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 significant increase [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] - Husky's net sales for the fourth quarter reached $521 million, up over 6% from the prior year, and approximately $1.57 billion for the full year, up 5% [51] Market Data and Key Metrics Changes - CompoSecure's market position is strengthened by over 1,000 design and utility patents and a growing number of active metal card programs, with more than 30 million cards shipped in 2025 [26][31] - Husky operates in a growing industry characterized by increasing demand for PET packaging, with a significant portion of sales coming from recurring high-margin aftermarket parts and services [39][45] Company Strategy and Development Direction - GPGI aims for mid- to high-single-digit annual organic growth, over 100 basis points of annual margin expansion, and double-digit annual EBITDA growth through the deployment of the Resolute Operating System (ROS) [8][10] - The company is focused on leveraging its permanent capital base and operational excellence to drive superior performance and is positioned to capitalize on high-quality private businesses needing access to public markets [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of both CompoSecure and Husky, with expectations for continued momentum in fiscal year 2026 driven by new product introductions and improved operational efficiencies [55][56] - The management team highlighted the importance of embedding the Resolute Operating System across both businesses to enhance performance and profitability [35][56] Other Important Information - The company has established a high-performance culture as foundational to maximizing the impact of ROS, focusing on customer-centric innovation and operational excellence [11][13] - GPGI's structure is designed to empower leadership teams of acquired businesses to operate efficiently without the constraints of typical corporate bureaucracy [9] 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 and future actions - Total leverage is expected to be below 3x, which is considered a comfortable level for the company moving forward [63][64] Question: Breakdown of margin expansion at CompoSecure - Margin expansion is attributed to favorable price mix impacts and improved yields driven by the implementation of the 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, as their successes are intertwined [71][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 ...

Financial Data and Key Metrics Changes - Non-GAAP net sales increased by 13% year-over-year to $120.9 million, up from $107.1 million [11][17] - Non-GAAP gross margin for the quarter was 59%, compared to 51.7% in the same quarter last year [12][18] - Pro forma adjusted EBITDA increased by 30% to $47.7 million, with an EBITDA margin of 39.5%, up 529 basis points year-over-year [12][19] - Cash and cash equivalents rose to $224.6 million, compared to $52.7 million a year ago, while total debt decreased from $330 million to $190 million [18] Business Line Data and Key Metrics Changes - Domestic net sales grew by 31% to $105.1 million, while international net sales declined by 42% to $15.8 million due to timing of customer orders [18] Market Data and Key Metrics Changes - The demand for metal card products remains strong, supported by ongoing market trends [14] Company Strategy and Development Direction - The company is focused on implementing the CompoSecure Operating System to drive organic growth, improve margins, and enhance capital allocation [5][9] - The planned business combination with Husky Technologies is viewed as a foundation for a diversified compounder, enhancing growth and profitability opportunities [6][23] - The company aims to maintain discipline in execution, innovation, and strategic investments to capitalize on growth opportunities [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's financial performance and operational improvements, highlighting the positive impact of the CompoSecure Operating System [21][32] - The company raised its 2025 guidance for non-GAAP net sales to approximately $463 million and introduced guidance for 2026 of approximately $510 million [12][20] Other Important Information - The company is transitioning to a new CFO, Mary Holt, who is expected to contribute significantly to the company's strategic initiatives [10][11] - The combination with Husky is expected to close in the first quarter of 2026, subject to regulatory approvals [27] Q&A Session Summary Question: Share count for pro forma basis - The pro forma share count will be 291 million shares [34] Question: Margin improvement expectations - There is significant potential for further efficiency improvements through the operating system, with ongoing investments in growth areas [36] Question: Synergies from the acquisition - The company does not expect to rely on synergies between the two businesses but emphasizes the importance of consistent application of the management operating system [40] Question: Recurring revenue nature of Husky's business - Husky's business model includes a large installed base of machines, generating recurring revenue from aftermarket parts and services [42] Question: Margin expansion potential - The company believes there is still substantial opportunity for margin improvement across the combined businesses, with a commitment to sustainable growth and innovation [48]