GTESMEDIUM SIGNALOPPORTUNITY10-K

GTES delivered strong operational performance with 29% net income growth and 26% operating cash flow improvement while maintaining disciplined capital allocation.

The company demonstrates strong operational leverage with significant improvements in profitability and cash generation, suggesting effective cost management and business execution. The reduced share buybacks coupled with higher cash retention indicates a more conservative capital allocation approach, potentially preserving flexibility for growth investments or economic uncertainties.

Comparing 2026-02-12 vs 2025-02-06View on EDGAR →
FINANCIAL ANALYSIS

GTES showed robust financial performance across key metrics, with net income jumping 29% to $251.4M and operating cash flow surging 26% to $478.1M, demonstrating strong operational execution. While share buybacks declined 32% to $119.3M, the company strengthened its balance sheet with cash increasing 19% to $812.1M and stockholders' equity growing 10% to $3.3B. This combination of improved profitability, stronger cash generation, and enhanced financial position signals a company executing well operationally while building financial resilience.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
-32.3%
$176.1M$119.3M

Buyback activity reduced 32.3% — capital being redeployed elsewhere or cash conservation underway.

Net Income
P&L
+29%
$194.9M$251.4M

Net income grew 29% — bottom-line growth signals improving overall business health.

Operating Cash Flow
Cash Flow
+25.9%
$379.6M$478.1M

Operating cash flow grew 25.9% — strong conversion of earnings to cash, healthy business fundamentals.

Cash & Equivalents
Balance Sheet
+19.1%
$682.0M$812.1M

Cash grew 19.1% — improving liquidity position supports investment and shareholder returns.

Stockholders Equity
Balance Sheet
+10.3%
$3.0B$3.3B

Equity base grew 10.3% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-06
ADDED
As of February 10, 2026, there were 253,855,699 ordinary shares of $0.01 par value outstanding.
In 1986, we acquired the Uniroyal Power Transmission Company, which included a controlling interest in a joint venture that laid the groundwork for Gates growth in the Asia-Pacific region in select product and end-market categories.
in July 2014 and in 2015 established a new executive leadership team with Ivo Jurek as Chief Executive Officer.
6 Table of Content s Customers choose power transmission solutions based on a number of factors, including application requirements such as load, speed, gear ratio, temperature, operating environment, ease of maintenance, noise, efficiency and reliability, as well as the support they receive from their suppliers, including application-specific engineering services.
In addition, we also manufacture metal drive components and assemble certain product kits for the automotive aftermarket.
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REMOVED
As of February 3, 2025, there were 255,413,513 ordinary shares of $0.01 par value outstanding.
In 1986, we acquired the Uniroyal Power Transmission Company, which included a controlling interest in a joint venture that laid the groundwork for Gates growth in the Asia-Pacific region.
( Blackstone ) in July 2014 and in 2015 established a new executive leadership team with Ivo Jurek as Chief Executive Officer.
In addition, we also manufacture metal drive components and assemble certain product kits for the automotive replacement channel.
Recently, Gates introduced a new Micro-V platform for engine accessory drive systems.
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