$GTES

Gates Industrial Corp plc

CIK:0001718512|SEC Filings

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 27, 2026	Jun. 28, 2025	Jun. 27, 2026	Jun. 28, 2025
Income Statement [Abstract]
Net sales	$ 941.6	$ 883.7	$ 1,792.7	$ 1,731.3
Cost of sales	555.5	523.5	1,068.6	1,026.5
Gross profit	386.1	360.2	724.1	704.8
Selling, general and administrative expenses	250.7	231.2	477.6	447.4
Transaction-related expenses	3.1	0.0	3.6	0.4
Asset impairments	0.0	0.2	0.0	0.8
Restructuring expenses	0.7	13.0	1.4	14.6
Operating income from continuing operations	131.6	115.8	241.5	241.6
Interest expense	30.0	28.8	59.9	58.4
Other expense	1.4	6.8	3.5	9.2
Income from continuing operations before taxes	100.2	80.2	178.1	174.0
Income tax (benefit) expense	(78.0)	16.8	(66.5)	42.0
Net income from continuing operations	178.2	63.4	244.6	132.0
Loss on disposal of discontinued operations, net of tax, respectively, of $0, $0, $0 and $0	0.2	0.3	0.4	0.6
Net income	178.0	63.1	244.2	131.4
Less: non-controlling interests	7.1	6.6	13.6	12.9
Net income attributable to shareholders	$ 170.9	$ 56.5	$ 230.6	$ 118.5
Basic
Earnings per share from continuing operations (in usd per share)	$ 0.67	$ 0.22	$ 0.91	$ 0.46
Earnings per share from discontinued operations (in usd per share)	0	0	0	0
Earnings per share (in usd per share)	0.67	0.22	0.91	0.46
Diluted
Earnings per share from continuing operations (in usd per share)	0.67	0.22	0.90	0.45
Earnings per share from discontinued operations (in usd per share)	0	0	0	0
Earnings per share (in usd per share)	$ 0.67	$ 0.22	$ 0.90	$ 0.45

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 27, 2026	Jun. 28, 2025
Cash flows from operating activities
Net income	$ 244.2	$ 131.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	112.8	105.5
Foreign exchange and other non-cash financing income	(13.0)	(12.6)
Share-based compensation expense	15.7	15.7
Decrease in post-employment benefit obligations, net	(1.7)	(4.4)
Deferred income taxes	(113.8)	(11.0)
Asset impairments	0.0	0.8
Other operating activities	2.8	5.8
Changes in operating assets and liabilities:
—Accounts receivable	(161.6)	(63.5)
—Inventories	(46.3)	(16.4)
—Accounts payable	50.9	(16.7)
—Prepaid expenses and other assets	(11.4)	(13.0)
—Taxes payable	4.5	(1.6)
—Other liabilities	25.7	(9.7)
Net cash provided by operating activities	108.8	110.3
Cash flows from investing activities
Purchases of property, plant and equipment	(35.0)	(36.9)
Purchases of intangible assets	(5.2)	(18.7)
Cash paid under company-owned life insurance policies	(10.8)	(10.4)
Cash received under company-owned life insurance policies	8.1	2.4
Proceeds from the sale of property, plant and equipment	1.5	2.1
Other investing activities	(0.4)	(0.5)
Net cash used in investing activities	(41.8)	(62.0)
Cash flows from financing activities
Issuance of shares	2.5	4.7
Repurchase of shares	(38.7)	(13.0)
Payments of long-term debt	(4.7)	(9.4)
Employee taxes paid from shares withheld	(8.7)	(16.9)
Dividends paid to non-controlling interests	0.0	(3.5)
Other financing activities	(1.2)	4.7
Net cash used in financing activities	(50.8)	(33.4)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(4.7)	23.1
Net increase in cash and cash equivalents and restricted cash	11.5	38.0
Cash and cash equivalents and restricted cash at the beginning of the period	815.0	684.8
Cash and cash equivalents and restricted cash at the end of the period	826.5	722.8
Supplemental schedule of cash flow information
Interest paid	52.0	56.8
Income taxes paid	39.3	54.7
Accrued capital expenditures	$ 1.8	$ 0.9

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 27, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 823.5	$ 812.1
Trade accounts receivable, net	900.3	744.2
Inventories	740.6	700.0
Taxes receivable	40.5	43.4
Prepaid expenses and other assets	204.4	181.8
Total current assets	2,709.3	2,481.5
Non-current assets
Property, plant and equipment, net	599.4	609.0
Goodwill	2,022.4	2,035.2
Pension surplus	6.7	7.6
Intangible assets, net	1,122.9	1,192.4
Right-of-use assets	146.2	137.1
Taxes receivable	2.6	5.4
Deferred income taxes	729.4	640.0
Other non-current assets	53.9	43.2
Total assets	7,392.8	7,151.4
Current liabilities
Debt, current portion	39.2	36.2
Trade accounts payable	482.4	433.7
Taxes payable	31.2	27.0
Accrued expenses and other current liabilities	282.3	238.5
Total current liabilities	835.1	735.4
Non-current liabilities
Debt, less current portion	2,194.3	2,196.3
Post-retirement benefit obligations	60.9	68.8
Lease liabilities	129.3	124.5
Taxes payable	56.3	62.1
Deferred income taxes	40.5	49.3
Other non-current liabilities	182.2	225.8
Total liabilities	3,498.6	3,462.2
Commitments and contingencies (Note 18)
Shareholders’ equity
—Shares, par value of $0.01 each - authorized shares: 3,000,000,000; outstanding shares: 253,151,170 (December 31, 2025: authorized shares: 3,000,000,000; outstanding shares: 253,543,540)	2.5	2.6
—Additional paid-in capital	2,641.3	2,633.3
—Accumulated other comprehensive loss	(929.2)	(917.1)
—Treasury shares	0.0	(37.5)
—Retained earnings	1,807.3	1,652.7
Total shareholders’ equity	3,521.9	3,334.0
Non-controlling interests	372.3	355.2
Total equity	3,894.2	3,689.2
Total liabilities and equity	$ 7,392.8	$ 7,151.4