Zach Walljasper's questions to Gates Industrial Corporation PLC (GTES) leadership • Q2 2025
Question
Zach Walljasper, on behalf of Damian Karas from UBS Group AG, asked for clarification on the drivers of the revised EBITDA guidance (FX vs. operations) and questioned the company's pricing strategy in light of tariffs and customer feedback.
Answer
CFO Brooks Mallard clarified that the $15 million midpoint raise in EBITDA guidance was entirely related to a more favorable FX outlook. On pricing, he explained that actions were delayed due to tariff volatility but will result in a sequential bump from Q2 to Q3. He reiterated that the company expects to be dollar-neutral on tariffs by adjusting pricing and operational actions as needed.