Business
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
Record fourth quarter net sales from continuing operations of $1,078 million, up 31.3% vs. the pr...
About this update from Gildan Activewear Inc.
[{"type":"text","content":"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\n (all amounts are in U.S. dollars except where otherwise indicated)(1) Please refer to \"Definition and reconciliation of non-GAAP financial measures and related ratios\" in this press release   Record fourth quarter net sales from continuing operations of $1,078 million, up 31.3% vs. the prior year, including HanesBrands' contribution since December 1, 2025Fourth quarter operating margin of 9.2%, adjusted operating margin1 of 20.7%Fourth quarter GAAP diluted EPS from continuing operations of $0.32, down 62.8% vs. the prior year, and record fourth quarter adjusted diluted EPS1 from continuing operations of $0.96, up 15.7% vs. the prior yearCash flow from operations of $336 million in Q4, up 59.8% vs. the prior year and $606 million for the full year, an increase of 20.9% vs. the prior year; free cash flow1 of $304 million in Q4, up 46.4% vs. the prior year and $493 million for the full year, up 26.7% vs. the prior yearCapital returned to shareholders of $33 million in Q4 and $319 million for the full year, through dividends and share repurchasesCompany announces 10% dividend increase for 2026Acquisition of HanesBrands completed on December 1, 2025, creating a global basic apparel leader; Integration well underway and progressing ahead of plan, with various initiatives activatedCompany now expects to realize approximately $250 million (versus $200 million originally expected) of annual run-rate cost synergies over the next three years: approximately $100 million per year in 2026 and 2027 and at least $50 million in 2028; we continue to pursue additional synergy-capture opportunities beyond our revised synergy target, as the integration progressesFormal sale process initiated for the HanesBrands Australian business now held for sale and classified as discontinued operations, with net sales and diluted earnings per share for 2026 expected to be approximately $675 million and $0.21, respectively. The proceeds from the potential divestment will be used to pay down a portion of the Company’s outstanding debt, further accelerating Gildan's objective to return to a leverage framework of 1.5x to 2.5x ...