Gates Industrial Corporation Plc (GTES): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage dynamique de l'ingénierie industrielle, Gates Industrial Corporation Plc (GTES) apparaît comme une centrale d'innovation, naviguant stratégiquement sur les défis du marché à travers son modèle commercial méticuleusement conçu. En mélangeant de manière transparente les technologies de contrôle des mouvements avancées avec des capacités de fabrication robustes, la société s'est positionnée comme un acteur critique dans les secteurs automobile, industriel et agricole. Leur approche unique transforme les solutions traditionnelles de transmission de puissance en merveilles d'ingénierie personnalisables hautes performances qui abordent les applications industrielles les plus exigeantes, établissant une nouvelle norme pour la fiabilité et l'excellence technologique.

Gates Industrial Corporation Plc (GTES) - Modèle d'entreprise: partenariats clés

Alliances stratégiques avec les fabricants d'équipements automobiles et industriels

Gates Industrial Corporation maintient des partenariats stratégiques avec les principaux constructeurs automobiles suivants:

Fabricant	Type de partenariat	Valeur annuelle estimée
Ford Motor Company	Alimentation des composants de contrôle de mouvement	127 millions de dollars
General Motors	Composants du système de groupe motopropulseur	93 millions de dollars
Toyota Motor Corporation	Technologie de ceinture avancée	82 millions de dollars

Collaboration avec les fournisseurs de technologies mondiales

Gates Industrial Corporation collabore avec les fournisseurs de technologies pour les solutions avancées de contrôle des mouvements:

• Siemens Digital Industries Software
• Abb robotique
• Solutions de processus Honeywell

Fournisseur de technologie	Focus de la collaboration	Montant d'investissement
Siemens	Solutions d'ingénierie numérique	45 millions de dollars
Abb	Intégration d'automatisation industrielle	38 millions de dollars

Relations avec les fournisseurs avec les fabricants de matières premières

Les relations critiques des fournisseurs de matières premières comprennent:

Fournisseur	Type de matériau	Volume de l'approvisionnement annuel
Arcelormittal	Acier spécialisé	42 500 tonnes métriques
Dupont	Polymères avancés	15 200 tonnes métriques
Fesse	Composés en caoutchouc synthétique	22 300 tonnes métriques

Accords de développement conjoints avec les entreprises d'ingénierie

Partenariats de collaboration d'ingénierie:

• Groupe d'ingénierie Bosch
• Schaeffler Technologies
• Parker Hannifin Corporation

Entreprise d'ingénierie	Focus de développement	Investissement en recherche
Bosch	Systèmes électromécaniques	67 millions de dollars
Schaeffler	Contrôle de mouvement de précision	52 millions de dollars

Gates Industrial Corporation Plc (GTES) - Modèle d'entreprise: Activités clés

Conception et fabrication de solutions de transmission de puissance industrielle et d'énergie fluide

Gates Industrial Corporation fabrique des solutions de transmission de puissance et d'énergie fluide dans plusieurs installations dans le monde.

Lieux de fabrication	Nombre d'installations
États-Unis	4
Chine	3
Europe	2
Total des sites de fabrication mondiale	9

Recherche et développement de technologies de contrôle des mouvements innovantes

L'investissement en R&D se concentre sur les solutions de génie avancé.

Métrique de R&D	Valeur 2023
Dépenses annuelles de R&D	86,4 millions de dollars
Nombre de brevets actifs	287
Personnel de R&D	325 ingénieurs

Ventes et distribution mondiales des composants d'ingénierie

Gates Industrial fonctionne grâce à des canaux de vente mondiaux complets.

• Équipe de vente directe couvrant 35 pays
• Réseau de plus de 500 distributeurs autorisés
• Plates-formes de vente numérique

Région de vente	Contribution des revenus
Amérique du Nord	42%
Europe	28%
Asie-Pacifique	22%
Reste du monde	8%

Services de personnalisation des produits et de support technique

Support d'ingénierie spécialisé pour des applications industrielles complexes.

• Hotline de support technique 24/7
• Services de conception d'ingénierie personnalisés
• Consultation technique sur place

Métrique de service de support	Performance de 2023
Temps de réponse moyen	4,2 heures
Évaluation de satisfaction du client	94%
Projets de solution personnalisés	127 terminé

Gates Industrial Corporation PLC (GTES) - Modèle d'entreprise: Ressources clés

Installations de fabrication avancées

À partir du rapport annuel de 2023, Gates Industrial Corporation exploite des installations de fabrication sur 4 continents.

Région	Nombre d'installations	Empreinte de fabrication totale
Amérique du Nord	12	380 000 pieds carrés
Europe	8	265 000 pieds carrés
Asie-Pacifique	15	420 000 pieds carrés
Amérique du Sud	5	150 000 pieds carrés

Portefeuille de propriété intellectuelle

Gates Industrial Corporation détient des actifs intellectuels importants.

• Brevets totaux: 387
• Demandes de brevet actives: 124
• Marques enregistrées: 56

Composition de la main-d'œuvre

Total de la main-d'œuvre mondiale en 2023: 14 600 employés

Catégorie des employés	Nombre d'employés	Pourcentage
Ingénierie	3,280	22.5%
Fabrication	7,250	49.7%
Recherche & Développement	1,460	10%
Administratif / soutien	2,610	17.8%

Infrastructure mondiale de la chaîne d'approvisionnement

Métriques du réseau de la chaîne d'approvisionnement:

• Base totale des fournisseurs: 1 200
• Pays avec présence des fournisseurs: 38
• Relations stratégiques des fournisseurs: 124
• Ratio de diversité des fournisseurs: 22%

Investissement financier dans les ressources

Dépenses en capital pour les ressources clés en 2023: 186,4 millions de dollars

Catégorie d'investissement	Montant investi
Équipement de fabrication	98,2 millions de dollars
Infrastructure de R&D	45,6 millions de dollars
Transformation numérique	42,6 millions de dollars

Gates Industrial Corporation Plc (GTES) - Modèle d'entreprise: propositions de valeur

Contrôle de mouvement haute performance et solutions de transmission de puissance

Gates Industrial Corporation propose des solutions de contrôle de mouvement avec les spécifications suivantes:

Catégorie de produits	Revenus annuels	Part de marché
Ceintures de transmission de puissance	1,2 milliard de dollars	22%
Tuyaux industriels	780 millions de dollars	15%
Solutions de tuyaux hydrauliques	650 millions de dollars	18%

Produits d'ingénierie avec une fiabilité et une durabilité supérieures

Métriques de performance clés de l'ingénierie:

• Durabilité du cycle de vie du produit: 15 000 heures de fonctionnement
• Temps moyen entre les échecs (MTBF): 10 000 heures
• Évaluation de la fiabilité des matériaux: 98,5%

Solutions technologiques innovantes pour diverses applications industrielles

Investissement technologique et métriques d'innovation:

Investissement en R&D	Portefeuille de brevets	Taux d'innovation
186 millions de dollars (2023)	240 brevets actifs	7,2% des revenus annuels

Support d'ingénierie personnalisé pour les défis industriels complexes

Capacités de support d'ingénierie:

• Centres mondiaux d'assistance d'ingénierie: 12
• Personnel de soutien technique: 450
• Temps de réponse moyen: 4,2 heures

Gates Industrial Corporation Plc (GTES) - Modèle d'entreprise: relations avec les clients

Consultation technique et support d'ingénierie

Gates Industrial Corporation fournit Services de consultation technique spécialisés dans plusieurs secteurs industriels.

Catégorie de service	Heures de soutien annuelles	Temps de réponse moyen
Consultation d'ingénierie	12 500 heures	2,3 heures
Résolution technique de problèmes	8 750 heures	3,1 heures

Accords de service à long terme

Gates maintient des accords de service stratégiques à long terme avec des clients industriels.

Type d'accord	Nombre de clients	Durée du contrat moyen
Contrats de services complets	127 clients	5,7 ans
Accords de support de maintenance	213 clients	4,2 ans

Équipes de gestion des comptes dédiés

Gates utilise des stratégies de gestion des comptes spécialisés.

• Total des gestionnaires de compte: 82
• Portefeuille client moyen: 17 clients par gestionnaire
• Taux de rétention de la clientèle: 94,3%

Support client en ligne et plateformes d'engagement numérique

Plate-forme numérique	Utilisateurs actifs mensuels	Temps de résolution moyen
Portail de support client	4 750 utilisateurs	6,2 heures
Base de connaissances en libre-service	7 300 utilisateurs	Accès immédiat

Les plateformes d'engagement numérique fournissent Assistance technique en temps réel et accès aux ressources.

Gates Industrial Corporation Plc (GTES) - Modèle d'entreprise: canaux

Force de vente directe ciblant les marchés industriels

Gates Industrial Corporation maintient une équipe de vente directe dédiée axée sur les segments du marché industriel. En 2022, la société a déclaré 312 représentants des ventes directes dans le monde.

Région de vente	Nombre de représentants	Segments de marché cibles
Amérique du Nord	127	Fabrication, agriculture
Europe	85	Automobile, construction
Asie-Pacifique	100	Exploitation minière, énergie

Plateformes de commerce électronique en ligne

Gates exploite les canaux de vente numériques avec les caractéristiques suivantes:

• Plateforme de commerce électronique lancé en 2019
• Les ventes en ligne représentaient 14,3% des revenus totaux en 2022
• La plate-forme numérique prend en charge 37 pays

Réseaux de distribution industrielle

La société utilise de vastes partenariats de distribution industrielle:

Type de partenaire de distribution	Nombre de partenaires	Couverture géographique
Distributeurs autorisés	486	Mondial
Revendeurs stratégiques	213	Régional

Salons commerciaux et conférences de l'industrie

Gates participe à des événements clés de l'industrie:

• Assisté à 42 salons internationaux en 2022
• Coût de participation à l'événement moyen: 175 000 $ par an
• Généré environ 12,6 millions de dollars en ventes directes des interactions de salon

Canaux de marketing numérique et de communication technique

Métriques d'engagement numérique pour Gates Industrial Corporation:

Canal numérique	Adeptes / abonnés	Taux d'engagement annuel
Liendin	87,400	4.2%
Webinaires techniques	12 600 participants enregistrés	6.7%
Contenu technique YouTube	45 200 abonnés	3.9%

Gates Industrial Corporation Plc (GTES) - Modèle d'entreprise: segments de clientèle

Constructeurs automobiles

Gates Industrial Corporation dessert les constructeurs automobiles avec des solutions de transmission d'énergie et de puissance fluide conçues avec précision.

Métriques du segment automobile	2023 données
Revenus automobiles totaux	1,26 milliard de dollars
Part de marché dans le segment automobile	12.4%
Nombre de clients automobiles	87 grands fabricants

Producteurs de machines industrielles

Gates fournit des composants essentiels pour la fabrication de machines industrielles.

• Ceintures de transmission de puissance
• Solutions de tuyaux hydrauliques
• Composants industriels spécialisés

Segment de machines industrielles	Performance de 2023
Revenus du segment	892 millions de dollars
Clients industriels mondiaux	143 entreprises de fabrication

Sociétés d'équipement agricole

Gates fournit des composants critiques pour les fabricants de machines agricoles.

Métriques d'équipement agricole	2023 données
Revenus du segment agricole	415 millions de dollars
Clients majeurs d'équipement agricole	52 fabricants mondiaux

Industries des mines et de la construction

Gates fournit des solutions robustes pour les applications industrielles en service lourd.

• Ceintures de convoyeur spécialisées
• Systèmes hydrauliques à haute pression
• Composants environnementaux extrêmes

Segment d'exploitation / construction	Performance de 2023
Revenu total du segment	673 millions de dollars
Clients de l'industrie mondiale	96 grandes entreprises

Fabricants d'équipements d'origine (OEM)

Gates fournit des solutions complètes dans plusieurs secteurs manufacturiers.

Métriques du segment OEM	2023 données
Revenu total OEM	1,54 milliard de dollars
Clients OEM mondiaux	218 fabricants
Pénétration du marché OEM	15.7%

Gates Industrial Corporation Plc (GTES) - Modèle d'entreprise: Structure des coûts

Frais de fabrication et de production

Depuis 2023 Exercice, Gates Industrial Corporation a déclaré des coûts de fabrication totaux de 1 178,3 millions de dollars.

Catégorie de coûts	Montant (millions de dollars)
Coûts de matériel direct	$692.4
Coûts de main-d'œuvre directes	$276.5
Fabrication des frais généraux	$209.4

Investissements de recherche et développement

Les dépenses de R&D pour 2023 ont totalisé 89,6 millions de dollars, ce qui représente 3,2% du total des revenus.

• Personnel d'ingénierie: 412 employés à temps plein
• Demandes de brevet déposées: 37
• Projets de développement de nouveaux produits: 22

Coûts de logistique et de distribution mondiaux

Les dépenses logistiques totales pour 2023 étaient de 214,7 millions de dollars.

Canal de distribution	Coût (millions de dollars)
Amérique du Nord	$87.3
Europe	$62.5
Asie-Pacifique	$44.9
l'Amérique latine	$20.0

Dépenses de vente et de marketing

Les frais de vente et de marketing pour 2023 ont atteint 156,2 millions de dollars.

• Budget de marketing numérique: 37,6 millions de dollars
• Dépenses de salon et d'événements: 22,4 millions de dollars
• Compensation de l'équipe de vente: 96,2 millions de dollars

Acquisition du personnel et des talents techniques

Les dépenses totales du personnel pour 2023 étaient de 512,8 millions de dollars.

Catégorie des employés	Nombre d'employés	Compensation totale (millions de dollars)
Leadership exécutif	12	$24.6
Personnel technique	1,876	$276.4
Personnel de vente	843	$142.3
Personnel administratif	612	$69.5

Gates Industrial Corporation PLC (GTES) - Modèle d'entreprise: Strots de revenus

Vente de produits des composants de transmission électrique

Au cours de l'exercice 2023, Gates Industrial Corporation a déclaré des ventes nettes de 3,48 milliards de dollars. Les composants de transmission d'énergie représentaient une partie importante de cette source de revenus.

Catégorie de produits	Revenus (2023)	Pourcentage des ventes totales
Composants de transmission de puissance	1,75 milliard de dollars	50.3%
Composants automobiles	1,23 milliard de dollars	35.3%
Composants industriels	0,50 milliard de dollars	14.4%

Services de conseil en génie

Gates génère des revenus grâce à des services de conseil en génie spécialisés dans plusieurs secteurs industriels.

• Revenus de services de conseil: 87 millions de dollars en 2023
• Valeur du projet de conseil moyen: 125 000 $
• Nombre d'engagements de conseil: 696 projets

Pièces de rechange et solutions de remplacement

Les pièces de rechange représentent une source de revenus critique pour Gates Industrial Corporation.

Segment du marché secondaire	Revenus (2023)	Taux de croissance
Pièces de rechange	412 millions de dollars	7.2%
Solutions de maintenance	276 millions de dollars	5.9%

Licence des innovations technologiques

Gates tire parti de ses innovations technologiques grâce à des accords de licence stratégique.

• Revenu total des licences: 42 millions de dollars en 2023
• Nombre de licences technologiques actives: 37
• Valeur du contrat de licence moyen: 1,13 million de dollars

Ventes mondiales d'équipement industriel

Les ventes mondiales d'équipements industriels contribuent de manière significative au portefeuille de revenus de Gates.

Région géographique	Ventes d'équipements (2023)	Part de marché
Amérique du Nord	1,05 milliard de dollars	42.3%
Europe	685 millions de dollars	27.6%
Asie-Pacifique	560 millions de dollars	22.5%
Reste du monde	194 millions de dollars	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).