Gildan Raises Synergy Target to $250M, Guides $6B–$6.2B 2026 Revenue
Gildan Activewear reported fourth-quarter continuing-operations revenue of $1.078 billion, up 31.3% year over year including a $217 million HanesBrands contribution, with organic growth of 4.9%, adjusted diluted EPS of $0.96 (up 16%), and record 2025 revenue of $3.6 billion with 21.5% adjusted operating margins. The company raised its three-year synergy target to $250 million from $200 million, plans to close two Hanes textile factories while expanding its Bangladesh complex, and guided 2026 net sales of $6.0–6.2 billion, roughly 20% adjusted operating margin, $4.20–4.40 EPS, and free cash flow above $850 million.
1. Q4 and Full-Year 2025 Financials
Gildan Activewear generated $1.078 billion in fourth-quarter continuing-operations sales, up 31.3% year over year and driven by a $217 million contribution from HanesBrands alongside 4.9% organic growth. Adjusted diluted EPS reached $0.96, a 16% increase, while full-year 2025 revenue hit a record $3.6 billion with adjusted operating margins of 21.5%.
2. Synergy Targets and Integration Progress
Management accelerated integration of the HanesBrands acquisition and boosted its three-year cost synergy target to $250 million (from $200 million), expecting $100 million annually in 2026–2027 and at least $50 million in 2028. The plan includes closing two acquired textile factories, optimizing inventory levels, and advancing phase two of a Bangladesh manufacturing complex for 2027 production.
3. 2026 Guidance and Strategic Investments
For 2026 continuing operations, Gildan projects net sales of $6.0–6.2 billion, an adjusted operating margin near 20%, adjusted diluted EPS of $4.20–4.40, capital expenditures at about 3% of sales, and free cash flow above $850 million. Guidance excludes the held-for-sale HanesBrands Australia business, which is expected to contribute roughly $675 million in net sales and $0.21 in EPS from discontinued operations.