GPGI Inc (GPGI) Q2 2026 earnings summary

Executive summary

• Delivered Q2 2026 results in line with expectations and revised guidance, with record performance at CompoSecure and stable or improving results at Husky despite market headwinds and macroeconomic volatility.

• CompoSecure achieved record sales and margin expansion, while Husky faced demand softness due to elevated oil/resin prices and geopolitical uncertainty but showed sequential or stable improvement.

• Strategic focus on deploying the Resolute Operating System (ROS), operational excellence, and disciplined capital allocation for organic and bolt-on growth.

• Completed the acquisition of Husky Technologies Limited, transforming into a diversified permanent capital platform with two leading businesses.

• Reiterated full-year 2026 guidance, expecting a stronger second half and acceleration into 2027.

Financial highlights

• Pro Forma Adjusted Net Sales for Q2 2026: $473.2M; CompoSecure $133.6M, Husky $339.6M.

• Pro Forma Adjusted EBITDA for Q2 2026: $113.9M; margin 24.1%; CompoSecure $55.2M, Husky $64.9M.

• GAAP Net Income for Q2 2026: $50.3M; diluted EPS $0.17.

• Cash and short-term investments as of June 30, 2026: $114.8M (Non-GAAP); total debt $2,115.0M.

• Pro Forma Adjusted Free Cash Flow for Q2 2026: $63M.

Outlook and guidance

• Full-year 2026 Pro Forma Adjusted Net Sales expected at $1,950–$2,100M (flat at midpoint); Adjusted EBITDA $550–$610M (+7% year-over-year at midpoint); Free Cash Flow $275–$325M.

• Adjusted EBITDA margin guidance updated to 27%–29% for the year.

• Targeting Non-GAAP year-end Net LTM Leverage of approximately 3.0x.

• Margin expansion anticipated in 2H26 from organic sales growth, cost savings, and ROS implementation.

• CompoSecure projected to grow at low double digits; Husky expected to decline low-to-mid single digits due to macro disruptions.