Gildan Reports Record Fourth Quarter Revenue and Adjusted Diluted EPS¹, Initiates Guidance for 2026, Provides Integration Update, Raises Targeted Run-Rate Synergies and Announces Plans to Build Bangladesh Phase 2

Core Insights - Gildan Activewear Inc. reported record revenue of $3,619 million for 2025, marking an 11% increase year-over-year, driven by the acquisition of HanesBrands and strong performance in both Activewear and Innerwear categories [2][9] - The company expects to achieve approximately $250 million in annual run-rate cost synergies from the HanesBrands acquisition by the end of 2028, with $100 million anticipated in 2026 [2][19] - Gildan initiated annual guidance for 2026, projecting revenues from continuing operations to be between $6.0 billion and $6.2 billion, representing a year-over-year increase of approximately 65% to 70% [3][28] Financial Performance - In Q4 2025, net sales from continuing operations reached $1,078 million, a 31.3% increase compared to the previous year, including a one-month contribution from HanesBrands [3][41] - The adjusted operating margin for Q4 was 20.7%, while the GAAP diluted EPS from continuing operations was $0.32, down 62.8% year-over-year, but adjusted diluted EPS increased by 15.7% to $0.96 [3][8] - For the full year 2025, gross profit was $1,130 million, with a gross margin of 31.2%, reflecting a 50 basis point improvement year-over-year [10][41] Acquisition and Integration - The acquisition of HanesBrands was completed on December 1, 2025, significantly expanding Gildan's scale and brand portfolio [2][3] - The integration of HanesBrands is progressing ahead of plan, with various initiatives already activated to capture synergies [18][19] - The HanesBrands Australian business has been classified as held for sale, with a formal sale process initiated [16][17] Strategic Outlook - Gildan plans to construct a second textile facility in Bangladesh, expected to start production in late 2027, to enhance its cost leadership in ring spun and innerwear [20] - The company aims to optimize its operational footprint by closing two textile manufacturing facilities in early 2026, reallocating production volumes to strengthen its cost advantage [24] - Gildan's 2026 guidance includes an expected adjusted diluted EPS of $4.20 to $4.40, reflecting a 20% to 25% increase year-over-year [28]