Revenue reached $903.6M in 2026Q3 (up 9.6% year over year) with gross margin at 42.4%, but operating margin compressed to 14.5% from 15.7% the prior quarter as SG&A remained elevated near 27% of revenue.
Gates Industrial Corporation plc (GTES) annual income statement — 13-year revenue, gross profit & net income history
| 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 | 3.55B | 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 % | 3.98% | 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 | 2.09B | 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 | 1.46B | 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 % | 41.12% | 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 | 929.4M | 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 | 924.8M | 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 | 0 | 0 | 9.8M | 14.1M | 12.9M | 2.4M | 46.7M | 9.1M | 14.3M | -300K | 2.8M | -400K | 0 | 0 |
| Operating Income | 531.4M | 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 % | 14.96% | 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 | 755.3M | 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 % | 21.26% | 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 % | 10.8% | 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) | 223.9M | 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 | 512.1M | 489.2M | 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 | -130.7M | -139.4M | -156.7M | -156M | -141.6M | -132.1M | -153.7M | -159.9M | -196M | -230M | -216.3M | -212.6M | 0 | 0 |
| Interest Income | 9.6M | 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 | 140.3M | 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 | -173.6M | -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 | 357.8M | 340.2M | 328M | 285.3M | 257.8M | 349.7M | 71M | 198.8M | 303.5M | 109.5M | 93M | 41.7M | 175M | -90.2M |
| Pretax Margin % | 10.07% | 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 | -34.8M | 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 % | -9.73% | 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 | 368.8M | 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 % | 10.38% | 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 % | 55.81% | 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) | 392.6M | 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 | 382.1M | 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) | 1.44 | 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 % | 56.52% | 29.73% | -12.94% | 10.39% | -23% | 270.37% | -88.61% | 182.14% | 58.49% | 165% | 128.05% | -99.91% | 375.18% | - |
| EPS (Basic) | - | 0.96 | 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 | 255.6M | 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 | 255M | 260.53M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Stalled organic revenue growth
Metrics are mathematically derived from official filings.
Revenue Growth Plateauing Near Mid-Single Digits
According to the reported quarterly income statements, GTES revenue grew 9.6% year over year in 2026Q3 to $903.6M, but the trend across the ten-quarter window has been uneven, with growth flipping between negative and high single digits.
The 2026Q3 and 2026Q2 readings suggest a recovery phase, yet the stronger quarter appears partly flattered by a weak prior-year comparison rather than a clear structural acceleration. Investors should monitor whether order momentum translates into sustained growth above the low single-digit trend seen through 2024 and 2025. Without verified segment or volume-versus-price splits in the supplied data, the durability of this growth cannot be fully assessed.
Gross Margin Holding Within a Narrow Band
Based on reported figures, GTES gross margin has stayed between 39.9% and 42.4% across the last ten quarters, with the most recent quarter at 42.4%, a level that suggests consistent pricing discipline in the replacement-driven aftermarket.
The narrow range implies limited sensitivity to raw material swings, consistent with a replacement channel where customers are less price-elastic. The 2026Q3 expansion to 42.4% may indicate favorable mix or pricing actions, but a single quarter is insufficient to confirm a durable shift. Petrochemical input costs remain the key variable to watch for any future compression.
Operating Margin Expansion Lags Gross Gains
As reported in financial statements, GTES operating margin reached 16.0% in 2025Q4 and 15.7% in 2026Q2 but fell to 14.5% in 2026Q3, with SG&A running near 27% of revenue, indicating that overhead absorbs much of the gross profit gain.
SG&A has grown in dollar terms while revenue has been roughly flat, which suggests operating leverage has been modest rather than strongly positive. The gap between gross margin near 40% and operating margin in the low-to-mid teens points to a cost base that scales with volume. Investors should watch whether SG&A discipline improves enough to convert incremental revenue into higher operating income.
Net Income Volatility Outpaces Operating Trend
According to the supplied filings, GTES net income swung from $36.6M in 2024Q4 to $171.1M in 2026Q2, a movement far larger than the change in operating income, which suggests non-operating items or tax effects are materially influencing reported earnings.
The divergence between operating and net income in several quarters implies that below-the-line items, possibly including tax or other non-operating gains, are driving a meaningful share of EPS variability. The 2026Q2 net income spike relative to its operating income warrants further investigation before treating that quarter as representative. Stock-based compensation is comparatively small, so it does not appear to be the primary source of this volatility.
Margin Plateau Could Undercut the Recovery Thesis
Based on reported figures, the 14.5% operating margin in 2026Q3 is below the 15.7% recorded in 2026Q2, and the trailing revenue growth profile is inconsistent, raising the question of whether the recent strength is sustainable.
A bearish reading would argue that the 2026Q2 beat and raised outlook reflect timing or one-time effects rather than a durable demand inflection, and that the quarter-over-quarter margin decline is an early sign of cost pressure. Peer comparisons show GTES operating margin of roughly 14% sits well below the 22% levels reported by WMS and TREX, limiting the case for premium valuation. Investors should monitor whether margins recover toward the mid-teens consistently before extrapolating recent growth.