Gates Industrial (GTES) Q1 FY26 earnings call

Gates Industrial successfully navigated a significant ERP transition in Europe during Q1 FY26, which, alongside fewer working days, created temporary headwinds to sales and margins. Despite these challenges, the company reaffirmed its full-year guidance, citing improving demand trends, particularly in industrial OEM orders and data centers. Management expressed confidence in achieving core revenue growth targets and expects operational efficiencies to stabilize in Q2, with margins approaching 23.5% in the second half.