Filing Flows › Gates Industrial (GTES) › Q2 2026 › vs Q1 2026
Gates Industrial (GTES) Q2 2026 vs Q1 2026 (quarter over quarter)
Gates Industrial's revenue rose $90.5M (+11%) from $851M in Q1 2026 to $942M in Q2 2026. The biggest changes: Power Transmission +$55.3M (+10%); Fluid Power +$35.2M (+11%). Gross margin 41.0% against 39.7% (+1.3 pts).
Gates Industrial, Q2 2026: revenue $942M (+7% year over year), operating margin 14.0%, net earnings $171M, operating cash flow $78.6M. The chart draws each line against Q1 2026, the increases inside each band.
Margins
| Q2 2026 | Q1 2026 | Change | |
|---|---|---|---|
| Gross margin | 41.0% | 39.7% | +1.3 pts |
| Operating margin | 14.0% | 12.9% | +1.1 pts |
| Net margin | 18.1% | 7.0% | +11.1 pts |
| Free cash flow margin | 6.4% | 1.6% | +4.8 pts |
Every line
| Line | Q2 2026 | Q1 2026 | Change | % |
|---|---|---|---|---|
| Power Transmission | $588M | $533M | $55.3M | +10% |
| Fluid Power | $353M | $318M | $35.2M | +11% |
| Revenue | $942M | $851M | $90.5M | +11% |
| Gross profit | $386M | $338M | $48.1M | +14% |
| Cost of revenue | $556M | $513M | $42.4M | +8% |
| Operating profit | $132M | $110M | $21.7M | +20% |
| Operating expenses | $254M | $228M | $26.4M | +12% |
| Pre-tax earnings | $100M | $77.9M | $22.3M | +29% |
| Other expense, net | $31.4M | $32.0M | −$600K | -2% |
| SG&A | $251M | $227M | $23.8M | +10% |
| Other operating costs | $3.8M | $1.2M | $2.6M | +217% |
| Income tax benefit | $78.0M | −$11.5M | $89.5M | — |
| Net earnings | $171M | $59.7M | $111M | +186% |
| Minority interests | $7.1M | $6.5M | $600K | +9% |
| Depreciation & amortization | $57.1M | $55.7M | $1.4M | +3% |
| Share-based compensation | $9.4M | $6.3M | $3.1M | +49% |
| Working capital & other | $159M | $91.5M | $67.3M | +74% |
| Operating cash flow | $78.6M | $30.2M | $48.4M | +160% |
| Free cash flow (OCF − capex) | $60.3M | $13.5M | $46.8M | +347% |
| Capital expenditures | $18.3M | $16.7M | $1.6M | +10% |
Questions
How much did Gates Industrial's revenue grow quarter over quarter in Q2 2026?
Gates Industrial's revenue rose $90.5M (+11%) from $851M in Q1 2026 to $942M in Q2 2026.
What drove Gates Industrial's revenue change in Q2 2026?
Power Transmission +$55.3M (+10%); Fluid Power +$35.2M (+11%).