# Gildan Activewear Raises 2026 Profit Outlook on Synergy Gains and Tariff Refunds

- URL: https://stocks.freetheai.org/news/gildan-activewear-raises-2026-profit-outlook-on-synergy-gains-and-tariff-refunds-2faefb
- Published: 2026-10-13T17:17:00Z
- Category: earnings; sentiment: bullish; impact: medium
- Symbols: [TSX:GIL](https://stocks.freetheai.org/symbols/TSX-GIL)
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Gildan Activewear Inc. (GIL) raised its full-year 2026 earnings and cash-flow guidance following second-quarter financial results that showed rapid integration cost savings and a significant tariff refund benefit. The apparel maker now projects adjusted earnings of $4.65 to $4.75 per share, up from its prior range of $4.20 to $4.40 per share. Gildan also boosted its 2026 adjusted operating margin forecast to roughly 21.8% and expects free cash flow to reach about $1 billion.

The elevated profit outlook comes even as full-year revenue is expected at the lower end of the previous $6 billion to $6.2 billion target range, pointing to expanding operating margins as the key driver. Earnings are being boosted by approximately $220 million in tariff refunds under the International Emergency Economic Powers Act, with roughly half providing an ongoing structural cost advantage for goods produced in Central America. In addition, Gildan remains on track to secure $100 million in cost synergies this year following its acquisition of HanesBrands.

Investors will be watching how management executes on debt reduction and ongoing business integration. Gildan ended the first half with about $4.7 billion in net debt and a leverage ratio of 3.2 times pro forma adjusted EBITDA. The company plans to use approximately $490 million from the upcoming sale of HanesBrands Australia to lower debt toward its targeted leverage range of 1.5 to 2.5 times EBITDA.

## Key points

- Gildan Activewear raised its 2026 adjusted earnings guidance to $4.65-$4.75 per share from $4.20-$4.40 per share.
- Full-year 2026 free cash flow is now expected to hit roughly $1 billion, up from the prior estimate of over $850 million.
- The company expects $220 million in tariff refunds during 2026, with about half delivering ongoing structural benefits.
- Gildan stays on track for $100 million in cost synergies in 2026 following its HanesBrands acquisition.
- Planned sale of HanesBrands Australia for around $490 million will help pay down net debt of $4.7 billion.

## Questions and answers

### Why did Gildan Activewear raise its 2026 financial guidance?

Gildan Activewear raised its guidance due to faster-than-expected integration synergies from its HanesBrands acquisition and roughly $220 million in tariff refund benefits under trade policy updates.

### What is Gildan Activewear's new earnings forecast for 2026?

Gildan Activewear expects 2026 adjusted earnings of $4.65 to $4.75 per share, up from its previous outlook of $4.20 to $4.40 per share, alongside free cash flow of about $1 billion.

### How does Gildan Activewear plan to reduce its debt?

Gildan Activewear plans to lower its $4.7 billion net debt balance using approximately $490 million in proceeds from the planned sale of HanesBrands Australia.