Denver, Colorado—Gates Industrial Corporation plc is poised for an ambitious future as it outlines its growth strategy during the Goldman Sachs Industrials and Materials Conference. The event took place on December 3, 2025, featuring insights from company executives on their adjusted EBITDA margin targets and operational recovery plans amid recent industry challenges.
Executive Vice President and Chief Financial Officer L. Mallard, along with Vice President of Investor Relations Richard Kwas, represented Gates in a discussion led by Clay Williams of Goldman Sachs. The conversation opened with Williams probing into the company’s projected targets for 2026, specifically its plans to achieve a midterm adjusted EBITDA margin.
Mallard recounted the hurdles Gates faced, particularly in 2023, when external pressures led to reduced performance, with EBITDA margins hovering just below 21%. “We emerged from the post-COVID era grappling with material availability issues that strained production,” Mallard explained. The executive emphasized that their strategic approach includes a roadmap established during their Capital Markets Day in the first quarter of 2024, where they set a midpoint target of 24.5% EBITDA margins.
To achieve this ambitious goal, Gates anticipates a recovery in market demand, projecting a compound annual growth rate of 3% to 5% over the coming years. However, they are also addressing significant challenges, with Mallard noting that the company has faced a volume headwind of approximately 500 to 600 basis points. This downturn has particularly affected sectors such as agriculture, which are vital to their business model.
Responding to questions about managing costs and maintaining operational efficiency, Mallard highlighted the importance of adapting to market conditions and leveraging innovative solutions. He indicated that optimizing resource management could mitigate the adverse effects caused by fluctuating demand.
The executives presented a confident outlook for the road ahead, underscoring the importance of streamlining operations and enhancing customer relationships. With strategic investments aimed at boosting production capabilities, Gates aims to not only recover lost ground but also expand its market share.
As Gates continues to navigate a complex economic landscape, the insights from this conference are pivotal. The company’s commitment to increasing EBITDA margins while recovering from previous setbacks underscores their resilience and strategic foresight in a competitive industry. Investors and analysts will be closely monitoring Gates’ progress as the company executes its plan in an evolving market environment.
