Gildan Activewear (GIL) Q4 2025 earnings summary

Executive summary

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

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

• Adjusted operating margins reached 21.5% for the year.

• Net debt leverage ratio increased to 3.0x due to the HanesBrands acquisition; share repurchases paused until leverage returns to target range.

• 10% dividend increase announced for 2026.

Financial highlights

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

• Activewear sales grew 10.3% to $788 million in Q4; full-year activewear sales were $3.09 billion (+9.1%).

• Innerwear sales up 170.7% in Q4 to $291 million; full-year innerwear sales $531 million (+20.9%), mainly from HanesBrands.

• Adjusted gross margin was 32.2% for Q4 and full-year, up from 30.8% prior 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% compound annual net sales growth and low 20% range adjusted diluted EPS growth.

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

• Capital expenditures planned at ~3–5% of net sales over the next three years.

• Guidance assumes no significant deterioration in market, pricing, inflation, or labor conditions.