 $0.01 ($0.02) $0.38 $0.03 $0.36 Q4 2024 Adj. EPS Operating Performance F/X Other Q4 2025 Adj. EPS OPERATING PERFORMANCE FUELED YOY EARNINGS GROWTH © 2026 Gates Corporation. All rights reserved.
Slide 10: Q4 2025 – Capital Efficiency & Cash Flow
Q4 2025 – CAPITAL EFFICIENCY & CASH FLOW 10 $236M Free Cash Flow 238% free cash flow conversion ▪ Improved operating working capital performance vs. prior year period ▪ Full year FCF conversion increased 18% 1.85x Net Leverage Ratio Record low leverage ratio ▪ Finished with over $800 million of cash
Slide 11: 2026 Outlook
2026 OUTLOOK 11 FULL YEAR 2026 CORE FREE CASH REVENUE ADJUSTED CAPITAL FLOW GROWTH EBITDA ADJUSTED EPS EXPENDITURES CONVERSION 1% to 4% $775M – $835M $1.52 – $1.68 ~$120M 90%+ KEY ASSUMPTIONS/CONSIDERATIONS Q1 ESTIMATES ▪ Solid core sales growth YoY anticipated Q2-Q4 ▪ Revenues: $845M - $875M ▪ Adju
Slide 12: 2026 Adjusted EPS Walk
2026 ADJUSTED EPS WALK 12 $0.01 ($0.01) $1.60 $0.01 $0.04 $0.03 $1.52 2025 Adjusted EPS Operating Performance F/X Tax & Interest Share Count Other 2026E Adjusted EPS (Midpoint) © 2026 Gates Corporation. All rights reserved.
Slide 13: Underlying 2026 End Market Growth Expectations
UNDERLYING 2026 END MARKET GROWTH EXPECTATIONS 13 FY 2025 SALES SPLITS 2025 End Market Expected Performance Trend vs PY Personal Automotive Aftermarket Energy & Mobility Resources 4% Automotive OEM 6% Auto Aftermarket Diversified Industrial Off-Highway Industrial 36% 19% Industrial On-Highway 8% Div
Slide 14: Summary Thoughts
SUMMARY THOUGHTS 14 ▪ 2025 was a record year for Gates • Generated record adjusted EBITDA dollars and adjusted EPS • Achieved net leverage ratio under 2x for the first time ▪ Building optimism for 2026 • Relative to 2025, we expect more of our end markets to show stable to positive demand trends • O
Slide 15: © 2026 Gates Corporation. All rights reserved.
15 © 2026 Gates Corporation. All rights reserved.
Slide 16: Appendix
APPENDIX © 2026 Gates Corporation. All rights reserved.
Slide 17: Reconciliations – Core Revenue Growth
RECONCILIATIONS – CORE REVENUE GROWTH 17 ( U SD in million s ) Power Transmission Fluid Power Q4 2025 Reconciliation of Core Sales Growth Net sales for the quarter ended December 31, 2025 $ 536.5 $ 319.7 $ 856.2 Impact on net sales of movements in currency rates (15.5) (6.5) (22.0) Core sales for th
Slide 18: Reconciliations – Adjusted EBITDA and Net Leverage
RECONCILIATIONS – ADJUSTED EBITDA AND NET LEVERAGE 18 (USD in millions) Q4 2025 Q4 2024 FY 2025 FY 2024 Reconciliation to Adjusted EBITDA (1) Other expenses (income) excludes foreign currency transaction Net Income from Continuing Operations $ 56.4 $ 41.2 $ 277.1 $ 220.5 losses and insurance recover
Slide 19: Reconciliations – Adjusted Net Income
RECONCILIATIONS – ADJUSTED NET INCOME 19 (USD in millions, except share numbers and per share amounts) Q4 2025 Q4 2024 FY 2025 FY 2024 Reconciliation to Adjusted Net Income Net Income Attributable to Shareholders $ 51.3 $ 36.6 $ 251.4 $ 194.9 Adjusted for: Loss on the disposal of discontinued operat
Slide 20: Reconciliations – Adjusted Net Income (cont.)
RECONCILIATIONS – ADJUSTED NET INCOME (CONT.) 20 (1) In July 2022, Gates suspended our operations in Russia. In September 2024, we deconsolidated the Russian subsidiary upon loss of control and recognized a deconsolidation loss. (2) Transaction-related expenses relate primarily to advisory fees and
Slide 21: Reconciliations – Free Cash Flow & Free Cash Flow Conversion
RECONCILIATIONS – FREE CASH FLOW & FREE CASH FLOW 21 CONVERSION ( U SD in million s ) Q4 2025 Q4 2024 FY 2025 FY 2024 Reconciliation of Free Cash Flow Net Cash Provided By Operating Activities $ 269.8 $ 190.9 $ 478.1 $ 379.6 Capital Expenditures (1) (33.5) (33.4) (113.9) (106.7) Free Cash Flow $ 236
Slide 22: Reconciliations – Return on Invested Capital (ROIC)
RECONCILIATIONS – RETURN ON INVESTED CAPITAL (ROIC) 22 (USD in millions) FY 2025 FY 2024 Return On Invested Capital (ROIC) LTM Adjusted EBITDA $ 770.1 $ 761.1 LTM Total depreciation and amortization (213.8) (216.9) LTM Amortization of intangible assets arising from the 2014 acquisition of Gates 115.
Slide 23: Reconciliations – Adjusted Gross Profit
RECONCILIATIONS – ADJUSTED GROSS PROFIT 23 (USD in millions, except share numbers and per share amounts) FY 2025 FY 2024 FY 2023 Reconciliation to Adjusted Gross Profit Net Sales $ 3,443.2 $ 3,408.2 $ 3,570.2 Cost of sales 2,071.5 2,049.7 2,211.3 Gross Profit $ 1,371.7 $ 1,358.5 $ 1,358.9 Adjusted f
Slide 24: Reconciliations – Segment Adjusted EBITDA Margin
RECONCILIATIONS – SEGMENT ADJUSTED EBITDA MARGIN 24 (USD in millions) Change Change Q4 2025 Q4 2024 FY 2025 FY 2024 Reconciliation to Segment Adjusted EBITDA Margin Power Transmission Net Sales $ 536.5 $ 520.0 $ 16.5 $ 2,147.1 $ 2,108.1 $ 39.0 Power Transmission Adjusted EBITDA $ 118.0 $ 112.9 $ 5.1