Gates Industrial (GTES) Citi's Global Industrial Tech & Mobility Conference 2026 summary

Market trends and outlook

• Four out of seven major markets are growing, with personal mobility and data centers as key drivers.

• Industrial OEM order trends are strengthening, indicating foundational recovery.

• Early signs suggest 2026 will be more supportive for growth than 2025.

• Commercial construction and ag OEMs show improved order trends, outperforming broader markets.

• Europe and Asia are showing strong performance, with Europe leading in ag and construction recovery.

Business segment performance

• Personal mobility business is growing at a 20-30% CAGR, targeting $300 million by 2028.

• Data center segment revenue grew 4-5x in 2025, with expectations to reach $100-$200 million by 2028.

• Automotive aftermarket continues to outperform, with new customer wins and global opportunities.

• Industrial Off-Highway and diversified industrial segments are recovering, driven by PMI improvements.

• Auto OEM business is stable, now 8% of revenue, with focus shifting to industrial growth.

Operational initiatives and margin expansion

• ERP implementation in Europe completed, with temporary margin drag expected to abate in 2026.

• Material cost savings and footprint optimization programs are exceeding expectations, contributing to margin targets.

• 80/20 efficiency project offers multi-year runway for further margin improvement.

• Exiting 2025 at record profitability, with 23.5% EBITDA margin and aiming for 24.5% in 2027.

• Incremental margin opportunities expected to drive further gains from the second half of 2026.