Description
Gates Industrial: The Power Trio—Capacity Expansion, ERP Modernization, and New Growth Bets Collide!
based on the macroeconomic conditions. As outlined in the earnings discussion, Gates Industrial Corporation has navigated a third quarter of 2025 characterized by a complex landscape of subdued industrial demand and varied performance across its differing business segments. The company reported an adjusted EBITDA margin increase to 22.9%, a record third-quarter margin rate, indicating efficient cost management and improved profitability. Revenue trends showed a 1.7% core growth, translating to total sales of $856 million—up by 3%—aided by favorable currency impacts. The Personal Mobility segment stood out with over 20% year-on-year growth, elucidating a robust trajectory buoyed by design wins within this vertical. Conversely, the commercial On-Highway sector faced challenges with mid-single-digit declines due to decreasing production rates in North America, and the Off-Highway segment exhibited a mixed bag with gains in construction set against softness in agriculture across possibly North American and European markets.
