GPGI Inc (GPGI) Q4 2025 earnings summary

Executive summary

• GPGI operates as a diversified multi-industry platform, acquiring and operating market-leading businesses with strong financials and growth profiles, including CompoSecure and Husky.

• Achieved strong organic growth and operating performance in FY2025, with significant margin expansion and recurring revenue streams from both CompoSecure and Husky.

• The Resolute Operating System (ROS) is central to driving operational excellence, margin expansion, and cultural transformation across all businesses.

• Leadership transitions at CompoSecure and Husky, with new CEOs appointed to drive the next phase of growth.

• Completed business combination with Husky Technologies, rebranded, refinanced debt, and initiated a quarterly dividend.

Financial highlights

• CompoSecure FY2025 net sales rose 9.9% to $462.1M, with pro forma adjusted EBITDA up 23.5% to $170.7M; Q4 non-GAAP net sales were $117.7M–$118M, up 17% year-over-year, with gross margin reaching 55.7%.

• CompoSecure FY2025 non-GAAP gross margin was 56.3% (+419–420 bps YoY); pro forma adjusted EBITDA margin was 36.9% (+400–408 bps YoY).

• Husky FY2025 net sales were $1.57B (up 5%) or $1,494.5M (down 3.0%), with Q4 sales up 6.1% to $520.8M–$521M; FY2025 pro forma adjusted EBITDA was $373.4M, down 3.0% YoY.

• Ended 4Q25 with over $126M in net cash; year-end 2025 cash and equivalents were $115M GAAP, $272M non-GAAP; total debt was $186M.

• Adjusted EPS for FY2025 was $0.99 (diluted); Q4 2025 adjusted EPS was $0.23 (diluted).

Outlook and guidance

• FY2026 guidance: non-GAAP net sales of $2,183–$2,228M, pro forma adjusted EBITDA of $620–$650M, and pro forma adjusted free cash flow of $325–$375M.

• Midpoint guidance implies 8.5%–8.6% net sales growth, 17% adjusted EBITDA growth, and margin expansion to ~28.8%–29%.

• Free cash flow expected to rise to ~$350M in FY2026, with net leverage targeted below 3.0x adjusted EBITDA.

• Revenue and margin growth expected to accelerate in the second half of 2026, with margin expansion at Husky anticipated after initial investments.

• CompoSecure expects high-single to low-double-digit organic revenue growth; Husky expects mid-single-digit-plus organic growth, with margin expansion in 2H26.