Revenue growth remains stagnant with fluctuations between a 5.4% decline and a 3.2% increase, while operating margins remain constrained between 12.9% and 16.0%.
| 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 |
|---|
| Sales/Revenue | 3.45B | 3.44B | 3.41B | 3.57B | 3.55B | 3.47B | 2.79B | 3.09B | 3.35B | 3.04B | 2.75B | 2.75B | 2.95B | 2.92B |
| Revenue Growth % | 1.58% | 1.03% | -4.54% | 0.45% | 2.3% | 24.4% | -9.53% | -7.78% | 10.06% | 10.73% | 0.07% | -6.86% | 0.84% | - |
| Cost of Goods Sold | 2.06B | 2.05B | 2.05B | 2.21B | 2.3B | 2.14B | 1.76B | 1.94B | 2.02B | 1.82B | 1.69B | 1.71B | 1.83B | 1.87B |
| COGS % of Revenue | - | 59.51% | 60.14% | 61.94% | 64.81% | 61.46% | 62.95% | 62.99% | 60.25% | 59.96% | 61.38% | 62.26% | 62.19% | 64.01% |
| Gross Profit | 1.38B | 1.39B | 1.36B | 1.36B | 1.25B | 1.34B | 1.03B | 1.14B | 1.33B | 1.22B | 1.06B | 1.04B | 1.11B | 1.05B |
| Gross Margin % | 40.13% | 40.49% | 39.86% | 38.06% | 35.19% | 38.54% | 37.05% | 37.01% | 39.75% | 40.04% | 38.62% | 37.74% | 37.81% | 35.99% |
| Gross Profit Growth % | - | 2.63% | -0.03% | 8.66% | -6.62% | 29.43% | -9.44% | -14.14% | 9.24% | 14.82% | 2.38% | -7.03% | 5.96% | - |
| Operating Expenses | 903.9M | 865.9M | 879.8M | 896.3M | 866.6M | 855.1M | 823.6M | 786.4M | 820.1M | 776.8M | 740.5M | 784.1M | 808.3M | 936.6M |
| OpEx % of Revenue | - | 25.15% | 25.81% | 25.11% | 24.38% | 24.61% | 29.49% | 25.47% | 24.5% | 25.54% | 26.96% | 28.56% | 27.43% | 32.04% |
| Selling, General & Admin | 884.2M | 794M | 870M | 882.2M | 853.7M | 852.7M | 776.9M | 777.3M | 805.8M | 777.1M | 737.7M | 784.5M | 784.5M | 810.9M |
| SG&A % of Revenue | - | 23.06% | 25.53% | 24.71% | 24.02% | 24.54% | 27.82% | 25.18% | 24.07% | 25.55% | 26.85% | 28.58% | 26.62% | 27.74% |
| Research & Development | 71.9M | 71.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 47.2M | 45.6M |
| R&D % of Revenue | - | 2.09% | - | - | - | - | - | - | - | - | - | - | 1.6% | 1.56% |
| Other Operating Expenses | 1000K | 0 | 9.8M | 14.1M | 12.9M | 2.4M | 46.7M | 9.1M | 14.3M | -300K | 2.8M | -400K | 0 | 0 |
| Operating Income | 478M | 528.3M | 478.7M | 462.6M | 384M | 484.1M | 211.1M | 346.8M | 496.8M | 402.9M | 305.3M | 184.6M | 330M | 240.9M |
| Operating Margin % | 13.87% | 15.34% | 14.05% | 12.96% | 10.8% | 13.93% | 7.56% | 11.23% | 14.84% | 13.25% | 11.11% | 6.72% | 11.2% | 8.24% |
| Operating Income Growth % | - | 10.36% | 3.48% | 20.47% | -20.68% | 129.32% | -39.13% | -30.19% | 23.31% | 31.97% | 65.38% | -44.06% | 36.99% | - |
| EBITDA | 639.6M | 742.1M | 695.6M | 680.1M | 601.2M | 706.7M | 429.7M | 569M | 715.3M | 615.1M | 546.1M | 454.5M | 538.7M | 469.8M |
| EBITDA Margin % | 18.56% | 21.55% | 20.41% | 19.05% | 16.92% | 20.34% | 15.38% | 18.43% | 21.37% | 20.22% | 19.88% | 16.56% | 18.28% | 16.07% |
| EBITDA Growth % | -8.41% | 6.68% | 2.28% | 13.12% | -14.93% | 64.46% | -24.48% | -20.45% | 16.29% | 12.63% | 20.15% | -15.63% | 14.67% | - |
| D&A (Non-Cash Add-back) | 161.6M | 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 |
| EBIT | 373.9M | 528.3M | 460.7M | 439.4M | 397.2M | 483.2M | 225.3M | 356.6M | 479.4M | 344.1M | 309.3M | 254.3M | 330M | 240.9M |
| Net Interest Income | -107.2M | -139.4M | -156.7M | -156M | -141.6M | -132.1M | -153.7M | -159.9M | -196M | -230M | -216.3M | -212.6M | 0 | 0 |
| Interest Income | 7.4M | 9.6M | 13.7M | 17.5M | 3.6M | 3.2M | 4.3M | 5.7M | 3.7M | 4.6M | 0 | 0 | 131.2M | 205.4M |
| Interest Expense | 144.5M | 149M | 170.4M | 173.5M | 145.2M | 135.3M | 158M | 165.6M | 199.7M | 234.6M | 216.3M | 212.6M | 0 | 0 |
| Other Income/Expense | -153.7M | -188.1M | -150.7M | -177.3M | -126.2M | -134.4M | -140.1M | -148M | -193.3M | -293.4M | -212.3M | -142.9M | -125.3M | -331.1M |
| Pretax Income | 324.3M | 340.2M | 328M | 285.3M | 257.8M | 349.7M | 71M | 198.8M | 303.5M | 109.5M | 93M | 41.7M | 175M | -90.2M |
| Pretax Margin % | 9.41% | 9.88% | 9.62% | 7.99% | 7.25% | 10.06% | 2.54% | 6.44% | 9.07% | 3.6% | 3.39% | 1.52% | 5.94% | -3.09% |
| Income Tax | 49.4M | 63.1M | 107.5M | 28.3M | 14.9M | 18.4M | -19.3M | -495.9M | 31.8M | -72.5M | 21.1M | -9.2M | 39.2M | 74.3M |
| Effective Tax Rate % | 15.23% | 18.55% | 32.77% | 9.92% | 5.78% | 5.26% | -27.18% | -249.45% | 10.48% | -66.21% | 22.69% | -22.06% | 22.4% | -82.37% |
| Net Income | 249.1M | 251.4M | 194.9M | 232.9M | 220.8M | 297.1M | 79.4M | 690.1M | 245.3M | 151.3M | 57.7M | 24.9M | 107.3M | -39M |
| Net Margin % | 7.23% | 7.3% | 5.72% | 6.52% | 6.21% | 8.55% | 2.84% | 22.35% | 7.33% | 4.97% | 2.1% | 0.91% | 3.64% | -1.33% |
| Net Income Growth % | 14.85% | 28.99% | -16.32% | 5.48% | -25.68% | 274.18% | -88.49% | 181.33% | 62.13% | 162.22% | 131.73% | -76.79% | 375.13% | - |
| Net Income (Continuing) | 208.5M | 277.1M | 220.5M | 257M | 242.9M | 331.3M | 90.3M | 694.7M | 271.7M | 182M | 71.9M | 50.9M | 135.8M | -39M |
| Discontinued Operations | -300K | -800K | -600K | -600K | -400K | 0 | -300K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 360.9M | 355.2M | 316.7M | 323.7M | 333.6M | 381.7M | 379.3M | 359.7M | 386.3M | 413.8M | 377.1M | 406.3M | 235.1M | 249.3M |
| EPS (Diluted) | - | 0.96 | 0.74 | 0.85 | 0.77 | 1.00 | 0.27 | 2.37 | 0.84 | 0.53 | 0.20 | 0.09 | 98.68 | -35.86 |
| EPS Growth % | -10.84% | 29.73% | -12.94% | 10.39% | -23% | 270.37% | -88.61% | 182.14% | 58.49% | 165% | 128.05% | -99.91% | 375.18% | - |
| EPS (Basic) | - | 0.98 | 0.75 | 0.86 | 0.78 | 1.02 | 0.27 | 2.38 | 0.86 | 0.53 | 0.20 | 0.09 | 98.68 | -35.86 |
| Diluted Shares Outstanding | 0 | 260.53M | 263.38M | 275.65M | 287.59M | 297.29M | 292.12M | 291.63M | 291.7M | 283.97M | 283.97M | 283.97M | 1.09M | 1.09M |
| Basic Shares Outstanding | 0 | 261.88M | 259.87M | 271.88M | 284.06M | 291.62M | 290.68M | 290.06M | 285.91M | 283.97M | 283.97M | 283.97M | 1.09M | 1.09M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Stagnant Organic Revenue Growth
According to the provided quarterly income statements, GTES has struggled to generate consistent top-line momentum, with revenue growth fluctuating between a 5.4% decline and a 3.2% increase over the last ten quarters, suggesting a lack of clear organic expansion in its core industrial markets.
The company's inability to consistently grow revenue above low single digits implies that its reliance on replacement cycles may be offsetting potential gains from new product adoption. Investors should monitor whether this stagnation reflects a broader cyclical downturn in industrial production or a loss of market share to lower-cost regional competitors.
As reported in financial statements, the company has maintained gross margins consistently near the 40% threshold, peaking at 40.8% in 2025Q2, which indicates a robust ability to sustain premium pricing despite the volatility in petrochemical-based raw material inputs like synthetic rubber and resins.
This margin stability suggests that the 'fit-and-forget' brand reputation provides a meaningful buffer against commodity price fluctuations. However, the persistence of these margins warrants further investigation into whether the company can continue to pass through costs if industrial demand weakens further.
Based on the income statement data, operating income has failed to scale meaningfully relative to gross profit, with operating margins hovering between 12.9% and 16.0%, suggesting that SG&A expenses remain a significant drag on the company's ability to translate gross profit into bottom-line earnings.
The high level of SG&A relative to operating income implies that the global logistics and distribution network required to support a high-SKU business model creates a structural floor for operating costs. This lack of operating leverage may limit EPS expansion unless management can achieve greater efficiencies in its administrative and distribution footprint.
Analysis of the quarterly figures reveals significant EPS volatility, with growth rates swinging from a 100% decline in 2026Q1 to a 77.8% increase in 2025Q3, indicating that reported net income is frequently impacted by non-operating items or inconsistent quarterly tax and restructuring charges.
The recurring nature of these fluctuations suggests that investors should focus on normalized operating performance rather than headline EPS, which appears susceptible to accounting noise. The consistent presence of stock-based compensation, averaging over $6 million per quarter, further dilutes the quality of earnings available to common shareholders.
Quick answers to the most common questions about buying GTES stock.
For fiscal year 2025, Gates Industrial Corporation plc (GTES) reported total revenue of $3.44B. This represents a 17.8% increase compared to $2.92B in 2012.
Gates Industrial Corporation plc (GTES) is profitable, generating $251.4M in net income for the fiscal year ending 2025 with a net profit margin of 7.3%.
Gates Industrial Corporation plc (GTES) reported an operating income of $528.3M, resulting in an operating profit margin of 15.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Gates Industrial Corporation plc (GTES) generated $1.39B in gross profit for the year, representing a gross profit margin of 40.5%. This demonstrates the company's core pricing power and production efficiency.