Gildan doubles scale with HanesBrands acquisition and record quarter

The Montreal-based apparel manufacturer Gildan Activewear has reported record fourth-quarter net sales from continuing operations of 1.08 billion dollars, representing a 31.3 percent increase over the prior year. This performance was significantly bolstered by the completion of the HanesBrands acquisition on December 1, 2025, which added 217 million dollars in revenue during the final month of the quarter. For the full fiscal year 2025, the company achieved revenue of 3.62 billion dollars.

Integration and synergy acceleration

The integration of HanesBrands is reportedly progressing ahead of schedule. Management has increased its annual run-rate cost synergy target to 250 million dollars over the next three years, up from the initial 200 million dollar estimate.

Key integration actions are already underway. The company plans to close two HanesBrands textile facilities in early 2026, reallocating production across Gildan’s low-cost vertically integrated network. Gildan expects to realize approximately 100 million dollars in synergies per year in 2026 and 2027, with at least 50 million dollars in 2028.

A new commercial structure has been implemented, leading to a shift in financial reporting; starting in the first quarter of 2026, sales will be disclosed on a "Retail" and "Wholesale" basis rather than by product group.

Strategic divestment and global expansion

Following a strategic review, Gildan has initiated a formal sale process for the HanesBrands Australian business, which is now classified as a discontinued operation. The potential proceeds are earmarked to pay down debt and accelerate the company's return to its targeted leverage framework of 1.5x to 2.5x net debt to proforma adjusted EBITDA.

The company also announced plans to build "Phase 2" of its Bangladesh complex, which will include a second textile facility. Construction is set to take place over the next 18 months, with initial production expected to begin in late 2027. This expansion is intended to enhance Gildan's cost leadership in the innerwear and ring-spun garment categories.

Financial outlook and shareholder returns

Gildan has initiated guidance for fiscal year 2026, projecting revenues between 6.00 billion dollars and 6.20 billion dollars. This represents a year-over-year increase of approximately 65 percent to 70 percent, reflecting the first full year of HanesBrands' contribution. Adjusted diluted earnings per share (EPS) for 2026 is expected to range from 4.20 dollars to 4.40 dollars.

The board of directors approved a 10 percent increase in the quarterly dividend to 0.249 dollars per share. However, the company has paused share repurchases until its leverage ratio returns to the target range.