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Specialty industrial machinery · Industrials · Fiscal year ends Dec 31
Gates Industrial reported revenue of $3.4B in the fiscal year ended Dec 2025, up 1.0% from the year before. Operating income was $465M, an operating margin of 13.5%, and net income was $251M. Operating cash flow of $478M less capital expenditure of $73M left free cash flow of $405M. Net debt was $1.4B.
Ranks among the 34 specialty industrial machinery companies we cover (1st = best; for debt, the least indebted). Green = top third, red = bottom third.
Last 5 fiscal years
| Fiscal year | Jan 2022 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | 3,474 | 3,554 | 3,570 | 3,408 | 3,443 |
| Cost of revenue | 2,135 | 2,304 | 2,211 | 2,050 | 2,072 |
| Gross profit | 1,339 | 1,251 | 1,359 | 1,359 | 1,372 |
| Research & development | 70.7 | 69.4 | 66.0 | 66.5 | 71.9 |
| Selling, general & admin | 853 | 854 | 885 | 877 | 876 |
| Operating income | 484 | 384 | 460 | 472 | 465 |
| Interest expense | 134 | 139 | 163 | 156 | 126 |
| Pre-tax income | 350 | 258 | 285 | 328 | 340 |
| Income tax | 18.4 | 14.9 | 28.3 | 108 | 63.1 |
| Net income | 297 | 221 | 233 | 195 | 251 |
| Diluted EPS | 1.00 | 0.77 | 0.84 | 0.74 | 0.96 |
| Diluted shares | 297 | 288 | 276 | 265 | 261 |
| Fiscal year | Jan 2022 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | 658 | 578 | 721 | 682 | 812 |
| Receivables | 708 | 809 | 768 | 723 | 744 |
| Inventory | 683 | 656 | 647 | 676 | 700 |
| Current assets | 2,279 | 2,277 | 2,401 | 2,306 | 2,482 |
| Net PP&E | 670 | 638 | 630 | 580 | 609 |
| Goodwill | 2,063 | 1,981 | 2,039 | 1,909 | 2,035 |
| Total assets | 7,533 | 7,192 | 7,255 | 6,786 | 7,151 |
| Payables | 507 | 470 | 458 | 408 | 434 |
| Current liabilities | 856 | 752 | 779 | 722 | 735 |
| Short-term debt | 38.1 | 36.6 | 36.5 | 39.1 | 36.2 |
| Long-term debt | 2,527 | 2,426 | 2,415 | 2,312 | 2,196 |
| Total liabilities | 4,052 | 3,748 | 3,711 | 3,446 | 3,462 |
| Shareholders' equity | 3,100 | 3,110 | 3,220 | 3,024 | 3,334 |
| Fiscal year | Jan 2022 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | 382 | 266 | 481 | 380 | 478 |
| Capital expenditure | 77.7 | 77.6 | 61.2 | 83.1 | 73.2 |
| Free cash flow | 305 | 188 | 420 | 297 | 405 |
| Depreciation & amortisation | 223 | 217 | 218 | 217 | 214 |
| Stock-based compensation | 24.6 | 44.3 | 27.4 | 28.8 | 27.2 |
| Share buybacks | 10.6 | 176 | 252 | 176 | 119 |
| Fiscal year | Jan 2022 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 2.3% | 0.5% | −4.5% | 1.0% |
| Operating income growth (YoY) | – | −20.7% | 19.8% | 2.6% | −1.5% |
| EPS growth (YoY) | – | −23.0% | 9.1% | −11.9% | 29.7% |
| Gross margin | 38.5% | 35.2% | 38.1% | 39.9% | 39.8% |
| Operating margin | 13.9% | 10.8% | 12.9% | 13.9% | 13.5% |
| Net margin | 8.6% | 6.2% | 6.5% | 5.7% | 7.3% |
| Return on equityBlank when equity is negative | 9.6% | 7.1% | 7.2% | 6.4% | 7.5% |
| ROCEEBIT ÷ (assets − current liabilities) | 7.3% | 6.0% | 7.1% | 7.8% | 7.3% |
| Free cash flow margin | 8.8% | 5.3% | 11.8% | 8.7% | 11.8% |
| Cash conversion (CFO ÷ net income) | 1.29x | 1.20x | 2.07x | 1.95x | 1.90x |
| Receivable days | 74 | 83 | 79 | 77 | 79 |
| Inventory days | 117 | 104 | 107 | 120 | 123 |
| Payable days | 87 | 74 | 76 | 73 | 76 |
| Interest cover | 3.63x | 2.75x | 2.82x | 3.03x | 3.70x |
| Debt ÷ equity | 0.83x | 0.79x | 0.76x | 0.78x | 0.67x |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | 1,906 | 1,885 | 1,731 | 1,669 | 1,420 |
| Current ratio | 2.66x | 3.03x | 3.08x | 3.20x | 3.37x |
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.