Filing Flows › Gates Industrial (GTES) › Q1 2025
Gates Industrial (GTES) Q1 2025 earnings results (first quarter 2025)
10-Q filed Apr 30, 2025
Gates Industrial (GTES) reported revenue of $848M for the first quarter 2025 (Q1 2025), -2% from a year earlier and +2% from the quarter before. Operating margin was 14.8%, net earnings $62.0M (7.3% of revenue).
Gates Industrial, Q1 2025: revenue $848M (-2% year over year), operating margin 14.8%, net earnings $62.0M, operating cash flow $7.3M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $848M | +2% | -2% |
| Gross profit | $345M | +3% | +4% |
| Operating profit | $126M | +15% | +8% |
| Net earnings | $62.0M | +69% | +55% |
| Operating cash flow | $7.3M | -96% | — |
What changed
Revenue was $847.6M in Q1 2025, down 2% year over year and up 2% from the previous quarter. Power Transmission was the largest line at 62% of revenue. Fluid Power lost $9.4M year over year (down 3%), 63% of the total change.
Gross margin was 40.7%, up 2.4 points from a year earlier. Operating profit was $125.8M, a 14.8% margin (up 1.3 points year over year). Operating expenses grew 3% against a revenue fall of 2%. The fastest-growing cost line was Other operating costs (+62%). Net earnings were $62.0M, up 55% year over year. The effective tax rate was 27.0%.
Operating cash flow was $7.3M, 11% of net income including minority interests. Non-cash charges added back $52.2M of depreciation and amortization and $6.1M of share-based compensation. Working capital and other items used $119.3M. Capital expenditures of $17.5M exceeded it, leaving free cash flow of −$10.2M.
Questions
What was Gates Industrial's revenue in the first quarter 2025?
Gates Industrial (GTES) reported revenue of $848M for the first quarter 2025 (Q1 2025), -2% from a year earlier and +2% from the quarter before.
Was Gates Industrial profitable in the first quarter 2025?
Operating profit was $126M (14.8% of revenue) and net earnings $62.0M.
Source: Gates Industrial 10-Q on SEC EDGAR.