Gates Industrial reports Q2 adjusted EPS 36c, consensus 33c

Reports Q2 revenue $936.3M, consensus $932.1M. Ivo Jurek, Gates Industrial’s CEO, commented, “We produced solid increases in net income attributable to shareholders as well as core revenue growth and strong margin expansion and cash flow generation. We also reduced our net leverage ratio compared to the prior year period and returned $250M to shareholders during the quarter.” Jurek continued, “We executed well in the first half of 2023. As we enter the second half, our business prospects remain constructive and the operating environment continues to normalize. We are maintaining the midpoint of our Adjusted EBITDA guidance and offsetting slower demand trends in the back half of the year. In addition, we have increased our full year Adjusted EPS guidance. Long-term, I am confident in our growth, margin and cash flow generation potential and our ability to improve our balance sheet while investing in our growth initiatives and returning meaningful capital to shareholders.”