Shares of Gates Industrial gained after the company raised its full-year guidance, factoring in higher sales growth in the second half of the year than it initially expected.

The stock rose 9.5% to $28.22 on Friday. Shares are up 31% year to date.

The fluid power and power transmission solutions provider now expects adjusted earnings per share of $1.62 to $1.70, up from its prior range of $1.52 to $1.68. It now guides for core sales growth of 2.5% to 4.5%, compared with 1% to 4% previously.

The company said it now expects higher sales growth in the second half of 2026 relative to its initial guidance. "We believe we are in solid position to capitalize on strengthening industrial demand," Chief Executive Ivo Jurek said.

The updated outlook came as the company logged higher profit and sales in its latest quarter, helped by improving order momentum globally.

Profit came in at $170.9 million, or 67 cents a share, compared with $56.5 million, or 22 cents a share, a year earlier.

Adjusted earnings per share were 44 cents, compared with estimates of 42 cents a share according to analysts polled by FactSet.

Sales rose 6.6% to $941.6 million, compared with analyst estimates of $925.4 million.