Gates Industrial Q3: EPS Beat, Cash-Flow Margin Weakens

Gates Industrial reported Q3 2025 revenue of $855.7 million, up about 3% year-over-year, with its Personal Mobility and Power Transmission businesses contributing to the gain. The company posted an adjusted EPS of $0.39, beating expectations, and reported improved EBITDA and operating margins. Management said it raised full-year adjusted EPS guidance slightly, reduced gross debt by $100 million and lowered net leverage to about 2.0x, and the board approved a $300 million share repurchase authorization. However, organic revenue growth remained tepid, free-cash-flow margin fell year-over-year, and the five-year revenue CAGR is roughly 4.6%, leaving questions about longer-term growth despite recent margin improvements.