Kontoor closed the year with $1.0 billion of net debt, $108 million of cash and an undrawn $500 million revolver, resulting in 2.0× pro forma net leverage after $250 million of voluntary term loan repayments. Full-year revenue increased 18%, adjusted operating earnings rose over 20% and operating cash flow exceeded $450 million, with Q4 deploying $250 million toward debt repayment, share buybacks and dividends.

Pro forma Helly Hansen revenue topped $700 million for 2025, including Q4 sales of $251 million (up 10%), and generated $100 million of cash in seven months of ownership. Integration efforts have identified over $40 million of synergies across sourcing, logistics, distribution and technology, while a 50/50 China joint venture delivered 95% revenue growth to $100 million and is expected to grow north of 50% in 2026.

The company forecasts 2026 revenue of $3.40–$3.45 billion (approximately 9% growth), adjusted EPS of $6.40–$6.50 (15–16% increase) and a 47.2–47.4% gross margin. Management anticipates a more than $100 million tariff headwind to be offset over 12–18 months through Project Genius cost savings nearing $100 million in 2026, while targeting net leverage below 1.5× by year-end.