Gildan Activewear (GIL) Q4 2025 earnings summary

Executive summary

• Achieved record revenues of $3.62 billion in 2025, up 11% year-over-year, driven by organic growth and the HanesBrands acquisition completed December 1, 2025; adjusted diluted EPS grew 17% to $3.51.

• HanesBrands Australia classified as held for sale and reported as discontinued operations as of December 1, 2025.

• Integration of HanesBrands is ahead of plan, with synergy target raised to $250 million over three years.

• Dividend increased 10% to $0.904/share for 2026.

• Net debt leverage ratio increased to 3.0x due to the acquisition; share repurchases paused until leverage returns to 1.5–2.5x.

Financial highlights

• Q4 sales from continuing operations were $1.078 billion, up 31.3% year-over-year; organic growth (excluding Hanes) was 4.9%.

• Adjusted gross margin was 32.2% for Q4 and full year, up from 30.8% prior year.

• Adjusted operating margin was 21.5% for the full year; Q4 adjusted operating margin was 20.7%.

• Adjusted EBITDA for 2025 was $926 million, up 11.1% year-over-year.

• Free cash flow for 2025 was $493 million, up 26.7% year-over-year.

Outlook and guidance

• 2026 revenue expected at $6.0–$6.2 billion, adjusted operating margin ~20%, adjusted diluted EPS $4.20–$4.40, and free cash flow above $850 million.

• Three-year objectives: 3–5% CAGR in net sales and low-20% EPS growth.

• No share repurchases until leverage ratio returns to 1.5–2.5x net debt to EBITDA.

• Capital expenditures planned at ~3% of net sales for 2026, with ongoing investments in Bangladesh and DR facilities.