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Investing.com -- Gates Industrial Corporation plc (NYSE:GTES) reported first-quarter 2025 results that surpassed analyst expectations, leading to a 2.1% increase in its stock price.
The fluid power and power transmission solutions provider posted adjusted earnings per share of $0.36, exceeding the analyst estimate of $0.33. Revenue for the quarter came in at $847.6 million, surpassing the consensus estimate of $822.93 million, despite being down 1.7% YoY. The company reported core revenue growth of 1.4%.
Gates Industrial’s CEO, Ivo Jurek, commented, "In the first quarter, we grew our volume company-wide supported by strong growth in our Auto Replacement and Personal Mobility end markets. Also, our gross margin increased nicely year-over-year."
The company reiterated its full-year 2025 guidance, projecting adjusted earnings per share between $1.36 and $1.52, compared to the analyst consensus of $1.41. Gates Industrial also expects adjusted EBITDA of $735 million to $795 million for the year.
In the Power Transmission segment, net sales decreased 1.1% to $527.2 million, while the Fluid Power segment saw a 2.9% decline to $320.4 million. However, both segments reported positive core growth.
Jurek expressed confidence in the company’s competitive position, stating, "Our manufacturing footprint is largely ’in-region, for-region’, which we believe provides us with advantages relative to our primary competition."
Gates Industrial maintains its outlook for core sales growth between -0.5% and 3.5% YoY for 2025, with free cash flow conversion expected to exceed 90%.
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