GPGI, Inc. (GPGI) · Nov 5, 2026 · Earnings

GPGI earnings in line, but Husky pressure cuts 2026 guidance

Guidance cut — FY26 EBITDA midpoint $535M vs. prior $580M

GPGI’s third-quarter earnings were broadly in line, but Husky margin pressure drove a material 2026 EBITDA guidance cut despite a stronger fourth-quarter outlook.

GPGI is a two-business platform: CompoSecure is delivering strong demand and margin execution, while Husky is still working through weak equipment demand and elevated input-cost pressure. The prior outlook already assumed Husky weakness but expected a second-half rebound and roughly 7% full-year EBITDA growth.

The quarter itself was broadly on plan. Pro forma adjusted sales were $509.6 million, up 4.5% year over year, while pro forma adjusted EBITDA reached $146.3 million, up 6.6%, with margin expanding to 28.7%. Adjusted diluted EPS of $0.26 was slightly above the published ~$0.25 consensus, but management explicitly characterized the quarter as in line with expectations rather than a meaningful beat. 〔0〕

MetricQ3 2026Q3 2025Consensus / prior guide
Pro forma adjusted sales (Financial Results)$509.6M (+4.5%)$487.9M~$471M consensus
Pro forma adjusted EBITDA (Financial Results)$146.3M (+6.6%)$137.3M—
Adjusted diluted EPS (EPS reconciliation)$0.26$0.29~$0.25 consensus
FY26 sales guidance (Financial Highlights)$2,034–$2,064M—$1,950–$2,100M prior
FY26 EBITDA guidance (Financial Highlights)$520–$550M—$550–$610M prior
FY26 free cash flow guidance (Financial Highlights)$250–$300M—$275–$325M prior

The important change is the full-year reset. The new EBITDA midpoint of $535 million is about 8% below the prior $580 million midpoint, while the sales midpoint falls only modestly from $2.025 billion to $2.049 billion. That combination says the problem is less about demand collapsing across the platform than about Husky’s profitability and operating leverage. 〔1〕

CompoSecure is cushioning, not fixing, the issue. The release describes record strength at CompoSecure and improving Husky demand, but the revised guidance still embeds a 2% year-over-year EBITDA decline at the midpoint. The company is therefore executing well in its stronger business while the weaker business remains expensive to carry through the recovery. GPGI also reports $2.097 billion of adjusted debt against $175.8 million of adjusted cash and short-term investments, leaving less room for a prolonged margin setback.

The fourth-quarter outlook is encouraging but does not undo the reset. GPGI expects fourth-quarter EBITDA growth of 8% at the midpoint and says it anticipates returning to its long-term growth algorithm in 2027 as Husky’s pipeline, orders, and aftermarket activity improve. That is a recovery thesis, not current proof: the near-term filing lowers the earnings base while asking investors to look toward 2027 for normalization. 〔2〕

Bottom line: GPGI delivered the expected quarter, but the business is not yet back on its original 2026 profit path. CompoSecure remains a clear offset; Husky’s margin pressure makes the overall update modestly negative until the promised 2027 recovery becomes visible in results.

What to watch next

Q4 results, early 2027

Original filing on SEC EDGAR

More GPGI, Inc. news

GPGI earnings in line, but Husky pressure cuts 2026 guidance | GPGI Stock News
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