Delta Galil Industries finished fiscal 2025 with its strongest top line on record and a further lift in gross margin, while operating and net earnings edged down slightly compared with the prior year. For the year ended 31 December 2025, the Israeli textile and apparel group reported revenue of $2.12bn, up 4% from $2.05bn in FY24—delivering Delta Galil FY25 record sales.
Gross profit increased 5% to $900.3m from $856.3m, and gross margin improved by 60 basis points to a record 42.5%, compared with 41.9% a year earlier. However, EBIT excluding non-core items declined to $174.2m from $184.1m. Net income for the year totalled $93.7m, slightly below FY24’s $94.6m, with diluted EPS of $3.21 versus $3.29.
Delta Galil, which supplies major global brands and retailers including Nike, Victoria’s Secret, Lululemon, Skims and Walmart, said its results underscore the strength of its platform and execution. CEO Isaac Dabah said: “I am proud of our performance throughout 2025, which reflects the strength and commitment of our team, the resilience of our balance sheet, our culture of continuous improvement, and the power of our global platform. Together, these fundamentals give us confidence that we are well positioned for another year of profitable growth.”
Fourth quarter: record revenue, higher margins, softer earnings
In the final quarter of the year, the company again set a revenue record, with sales rising 2% to $611.1m from $599.2m in the prior-year period. Gross profit grew 5% to $263.2m from $250.1m, and gross margin expanded to 43.1%, up 140 basis points year on year.
Delta Galil attributed the stronger margin performance mainly to a higher share of direct-to-consumer sales, better factory efficiencies and favourable exchange rates, partly offset by the drag from US tariffs. Even so, fourth-quarter EBIT excluding non-core items fell to $59.3m from $64.7m, while net income excluding non-core items declined 13% to $35.5m from $41.0m.
Reported net income in Q4 2025 was $28.0m, equivalent to diluted EPS of $0.93, compared with $29.5m and $1.00 in the prior-year quarter.
“Our fourth quarter capped an outstanding year of execution in what has been a challenging retail environment. We successfully navigated the impact of US tariffs, expanded programs with key global customers, and delivered record sales driven by organic growth across most of our channels, geographies, and product lines. At the same time, we continued to make strategic investments in our factories and distribution centres to improve efficiencies, which enhanced our operations, brands and capabilities,” Isaac Dabah added.
2026 guidance
Looking ahead, the company is forecasting higher revenue and earnings in fiscal 2026. Delta Galil expects sales between $2.29bn and $2.33bn, with EBIT projected at $204m to $212m and EBITDA at $324m to $332m. Net income is guided to $116m–$123m, implying diluted EPS of $4.00–$4.23. The outlook follows Delta Galil FY25 record sales and signals management’s expectation that growth and efficiency initiatives will carry into the new year.