Gates Industrial Corporation PLC's stock plummeted 5.31% during Friday's intraday trading session, as the market reacted to the company's first-quarter 2026 financial results.

The industrial manufacturer reported quarterly sales of $851.1 million, which missed analyst estimates of $860.9 million. While adjusted earnings per share of $0.35 beat expectations of $0.33, the company's net income attributable to shareholders fell 3.7% to $59.7 million. More concerning to investors was the 2.9% decline in core revenue, indicating underlying business weakness despite a slight 0.4% increase in total net sales.

Additionally, Gates Industrial announced it has entered into a definitive agreement to acquire the belts business from Timken Company, expanding its North American power transmission operations. The company maintained its full-year 2026 guidance, including core sales growth of 1% to 4% and adjusted EBITDA of $775 million to $835 million.