Gildan's net sales came in at $1,078.5m, up 31.3% year over year from $821.5m in Q4 ended December 28 2025, excluding HanesBrands’ $217m contribution from 1 to 28 December 2025; the organic sales growth was 4.9% for the period.
Over the next 18 months, Gildan plans to construct and develop its second textile facility within the Bangladesh complex (Phase 2). Initial production at the facility is expected to start in the latter part of 2027.
The company believes the build-out of a second facility in Bangladesh, which remains key to ring spun and innerwear cost leadership, should significantly enhance its positioning to support key sales growth drivers.
The infrastructure is currently in place to support this expansion, with the required capital expenditure expected to remain within the company’s capex guidance.
The brand expects to unlock $250m (versus $200m originally expected) of annual run-rate cost synergies over the next three years, tied to its recent acquisition of HanesBrands.
Following the acquisition, the brand has initiated the sale process for HanesBrands' Australian business and classified it as discontinued operations, with net sales and diluted earnings per share for 2026 expected to be approximately $675m and $0.21, respectively.
“2025 was another important year for Gildan with several highlights, including record revenue from continuing operations of $3,619m, adjusted operating margin of 21.5%, adjusted diluted EPS growth of 17.0% versus last year, and the closing of the HanesBrands acquisition on December 1. Our results underscore the impressive execution by our global team whose focus is now on fully capturing the value of our expanded platform,” said Glenn J. Chamandy, president and CEO.
Key metrics from Gildan Q4
The company generated operating income of $99m, or 9.2% of net sales, compared to $179m or 21.8% of net sales in the prior year.
Gildan reported gross profit of $312m, or 28.9% of net sales, versus $253m, or 30.8% of net sales last year.
Operating income slipped to $98.7m from $179m on increased restructuring costs while net income rose 29.7% year on year to 153.5.
Activewear sales increased 10.3% to $788m, reflecting the contribution of HanesBrands, favourable mix and higher net selling prices.
Solid sales to North American distributors were complemented by continued growth with National account customers, driven by our strong overall competitive positioning, the contribution from new programmes and market share gains in key growth categories.
In the US, net sales increased 33.7% year over year to $976.6m from $730.6m. Sales in Canada saw a rise of 29% year over year to $34.2m from $26.5m in the previous-year period.
International sales increased by 5.1% year over year to $67.7m from $64.4m, helped by gains from the acquisition, somewhat offset by soft demand across markets.
2026 outlook
Excluding the HanesBrands Australian business (HAA) and reflecting continuing operations only, Gildan expects revenues in the range of $6.0bn to $6.2bn and a full-year adjusted operating margin of approximately 20%.
Capital expenditures are projected to be roughly 3% of net sales, whilst adjusted diluted EPS is anticipated to be in the range of $4.20 to $4.40, and free cash flow is expected to exceed $850m.
For the first quarter of 2026, net sales from continuing operations are expected to be approximately $1.1bn, reflecting Gildan’s ongoing consolidation of manufacturing facilities to accelerate and increase synergy capture and support its new operating model.
Chamandy continued: “As we look ahead to 2026, we are very excited about the HanesBrands acquisition, which doubles our scale, combines iconic brands with our world-class, low-cost, vertically integrated platform, and unlocks a powerful engine for innovation and growth. The integration is well underway, and we now expect to deliver higher than initially targeted run-rate cost synergies reaching approximately $250m by the end of 2028, with approximately $100m in 2026.”
