Gildan Reports Record Q4, Raises 2026 Guidance & Synergy Targets Post-HanesBrands Acquisition

summarizeSummary

Gildan reported record Q4 results, provided strong 2026 guidance, increased synergy targets for the HanesBrands acquisition, and raised its quarterly dividend by 10%.

check_boxKey Events

• Record Q4 & Strong Full-Year 2025 Results

  Gildan reported record fourth-quarter net sales of $1,078 million (up 31.3%) and adjusted diluted EPS of $0.96 (up 15.7%). Full-year 2025 adjusted diluted EPS increased by 17% to $3.51.

• Robust 2026 Guidance Initiated

  The company expects 2026 revenues from continuing operations to be in the range of $6.0 to $6.2 billion and adjusted diluted EPS to be between $4.20 and $4.40, representing approximately 20% to 25% year-over-year growth.

• HanesBrands Synergy Target Raised

  Gildan now expects to realize approximately $250 million in annual run-rate cost synergies from the HanesBrands acquisition over the next three years, an increase from the originally expected $200 million.

• 10% Quarterly Dividend Increase

  The Board of Directors approved a 10% increase in the quarterly dividend to $0.249 per share, payable on April 13, 2026.

auto_awesomeAnalysis

Gildan Activewear Inc. delivered strong fourth-quarter and full-year 2025 results, driven by the recent HanesBrands acquisition. The company reported record Q4 revenue and adjusted diluted EPS, with full-year adjusted diluted EPS increasing by 17%. Looking ahead, Gildan initiated robust 2026 guidance, projecting revenues of $6.0 to $6.2 billion and adjusted diluted EPS of $4.20-$4.40, representing significant year-over-year growth. A key positive is the increased synergy target from the HanesBrands acquisition, now expected to reach $250 million, up from the initial $200 million. The company also announced a 10% dividend increase, signaling confidence in future cash flows despite a temporary pause in share repurchases to manage debt levels post-acquisition. Strategic moves include the planned divestment of the HanesBrands Australian business to accelerate debt reduction and the construction of a second textile facility in Bangladesh to support long-term growth.