Gates Industrial Corporation PLC's stock surged 5.02% during intraday trading on Thursday, following the release of its fourth-quarter and full-year 2025 financial results.
The significant price movement is attributed to the company reporting better-than-expected quarterly earnings and sales. For Q4 2025, Gates Industrial posted adjusted earnings per share of $0.38, surpassing analyst estimates of $0.36. Net sales for the quarter reached $856.2 million, also exceeding expectations. The company issued its 2026 outlook, forecasting adjusted EPS in the range of $1.52 to $1.68, which aligns with market expectations, and projecting core sales growth of 1% to 4% for the year.
Financial performance was bolstered by strategic growth initiatives and an improved cost position, contributing to strong cash flow generation. Analyst sentiment remains largely positive, with a median price target suggesting potential upside from recent levels.