Q4 2024 Gates Industrial Corporation PLC Earnings Call Transcript

Feb 06, 2025 / 04:00PM GMT

Release Date Price: $23.22 (+11.80%)

Transcript 10-K8-K

Key Points

Positve

Gates Industrial Corp PLC (GTES) achieved a 140 basis point increase in adjusted EBITDA margins in 2024, surpassing initial forecasts.
The company successfully refinanced its debt stack, reducing financing costs and lowering the net leverage ratio to 2.2x.
Gates Industrial Corp PLC (GTES) generated record adjusted earnings per share and adjusted EBITDA in 2024.
The company reported a 130 basis point increase in gross margin to 40.4% in Q4, marking a record gross margin performance for a fourth quarter.
Gates Industrial Corp PLC (GTES) maintained a strong free cash flow conversion of 160% during the quarter, bringing the full year to 74%.

Negative

Core revenue decreased by 2.6% on a core basis in Q4, with total revenues down nearly 4% due to unfavorable foreign currency effects.
OEM sales decreased, primarily affected by volume reductions in the Agriculture and Construction end markets.
The company's adjusted earnings per share decreased by 3% compared to the prior year.
The Power Transmission segment experienced a 1% decrease in core revenues, with OEM demand under pressure.
Gates Industrial Corp PLC (GTES) faces a significant foreign exchange headwind, estimated at $34 million to profitability in 2025.

Operator

Good morning, and welcome to Gates Industrial Corporation's Fourth Quarter and Full Year 2024 Earnings Call. (Operator Instructions). As a reminder, this conference call is being recorded.

I would now like to turn the call over to Rich Kwas, Vice President, Investor Relations. Thank you. Please go ahead.

Richard Kwas

Gates Industrial Corporation PLC - IR

Greetings, and thank you for joining us on our Fourth Quarter and Full Year 2024 Earnings Call. Obviously, cover our non-GAAP and forward-looking language before passing the call over to our CEO, Ivo Jurek, will be followed by Brooks Mallard, our CFO.

Before the market opened today, we published our fourth quarter and full year 2024 financial results, Copy of the release is available on our website at investors.gates.com. Our call this morning is being webcast and is accompanied by a slide presentation.

On the call, we will refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliations of historical non-GAAP financial measures

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

30-Day 100% money back guarantee

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.