Is Gates Stock Worth Buying as Growth Improves but Risks Persist?
Gates Industrial (GTES) reported Q2 2026 core sales up 4.9% y/y and adjusted EBITDA margin of 22.5%, and raised its full-year outlook. Power Transmission and Fluid Power sales grew, but South America core sales fell 10.6% y/y. GTES trades at 16.53x forward earnings and has net leverage of 1.8x. It plans to acquire Timken’s industrial belts business in Q3 2026.



