Gates Industrial Corporation Ltd

gates.com

What Do They Do?

Sells power-transmission belts and components, and fluid-power hoses and fittings, to aftermarket distributors and original equipment manufacturers.

How Do They Make Money?

Customers pay the invoiced price for products, usually when they ship; these are generally one-time sales.

revenue

Segment	Share	Revenue	How money arrives
Power Transmission Sold outright	62% FY2022: 61%		Sold outright
Fluid Power Sold outright	38% FY2022: 39%		Sold outright

Who Are Their Customers?

Aftermarket distributors and other channel partners supply products to end users; equipment makers buy specified components, with Gates working closely with their engineering teams.

Do Revenues Turn Into Profits?

Yes. It kept 7 cents of every revenue dollar as net income in FY2025 and turned 12 cents into free cash flow.

Operating income, FY2025

14% of revenue

▼ −1% vs FY2024 ($472.2M, 14%)

Net income, FY2025

7% of revenue

▲ +29% vs FY2024 ($194.9M, 6%)

Free cash flow, FY2025

12% of revenue

▲ +37% vs FY2024 ($296.5M, 9%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 27, 2026

Revenue: ▲ +7%; vs $883.7M in Q2 FY2025
Net income: ▲ +202%; vs $56.5M in Q2 FY2025

Power Transmission share of revenue vs 62.3% in Q2 FY2025

Flat. Revenue was $3.4B in FY2025, about the same as the $3.5B of FY2021.

Data-center cooling products Adds data-center cooling offerings, including hoses, couplings and pumps for liquid-cooling systems; the older report described hoses for industrial applications such as process industries and oil and gas.

Revenue over time

Power Transmission Fluid Power

$5B$2.5B$0

FY2021 FY2022 FY2023 FY2024 FY2025

Comments