GTES Gates Industrial Corp plc

Overview and Growth

Gates Industrial Corp plc generated $3.44B of revenue in fiscal 2025, with net income of $251.40M and an operating cash inflow of $478.10M. The $3.44B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 1.0% above fiscal 2024 revenue of $3.41B, marking a year-over-year increase. On a per-share basis, diluted EPS was $0.96, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 29.7% increase from fiscal 2024 diluted EPS of $0.74. The revenue-to-assets relationship was 0.48x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $1.37B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 39.8% of revenue, showing how much of the top line remained after direct costs. Operating income was $465.30M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Relative to revenue, operating income represented 13.5%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $251.40M for the fiscal year. Net margin was 7.3%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $340.20M of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 9.9%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $63.10M, the amount recognized between pretax income and the final net-income result. The income-tax provision equaled 18.5% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

Total assets were $7.15B, supported by $3.46B of liabilities and $3.69B of shareholder equity. Current assets were $2.48B against $735.40M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 3.37x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $812.10M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 110.4% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Borrowings totaled $2.23B, adding a fixed financing obligation alongside the company’s equity capital. Debt equaled 0.61x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 31.2%, comparing borrowing with the total asset balance. Liabilities represented 48.4% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 11.4%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 5.4% higher than fiscal 2024 assets of $6.79B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

The company reported $478.10M of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.9x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $73.20M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 15.3%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $404.90M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 11.8%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 5.7% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.