Free cash flow remains highly volatile, ranging from a $39.1 million deficit in 2024Q1 to a $251.0 million peak in 2025Q4, largely driven by working capital swings.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 501M | 478.1M | 379.6M | 481M | 265.8M | 382.4M | 309M | 348.9M | 313.5M | 313.5M | 371.6M | 275.9M | 284.3M | 438M |
| Operating CF Margin % | - | 13.89% | 11.14% | 13.47% | 7.48% | 11.01% | 11.06% | 11.3% | 9.36% | 10.31% | 13.53% | 10.05% | 9.65% | 14.99% |
| Operating CF Growth % | 349.39% | 25.95% | -21.08% | 80.96% | -30.49% | 23.75% | -11.44% | 11.29% | 0% | -15.64% | 34.69% | -2.95% | -35.09% | - |
| Net Income | 249.1M | 251.4M | 219.9M | 256.4M | 242.5M | 331.3M | 90M | 694.1M | 271.1M | 182.7M | 84.3M | 50.9M | 107.6M | 725.5M |
| Depreciation & Amortization | 217.3M | 213.8M | 216.9M | 217.5M | 217.2M | 222.6M | 218.6M | 222.2M | 218.5M | 212.2M | 240.8M | 269.9M | 208.7M | 228.9M |
| Stock-Based Compensation | 27.4M | 27.2M | 28.8M | 27.4M | 44.3M | 24.6M | 19.8M | 15M | 6M | 5.4M | 4.2M | 4.3M | 19.4M | 66.9M |
| Deferred Taxes | -32.2M | -26M | -12.1M | -65.7M | -79.7M | -94.3M | -47.7M | -648.4M | -64.9M | -162.8M | -54.3M | -67.4M | 0 | 0 |
| Other Non-Cash Items | -110.2M | -9.6M | -47.9M | -29.3M | -1M | 24.2M | 22.2M | 7.2M | 47.3M | 103.1M | 4.9M | -11.1M | 89.3M | -516.4M |
| Working Capital Changes | 129.5M | 21.3M | -26M | 74.7M | -157.5M | -126M | 6.1M | 58.8M | -164.5M | -27.1M | 91.7M | 29.3M | -140.7M | -87.2M |
| Change in Receivables | 6.5M | 18.4M | 8.4M | 45.6M | -129.3M | -22.3M | 9.7M | 41.8M | -49.6M | -24.6M | -44.8M | 4.3M | -111.6M | -69.7M |
| Change in Inventory | 39M | 14.3M | -64M | 24.5M | 2.9M | -192.4M | -22.1M | 65.1M | -96.1M | -45.4M | 39.5M | 9.5M | -29.1M | -17.5M |
| Change in Payables | -32.9M | 4.3M | -27.6M | -17.8M | -15.9M | 99.6M | 28.6M | -48.2M | 42.1M | 49.9M | 50.2M | 46.5M | 0 | 0 |
| Cash from Investing | -115.2M | -119M | -104.4M | -81.8M | -90.7M | -86M | -77.5M | -78M | -243.6M | -220.6M | -60.1M | -60.5M | -78.9M | 1.85B |
| Capital Expenditures | -72.4M | -73.2M | -83.1M | -61.2M | -77.6M | -87M | -67.4M | -83.1M | -182.7M | -111.1M | -68.1M | -85.8M | -81.9M | -103.3M |
| CapEx % of Revenue | 2.1% | 2.13% | 2.44% | 1.71% | 2.18% | 2.5% | 2.41% | 2.69% | 5.46% | 3.65% | 2.48% | 3.13% | 2.78% | 3.53% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -50.9M | -110.7M | -600K | -600K | -300K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -42.8M | -45.8M | -15M | -20.6M | -13.1M | 1M | -10.1M | 5.1M | -10M | 1.2M | 11.8M | 29.9M | 3.3M | 1.95B |
| Cash from Financing | -251.6M | -251.1M | -286.7M | -258.3M | -253.1M | -148.6M | -353.8M | -59.3M | -198.9M | -75.3M | -110.8M | -73.9M | -290.3M | -2.33B |
| Debt Issued (Net) | -118.7M | -123.4M | -108.4M | -19.6M | -31.9M | -91M | -331.2M | -25.1M | -933.5M | -32.2M | -67.2M | -51.7M | -146.7M | 0 |
| Equity Issued (Net) | -97.7M | -108.9M | -161.2M | -233M | -160M | -6M | 3.1M | 1.8M | 799.7M | -1M | -900K | 10.7M | -2.4M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -122.9M | -119.3M | -176.1M | -251.7M | -175.9M | -10.6M | 0 | 0 | 0 | -1.6M | -2M | -1.5M | -2.4M | -1.17B |
| Other Financing | -35.2M | -18.8M | -17.1M | -5.7M | -61.2M | -51.6M | -25.7M | -36M | -65.1M | -42.1M | -42.7M | -32.9M | -141.2M | -2.33B |
| Net Change in Cash | 145.1M | 130.2M | -39.2M | 142.6M | -79.5M | 136.8M | -112.5M | 212M | -141.4M | 37.2M | 191.5M | 127.3M | -91.1M | -46.1M |
| Free Cash Flow | 421.3M | 404.9M | 296.5M | 409.6M | 178.8M | 295.4M | 241.6M | 265.8M | 130.8M | 202.4M | 303.5M | 190.1M | 202.4M | 334.7M |
| FCF Margin % | 12.22% | 11.76% | 8.7% | 11.47% | 5.03% | 8.5% | 8.65% | 8.61% | 3.91% | 6.65% | 11.05% | 6.93% | 6.87% | 11.45% |
| FCF Growth % | 43.74% | 36.56% | -27.61% | 129.08% | -39.47% | 22.27% | -9.1% | 103.21% | -35.38% | -33.31% | 59.65% | -6.08% | -39.53% | - |
| FCF per Share | - | 1.55 | 1.13 | 1.49 | 0.62 | 0.99 | 0.83 | 0.91 | 0.45 | 0.71 | 1.07 | 0.67 | 186.15 | 307.74 |
| FCF Conversion (FCF/Net Income) | 1.69x | 1.90x | 1.95x | 2.07x | 1.20x | 1.29x | 3.89x | 0.51x | 1.28x | 2.07x | 6.44x | 11.08x | 2.65x | -11.23x |
| Interest Paid | 84.2M | 120.7M | 132.6M | 155.1M | 118.7M | 121.2M | 135.7M | 150.8M | 157.9M | 198M | 198.8M | 208M | 0 | 0 |
| Taxes Paid | 64.7M | 111.5M | 122.3M | 110.5M | 117.8M | 83M | 60.4M | 108.8M | 114M | 84.8M | 41.7M | 86.4M | 0 | 0 |
Working capital volatility
Based on the provided quarterly data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from a low of -0.53 in 2024Q1 to a high of 5.26 in 2025Q4, indicating significant volatility in the underlying quality of reported earnings.
The extreme variance in the conversion of net income to cash suggests that reported profitability is frequently decoupled from actual cash generation. Investors should monitor whether these fluctuations are driven by seasonal inventory management or more persistent issues in revenue recognition and collection cycles.
As reported in financial statements, free cash flow trajectory remains inconsistent, with quarterly figures ranging from a deficit of $39.1M in 2024Q1 to a peak of $251.0M in 2025Q4, reflecting a business model that struggles to maintain a predictable cash conversion profile across different periods.
The lack of a stable FCF trend complicates the assessment of the company's long-term self-funding capabilities. This inconsistency appears to be a byproduct of the company's reliance on large, periodic working capital swings rather than steady-state operational efficiency.
According to the cash flow statements, working capital changes are the primary determinant of quarterly cash flow, with a massive $180.9M inflow in 2025Q4 contrasting sharply with a $111.1M outflow in 2024Q1, highlighting the company's sensitivity to inventory and distributor-level stocking patterns.
These dramatic shifts in working capital suggest that the company's cash position is highly susceptible to channel-loading dynamics or supply chain timing. Such volatility warrants further investigation into whether these movements represent genuine operational shifts or temporary adjustments in distributor inventory levels.
Based on reported figures, the company has prioritized share repurchases, including a $125.8M outlay in 2024Q3, despite stagnant organic revenue growth, suggesting that management is utilizing excess cash to support EPS rather than reinvesting in internal growth or transformative acquisition opportunities.
The decision to allocate significant capital to buybacks while revenue growth remains near 1% may indicate a lack of high-return internal reinvestment projects. This strategy appears to prioritize short-term shareholder returns over the long-term structural expansion of the business.
Quick answers to the most common questions about buying GTES stock.
Gates Industrial Corporation plc (GTES) generated $478.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Gates Industrial Corporation plc (GTES) generated $404.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Gates Industrial Corporation plc (GTES) spent $73.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Gates Industrial Corporation plc (GTES) spent $119.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.