Kontoor Brands (KTB) Q4 2025 earnings summary

Executive summary

• Achieved record revenue, earnings, and cash flow in 2025, driven by Wrangler growth and Helly Hansen acquisition, with Q4 revenue at $1.02 billion, up 46% year-over-year.

• Returned over $140 million to shareholders via dividends and share repurchases, including $25 million in Q4.

• Project Genius/Jeanius transformation programs delivered significant profit improvement and investment capacity.

• Integration of Helly Hansen exceeded expectations, providing strong revenue and earnings accretion and a 36-point Q4 revenue benefit.

• Strategic priorities for 2026 include further Helly integration, accelerating Wrangler growth, and Lee brand turnaround.

Financial highlights

• Full year 2025 revenue reached $3.15 billion, up 21% year-over-year; Q4 adjusted EPS was $1.73, up 25% year-over-year.

• Adjusted gross margin expanded 210 bps to 46.8% in Q4; full-year adjusted gross margin was 46.6%, up 150 bps.

• Generated over $450 million in cash from operations; year-end cash balance was $108 million.

• Net debt at $1 billion; net leverage ratio at 2.0x.

• Q4 adjusted EBITDA was $163.5 million (16.1% margin); full-year adjusted EBITDA was $508.6 million (16.1% margin).

Outlook and guidance

• 2026 revenue expected at $3.40–$3.45 billion, ~9% growth; adjusted EPS expected at $6.40–$6.50, up 15%–16%.

• Adjusted gross margin forecasted at 47.2%–47.4%, up 60–80 bps; adjusted operating income at $506–$512 million, up 8–9%.

• Cash from operations projected at ~$425 million.

• Voluntary term loan payments of $225 million planned for 2026; net leverage ratio targeted below 1.5x by year-end.

• Outlook includes full-year Helly Hansen contribution and impact from increased tariffs, with larger tariff impact in H1 2026.