Gates Industrial reported third‑quarter 2025 revenue of $855.7 million, a 3.0% increase year‑over‑year, and net income of $81.6 million, translating to a diluted earnings per share of $0.31. Adjusted EBITDA rose to $195.8 million, giving the company a 22.9% margin—an improvement of 90 basis points over the prior quarter. Core sales grew 1.7% year‑over‑year, driven by strength in the automotive replacement and personal‑mobility segments.
Compared with the same quarter in 2024, Gates Industrial’s net sales were $830.7 million, down 4.8% year‑over‑year, and core sales declined 3.8%. Net income in Q3 2024 was $47.6 million ($0.18 EPS) and Adjusted EBITDA was $182.5 million (22.0% margin). The current quarter’s results therefore represent a clear turnaround in revenue, profitability and margin performance.
The company extended its share‑repurchase authorization by $300 million, extending the program through December 2026, and repaid $100 million of debt during the quarter. These actions reinforce Gates’ solid balance sheet and provide additional flexibility for capital deployment. The company also incurred restructuring expenses of $6.5 million, primarily for severance and footprint reduction actions, which are expected to pressure near‑term margins while supporting long‑term efficiency.
Gates updated its 2025 guidance, raising the adjusted earnings‑per‑share range to the high end of the prior forecast. The company now expects core revenue growth of 0.5% to 1.5% and adjusted EBITDA of $770 million to $790 million. The new share‑repurchase authorization and debt reduction are expected to support shareholder value moving forward.
Strategic initiatives continue to focus on footprint optimization, targeting a 24% adjusted EBITDA margin within 12–24 months, and expanding into high‑growth markets such as personal mobility and data‑center liquid cooling. The company remains mindful of supply‑chain disruptions, inflationary pressures and geopolitical risks, but cites strong demand in automotive replacement and personal‑mobility segments as key drivers of the current quarter’s performance.
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