Gates (NYSE:GTES) Reports Q4 Revenue Up 3.2% and EPS Surprise of 4%

Gates Industrial Corporation (NYSE:GTES) reported fourth-quarter revenue of $856.2 million, up 3.2% year-on-year, and non-GAAP EPS of $0.38, 4% above estimates, on February 12, 2026. The quarter followed two years of organic revenue declines averaging 1.4% and a 4.3% CAGR in sales over five years. Revenue growth this quarter was in line with sell-side expectations of 3.1% for next 12 months. EPS growth accelerated to 16.8% over five years, but two-year annual EPS expansion slowed to 6.1% as share repurchases reduced the share count by 11.5%. Gates maintained an average operating margin of 13% over five years, with Q4 margin at 12.6%. EBITDA and organic revenue missed estimates, but the stock rose 2.8% to $27.25 on the earnings release.