Gates lifts full-year forecast on record Q2 sales

Industrial powerhouse Gates Industrial Corp. has upgraded its full-year outlook after posting record second-quarter sales and earnings for 2026. For the three months ended 27 June, net sales climbed 6.6% year-on-year to $942 million (€815 million), driven by 4.9% core sales growth. Adjusted EBITDA rose more than 6% to $211 million, yielding a 22.5% margin. CEO Ivo Jurek called the quarter “strong,” noting “record sales and EPS” and “improving order momentum globally.” Gates now expects full-year core sales growth of 2.5–4.5%, up from the prior 1.0–4.0% range, and lifted the midpoint of its adjusted earnings guidance by $10 million to $800–830 million. Capital expenditure guidance remains around $120 million. Segment-wise, power transmission sales jumped 7.0% to $588 million (5.3% core growth), with adjusted earnings up 9.8% to $135 million. Fluid power sales rose 5.8% to $353 million (4.2% core growth), though adjusted earnings were broadly flat at $76.6 million. Jurek emphasized the group is “in solid position to capitalise on strengthening industrial demand” and anticipates higher second-half sales growth than previously guided.