Gates Industrial (GTES) JPMorgan Industrials Conference 2026 summary

Company overview and culture

• Global leader in power transmission and fluid power, with a strong brand and over 100 years of history focused on material science and customer service.

• Over 70% of sales come from resilient aftermarket channels, supporting stable revenue.

• Emphasis on data-driven decision-making, accountability, and continuous improvement.

• Lean, transparent, and process-driven organization aimed at customer satisfaction.

• Improved profitability by over 300 basis points and reduced leverage from 4.8x to under 2x since 2020.

Market dynamics and business cycle

• Automotive aftermarket has returned to stable growth, with strong margins and pricing power, especially in emerging markets.

• Industrial segment remains in a prolonged trough, but recent OEM order improvements signal cautious optimism.

• Aftermarket business expected to grow 2–4% annually, acting as a stabilizing force.

Growth engines: personal mobility, data centers, and robotics

• Personal mobility segment, driven by electrification, achieved nearly 30% growth last year and targets a 30% CAGR through 2028.

• Data center business, focused on liquid-cooled applications, aims to grow from under $10 million in 2024 to $100–$200 million by 2028.

• Robotics and automation initiatives focus on converting chain to belt systems, with cost proximity driving OEM adoption.