Gildan U.S. Inc. announced its fourth quarter 2025 results, with net sales reaching $1.0785 billion, a year-over-year increase of 31.3%, and organic sales growth of 4.9%. The company announced it will expand its operations in Bangladesh, planning to build a second textile facility within the next 18 months. Initial production is expected to begin in the second half of 2027 to support cost optimization and sales growth.
Gildan anticipates that the recent acquisition of HanesBrands will unlock $250 million in annualized cost synergies over the next three years, exceeding original expectations. The company has initiated the sale process for HanesBrands' Australian business, with expected related net sales and diluted earnings per share of approximately $675 million and $0.21, respectively, in 2026.
In the fourth quarter of 2025, Gildan's operating profit was $99 million, representing 9.2% of net sales, down from $179 million and 21.8% in the same period last year. Net profit increased 29.7% year-over-year to $153.5 million. Activewear sales grew 10.3% to $788 million, benefiting from acquisition contributions and a favorable product mix. U.S. market net sales increased 33.7% year-over-year to $976.6 million, Canada grew 29% to $34.2 million, and international markets grew 5.1% to $67.7 million.
Looking ahead to 2026, Gildan expects revenue from continuing operations to be between $6.0 billion and $6.2 billion, with an adjusted operating margin of approximately 20%. Capital expenditures are projected to be 3% of net sales, adjusted diluted earnings per share are expected to be between $4.20 and $4.40, and free cash flow is anticipated to exceed $850 million. First quarter 2026 net sales are projected to be approximately $1.1 billion.
President and CEO Glenn J. Chamandy stated: "2025 was another significant year for Gildan, including record revenue from continuing operations of $3.619 billion, an adjusted operating margin of 21.5%, and the completion of the HanesBrands acquisition on December 1st. Looking ahead to 2026, we are very excited about the HanesBrands acquisition, which doubles our scale. Integration is progressing well, and we now expect to deliver approximately $250 million in annualized cost synergies by the end of 2028, with about $100 million in 2026."
