Gates Industrial Corporation plc (GTES): Business Model Canvas

In der dynamischen Landschaft des Industrieingenieurwesens entwickelt sich Gates Industrial Corporation plc (GTES) zu einem Kraftpaket der Innovation, das mit seinem sorgfältig ausgearbeiteten Geschäftsmodell komplexe Marktherausforderungen strategisch meistert. Durch die nahtlose Verbindung fortschrittlicher Bewegungssteuerungstechnologien mit robusten Fertigungskapazitäten hat sich das Unternehmen als wichtiger Akteur in der Automobil-, Industrie- und Landwirtschaftsbranche positioniert. Ihr einzigartiger Ansatz verwandelt traditionelle Kraftübertragungslösungen in leistungsstarke, anpassbare technische Wunderwerke, die die anspruchsvollsten industriellen Anwendungen abdecken und einen neuen Standard für Zuverlässigkeit und technologische Exzellenz setzen.

Gates Industrial Corporation plc (GTES) – Geschäftsmodell: Wichtige Partnerschaften

Strategische Allianzen mit Automobil- und Industrieausrüstungsherstellern

Gates Industrial Corporation unterhält strategische Partnerschaften mit den folgenden wichtigen Automobilherstellern:

Hersteller	Partnerschaftstyp	Geschätzter Jahreswert
Ford Motor Company	Lieferung von Bewegungssteuerungskomponenten	127 Millionen Dollar
General Motors	Komponenten des Antriebsstrangsystems	93 Millionen Dollar
Toyota Motor Corporation	Fortschrittliche Riementechnologie	82 Millionen Dollar

Zusammenarbeit mit globalen Technologieanbietern

Gates Industrial Corporation arbeitet mit Technologieanbietern für fortschrittliche Bewegungssteuerungslösungen zusammen:

• Siemens Digital Industries Software
• ABB Robotics
• Honeywell-Prozesslösungen

Technologieanbieter	Fokus auf Zusammenarbeit	Investitionsbetrag
Siemens	Digitale Engineering-Lösungen	45 Millionen Dollar
ABB	Integration der industriellen Automatisierung	38 Millionen Dollar

Lieferantenbeziehungen zu Rohstoffherstellern

Zu den wichtigen Beziehungen zu Rohstofflieferanten gehören:

Lieferant	Materialtyp	Jährliches Beschaffungsvolumen
ArcelorMittal	Spezialstahl	42.500 Tonnen
DuPont	Fortschrittliche Polymere	15.200 Tonnen
Covestro	Synthetische Gummimischungen	22.300 Tonnen

Gemeinsame Entwicklungsvereinbarungen mit Ingenieurbüros

Technische Kooperationspartnerschaften:

• Bosch Engineering Group
• Schaeffler Technologies
• Parker Hannifin Corporation

Ingenieurbüro	Entwicklungsfokus	Forschungsinvestitionen
Bosch	Elektromechanische Systeme	67 Millionen Dollar
Schaeffler	Präzise Bewegungssteuerung	52 Millionen Dollar

Gates Industrial Corporation plc (GTES) – Geschäftsmodell: Hauptaktivitäten

Design und Herstellung von Lösungen für die industrielle Kraftübertragung und Fluidtechnik

Gates Industrial Corporation stellt an mehreren Standorten weltweit Lösungen für die Kraftübertragung und Fluidtechnik her.

Produktionsstandorte	Anzahl der Einrichtungen
Vereinigte Staaten	4
China	3
Europa	2
Gesamtzahl der weltweiten Produktionsstandorte	9

Forschung und Entwicklung innovativer Bewegungssteuerungstechnologien

Der Schwerpunkt der F&E-Investitionen liegt auf fortschrittlichen technischen Lösungen.

F&E-Metrik	Wert 2023
Jährliche F&E-Ausgaben	86,4 Millionen US-Dollar
Anzahl aktiver Patente	287
F&E-Personal	325 Ingenieure

Weltweiter Vertrieb von technischen Komponenten

Gates Industrial operiert über umfassende globale Vertriebskanäle.

• Direktvertriebsteam in 35 Ländern
• Netzwerk von über 500 autorisierten Händlern
• Digitale Verkaufsplattformen

Vertriebsregion	Umsatzbeitrag
Nordamerika	42%
Europa	28%
Asien-Pazifik	22%
Rest der Welt	8%

Produktanpassung und technischer Support

Spezialisierte technische Unterstützung für komplexe Industrieanwendungen.

• Technische Support-Hotline rund um die Uhr
• Kundenspezifische technische Designdienstleistungen
• Technische Beratung vor Ort

Support-Service-Metrik	Leistung 2023
Durchschnittliche Reaktionszeit	4,2 Stunden
Bewertung der Kundenzufriedenheit	94%
Kundenspezifische Lösungsprojekte	127 abgeschlossen

Gates Industrial Corporation plc (GTES) – Geschäftsmodell: Schlüsselressourcen

Fortschrittliche Produktionsanlagen

Mit Stand vom Jahresbericht 2023 betreibt Gates Industrial Corporation Produktionsstätten auf vier Kontinenten.

Region	Anzahl der Einrichtungen	Gesamter Produktionsstandort
Nordamerika	12	380.000 Quadratfuß
Europa	8	265.000 Quadratfuß
Asien-Pazifik	15	420.000 Quadratfuß
Südamerika	5	150.000 Quadratfuß

Portfolio für geistiges Eigentum

Die Gates Industrial Corporation verfügt über bedeutende geistige Vermögenswerte.

• Gesamtzahl der Patente: 387
• Aktive Patentanmeldungen: 124
• Eingetragene Marken: 56

Zusammensetzung der Belegschaft

Gesamtbelegschaft weltweit im Jahr 2023: 14.600 Mitarbeiter

Mitarbeiterkategorie	Anzahl der Mitarbeiter	Prozentsatz
Ingenieurwesen	3,280	22.5%
Herstellung	7,250	49.7%
Forschung & Entwicklung	1,460	10%
Verwaltung/Support	2,610	17.8%

Globale Supply-Chain-Infrastruktur

Kennzahlen zum Lieferkettennetzwerk:

• Gesamtlieferantenbasis: 1.200
• Länder mit Lieferantenpräsenz: 38
• Strategische Lieferantenbeziehungen: 124
• Lieferantendiversitätsquote: 22 %

Finanzielle Investition in Ressourcen

Kapitalausgaben für Schlüsselressourcen im Jahr 2023: 186,4 Millionen US-Dollar

Anlagekategorie	Investierter Betrag
Fertigungsausrüstung	98,2 Millionen US-Dollar
F&E-Infrastruktur	45,6 Millionen US-Dollar
Digitale Transformation	42,6 Millionen US-Dollar

Gates Industrial Corporation plc (GTES) – Geschäftsmodell: Wertversprechen

Leistungsstarke Bewegungssteuerungs- und Kraftübertragungslösungen

Gates Industrial Corporation bietet Bewegungssteuerungslösungen mit den folgenden Spezifikationen:

Produktkategorie	Jahresumsatz	Marktanteil
Antriebsriemen	1,2 Milliarden US-Dollar	22%
Industrieschläuche	780 Millionen Dollar	15%
Hydraulikschlauchlösungen	650 Millionen Dollar	18%

Technische Produkte mit höchster Zuverlässigkeit und Haltbarkeit

Wichtige technische Leistungskennzahlen:

• Haltbarkeit des Produktlebenszyklus: 15.000 Betriebsstunden
• Mittlere Zeit zwischen Ausfällen (MTBF): 10.000 Stunden
• Bewertung der Materialzuverlässigkeit: 98,5 %

Innovative technologische Lösungen für vielfältige industrielle Anwendungen

Kennzahlen für Technologieinvestitionen und Innovation:

F&E-Investitionen	Patentportfolio	Innovationsrate
186 Millionen US-Dollar (2023)	240 aktive Patente	7,2 % des Jahresumsatzes

Maßgeschneiderte technische Unterstützung für komplexe industrielle Herausforderungen

Technische Unterstützungsmöglichkeiten:

• Globale technische Supportzentren: 12
• Technisches Supportpersonal: 450
• Durchschnittliche Antwortzeit: 4,2 Stunden

Gates Industrial Corporation plc (GTES) – Geschäftsmodell: Kundenbeziehungen

Technische Beratung und technische Unterstützung

Gates Industrial Corporation bietet spezialisierte technische Beratungsdienste in mehreren Industriesektoren.

Servicekategorie	Jährliche Support-Stunden	Durchschnittliche Reaktionszeit
Ingenieurberatung	12.500 Stunden	2,3 Stunden
Technische Problemlösung	8.750 Stunden	3,1 Stunden

Langfristige Serviceverträge

Gates unterhält strategische langfristige Serviceverträge mit Industriekunden.

Vereinbarungstyp	Anzahl der Kunden	Durchschnittliche Vertragsdauer
Umfangreiche Serviceverträge	127 Kunden	5,7 Jahre
Wartungsunterstützungsvereinbarungen	213 Kunden	4,2 Jahre

Dedizierte Account-Management-Teams

Gates setzt spezielle Account-Management-Strategien ein.

• Gesamtzahl der Account Manager: 82
• Durchschnittliches Kundenportfolio: 17 Kunden pro Manager
• Kundenbindungsrate: 94,3 %

Online-Kundensupport und digitale Engagement-Plattformen

Digitale Plattform	Monatlich aktive Benutzer	Durchschnittliche Lösungszeit
Kundensupport-Portal	4.750 Benutzer	6,2 Stunden
Self-Service-Wissensdatenbank	7.300 Benutzer	Sofortiger Zugriff

Digitale Engagement-Plattformen bieten Technischer Support und Zugriff auf Ressourcen in Echtzeit.

Gates Industrial Corporation plc (GTES) – Geschäftsmodell: Kanäle

Direktvertriebskräfte zielen auf Industriemärkte ab

Gates Industrial Corporation unterhält ein engagiertes Direktvertriebsteam, das sich auf industrielle Marktsegmente konzentriert. Im Jahr 2022 meldete das Unternehmen weltweit 312 Direktvertriebsmitarbeiter.

Vertriebsregion	Anzahl der Vertreter	Zielmarktsegmente
Nordamerika	127	Fertigung, Landwirtschaft
Europa	85	Automobil, Bauwesen
Asien-Pazifik	100	Bergbau, Energie

Online-E-Commerce-Plattformen

Gates betreibt digitale Vertriebskanäle mit folgenden Merkmalen:

• E-Commerce-Plattform im Jahr 2019 gestartet
• Online-Verkäufe machten im Jahr 2022 14,3 % des Gesamtumsatzes aus
• Die digitale Plattform unterstützt 37 Länder

Industrielle Vertriebsnetze

Das Unternehmen nutzt umfangreiche industrielle Vertriebspartnerschaften:

Art des Vertriebspartners	Anzahl der Partner	Geografische Abdeckung
Autorisierte Händler	486	Global
Strategische Wiederverkäufer	213	Regional

Messen und Branchenkonferenzen

Gates nimmt an wichtigen Branchenveranstaltungen teil:

• Besuchte im Jahr 2022 42 internationale Messen
• Durchschnittliche Kosten für die Teilnahme an einer Veranstaltung: 175.000 USD pro Jahr
• Durch Messeinteraktionen wurden Direktumsätze in Höhe von ca. 12,6 Millionen US-Dollar generiert

Digitales Marketing und technische Kommunikationskanäle

Kennzahlen zum digitalen Engagement für Gates Industrial Corporation:

Digitaler Kanal	Follower/Abonnenten	Jährliche Engagement-Rate
LinkedIn	87,400	4.2%
Technische Webinare	12.600 registrierte Teilnehmer	6.7%
Technische Inhalte von YouTube	45.200 Abonnenten	3.9%

Gates Industrial Corporation plc (GTES) – Geschäftsmodell: Kundensegmente

Automobilhersteller

Gates Industrial Corporation beliefert Automobilhersteller mit präzisionsgefertigten Kraftübertragungs- und Fluidtechniklösungen.

Kennzahlen für das Automobilsegment	Daten für 2023
Gesamter Automobilumsatz	1,26 Milliarden US-Dollar
Marktanteil im Automobilsegment	12.4%
Anzahl der Automobilkunden	87 große Hersteller

Hersteller von Industriemaschinen

Gates liefert wichtige Komponenten für den Industriemaschinenbau.

• Antriebsriemen
• Hydraulikschlauchlösungen
• Spezialisierte Industriekomponenten

Segment Industriemaschinen	Leistung 2023
Segmentumsatz	892 Millionen US-Dollar
Globale Industriekunden	143 produzierende Unternehmen

Unternehmen für landwirtschaftliche Geräte

Gates liefert wichtige Komponenten für Landmaschinenhersteller.

Kennzahlen für landwirtschaftliche Geräte	Daten für 2023
Umsatz des Agrarsegments	415 Millionen Dollar
Große Kunden für landwirtschaftliche Geräte	52 globale Hersteller

Bergbau- und Bauindustrie

Gates liefert robuste Lösungen für anspruchsvolle Industrieanwendungen.

• Spezialförderbänder
• Hochdruck-Hydrauliksysteme
• Komponenten für extreme Umgebungen

Segment Bergbau/Bau	Leistung 2023
Gesamtumsatz des Segments	673 Millionen US-Dollar
Globale Industriekunden	96 große Unternehmen

Originalgerätehersteller (OEMs)

Gates bietet umfassende Lösungen für mehrere Fertigungssektoren.

OEM-Segmentmetriken	Daten für 2023
Gesamter OEM-Umsatz	1,54 Milliarden US-Dollar
Globale OEM-Kunden	218 Hersteller
OEM-Marktdurchdringung	15.7%

Gates Industrial Corporation plc (GTES) – Geschäftsmodell: Kostenstruktur

Herstellungs- und Produktionskosten

Für das Geschäftsjahr 2023 meldete Gates Industrial Corporation Gesamtherstellungskosten von 1.178,3 Millionen US-Dollar.

Kostenkategorie	Betrag (in Millionen US-Dollar)
Direkte Materialkosten	$692.4
Direkte Arbeitskosten	$276.5
Fertigungsaufwand	$209.4

Forschungs- und Entwicklungsinvestitionen

Die F&E-Ausgaben beliefen sich im Jahr 2023 auf insgesamt 89,6 Millionen US-Dollar, was 3,2 % des Gesamtumsatzes entspricht.

• Ingenieurpersonal: 412 Vollzeitmitarbeiter
• Eingereichte Patentanmeldungen: 37
• Neue Produktentwicklungsprojekte: 22

Globale Logistik- und Vertriebskosten

Die gesamten Logistikkosten für 2023 beliefen sich auf 214,7 Millionen US-Dollar.

Vertriebskanal	Kosten (Millionen US-Dollar)
Nordamerika	$87.3
Europa	$62.5
Asien-Pazifik	$44.9
Lateinamerika	$20.0

Vertriebs- und Marketingausgaben

Die Vertriebs- und Marketingkosten für 2023 beliefen sich auf 156,2 Millionen US-Dollar.

• Budget für digitales Marketing: 37,6 Millionen US-Dollar
• Ausgaben für Messen und Veranstaltungen: 22,4 Millionen US-Dollar
• Vergütung des Vertriebsteams: 96,2 Millionen US-Dollar

Personal- und technische Talentakquise

Die gesamten Personalkosten für 2023 beliefen sich auf 512,8 Millionen US-Dollar.

Mitarbeiterkategorie	Anzahl der Mitarbeiter	Gesamtvergütung (in Millionen US-Dollar)
Exekutive Führung	12	$24.6
Technisches Personal	1,876	$276.4
Vertriebspersonal	843	$142.3
Verwaltungspersonal	612	$69.5

Gates Industrial Corporation plc (GTES) – Geschäftsmodell: Einnahmequellen

Produktverkauf von Antriebskomponenten

Im Geschäftsjahr 2023 meldete Gates Industrial Corporation einen Nettoumsatz von 3,48 Milliarden US-Dollar. Stromübertragungskomponenten machten einen erheblichen Teil dieser Einnahmequelle aus.

Produktkategorie	Umsatz (2023)	Prozentsatz des Gesamtumsatzes
Kraftübertragungskomponenten	1,75 Milliarden US-Dollar	50.3%
Automobilkomponenten	1,23 Milliarden US-Dollar	35.3%
Industrielle Komponenten	0,50 Milliarden US-Dollar	14.4%

Ingenieurberatungsdienste

Gates generiert Einnahmen durch spezialisierte technische Beratungsdienste in mehreren Industriesektoren.

• Umsatz mit Beratungsdienstleistungen: 87 Millionen US-Dollar im Jahr 2023
• Durchschnittlicher Wert eines Beratungsprojekts: 125.000 US-Dollar
• Anzahl der Beratungsaufträge: 696 Projekte

Aftermarket-Teile und Ersatzlösungen

Ersatzteile für den Ersatzteilmarkt stellen eine wichtige Einnahmequelle für die Gates Industrial Corporation dar.

Aftermarket-Segment	Umsatz (2023)	Wachstumsrate
Ersatzteile	412 Millionen Dollar	7.2%
Wartungslösungen	276 Millionen Dollar	5.9%

Lizenzierung technologischer Innovationen

Gates nutzt seine technologischen Innovationen durch strategische Lizenzvereinbarungen.

• Gesamter Lizenzumsatz: 42 Millionen US-Dollar im Jahr 2023
• Anzahl aktiver Technologielizenzen: 37
• Durchschnittlicher Wert der Lizenzvereinbarung: 1,13 Millionen US-Dollar

Weltweiter Verkauf von Industrieausrüstung

Der weltweite Verkauf von Industrieausrüstung trägt erheblich zum Umsatzportfolio von Gates bei.

Geografische Region	Geräteverkäufe (2023)	Marktanteil
Nordamerika	1,05 Milliarden US-Dollar	42.3%
Europa	685 Millionen Dollar	27.6%
Asien-Pazifik	560 Millionen Dollar	22.5%
Rest der Welt	194 Millionen Dollar	7.6%

Gates Industrial Corporation plc (GTES) - Canvas Business Model: Value Propositions

You're looking at the core value Gates Industrial Corporation plc delivers, which is really about engineered reliability across tough environments. The numbers from the third quarter of 2025 definitely show where that value is landing right now.

Application-specific, highly engineered fluid power and power transmission solutions.

The company's offerings are clearly segmented, with each part contributing to the overall top line. For the third quarter ended September 27, 2025, net sales hit $855.7 million, which was a 3.0% increase year-over-year, with core sales growth at 1.7%. This shows the demand for their specific engineering, even in a mixed macroeconomic environment. The Power Transmission segment, the backbone of the business, saw its net sales rise by 3.9% in the quarter, while the Fluid Power segment grew by 1.6%. Looking at the nine months through Q3 2025, Power Transmission generated $1.61 billion in revenue, and Fluid Power brought in $976.4 million. This revenue split underpins the dual-solution value proposition.

The updated full-year 2025 guidance reflects confidence in this engineered offering, projecting core sales growth in the range of +0.5% to +1.5% year-over-year, with an expected Adjusted EBITDA between $770 million and $790 million.

Here's a quick look at how the segments performed in Q3 2025:

Metric	Power Transmission Segment	Fluid Power Segment
Q3 2025 Net Sales Growth (YoY)	3.9%	1.6%
9M 2025 Revenue	$1.61 billion	$976.4 million

Mission-critical components for demanding industrial and consumer applications.

The value here is tied to performance when failure isn't an option. You see this reflected in the performance of specific end-markets. In Q3 2025, management specifically called out solid growth in Automotive Replacement and strong growth in Personal Mobility as contributors to the sales increase. These are areas where component failure directly impacts the end-user experience or vehicle uptime, demanding high-quality, mission-critical parts. The company's focus on margin improvement, evidenced by the Q3 2025 Adjusted EBITDA margin of 22.9% (up 90 basis points year-over-year), suggests successful pricing discipline and value capture for these essential products.

Structural growth enabler in electrification and digital infrastructure (e.g., data centers).

This is where the future optionality is being built. While industrial hydraulics and mobile equipment demand in Fluid Power was weak, this segment is being repositioned toward structurally growing markets. Liquid cooling, for instance, is a product extension serving hyperscale infrastructure and AI-driven data centers. This strategic shift aims to align a portion of the business away from pure industrial cycles. The company recently strengthened this focus with the launch of products like the Data Master?? Eco, which specifically targets the Data Center Portfolio. This move is designed to capture revenue from secular growth trends, even if traditional industrial demand is only partially recovering.

High-quality replacement parts with natural, predictable replacement cycles.

This is the stability anchor of the Gates Industrial Corporation plc business model. Nearly two-thirds of the company's sales are directed to replacement markets, which inherently mitigates the sharp swings of original equipment manufacturer (OEM) cycles. In Q3 2025, Replacement channel revenues expanded low-single digits, demonstrating this predictable demand. This high replacement mix is what helps support the overall financial stability, contributing to the raised 2025 Adjusted EPS guidance of $1.48 to $1.52 at the midpoint. The predictability of these cycles helps Gates Industrial forecast its Free Cash Flow conversion, which is guided to be between 80-90% for the full year 2025.

Global availability across four commercial regions.

The ability to supply these engineered solutions globally is a key value driver. While the most recent full-year geographic data is from 2024, it illustrates the established global footprint that supports current operations. You can see the distribution of sales across the key commercial areas:

• North America: 50% of 2024 sales.
• Europe, Middle East, Africa: 26% of 2024 sales.
• East Asia and India: 10% of 2024 sales.
• China: 10% of 2024 sales.
• South America: 4% of 2024 sales.

This global reach, spanning these four primary commercial regions, ensures that the replacement and OEM customers receive their mission-critical components wherever they operate. The company also improved its balance sheet in Q3 2025 by paying down $100 million of gross debt, which supports the long-term ability to maintain this global supply chain.

Gates Industrial Corporation plc (GTES) - Canvas Business Model: Customer Relationships

You're looking at how Gates Industrial Corporation plc maintains and grows its relationships with its diverse customer base, which spans both original equipment manufacturers (OEMs) and the extensive replacement channel. This dual focus requires distinct approaches for each segment, balancing the need for deep, specified integration with OEMs against the high-volume, reliable supply demanded by the aftermarket.

Dedicated sales teams for direct OEM relationships (specified components)

Gates Industrial Corporation plc serves OEMs with highly engineered components, requiring close, direct engagement. While the exact size of these dedicated sales teams isn't public, the channel's performance reflects the nature of these relationships. For the full year 2024, OEM revenues fell double-digits, indicating the cyclical nature of first-fit business. This trend continued into Q3 FY25, where North American OEM channel sales decreased low teens. However, the company is actively managing this by focusing on specific growth areas; for example, in Q1 2025, industrial OEM sales saw double-digit growth in the personal mobility area, offsetting automotive OEM weakness. The strategy is to embed specified components into new designs, which is evident in the Power Transmission segment's high single-digit growth in industrial OEM sales during Q2 2025.

The relative contribution of the OEM channel is smaller than the replacement market, with nearly two-thirds of total sales coming from replacement channels, leaving the remainder for OEMs.

Long-term, reliable supply and service for the replacement channel

The replacement channel is the backbone of Gates Industrial Corporation plc's stability, characterized by fundamental behavior differences compared to OEM cycles. The focus here is on long-term reliability and consistent service, which is supported by the company's strong financial footing and operational footprint. The company reiterates its 2025 full-year guidance for Adjusted EBITDA in the range of $\text{\$770 million to \$790 million}$ as of Q3. This financial discipline helps assure customers of supply continuity. Furthermore, the company emphasizes its manufacturing footprint is largely 'in-region, for-region,' which management believes offers advantages relative to competition in providing service levels.

The replacement channel has shown resilience, expanding low single-digits in Q3 FY25 compared to the prior year period. The Power Transmission segment, which drives profitability and margin stability, benefits significantly from this mix, with its Q3 FY25 segment revenue at $\text{\$533.3mn}$.

Channel Metric	2024 Full Year Performance	Q3 FY25 Performance (North America)	Strategic Implication
OEM Revenue Change	Fell double-digits	Decreased low teens	Focus on design wins for structural stability
Replacement Revenue Change	Expanded low single-digits	Expanded low single digits	Primary driver of topline stability

Technical support and application engineering for complex industrial needs

For complex industrial and fluid power applications, Gates Industrial Corporation plc provides technical support and application engineering to ensure mission-critical functions are met. This is demonstrated through innovation tailored to emerging, demanding applications. For instance, the company introduced the Data Master™ Eco liquid-cooled hose designed for hyperscale data centers and high-performance computing. This new hose is approximately $\text{15\% lighter}$ than previous versions and was produced using a process reportedly using $\text{75\% less energy}$ than prior processes. This level of engineering support helps position the company for future growth vectors, even as traditional industrial hydraulics demand softens.

The company continues to invest in its commercial front end and innovation in areas of strategic growth potential.

• Broaden product portfolio.
• Expand presence in growth markets.
• Provide differentiated service levels to customers.

Digital engagement for product information and training

While specific metrics for digital engagement and training investment are not detailed, the overall strategy involves broadening the product portfolio and expanding market presence, which is supported by digital channels. The company sells its products in more than $\text{130 countries}$ across four commercial regions: the Americas; Europe, Middle East & Africa; Greater China; and East Asia & India. The Investor Relations website provides access to webcasts for investor conferences, indicating a digital platform for information dissemination. The focus on providing differentiated service levels inherently includes modern digital tools for information access and support for the diverse replacement channel customers.

The company's 2025 full-year guidance anticipates Free Cash Flow conversion exceeding $\text{90\%}$ (later revised to $\text{80-90\%}$), showing a commitment to efficient operations that underpin reliable customer interactions.

Finance: draft 13-week cash view by Friday.

Gates Industrial Corporation plc (GTES) - Canvas Business Model: Channels

You're looking at how Gates Industrial Corporation plc moves its highly engineered solutions to the end-user as of late 2025. The channel strategy heavily favors the aftermarket, which provides a degree of stability even when capital spending is tight. Honestly, the split between direct OEM and the independent distributor network is the core dynamic here.

Independent distributors and dealers (primary replacement channel).

This is the backbone for aftermarket sales, where products are used for maintenance, repair, and operations (MRO). This channel showed resilience through the first three quarters of 2025. For the third quarter of 2025, Replacement channel revenues expanded low-single digits year-over-year. This followed positive core sales growth in the Replacement channels during the second quarter of 2025. To give you a clearer picture of the components of this channel, consider the Q1 2025 performance where the overall replacement channel grew mid single digits, driven by automotive replacement growing mid teens, even as industrial replacement was down mid single digits. For the full year 2024, this channel expanded at a low single-digit rate, contrasting sharply with the OEM side.

Direct sales force to Original Equipment Manufacturers (OEMs).

The direct sales force targets equipment builders for first-fit components. This channel has faced more headwinds in 2025 compared to the replacement market. For instance, in Q2 2025, Industrial OEM channel sales decreased low teens, and OEM sales in the EMEA region were down mid single digits. This weakness followed a trend where full-year 2024 OEM sales decreased double-digits. The company is still making investments here, but the near-term performance suggests caution on this segment's contribution to immediate growth.

The primary delivery mechanism is through a global network, which is organized into four distinct commercial regions:

• Americas
• EMEA (Europe, Middle East & Africa)
• Greater China
• East Asia & India

Gates Industrial Corporation plc sells its products in more than 130 countries, utilizing this regional structure to manage its complex supply chain, which the company notes is largely 'in-region, for-region.'

Here's a snapshot of recent regional performance to show where the channel activity is concentrated:

Commercial Region	Most Recent Reported Core Sales Change (2025)	Key Driver/Context
East Asia & India	Approximately 5% growth (Q1 2025)	Automotive replacement and personal mobility were major contributors.
Greater China	Expanded 3.5% (Q1 2025)	Reported broad-based growth.
Americas (Select Data)	North American replacement grew low single digits (Q2 2025)	Led by mid single-digit growth in industrial replacement.
EMEA	Core sales fell just under 1% (Q1 2025)	OEM sales were approximately flat, offsetting automotive weakness with industrial growth.

E-commerce platforms for certain replacement market segments.

While the independent distributor network remains the primary route for the replacement market, Gates Industrial Corporation plc is actively broadening its digital presence. The company is focused on providing differentiated service levels, which increasingly includes digital tools and e-commerce access for specific aftermarket customers. Although specific revenue percentage attributed to e-commerce platforms for 2025 isn't publically detailed in the earnings summaries, the strategy supports the overall low-single digit growth seen in the total replacement channel in Q3 2025. This digital push is part of the broader effort to capture growth in structurally robust applications like e-mobility and data infrastructure.

Finance: draft 13-week cash view by Friday.

Gates Industrial Corporation plc (GTES) - Canvas Business Model: Customer Segments

You're looking at how Gates Industrial Corporation plc serves its buyers, which is fundamentally split between the aftermarket and new equipment production. This split is key to understanding their revenue stability, as the aftermarket tends to be less volatile than the OEM side.

Diverse Replacement Channel Customers make up a significant portion of the business, which the model suggests is nearly two-thirds of sales. This channel provides a crucial buffer against industrial cycles. For instance, in the third quarter of 2025, Replacement channel revenues expanded at a low-single-digit rate, showing consistent demand even when OEM sales were mixed.

The second major group is the Original Equipment Manufacturers (OEMs), who purchase Gates Industrial Corporation products as specified components for new machinery. In the first quarter of 2025, OEM sales were mixed, but the company noted strong growth in specific areas. However, looking at the full year 2024, OEM sales decreased by a double-digit percentage, contrasting with the low single-digit expansion in Replacement sales that year.

Gates Industrial Corporation serves a broad base of end markets, which can be categorized by their current health and strategic importance. The company sells products in over 130 countries across four commercial regions.

The primary established end markets include:

• Agriculture: Saw core growth in Q2 2025, the first positive read since Q4 2022.
• Construction: Experienced soft demand in Q2 2025.
• Energy: Was one of the most impacted end markets for the Fluid Power segment in Q4 2024.
• Heavy-Duty Trucking (part of On-Highway): Experienced incremental weakness in Q2 2025.

The Power Transmission segment, which is the backbone of stability, saw its net sales rise by 3.9% in Q3 2025, while the Fluid Power segment grew by 1.6% in the same quarter. Total net sales for Gates Industrial Corporation in Q3 2025 were $855.7 million.

The company is actively expanding its presence in specific growth markets, which are showing strong momentum as of late 2025:

• Auto Replacement: Delivered solid growth in Q3 2025.
• Personal Mobility: Showed strong growth, with high teens growth reported in Q2 2025.
• Data Centers: Management noted beginning to see a meaningful acceleration in activity in Q2 2025.

Here's a quick look at how the segments and channels were performing based on the latest available quarterly data:

Segment/Channel Focus	Latest Reported Performance Metric	Value/Rate
Total Net Sales (Q3 2025)	Net Sales	$855.7 million
Replacement Channel	Revenue Expansion (Q3 2025)	Low-single digits
OEM Channel	Core Sales Decline (Q4 2024)	Double-digits
Power Transmission Segment	Net Sales Growth (Q3 2025)	3.9%
Fluid Power Segment	Net Sales Growth (Q3 2025)	1.6%
Personal Mobility (Growth Market)	Growth Rate (Q2 2025)	High teens
Full Year 2025 Guidance	Adjusted EBITDA Range	$770 million to $790 million

The strategic move toward higher-value applications like data centers and energy transition is intended to buffer the cyclical nature inherent in markets like construction and heavy machinery. If global industrial activity remains sluggish, especially in Europe and China, volume recovery in Fluid Power may be slower than anticipated.

Finance: draft 13-week cash view by Friday.

Gates Industrial Corporation plc (GTES) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive the operational costs for Gates Industrial Corporation plc as of late 2025. This isn't about strategy fluff; it's about where the money actually goes to keep those application-specific fluid power and power transmission solutions moving.

The company's cost structure is heavily influenced by its global manufacturing footprint, which management notes is largely 'in-region, for-region', a structure they believe offers competitive advantages. Management is actively working to refine this, as they are executing footprint optimization initiatives and anticipate reducing the structural cost position over the first half of next year.

For the third quarter ended September 27, 2025, the reported operating margin was 13.5%, suggesting a relatively stable cost structure for that period, which aligns with the reported Adjusted EBITDA margin of 22.9% for the same quarter.

Here's a look at the key financial metrics that define the cost base and capital deployment:

Cost Component/Metric	Latest Reported Figure (Q3 2025)	Full Year 2025 Guidance/Estimate
Capital Expenditures (CapEx)	Not specified for Q3	Approximately $120 million
Adjusted EBITDA	$195.8 million (Q3)	$770 million to $790 million (Range)
Adjusted EBITDA Margin	22.9% (Q3)	22.5%-23.0% (S&P Global Ratings expected improvement)
Net Income from Continuing Operations Margin	10.4% (Q3)	Not specified
Gross Debt Outstanding	Not specified for Q3	Paid down $100 million of gross debt in Q3 2025
Total Outstanding Debt (Prior Period Reference)	Not specified for Q3	$2.4 billion (As of December 28, 2024)

Regarding the costs tied directly to production, the search results don't break down Cost of Goods Sold (COGS) into specific raw material versus logistics line items. However, there is an expectation of streamlining of the material cost as part of the operational improvements expected to boost margins.

Selling, General, and Administrative (SG&A) expenses are embedded within the difference between Gross Profit and Operating Income, but specific SG&A dollar amounts for 2025 are not explicitly detailed in the provided guidance summaries. The operating margin of 13.5% in Q3 2025 is the closest available metric reflecting the combined impact of COGS and SG&A relative to sales.

Interest expense on debt is a known factor easing cash outflows. S&P Global Ratings projected that lower interest costs would contribute to a moderate increase in Free Operating Cash Flow (FOCF) to about $350 million for 2025. This easing is supported by the fact that management paid down $100 million of gross debt during the third quarter of 2025.

The focus on cost control is evident in the guidance metrics:

• Free Cash Flow conversion is guided to be between 80-90% for the full year 2025.
• The company is focused on driving operating improvements.
• Anticipated margin expansion is expected to allow the company to maintain virtually flat absolute earnings despite revenue pressures.

Finance: draft 13-week cash view by Friday.

Gates Industrial Corporation plc (GTES) - Canvas Business Model: Revenue Streams

You're looking at how Gates Industrial Corporation plc brings in its money, which is primarily through selling its application-specific fluid power and power transmission solutions across two main segments. The overall picture for 2025 shows a focus on steady growth, with the full-year 2025 core sales growth guided to be in the range of +0.5% to +1.5% year-over-year. This guidance was updated following the third quarter results.

For the third quarter of 2025, the total net sales hit $855.7 million, which represented a 3.0% increase compared to the prior-year period, with total core sales growth coming in at 1.7%. This revenue is split between the two major operational segments: Power Transmission and Fluid Power. The performance in Q3 showed the Power Transmission segment was a stronger driver of net sales growth for that quarter.

Here's a quick look at the Q3 2025 segment revenue and core growth figures we have:

Segment	Q3 2025 Net Sales (USD millions)	Q3 2025 Core Growth
Power Transmission segment	$533 million	2.3%
Fluid Power segment	$322 million	just under 1%

The sales channels are also a critical way to view the revenue streams, as Gates Industrial serves both existing equipment users and new equipment manufacturers. The Replacement Markets are the larger component of the business, making up approximately 2/3 of total sales. Based on the Q3 2025 total net sales of $855.7 million, this channel would account for roughly $570.47 million in that quarter alone. The Replacement channel revenues expanded low-single digits in Q3 2025, supported by solid growth in Automotive Replacement and Personal Mobility.

Conversely, sales to Original Equipment Manufacturers (OEMs) represent approximately 1/3 of total sales. This translates to about $285.23 million of the Q3 2025 net sales. While OEM sales were generally flatter or saw mixed results across sub-segments in Q3, the industrial OEM sales growth helped offset a decrease in automotive OEM sales.

The full-year 2025 expectations for core sales growth are set as follows:

• Full-year 2025 core sales growth guidance: +0.5% to +1.5% year-over-year.
• Q3 2025 total core sales growth: 1.7%.
• Replacement channel revenue growth in Q3 2025: low-single digits.
• OEM sales growth in Q3 2025: low single digits (industrial growth offsetting automotive decrease).