Gildan Reports Full-Year 2025 Results, Details HanesBrands Acquisition Impact, Raises Dividend, Pauses Buybacks Amid Increased Leverage

summarizeSummary

Gildan reported full-year 2025 results, highlighting strong adjusted earnings growth and the financial impact of its HanesBrands acquisition. The company increased its dividend by 10% but paused share repurchases due to increased leverage from the acquisition.

check_boxKey Events

• HanesBrands Acquisition Finalized

  Gildan completed the acquisition of HanesBrands Inc. on December 1, 2025, for approximately $2.2 billion. The acquisition involved issuing 36,090,480 common shares and cash consideration. HanesBrands contributed $217 million in net sales and a $17 million net loss to Gildan's fiscal 2025 results since the acquisition date. Proforma consolidated net sales for the full year, if the acquisition had occurred at the beginning of the fiscal year, would have been approximately $6.2 billion, with proforma net earnings of $650 million.

• Full-Year 2025 Financial Performance

  For fiscal year 2025, net sales increased by 11% to $3,619.2 million. Excluding HanesBrands' contribution, net sales were up 4%. Adjusted diluted EPS rose by 17.0% to $3.51, and adjusted net earnings increased by 9.9% to $538.0 million. GAAP diluted EPS from continuing operations was $2.57, up 4.5%, while GAAP net earnings from continuing operations slightly decreased by 1.7% to $393.9 million.

• Increased Leverage and Share Buyback Pause

  The company's net debt leverage ratio increased to 3.0 times as of December 28, 2025, exceeding its target range of 1.5 to 2.5 times. Consequently, Gildan paused its share repurchase program in August 2025, and the program, which expired on August 8, 2025, has not been renewed. Repurchases will not resume until the leverage ratio approximates the midpoint of the target range.

• Dividend Increase Approved

  The Board of Directors approved a 10% increase in the quarterly dividend, raising it to $0.249 per share, payable on April 13, 2026. This marks a continued commitment to shareholder returns despite increased financial leverage.

auto_awesomeAnalysis

Gildan Activewear Inc. filed its annual report, providing comprehensive financial results for fiscal year 2025 and detailing the significant impact of its HanesBrands acquisition. The company reported strong adjusted financial performance, with adjusted diluted EPS increasing by 17.0% to $3.51 and adjusted net earnings up 9.9% to $538.0 million. However, GAAP net earnings from continuing operations saw a slight decrease. The acquisition of HanesBrands, finalized on December 1, 2025, for approximately $2.2 billion, significantly expanded Gildan's scale, contributing $217 million in net sales and a $17 million net loss to Gildan's 2025 results since the acquisition date. This acquisition, while transformative, has led to a substantial increase in the company's net debt leverage ratio to 3.0 times, exceeding its target range of 1.5 to 2.5 times. As a direct consequence, Gildan has paused its share repurchase program, which expired on August 8, 2025, and will not resume until the leverage ratio returns to the target midpoint. Despite this, the Board approved a 10% increase in the quarterly dividend to $0.249 per share, signaling confidence in future cash flows. Additionally, the U.S. Supreme Court's invalidation of IEEPA tariffs is a positive development, though new temporary tariffs are expected, creating ongoing trade uncertainty.