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OCTOBER 30, 2026 Q3 2026 EARNINGS PRESENTATION
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© 2026 Gates Corporation. All rights reserved. LEGAL DISCLAIMERS 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains, and management may make on our call today, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends,“ “trends,” "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to statements regarding demand trends, our capital allocation optionality, our ability to capitalize on the industrial recovery, expectations regarding cash flow, core sales growth and profitability, the industrial cycle recovery, our ability to create shareholder value and our outlook for the fourth quarter and full year 2026 (including the related assumptions). Such forward-looking statements are subject to various risks and uncertainties, including, among others, U.S. policies, actions or legislation (including the imposition of tariffs); economic, political and other risks associated with international operations (including as a result of the ongoing conflicts in the Middle East and their impact on supply chains, such as reduced availability of certain of our production materials and increased supply costs, and economic conditions); availability of raw materials or other manufacturing inputs at favorable prices in sufficient quantities, or at a given time; changes in our relationships with, or the financial condition, performance, purchasing power or inventory levels of, key channel partners; dependence on the continued operation of our manufacturing facilities, supply chains, distribution systems and information technology systems; our ability to forecast demand or meet significant increases in demand and market acceptance of new product introductions and innovations. Additional factors that could cause the Company’s results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended June 27, 2026, each as filed with the Securities and Exchange Commission ("SEC”), as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. NON-GAAP FINANCIAL INFORMATION This presentation includes certain non-GAAP financial measures, which management believes are useful to investors. Non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Appendix of this presentation and our earnings release filed with the SEC and posted on our website at investors.gates.com for a reconciliation of historical non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures, including expected Core Sales Growth, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Earnings per Share, Net Leverage and Free Cash Flow conversion for 2026. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results. ROUNDING ADJUSTMENTS Certain monetary amounts, percentages and other figures included in this presentation have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables or charts may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated, may not be the arithmetic aggregation of the percentages that precede them.
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© 2026 Gates Corporation. All rights reserved. Q3 2026 KEY HIGHLIGHTS & METRICS 3 SOLID TOP-LINE AND ADJUSTED EBITDA MARGIN PERFORMANCE; NORTH AMERICA GROWTH ACCELERATED IN Q3 Strong sales growth; record earnings performance • 5.5% core sales growth; majority of end markets grew • Record adjusted EBITDA margin and adjusted EPS Industrial demand momentum continues to build • YoY Industrial core sales growth accelerated compared to Q2 • Enterprise book-to-bill remained above 1.0x Raising full year adjusted EPS guidance • Reiterating core sales guidance at the midpoint; reaffirming 2H adjusted EBITDA margin of ~23.5% • Anticipate double-digit adjusted EPS growth in 2026
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© 2026 Gates Corporation. All rights reserved. Q3 2026 – FINANCIAL PERFORMANCE 4 STRONG YOY PERFORMANCE; 40+% INCREMENTAL MARGIN YOY $904M $215M $0.47 5.6% Total Growth YoY 5.5% core growth; Diversified Industrial up HSD North America growth inflected meaningfullyNet Sales Adjusted Earnings per Share Adjusted EBITDA 23.8% Adjusted EBITDA Margin +90 bps Adj. EBITDA margin increase vs. prior year period Margin expansion led by volume and operating performance Record Quarterly Adjusted EPS Adjusted EPS increased ~21% YoY Operating performance was biggest contributor Notes: Adjusted Earnings Per Share: Adjusted Net Income per diluted share Adjusted EBITDA Margin: Adjusted EBITDA expressed as a percentage of sales Incremental/Decremental Margin: The year-over-year change in the Adjusted EBITDA divided by the year-over-year change in net sales
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© 2026 Gates Corporation. All rights reserved. Q3 2026 – SEGMENT RESULTS 5 $560M 24.5% NET SALES HIGHLIGHTS FLUID POWER POWER TRANSMISSION Demand strengthened through the quarter, particularly in Industrial OEM and 20%+ growth in On- Highway; Agriculture slightly positive Benefits from operating performance, partially offset by higher inflation improved gross margin 130 bps YoY Strategic investments with an emphasis on Data Center offset improvements to gross margin PERFORMANCE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN $343M 22.8% NET SALES ADJUSTED EBITDA ADJUSTED EBITDA MARGIN $78M 5.2% Core YoY 160 bps YoY 6.1% Core YoY (10) bps YoY $137M Industrial demand remained strong, led by high- teens growth in Industrial OEM Personal Mobility delivered ~40% growth, with meaningful contributions from all regions Adjusted EBITDA Margin expansion fueled by volume growth and operating performance
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© 2026 Gates Corporation. All rights reserved. Q3 2026 – REGIONAL CORE REVENUE PERFORMANCE 6 INDUSTRIAL OEM DEMAND CONTINUED TO ACCELERATE IN KEY GEOGRAPHIES +7.5% APAC 53% 26% 21% EMEA APAC Americas REVENUE Total Gates +5.5% Americas: Growth inflection across industrial markets; high teens growth in Industrial OEM channel EMEA: 20%+ growth in Mobility and On-Highway partially offset by Construction weakness; Auto Aftermarket grew double-digits APAC: Industrial OEM channel expanded ~30%; Personal Mobility up 70%+ +5.2% Americas +4.6% EMEA (12.5%) South America +4.7% Greater China +10.0% East Asia +7.1% North America
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© 2026 Gates Corporation. All rights reserved. Q3 2026 ADJUSTED EPS WALK 7 GENERATED 20%+ ADJUSTED EPS GROWTH Q3 2025 Adj. EPS Operating Performance Tax, Interest, and Share Count F/X and Other Q3 2026 Adj. EPS $0.39 $0.08 $0.01 $0.47($0.01)
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© 2026 Gates Corporation. All rights reserved. Q3 2026 – CASH FLOW & CAPITAL EFFICIENCY 8 GROWING CAPITAL ALLOCATION OPTIONALITY 1.8x 21.5% Net Leverage ROIC Solid improvement YoY Reduced net leverage by 0.2x YoY while repurchasing approximately $57 million of shares Strong capital structure in place; significant capital deployment optionality On Track for ~90% for Full-Year Conversion Carrying elevated levels of working capital to support strengthening demand Expect normal seasonal conversion increase in Q4 2026 Flat YoY On track for improvement YoY for full year Ongoing improvement from internal projects offsetting inflationary headwinds Notes: Free Cash Flow: Net cash provided by (used in) operating activities less capital expenditures Free Cash Flow Conversion: LTM Free Cash Flow (Net Cash Provided by Operations minus capital expenditures) expressed as a percentage of LTM Adjusted Net Income Net Leverage: Net Debt (defined as the principal amount of our debt less the carrying amount of cash and cash equivalents) divided by LTM Adjusted EBITDA ROIC: Tax-effected LTM Adjusted EBIT divided by total assets minus cash, accounts payable, income tax-related assets and intangibles related to 2014 acquisition of Gates 82% LTM Free Cash Flow Conversion
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© 2026 Gates Corporation. All rights reserved. UPDATED 2026 FULL YEAR GUIDANCE 9 PRIOR 2026 CURRENT 2026 B/W (Midpoint) CORE SALES GROWTH +2.5% to +4.5% +3.2% to +3.8% No Change ADJUSTED EBITDA $800M – $830M $809M – $823M +$1M ADJUSTED EPS $1.62 – $1.70 $1.66 – $1.72 +$0.03 CAPITAL EXPENDITURES ~$120M ~$120M No Change FREE CASH FLOW CONVERSION 90%+ 90%+ No Change ANTICIPATE FULL YEAR 2026 TOTAL SALES GROWTH OF APPROXIMATELY 5% AT THE MIDPOINT Q4 COMMENTARY Total Sales: $905M - $925M • At midpoint, core growth estimated to be ~6.5% YoY Adjusted EBITDA Margin • Up ~120 bps at the midpoint
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© 2026 Gates Corporation. All rights reserved. SUMMARY THOUGHTS 10 THE COMPANY IS WELL POSITIONED TO GENERATE ATTRACTIVE GROWTH AND PROFITABILITY LONG-TERM Strong operating performance • Adjusted EBITDA margin outperformed expectations • YoY incremental margin exceeded 40% On pace to exit year in strong position • 2H adjusted EBITDA margin expected to average ~23.5% • Anticipate to be ~1.5x net leverage Upcoming Capital Markets Day @ NYSE • Updated views on key strategic initiatives and capital deployment plan • Product displays and exposure to subject matter experts
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© 2026 Gates Corporation. All rights reserved. CAPITAL MARKETS DAY REMINDER 11 WE LOOK FORWARD TO HOSTING MANY OF YOU IN PERSON AND THROUGH THE WEBCAST November 19, 2026
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© 2026 Gates Corporation. All rights reserved. 12
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© 2026 Gates Corporation. All rights reserved. APPENDIX
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© 2026 Gates Corporation. All rights reserved. RECONCILIATIONS – CORE SALES GROWTH 14 (1) Throughout this document the terms "net sales" and "revenue" are used interchangeably in reference to the GAAP measure "net sales." (USD in millions) Power Transmission Fluid Power Q3 2026 Reconciliation of Core Sales Growth Net sales for the quarter ended September 26, 2026 560.1 $ 343.5 $ 903.6 $ Impact on net sales of movements in currency rates 0.8 (1.4) (0.6) Core sales for the quarter ended September 26, 2026 560.9 $ 342.1 $ 903.0 $ Net sales for the quarter ended September 27, 2025 533.3 322.4 855.7 Increase in net sales 26.8 21.1 47.9 Increase in net sales on a core basis (core sales) 27.6 $ 19.7 $ 47.3 $ Net sales increase 5.0% 6.5% 5.6% Core sales increase 5.2% 6.1% 5.5% (USD in millions) Power Transmission Fluid Power YTD 2026 YTD Reconciliation of Core Sales Growth Net sales for the nine months ended September 26, 2026 1,681.8 $ 1,014.5 $ 2,696.3 $ Impact on net sales of movements in currency rates (27.9) (15.6) (43.5) Core sales for the nine months ended September 26, 2026 1,653.9 $ 998.9 $ 2,652.8 $ Net sales for the nine months ended September 27, 2025 1,610.6 976.4 2,587.0 Increase in net sales 71.2 38.1 109.3 Increase in net sales on a core basis (core sales) 43.3 $ 22.5 $ 65.8 $ Net sales increase 4.4% 3.9% 4.2% Core sales increase 2.7% 2.3% 2.5%
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© 2026 Gates Corporation. All rights reserved. RECONCILIATIONS – INCREMENTAL MARGIN 15 (USD in millions) Q3 2026 Q3 2025 Change Incremental Margin YTD Q3 2026 YTD Q3 2025 Change Incremental Margin Reconciliation to Adjusted EBITDA Margin and Incremental Margin Power Transmission Net Sales 560.1$ 533.3$ 26.8$ 1,681.8$ 1,610.6$ 71.2$ Power Transmission Adjusted EBITDA 137.1$ 122.1$ 15.0$ 383.9$ 361.6$ 22.3$ Adjusted EBITDA Margin 24.5% 22.9% 160 bps 22.8% 22.5% 30 bps Fluid Power Net Sales 343.5$ 322.4$ 21.1$ 1,014.5$ 976.4$ 38.1$ Fluid Power Adjusted EBITDA 78.3$ 73.7$ 4.6$ 220.3$ 220.7$ (0.4)$ Adjusted EBITDA Margin 22.8% 22.9% -10 bps 21.7% 22.6% -90 bps Total Net Sales 903.6$ 855.7$ 47.9$ 2,696.3$ 2,587.0$ 109.3$ Total Adjusted EBITDA 215.4$ 195.8$ 19.6$ 604.2$ 582.3$ 21.9$ Adjusted EBITDA Margin 23.8% 22.9% 90 bps 40.9% 22.4% 22.5% -10 bps 20.0% Net Income From Continuing Operations 91.6$ 88.7$ 2.9$ 336.2$ 220.7$ 115.5$ Net Income From Continuing Operations Margin 10.1% 10.4% -30 bps 12.5% 8.5% 400 bps
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© 2026 Gates Corporation. All rights reserved. RECONCILIATIONS – ADJUSTED EBITDA & NET LEVERAGE 16 (1) Other (income) expenses excludes foreign currency transaction (gains) losses of $(1.1) million and $3.2 million and insurance losses of $2.2 million and $4.7 million during the three and nine months ended September 26, 2026, respectively, and foreign currency transaction losses and insurance recoveries of $9.9 million and $7.8 million during the three and nine months ended September 27, 2025, respectively. (2) Transaction-related expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions. (3) Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis. (4) In July 2025, we received insurance recoveries related to a previously disclosed cybersecurity incident that occurred in February 2023 for which we previously excluded $5.2 million of expenses from Adjusted EBITDA. (USD in millions) Q3 2026 Q3 2025 LTM Q3 2026 LTM Q3 2025 Reconciliation to Adjusted EBITDA Net Income from Continuing Operations 91.6 $ 88.7 $ 392.6 $ 261.9 $ Adjusted for: Income tax expense (benefit) 16.7 6.1 (34.8) 94.8 Interest expense 30.5 34.9 123.0 127.4 Other (income) expenses, excluding foreign currency transaction gain or loss and insurance recoveries (1) (8.5) (4.4) (10.6) (6.6) Depreciation and amortization 56.4 53.6 223.9 213.2 Transaction-related expenses (2) 4.0 0.1 7.6 1.7 Asset impairments - 0.4 2.3 1.2 Restructuring expenses 0.6 6.5 7.2 22.6 Share-based compensation expense 8.6 6.7 29.1 31.0 Inventory adjustments (3) (included in cost of sales) 1.8 2.6 19.4 6.2 Restructuring related expenses (included in cost of sales) 5.5 2.1 14.4 5.4 Restructuring related expenses (included in SG&A) 8.2 3.7 17.9 9.7 Cybersecurity incident insurance recovery (4) - (5.2) - (5.2) Other items not directly related to current operations - - - (0.2) Adjusted EBITDA 215.4 $ 195.8 $ 792.0 $ 763.1 $ Adjusted EBITDA margin Net Sales 903.6 $ 855.7 $ 3,552.5 $ 3,416.4 $ Adjusted EBITDA 215.4 $ 195.8 $ 792.0 $ 763.1 $ Adjusted EBITDA margin 23.8% 22.9% 22.3% 22.3% Adjusted EBITDA margin change Reconciliation to Net Leverage Total principal amount of debt 2,230.7 $ 2,249.4 $ Less: Cash and cash equivalents (830.8) (689.4) Net Debt 1,399.9 $ 1,560.0 $ Net Leverage (Net Debt divided by LTM Adjusted EBITDA) 1.8 x 2.0 x Net Leverage Change YoY (.2 x)
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© 2026 Gates Corporation. All rights reserved. RECONCILIATIONS – SEGMENT ADJUSTED EBITDA 17 (USD in millions) Q3 2026 Q3 2025 Change YTD Q3 2026 YTD Q3 2025 Change Reconciliation to Adjusted EBITDA Margin Power Transmission Net Sales 560.1$ 533.3$ 26.8$ 1,681.8$ 1,610.6$ 71.2$ Power Transmission Adjusted EBITDA 137.1$ 122.1$ 15.0$ 383.9$ 361.6$ 22.3$ Adjusted EBITDA Margin 24.5% 22.9% 160 bps 22.8% 22.5% 30 bps Fluid Power Net Sales 343.5$ 322.4$ 21.1$ 1,014.5$ 976.4$ 38.1$ Fluid Power Adjusted EBITDA 78.3$ 73.7$ 4.6$ 220.3$ 220.7$ (0.4)$ Adjusted EBITDA Margin 22.8% 22.9% -10 bps 21.7% 22.6% -90 bps Total Net Sales 903.6$ 855.7$ 47.9$ 2,696.3$ 2,587.0$ 109.3$ Total Adjusted EBITDA 215.4$ 195.8$ 19.6$ 604.2$ 582.3$ 21.9$ Adjusted EBITDA Margin 23.8% 22.9% 90 bps 22.4% 22.5% -10 bps Net Income From Continuing Operations 91.6$ 88.7$ 2.9$ 336.2$ 220.7$ 115.5$ Net Income From Continuing Operations Margin 10.1% 10.4% -30 bps 12.5% 8.5% 400 bps
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© 2026 Gates Corporation. All rights reserved. RECONCILIATIONS – ADJUSTED NET INCOME 18 Note: Referenced footnotes continue on the following page (USD in millions, except share numbers and per share amounts) Q3 2026 Q3 2025 YTD Q3 2026 YTD Q3 2025 Reconciliation to Adjusted Net Income Net Income Attributable to Shareholders 86.5 $ 81.6 $ 317.1 $ 200.1 $ Adjusted for: Loss on the disposal of discontinued operations 0.2 0.1 0.6 0.7 Amortization of intangible assets arising from the 2014 acquisition of Gates 29.5 29.2 88.4 86.5 Transaction-related expenses (1) 4.0 0.1 7.6 0.5 Asset impairments - 0.4 - 1.2 Restructuring expenses 0.6 6.5 2.0 21.1 Restructuring related expenses (included in cost of sales) 5.5 2.1 12.0 4.5 Restructuring related expenses (included in SG&A) 8.2 3.7 14.8 8.3 Share-based compensation expense 8.6 6.7 24.3 22.4 Inventory adjustments (2) (included in cost of sales) 1.8 2.6 9.4 5.6 Adjustments relating to post-retirement benefits 0.2 0.4 5.7 1.3 Financing and other FX related (gains) losses (6.4) (2.7) (9.7) 8.3 Cybersecurity incident insurance recovery (3) - (5.2) - (5.2) Discrete tax items (4) (6.5) (13.5) (113.5) (20.6) Other adjustments (1.1) (1.8) (4.2) (4.6) Estimated tax effect of the above adjustments (11.6) (9.5) (33.8) (34.4) Adjusted Net Income 119.5 $ 100.7 $ 320.7 $ 295.7 $ Diluted weighted average number of shares outstanding 255,583,861 261,555,255 255,985,896 261,084,177 GAAP Net Income per diluted share 0.34 $ 0.31 $ 1.24 $ 0.77 $ Adjusted Net Income per diluted share 0.47 $ 0.39 $ 1.25 $ 1.13 $ YoY Adjusted Net Income per diluted share 20.5% 10.6%
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© 2026 Gates Corporation. All rights reserved. RECONCILIATIONS – ADJUSTED NET INCOME (CONT.) 19 (1) (2) (3) (4) Discrete tax items include changes in uncertain tax positions relating to prior years, changes in tax laws or rates, changes in valuation allowances, excess tax benefits on stock option exercises, and prior year adjustments in various foreign jurisdictions in which returns were filed. Inventory adjustments include the reversal of the adjustment to remeasure certain inventories on a Last-in-First-out ("LIFO") basis. In July 2025, we received insurance recoveries related to a previously disclosed cybersecurity incident that occurred in February 2023 for which we previously excluded $5.2 million of expenses from Adjusted Net Income. Transaction-related expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses, and equity and debt transactions.
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© 2026 Gates Corporation. All rights reserved. RECONCILIATIONS – FREE CASH FLOW & FREE CASH FLOW CONVERSION 20 (USD in millions) Q3 2026 Q3 2025 LTM Q3 2026 LTM Q3 2025 Change YoY Reconciliation of Free Cash Flow Net Cash Provided By Operating Activities 61.2 $ 98.0 $ 439.8 $ 399.2 $ 40.6 $ Capital Expenditures (1) (22.2) (24.8) (95.9) (113.8) 17.9 $ Free Cash Flow 39.0 $ 73.2 $ 343.9 $ 285.4 $ 58.5 $ (USD in millions) Q3 2026 Q3 2025 LTM Q3 2026 LTM Q3 2025 Change YoY Reconciliation of Free Cash Flow Conversion Free Cash Flow 39.0 $ 73.2 $ 343.9 $ 285.4 $ 58.5 $ Adjusted Net Income 119.5 $ 100.7 $ 419.9 $ 389.2 $ 30.7 $ Free Cash Flow Conversion 32.6% 72.7% 81.9% 73.3% 8.6% (1) Capital expenditures represent purchases of property, plant and equipment and purchases of intangible assets.
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© 2026 Gates Corporation. All rights reserved. RECONCILIATIONS – RETURN ON INVESTED CAPITAL (ROIC) 21 (USD in millions) LTM Q3 2026 LTM Q3 2025 Return On Invested Capital (ROIC) LTM Adjusted EBITDA 792.0 $ 763.1 $ LTM Total depreciation and amortization (223.9) (213.2) LTM Amortization of intangible assets arising from the 2014 acquisition of Gates 117.7 115.2 LTM Adjusted EBIT 685.8 665.1 Notional tax at 25% (171.5) (166.3) LTM Tax-effected Adjusted EBIT 514.3 $ 498.8 $ Total Assets 7,434.5 $ 7,149.7 $ Adjusted for: Cash (830.8) (689.4) Taxes receivable (71.1) (62.9) Deferred tax assets (728.6) (627.1) Prepaid taxes (20.7) (15.5) Accounts payable (441.9) (385.3) Intangibles arising from the acquisition of Gates (2,949.8) (3,057.9) Invested Capital 2,391.6 $ 2,311.6 $ Return On Invested Capital 21.5% 21.6% Change YoY -10 bps
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© 2026 Gates Corporation. All rights reserved. RECONCILIATIONS – ADJUSTED GROSS PROFIT 22 (USD in millions, except share numbers and per share amounts) Q3 2026 Q3 2025 YTD 2026 YTD 2025 LTM Q3 2026 LTM Q3 2025 Reconciliation to Adjusted Gross Profit Net Sales 903.6 $ 855.7 $ 2,696.3 $ 2,587.0 $ 3,552.5 $ 3,416.4 $ Cost of sales 520.3 514.1 1,588.9 1,540.6 2,119.8 2,034.7 Gross Profit 383.3 $ 341.6 $ 1,107.4 $ 1,046.4 $ 1,432.7 $ 1,381.7 $ Adjusted for: Inventory adjustments (1) (included in cost of sales) 1.8 2.6 9.4 5.6 19.4 6.2 Restructuring related expenses (included in cost of sales) 5.5 2.1 12.0 4.5 14.4 5.4 Adjusted Gross Profit 390.6 $ 346.3 $ 1,128.8 $ 1,056.5 $ 1,466.5 $ 1,393.3 $ Gross Profit margin 42.4% 39.9% 41.1% 40.4% 40.3% 40.4% Adjusted Gross Profit margin 43.2% 40.5% 41.9% 40.8% 41.3% 40.8% (1) Inventory adjustments includes the reversal of the adjustment to remeasure certain inventories on a LIFO basis.