Gildan Activewear Inc. published the transcript of its Q4 and full-year 2025 earnings conference call, covering quarterly and annual results and providing initial guidance for 2026 following the company’s acquisition of HanesBrands. The call was attended by management including Glenn J. Chamandy (Co-Founder, President, CEO and Director), Luca Barile (Executive VP and CFO), Chuck J. Ward (Executive VP and Chief Commercial Officer), and Jessy Hayem (Senior VP, Head of Investor Relations and Global Communications). Analysts on the call included representatives from Citigroup, TD Cowen, Desjardins Securities, UBS, Stifel, RBC Capital Markets, BMO Capital Markets, National Bank Financial, and Scotiabank. Management highlighted record 2025 revenue from continuing operations of about $3.6 billion, adjusted operating margin of 21.5%, and adjusted diluted EPS from continuing operations of $3.51, which includes HanesBrands’ contribution from the December 1, 2025 close. “2025 was another important year for Gildan,” Chamandy said. A key focus was integration progress and raised synergy expectations from the HanesBrands deal. Chamandy said integration is “progressing ahead of plan,” and the company now expects approximately $250 million in run-rate cost synergies over three years, up from $200 million previously, with “approximately $100 million per year in 2026 and 2027 and at least $50 million in 2028.” Gildan also plans to close Hanes’ two textile factories in early 2026, shifting production into Gildan’s network; management said this will create short-term capacity tightness and a “temporary reduction of inventory levels across customer channels.” The company also announced it is moving forward with Phase 2 of its Bangladesh complex, with construction over the next 18 months and initial production expected in the later part of 2027. Chamandy called the expansion “central to reinforcing our cost leadership in ring spun and in innerwear.” Gildan said HanesBrands Australia (HAA) has been classified as held for sale and reported as discontinued operations, and the company has launched a formal sale process. CFO Luca Barile said proceeds would be used to pay down debt and support a return to the company’s leverage framework. For 2026 (excluding HAA), Gildan guided to revenue of $6.0 billion to $6.2 billion, adjusted operating margin of approximately 20%, adjusted diluted EPS of $4.20 to $4.40, and free cash flow above $850 million. Barile noted the outlook reflects the temporary inventory reduction and integration actions, while Chamandy said the company has “enough sales capacity today to support the guide of the 3% to 5% over the 3-year period.” The full transcript can be accessed through the link below.

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