Financial Data and Key Metrics Changes - GPGI reported non-GAAP net sales of approximately $2.18-$2.23 billion for fiscal year 2026, representing an expected growth of 8.5% [54] - Pro forma adjusted EBITDA is projected to be approximately $620-$650 million, indicating a growth of around 17% [54] - Pro forma adjusted free cash flow is anticipated to be approximately $325-$375 million, reflecting a strong cash generation capability [54] Business Line Data and Key Metrics Changes - CompoSecure achieved net sales of $462.1 million in fiscal year 2025, up 9.9%, with pro forma adjusted EBITDA increasing to $170.7 million, up 23.5% [25][34] - In the fourth quarter, CompoSecure's non-GAAP net sales were $117.7 million, up approximately 17% year-over-year, with pro forma adjusted EBITDA increasing approximately 41% to $43 million [33] - Husky's net sales for the fourth quarter reached $521 million, up over 6% from the prior year, while full year 2025 net sales were approximately $1.57 billion, up 5% [51] Market Data and Key Metrics Changes - CompoSecure is positioned as the global leader in premium metal payment cards, with over 200 active metal card programs and partnerships with 9 of the top 10 U.S. card issuers [25][26] - The global market for payment cards is expanding, with credit and debit cards in circulation growing at approximately 8% over the past five years, providing a favorable environment for CompoSecure [28] - Husky operates in a growing industry characterized by cyclical customer demand, particularly in PET markets, which are expected to continue gaining share over other materials [45] Company Strategy and Development Direction - GPGI aims to deliver mid- to high-single-digit annual organic growth, with a focus on margin expansion and free cash flow conversion [8][9] - The company is implementing the Resolute Operating System (ROS) to enhance operational efficiency and drive growth across its business lines [10][13] - GPGI is strategically positioned to acquire high-quality private businesses that can benefit from its operating system, particularly targeting family-owned businesses and non-core divisions of public companies [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of both CompoSecure and Husky, highlighting strong organic growth opportunities and the successful implementation of ROS [54][56] - The company anticipates that the second half of fiscal year 2026 will see accelerated revenue growth and margin expansion compared to the first half [57] - Management emphasized the importance of a high-performance culture and disciplined capital allocation to achieve long-term value creation [59] Other Important Information - The results of GPGI Holdings and its subsidiaries are accounted for under the equity method of accounting following the spin-off of Resolute Holdings Management [3] - The company is focused on maintaining a strong balance sheet, with expectations to reduce total leverage below 3x [63] Q&A Session Summary Question: Factors driving revenue expectations for CompoSecure - Key drivers include growth in the core card payment business, international expansion, and ramping up the Arculus business overall [62] Question: Thoughts on leverage levels - Total leverage is expected to be below 3x, which is considered a comfortable and normal operating level [64] Question: Margin expansion breakdown for CompoSecure - Margin expansion is attributed to favorable price mix impacts and improved yields driven by the implementation of ROS [68] Question: Plans to license the ROS system and potential conflicts of interest - There are no plans to license the ROS system to other companies, and management does not see a conflict of interest between GPGI and RHLD [71][76]

Financial Data and Key Metrics Changes - GPGI reported non-GAAP net sales of approximately $2.18-$2.23 billion for fiscal year 2026, representing an expected growth of 8.5% [53] - Pro forma adjusted EBITDA is projected to be approximately $620-$650 million, indicating a growth of around 17% [53] - Pro forma adjusted free cash flow is expected to be approximately $325-$375 million, reflecting a significant increase [53] Business Line Data and Key Metrics Changes CompoSecure - CompoSecure achieved net sales of $462.1 million in fiscal year 2025, up 9.9% year-over-year [23] - Pro forma adjusted EBITDA for CompoSecure increased to $170.7 million, up 23.5% [23] - Non-GAAP net sales for the fourth quarter were $117.7 million, a 17% increase compared to the prior year [30] Husky - Husky's net sales increased to $521 million in the fourth quarter, up over 6% from the prior year [50] - For the full year 2025, Husky's net sales reached approximately $1.57 billion, up 5% from 2024 [50] - The volume growth for Husky was primarily driven by strength in Europe, Latin America, and India, while China experienced a decline [50] Market Data and Key Metrics Changes - CompoSecure is the global leader in premium metal payment cards, with over 200 active metal card programs and partnerships with 9 of the top 10 U.S. card issuers [23] - The global market for payment cards is expanding, with metal cards under-penetrated at less than 1% of all cards shipped globally, indicating significant growth potential [26] - Husky operates in a growing industry characterized by cyclical customer demand, particularly in PET markets, which are expected to continue gaining share over other materials [44] Company Strategy and Development Direction - GPGI aims to deliver mid- to high-single-digit annual organic growth, over 100 basis points of annual margin expansion, and double-digit annual EBITDA growth [8] - The company is focused on implementing the Resolute Operating System (ROS) to drive operational excellence and cultural transformation across its businesses [10][12] - GPGI is positioned as a structurally advantaged acquirer of high-quality private businesses, particularly those owned by private equity firms [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for both CompoSecure and Husky, citing strong demand for metal payment cards and PET packaging systems [54] - The company anticipates revenue growth and margin expansion to accelerate in the second half of fiscal year 2026, with a focus on operational efficiencies and strategic investments [55] - Management emphasized the importance of embedding the Resolute Operating System to enhance profitability and drive long-term value creation [57] Other Important Information - The results of GPGI Holdings and its subsidiaries are accounted for under the equity method of accounting due to a management agreement, which affects financial presentation [3] - The company is committed to maintaining a high-performance culture and operational discipline to maximize growth potential [11] Q&A Session Summary Question: Factors driving revenue expectations for CompoSecure - Key drivers include growth in the core card payment business, international expansion, and ramping up the Arculus business overall [61] Question: Thoughts on leverage levels - GPGI expects total leverage to be below 3x, indicating a comfortable operating level moving forward [62] Question: Margin expansion at CompoSecure - Margin expansion is attributed to favorable price mix impacts and improved yields driven by the implementation of the ROS [67] Question: Plans to license the ROS system - Management confirmed there are no plans to license the ROS system to other companies [71] Question: Addressing potential conflicts of interest between RHLD and GPGI - Management stated there is no conflict, as the success of RHLD is tied to the success of GPGI [76]

Fourth Quarter 2025 Earnings Presentation March 12, 2026 GPGI CompoSecure Husky Guidance Disclaimer Forward-Looking Statements This presentation, and other statements that GPGI, Inc. ("GPGI," "we," "us" or the "Company") may make in connection therewith, contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although GPGI believes that its plans, intentions, and expectations reflected in ...

Core Insights - Resolute Holdings reported a second quarter loss per share of ($0.07) and Non-GAAP Fee-Related Earnings per share of $0.08 for the fiscal second quarter ending June 30, 2025 [1][4][5] - The CEO expressed satisfaction with the early results from the implementation of the operating system at CompoSecure and highlighted ongoing evaluations of acquisition opportunities [2][3] - The company is focused on improving operations and driving organic growth while committing to necessary investments for long-term potential [3] Financial Performance - Management fees for the three months ended June 30, 2025, were $3.419 million, while selling, general and administrative expenses were $3.804 million [4] - The net loss attributable to common stockholders for the six months ended June 30, 2025, was ($3.977 million), with a diluted net income per share of ($0.47) [4][17] - Fee-Related Earnings for the second quarter were $0.699 million, translating to Fee-Related Earnings per share of $0.08 [5][24] Operational Highlights - The company is implementing a Resolute Operating System aimed at enhancing value creation across managed businesses [10] - There is a commitment to evaluating a growing list of acquisition opportunities aligned with core investment criteria [3] - The financial results reflect the consolidation of CompoSecure Holdings in accordance with U.S. GAAP, which may not fully represent the standalone business model of Resolute Holdings [3][12] Balance Sheet Overview - As of June 30, 2025, total assets were reported at $253.291 million, an increase from $201.792 million as of December 31, 2024 [15][27] - Current liabilities totaled $63.876 million, with long-term debt net of deferred financing costs at $177.071 million [15][27] - The total stockholders' equity was $4.141 million, a significant improvement from a deficit of ($36.630 million) at the end of 2024 [15][27] Cash Flow Analysis - Net cash provided by operating activities for the six months ended June 30, 2025, was $67.288 million, compared to $71.760 million for the same period in 2024 [20] - Cash and cash equivalents at the end of the period were $99.862 million, up from $71.589 million at the beginning of the period [21] - The company reported net cash used in financing activities of ($36.217 million) for the six months ended June 30, 2025 [20]