Engineered components and systems stocks Q3 teardown: Gates Industrial Corporation (NYSE:GTES) vs the rest
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Gates Industrial Corporation (NYSE:GTES) and the rest of the engineered components and systems stocks fared in Q3.
Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.
The 12 engineered components and systems stocks we track reported a solid Q3. As a group, revenues beat analysts’ consensus estimates by 3.1% while next quarter’s revenue guidance was 5.8% above.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Gates Industrial Corporation (NYSE:GTES)
Helping create one of the most memorable moments for the iconic “Jurassic Park” film, Gates (NYSE:GTES) offers power transmission and fluid transfer equipment for various industries.
Gates Industrial Corporation reported revenues of $903.6 million, up 5.6% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but full-year EBITDA guidance meeting analysts’ expectations.
Ivo Jurek, Gates Industrial's Chief Executive Officer, commented, "Our team executed well during the third quarter, resulting in mid-single digit sales growth and a significant gross profit margin increase compared to the prior year period. Sales in our Industrial OEM channel increased high-teens and year-over-year growth in our Industrial Aftermarket channel accelerated relative to last quarter."
The market seems disappointed with the results as the stock is down 5.3% since reporting and currently trades at $24.86.
Is now the time to buy Gates Industrial Corporation? Access our full analysis of the earnings results here, it’s free.
Best Q3: Arrow Electronics (NYSE:ARW)
Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally.
Arrow Electronics reported revenues of $10.72 billion, up 39% year on year, outperforming analysts’ expectations by 6.5%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Arrow Electronics scored the highest guidance raise and fastest revenue growth in the group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.5% since reporting. It currently trades at $191.52.
Is now the time to buy Arrow Electronics? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Applied Industrial (NYSE:AIT)
Formerly called The Ohio Ball Bearing Company, Applied Industrial (NYSE:AIT) distributes industrial products–everything from power tools to industrial valves–and services to a wide variety of industries.
Applied Industrial reported revenues of $1.29 billion, up 7.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.
As expected, the stock is down 7.9% since the results and currently trades at $298.89.
Read our full analysis of Applied Industrial’s results here.
Graham Corporation (NYSE:GHM)
Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.
Graham Corporation reported revenues of $69.76 million, up 5.7% year on year. This result missed analysts’ expectations by 1.8%. Taking a step back, it was still a solid quarter as it recorded a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Graham Corporation had the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The stock is up 26.8% since reporting and currently trades at $88.16.
Read our full, actionable report on Graham Corporation here, it’s free.
Worthington (NYSE:WOR)
Founded by a steel salesman, Worthington (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.
Worthington reported revenues of $343.9 million, up 13.2% year on year. This number topped analysts’ expectations by 4.1%. Zooming out, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
The stock is up 2.4% since reporting and currently trades at $60.33.
Read our full, actionable report on Worthington here, it’s free.
Market update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.