Gildan Q2 Adjusted EPS $1.28, Raises 2026 Guidance to $4.65–$4.75, Announces A$700M HAA Divestiture

summarizeSummary

Gildan reported Q2 adjusted EPS of $1.28, raised full-year guidance, and announced the sale of its Australian business for ~A$700M, strengthening its deleveraging path.

check_boxKey Events · Earnings and Guidance · GIL

• Q2 Earnings Beat, Guidance Raised

  Adjusted EPS of $1.28 vs. $0.97 a year ago; full-year 2026 adjusted EPS guidance raised to $4.65–$4.75, reflecting strong HanesBrands integration and margin expansion.

• HanesBrands Australian Business Divestiture

  Definitive agreement to sell HAA for ~A$700M (~$490M), with proceeds earmarked for debt repayment, accelerating return to target leverage and eventual share buybacks.

• Impairment and Integration Costs

  Recorded a $153M impairment on HAA assets held for sale and $151M in restructuring/acquisition costs YTD, primarily from facility closures and inventory step-up, weighing on GAAP earnings.

• Tariff Refund Windfall

  Recognized ~$30M in IEEPA tariff refunds in Q2, with an additional ~$180M expected in Phase II, providing a significant tailwind to margins and cash flow.

auto_awesomeAnalysis · GIL · Manufacturing

Gildan delivered a strong Q2, with adjusted EPS of $1.28 beating expectations and full-year guidance raised to $4.65–$4.75. The HanesBrands acquisition is driving a 72% sales surge, and adjusted gross margins expanded 300 bps to 34.5%. The company also announced a definitive agreement to sell its Australian business for ~A$700M, which will accelerate debt reduction and a return to share buybacks. However, a $153M impairment on the Australian assets and a net debt leverage ratio of 3.2x highlight integration and balance sheet pressures. The results come amid an ongoing activist short-seller campaign, making the strong operational performance and divestiture a critical rebuttal.