Menu Search

Company Announcements

Delta Galil Industries Ltd

Delta Galil Reports Record First Quarter 2026 Results

Record First Quarter Sales of $573.0 Million

Record First Quarter Gross Profit Expanded 18% to $238.8 Million

Record First Quarter EBIT and EBITDA

Record First Quarter Cash Flow from Operating Activities, Excluding IFRS 16, of $27.9 Million, Compared to $4.0 Million in the Same Period Last Year

$8 Million Dividend Declared for the First Quarter 2026

Company Reaffirms the 2026 Guidance

CAESAREA, Israel--(BUSINESS WIRE)--May 11, 2026-- Delta Galil Industries, Ltd. (DELG/Tel Aviv Stock Exchange), the global designer, manufacturer and marketer of branded and private label intimate, activewear, loungewear and denim apparel for ladies, men, and kids, today reported financial results for the first quarter ended March 31, 2026.

  • First quarter sales increased across all geographies and business segments by 15% (10% in constant currency) to a first quarter record of $573.0 million, compared to $498.7 million in the first quarter of last year
  • First quarter gross profit expanded 18% year-over-year to a first quarter record of $238.8 million
  • Record first quarter of EBIT excluding non-core items of $36.6 million, compared to $32.7 million in the first quarter of last year
  • Strong Balance sheet with $123.9 million in cash and record shareholders’ equity of $906.8 million at March 31, 2026
  • Declares an $8 million dividend for the first quarter of 2026, compared to $8 million for the first quarter last year

Isaac Dabah, CEO of Delta Galil, stated, “2026 is off to a strong start, reflecting the strength of Delta Galil’s global platform, the value of our brands, and our team’s ability to execute at a high level in a dynamic environment. We grew our sales across all segments, delivered record first quarter sales, gross profit, EBIT, EBITDA and operating cash flow. These results were driven by higher U.S. sales to our established and growing customer base, expansion of our owned brands due to continued product innovation, and the benefits of our strategic investments in global sourcing, production, and distribution capabilities.”

“I am encouraged by the positive momentum underway across the business, particularly as our investments in innovation, manufacturing flexibility, and customer partnerships continue to translate into measurable results. Our focus remains on executing with discipline, supporting the evolving needs of our customers and consumers, and leveraging the breadth of our global platform to capture opportunities for profitable growth in 2026 and beyond,” concluded Mr. Dabah.

Sales

First quarter sales increased 15% to a first quarter record of $573.0 million, compared to $498.7 million in the first quarter of 2025. Sales in constant currency increased 10% compared to the first quarter last year.

Gross Margin

Gross profit in the first quarter grew 18% to a first quarter record of $238.8 million compared to $202.6 million in the first quarter of 2025.

Gross margin in the first quarter of 2026 increased by 110-basis points to 41.7%, compared to 40.6% in the first quarter of 2025. The year-over-year increase in the first quarter gross margin was due primarily to continued improved efficiency of our factories and positive exchange rates.

EBIT

EBIT, excluding non-core items in the first quarter of 2026 was a first quarter record of $36.6 million, compared to $32.7 million in the prior year. EBIT in the first quarter of 2026 was a first quarter record of $35.1 million, compared to $32.7 million, in the first quarter last year.

The year-over-year increase in EBIT for the first quarter was primarily due to higher sales and ongoing improvement in efficiencies in the Company’s factories partially offset by higher SG&A expenses mainly due to exchange rates, higher logistic costs, and new business investments and expansion.

Non-Core Items

Non-core items in the first quarter of 2026 include changes in fair value of liability with respect to conditioned consideration.

Net Income

Net income excluding non-core items, net of tax, in the first quarter of 2026 remained unchanged compared to the first quarter last year and amounted to $17.6 million. Net income in the first quarter of 2026 was $16.4 million, compared to $17.6 million in the same period last year.

Diluted Earnings Per Share

Diluted earnings per share, excluding non-core items, net of tax, were $0.63 in the first quarter of 2026, compared to $0.62 in the first quarter of 2025. Diluted earnings per share in the first quarter of 2026 was $0.59, compared to $0.62 in the first quarter last year.

EBITDA, Cash Flow, Net Debt, Equity, and Dividend

EBITDA, excluding IFRS 16, was a first quarter record of $44.9 million, compared to $40.5 million in the first quarter of 2025.

Cash flow generated from operating activities, excluding IFRS 16, was a first quarter record of $27.9 million, compared to $4.0 million in the first quarter of 2025. The year-over-year increase in operating cash flow was primarily due to reduction in working capital, primarily attributed to lower inventory level and improved customer terms and mix.

Net Debt to EBITDA, excluding IFRS 16, as of March 31, 2026, was 0.9x.

Equity on March 31, 2026, was a record $906.8 million, compared to $817.7 million on March 31, 2025.

Delta Galil declared a dividend of $8 million, or $0.305 per share, which will be distributed on June 2, 2026, with a record and “ex-dividend” date of May 19, 2026.

202 6 Financial Guidance

The Company reaffirmed its 2026 guidance, which excludes non-core items, and is based on 1.15 US $ per 1 Euro, 3.00 NIS per 1 US $ and current tax and duty rates

 

Full Year 2026 Guidance

(in millions, except per share amount)

 

Full Year 2025 Results

(in millions, except per share amount)

 

 

 

 

Sales

$2,294 – 2,328

 

$2,118.9

EBIT

$204 - 212

 

$174.2

EBITDA

$324 - 332

 

$282.8

Net income

$116 - 123

 

$102.6

Diluted EPS ($)

$4.00 - 4.23

 

$3.55

Constant Currency - Excluding the Impact of Foreign Currency

This release refers to “reported” amounts in accordance with IFRS accounting principles (“GAAP”), which include translation and transactional impacts from foreign currency exchange rates. The release also refers to “constant dollar” amounts, which exclude the impact of translating foreign currencies into U.S. dollars, and are considered a non-GAAP financial measure. These constant currency performance measures should be viewed in addition to, and not in lieu of, or superior to, Delta Galil’s operating performance measures calculated in accordance with GAAP.

About Delta Galil Industries

Delta Galil is an innovative, global company engaged in the design, development, production and marketing of intimate apparel and activewear. The Company offers products in a wide range of categories – Ladies intimates, men’s underwear, loungewear, activewear, sleepwear, shapewear and socks. The Company's main markets are the U.S., Europe and Israel.

Delta Galil's leading customers include Nike, Victoria's Secret, Lululemon, Skims, Walmart and others. In addition, the Company owns a wide portfolio of owned brands such as Delta, Schiesser, Eminence, Athena, Splendid PJ Salvage and under license agreements for leading brands such as adidas, Columbia, Calvin Klein, Tommy Hilfiger and others. The Company also designs, develops, markets and sells denim under the Seven for All Mankind brand.

Delta Galil has a vertically integrated and global production and distribution platform that includes the entire value chain, from the design stage to the delivery of the final product, which allows for operational flexibility, high efficiency and rapid response to market changes.

The Company's CEO and controlling shareholder is Mr. Isaac Dabah, who has extensive, global experience in the fashion and apparel sector.

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, tax rates in the various countries the Company operates in, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

Source: Delta Galil Industries, Ltd.

DELTA GALIL INDUSTRIES LTD.
Concise Consolidated Balance Sheets
As of March 31, 2026
 

 

March 31

 

December 31

 

2026

 

2025

 

2025

 

(Unaudited)

 

(Audited)

 

Thousands of Dollars

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

121,716

 

90,188

 

133,973

Restricted Cash

2,151

 

1,732

 

1,802

Trade receivables

213,020

 

210,538

 

223,418

Income taxes receivable

5,315

 

2,805

 

2,569

Other accounts receivable

62,297

 

58,809

 

64,229

Financial derivative

1,621

 

8

 

1,390

Inventory

440,376

 

458,085

 

430,348

Asset held for sale

2,997

 

1,773

 

2,997

Total current assets

849,493

 

823,938

 

860,726

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

Investments accounted for using the equity method and long-term receivables

13,024

 

12,825

 

13,150

Investment property

2,443

 

2,464

 

2,513

Property, plant and equipment, net, including assets under construction

362,155

 

302,825

 

356,365

Goodwill

188,022

 

139,411

 

188,877

Brand names

156,128

 

134,230

 

157,704

Intangible assets, net of accumulated amortization

178,844

 

163,228

 

165,186

Right of use assets

354,561

 

288,825

 

294,733

Deferred tax assets

36,696

 

31,694

 

36,562

Financial derivative

3,567

 

170

 

3,202

Total non-current assets

1,295,440

 

1,075,672

 

1,218,292

Total assets

2,144,933

 

1,899,610

 

2,079,018

DELTA GALIL INDUSTRIES LTD.
Concise Consolidated Balance Sheets
As of March 31, 2026
 

 

March 31

 

December 31

 

2026

 

2025

 

2025

 

(Unaudited)

 

(Audited)

 

Thousands of Dollars

Liabilities and Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term bank loans

97,998

 

12,014

 

96,437

Current maturities of long term bank loans

24,543

 

21,567

 

23,759

Current maturities of bonds

32,062

 

29,471

 

31,625

Financial derivative

-

 

1,222

 

-

Current maturities of leases liabilities

78,556

 

79,323

 

72,690

Trade payables

216,845

 

235,619

 

188,055

Income taxes payable

12,782

 

18,661

 

21,146

Provision for realignment plan

2,449

 

7,303

 

2,898

Others payables

188,413

 

173,623

 

207,634

Total current liabilities

653,648

 

578,803

 

644,244

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

Bank loans

132,258

 

118,310

 

141,455

Post-employment benefits obligation, net

5,980

 

5,418

 

6,081

Lease Liabilities

307,621

 

230,972

 

253,299

Other non-current liabilities

64,211

 

48,103

 

54,695

Bonds

38,092

 

63,291

 

38,274

Deferred taxes liabilities

36,370

 

34,079

 

37,371

Financial derivative

-

 

2,957

 

-

Total non-current liabilities

584,532

 

503,130

 

531,175

Total liabilities

1,238,180

 

1,081,933

 

1,175,419

 

 

 

 

 

 

Equity:

 

 

 

 

 

Equity attributable to shareholders in the parent company:

 

 

 

 

 

Share capital

23,714

 

23,714

 

23,714

Share premium

123,290

 

123,800

 

123,184

Other capital reserves

53,662

 

23,651

 

56,352

Retained earning

684,096

 

632,409

 

678,210

Treasury shares

(7,864)

 

(9,464)

 

(8,848)

 

876,898

 

794,110

 

872,612

Non-controlling interests

29,855

 

23,567

 

30,987

Total equity

906,753

 

817,677

 

903,599

Total liabilities and equity

2,144,933

 

1,899,610

 

2,079,018

DELTA GALIL INDUSTRIES LTD.
Concise Consolidated Statement of Income
For the three-month period ending March 31, 2026
 

 

Three months ended March 31

% Increase/(Decrease)

 

2026

 

2025

 

 

(Unaudited)

 

 

Thousands of Dollars

 

 

Except for Earning Per Share data

 

 

 

 

 

 

 

 

 

 

 

Sales

572,973

 

498,670

15%

Cost of sales

334,213

 

296,082

 

Gross profit

238,760

 

202,588

18%

% of sales

41.7 %

 

40.6 %

 

Selling and marketing expenses

170,572

 

142,346

20%

% of sales

29.8 %

 

28.5 %

 

General and administrative expenses

31,826

 

28,048

13%

% of sales

5.6 %

 

5.6 %

 

Other income, net and Share in profits of investees accounted for using the equity method

(244)

 

(486)

 

Operating income excluding non-core items

36,606

 

32,680

12%

% of sales

6.4 %

 

6.6 %

 

Non-core items

1,479

 

-

 

Operating income

35,127

 

32,680

7%

Financing expenses, net

13,075

 

9,597

36%

Income before tax on income

22,052

 

23,083

 

Income taxes expenses

5,652

 

5,480

 

Net income for the period

16,400

 

17,603

(7%)

Net income for the period excluding non-core items, net of tax

17,635

 

17,603

0%

 

 

 

 

 

 

 

 

 

 

Attribution of net earnings for the period:

 

 

 

 

Attributed to Company's shareholders

15,394

 

16,219

 

Attributed to non-controlling interests

1,006

 

1,384

 

 

16,400

 

17,603

 

 

 

 

 

 

Net diluted earnings per share attributed to company's shareholders

0.59

 

0.62

(5%)

Net diluted earnings per share, before non-core items, net of tax, attributable to Company's shareholders

0.63

 

0.62

2%

DELTA GALIL INDUSTRIES LTD.
Concise Consolidated Cash Flow Reports
For the three-month period ending March 31, 2026
 

 

Three months ended March 31

 

2026

 

2025

 

(Unaudited)

 

Thousands of Dollars

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

Net income for the period

16,400

 

17,603

Adjustments required to present cash flows from operating activities

54,809

 

19,748

Interest paid in cash

(10,595)

 

(8,961)

Interest received in cash

635

 

439

Income taxes paid in cash, net

(16,964)

 

(10,393)

Net cash generated from operating activities

44,285

 

18,436

 

 

 

 

Cash flows from investment activities:

 

 

 

Acquisition of property, plant and equipment including assets under construction

(12,577)

 

(20,635)

Acquisition of intangible assets

(7,120)

 

(5,320)

Proceeds from sale of property, plant and equipment

23

 

1,724

Others

(359)

 

(407)

Net cash used in Investing activities

(20,033)

 

(24,638)

 

 

 

 

Cash flows from financing activities:

 

 

 

Dividend paid to non-controlling interests in subsidiary

(2,734)

 

(1,679)

Payment of long-term payable in connection with acquisition of property, plant and equipment under construction

(1,961)

 

(1,203)

Principal elements of lease payments

(16,375)

 

(14,386)

Dividend paid

(10,022)

 

(10,023)

Receipt of long-term bank loans

-

 

967

Repayment of long-term bank loans

(7,844)

 

(7,434)

Short-term credit from banking corporations, net

1,630

 

9,463

Others

1,001

 

(232)

Net cash used in financing activities

(36,305)

 

(24,527)

Net decrease in cash and cash equivalents

(12,053)

 

(30,729)

 

 

 

 

Effects of exchange rate changes on cash and cash equivalents

(204)

 

408

 

 

 

Balance of cash and cash equivalents at the beginning of the period

133,973

 

120,509

Balance of cash and cash equivalents at the end of the Period

121,716

 

90,188

DELTA GALIL INDUSTRIES LTD.
Concise Consolidated Cash Flow Reports
For the three-month period ending March 31, 2026
 

 

Three months ended March 31

 

2026

 

2025

 

(Unaudited)

 

Thousands of Dollars

Reconciliations required to present cash flows generated by operating activities:

 

 

 

Adjustments in respect of:

 

 

 

Depreciation

9,017

 

8,263

Amortization

20,536

 

16,812

Interest in respect of bonds and loans

6,301

 

5,623

Interest received in cash

(635)

 

(439)

Taxes on income paid in cash, net

16,964

 

10,393

Deferred taxes on income, net

(412)

 

(1,701)

Interest expenses recognized in respect of lease agreements

4,294

 

3,338

Retirement benefit obligation, net

(26)

 

(514)

Change in realignment provision

(449)

 

(839)

Change in fair value of liability due to contingent consideration

1,479

 

24

Loss (Gain) from disposal of property, plant and equipment

4

 

(477)

Share-based payments expenses

609

 

414

Share in profits of investee accounted for using the equity method

50

 

147

Others

(2,098)

 

84

 

55,634

 

41,128

Changes to operating assets and liabilities:

 

 

 

Decrease in trade receivables

7,797

 

63,763

Increase in other receivable

(1,129)

 

(1,888)

Increase (decrease) in trade payables

32,718

 

(6,604)

Decrease in other payables

(27,948)

 

(23,823)

Increase in inventory

(12,263)

 

(52,828)

 

(825)

 

(21,380)

 

54,809

 

19,748

 

For more information:
Nissim Douek
+972-54-5201178
Nissim@unik.co.il

U.S. Media Contact:
Stacy Berns
Berns Communications Group
+1-212-994-4660
sberns@bcg-pr.com

Source: Delta Galil Industries, Ltd.