Filing Flows › Gates Industrial (GTES) › Q2 2025
Gates Industrial (GTES) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 30, 2025
Gates Industrial (GTES) reported revenue of $884M for the second quarter 2025 (Q2 2025), -0.2% from a year earlier and +4% from the quarter before. Operating margin was 13.1%, net earnings $56.5M (6.4% of revenue).
Gates Industrial, Q2 2025: revenue $884M (-0.2% year over year), operating margin 13.1%, net earnings $56.5M, operating cash flow $103M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $884M | +4% | -0.2% |
| Gross profit | $360M | +5% | +0.8% |
| Operating profit | $116M | -8% | -13% |
| Net earnings | $56.5M | -9% | -20% |
| Operating cash flow | $103M | 14× | +10% |
| Free cash flow | $83.6M | — | +16% |
What changed
Revenue was $883.7M in Q2 2025, roughly flat year over year and up 4% from the previous quarter. Power Transmission was the largest line at 62% of revenue. Fluid Power lost $10.0M year over year (down 3%), 556% of the total change.
Gross margin was 40.8%, up 0.4 points from a year earlier. Operating profit was $115.8M, a 13.1% margin (down 1.9 points year over year). Operating expenses grew 9% against flat revenue. The fastest-growing cost line was Other operating costs (+355%). Net earnings were $56.5M, down 20% year over year. The effective tax rate was 21.0%.
Operating cash flow was $103.0M (up 10% year over year), 163% of net income including minority interests. Non-cash charges added back $53.3M of depreciation and amortization and $9.6M of share-based compensation. Working capital and other items used $23.0M. Capital expenditures of $19.4M left free cash flow of $83.6M.
Questions
What was Gates Industrial's revenue in the second quarter 2025?
Gates Industrial (GTES) reported revenue of $884M for the second quarter 2025 (Q2 2025), -0.2% from a year earlier and +4% from the quarter before.
Was Gates Industrial profitable in the second quarter 2025?
Operating profit was $116M (13.1% of revenue) and net earnings $56.5M.
Source: Gates Industrial 10-Q on SEC EDGAR.