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Newton Today
By the People, for the People
Gates Corporation Sees Optimism for 2026 After Record Year
CEO Ivo Jurek expresses confidence in the company's growth prospects and ability to create long-term value for shareholders.
Published on Feb. 12, 2026
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Gates Corporation, a leading manufacturer of industrial and automotive products, delivered a record-setting adjusted EBITDA of $770 million in 2025 despite a challenging market environment. The company achieved double-digit earnings growth, reduced its net leverage ratio to a record low, and ended the year with over $800 million in cash. Looking ahead to 2026, Gates is cautiously optimistic about its growth prospects and plans to deploy capital prudently to increase long-term value for shareholders.
Why it matters
Gates Corporation's strong financial performance and strategic initiatives during a period of market uncertainty demonstrate the company's resilience and ability to adapt. As a major supplier to the automotive and industrial sectors, Gates' outlook provides insights into the broader economic recovery and the health of key industries.
The details
In the fourth quarter of 2025, Gates reported net sales of $856.2 million, up 3.2% year-over-year, and an adjusted EBITDA of $187.8 million with a margin of 21.9%. For the full year, the company's sales grew 1% to $3,443.2 million with an adjusted EBITDA of $770.1 million and a margin of 22.4%. Despite a drop in automotive and commercial vehicle OEM sales, Gates was able to outperform its end markets and achieve a record-low leverage ratio of 1.85 times. The company also announced layoffs at two North American facilities as it restructured its operations.
- Gates Corporation delivered a record-setting adjusted EBITDA of $770 million in 2025.
- The company ended 2025 with a record low leverage ratio of 1.85 times and more than $800 million in cash on the balance sheet.
- In the fourth quarter of 2025, Gates reported net sales of $856.2 million, up 3.2% year-over-year, and an adjusted EBITDA of $187.8 million with a margin of 21.9%.
The players
Gates Corporation
A leading manufacturer of industrial and automotive products, including industrial and automotive belts, hoses, and other components.
Ivo Jurek
The CEO of Gates Corporation, who expressed optimism for the company's growth prospects in 2026.
What they’re saying
“In 2025, we delivered double-digit growth in earnings per share and reduced our net leverage ratio while managing through an uncertain demand environment. We are optimistic about our growth prospects in 2026 and our ability to deploy capital prudently to increase long-term value creation for our shareholders.”
— Ivo Jurek, CEO (truckpartsandservice.com)
What’s next
Gates Corporation is projecting growth of 1-4% in 2026, with capital expenditures of $120 million and a free cash flow conversion rate of better than 90%. The company is cautiously optimistic about the industrial recovery and plans to deploy capital prudently to increase long-term value for shareholders.
The takeaway
Gates Corporation's strong financial performance and strategic initiatives during a challenging market environment demonstrate the company's resilience and ability to adapt. As a major supplier to the automotive and industrial sectors, Gates' optimistic outlook for 2026 provides a positive signal for the broader economic recovery.
