GPGI Inc (GPGI) Q2 2026 earnings summary

Executive summary

• Delivered Q2 2026 results in line with expectations and revised guidance, with record performance at CompoSecure and stable or improving results at Husky despite ongoing market headwinds and macroeconomic volatility.

• CompoSecure achieved record sales and margin expansion, driven by premium metal card demand, new program wins, and international expansion; Husky faced demand softness due to elevated oil/resin prices and geopolitical uncertainty but showed sequential improvement.

• Strategic focus remains on deploying the Resolute Operating System (ROS) to drive operational excellence, cost control, and cultural transformation across both businesses.

• Leadership changes and aggressive transformation initiatives, including new CFO and CHRO at Husky, are positioning both segments for long-term growth.

• Completed the acquisition of Husky Technologies Limited, transforming into a diversified permanent capital platform with significant changes in capital structure and management agreements.

Financial highlights

• Q2 2026 pro forma adjusted net sales: $473.2M; CompoSecure: $133.6M (up 11.7% year-over-year); Husky: $339.6M (down 9.2% year-over-year).

• Q2 2026 pro forma adjusted EBITDA: $113.9M (margin 24.1%, down 230 bps year-over-year); CompoSecure: $55.2M (up 14%); Husky: $64.9M (down 23%).

• Q2 2026 GAAP net income: $50.3M; diluted EPS: $0.17.

• Q2 2026 pro forma adjusted free cash flow: $63M; cash and short-term investments: $114.8M; total debt: $2,115.0M.

• Net sales for GPGI Holdings for Q2 2026 rose 295.7% year-over-year due to the Husky acquisition.

Outlook and guidance

• Full-year 2026 guidance reiterated: pro forma net sales $1.95B–$2.1B (flat at midpoint), adjusted EBITDA $550M–$610M (up 7% at midpoint), free cash flow $275M–$325M.

• Adjusted EBITDA margin guidance updated to 27%–29% due to tariff pass-through and mix impact at Husky.

• Expect strong second half with margin expansion at both segments, driven by operating leverage, cost actions, and ROS implementation.

• Targeting year-end net leverage of approximately 3.0x; long-term leverage target 2–2.5x.