Gates Industrial Raises 2026 Outlook After Strong Second Quarter

CEO Ivo Jurek pointed to robust order momentum as the catalyst for the firm's performance, which saw net income reach $170.9 million. The company’s core sales grew by 4.9%, signaling a broader recovery in industrial activity. Reflecting this confidence, Gates updated its 2026 projections, lifting the midpoint for core sales growth by 100 basis points and increasing its adjusted earnings per share target to a range of $1.62 to $1.70.

While the company continues to navigate global supply chain pressures and currency fluctuations, the Power Transmission segment led the gains with a 7.0% increase in net sales. Executives noted that the business remains well-positioned to leverage its capital allocation strategy throughout the remainder of the year. The company will discuss these results in detail during a conference call scheduled for 10:00 a.m. ET today.