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Gates Industrial Corporation plc (GTES) Goldman Sachs Industrials and Materials Conference 2025 December 3, 2025 2:10 PM EST
Company Participants
L. Mallard – Executive VP & CFO
Richard Kwas – Vice President of Investor Relations
Conference Call Participants
Clay Williams – Goldman Sachs Group, Inc., Research Division
Presentation
Clay Williams
Goldman Sachs Group, Inc., Research Division
All right. Good afternoon, everyone. Look to the fireside chat with Gates Corporation here. I’m Clay Williams from Goldman Sachs. And with us from Gates I have Brooks Mallard, Executive Vice President and Chief Financial Officer; and Rich Kwas, Vice President of Investor Relations and Strategy. Brooks, Rich, thanks for joining us today.
L. Mallard
Executive VP & CFO
Absolutely.
Question-and-Answer Session
Clay Williams
Goldman Sachs Group, Inc., Research Division
Yes. So to get it started, dig in on the 2026 targets. On last quarter’s call, you outlined how you expect to arrive at your midterm adjusted EBITDA margin target. Could you refresh us on your plan to get within the target adjusted EBITDA margin range and how you’ve been able to expand margins in the negative volume environment we’ve been in.
L. Mallard
Executive VP & CFO
Yes. So in our Capital Markets Day back in Q1 of ’24, we’re coming off a challenged 2023, we were right at under 21% EBITDA margins, and we’ve just come through kind of the post-COVID challenges around material availability and things like that. And we put together a walk that included a path for us to get to 24.5% at midpoint EBITDA margins. And about 100 to 150 of that was coming from volume. Market recovery in a CAGR of about 3% to 5% per year. And so what’s happened over the course of the past couple of years is actually we’ve seen about 500 to 600 points of volume headwind related to some of the end markets like agriculture
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